immediately adjacent to the United States. Today, about 50 

 per cent is imported. In other words, half of our raw materials 

 is imported — from Canada, Mexico, Norway, Iceland, India, 

 South Africa, etc. 



The value of these imports has gone up correspondingly. 

 In 1953, the Government placed it at about 200 million 

 dollars. In 1963, imports were valued at $400 million, an 

 increase of 100 percent. 



To illustrate this change with a specific product — shrimp — 

 with which I happen to be personally familiar. In 1950, the 

 United States and Mexico produced almost all the shrimp con- 

 sumed in the United States. Today, 20 percent comes from 

 over 48 other countries. 



Now let's look at perhaps the most far-reaching aspect of 

 the changes in our industry — the forms in which our products 

 come to market. 



Originally, the American houswife bought our products at 

 the fish counter, packed and shipped in ice or cured or canned. 

 And then something happened. First, Frozen Fillets and then 

 Fish Sticks made their appearance, and the world of fish and 

 seafood really started changing. In 1953, there was marketed 

 a grand total of only 7.5 million pounds of sticks. Contrast 

 with this 1963, when 79.2 million pounds were marketed, an 

 increase of almost 1,000 percent in just ten years. Fish sticks 

 had caught on — and were to be followed rapidly by portions 

 and other convenience products. 



In 1950, the Breaded Shrimp Industry marketed 6j/o mil- 

 lion pounds. By 1964, sales of this convenience food had 

 grown to 81 million pounds — an increase of over 1100 per- 

 cent — another industry success story. 



Thus you begin to see what has taken place — imports in 

 ever-increasing quantities to supplement domestic catch, and 

 exciting new products being created and marketed for hungry 

 millions, many getting acquainted with our products for the 

 first time. 



There has been another radical change in marketing — the 

 way and place the American housewife shops for food. 



In the early 1950's, she did 50 percent of her shopping in 

 "old-fashioned" grocery stores — where she was waited upon by 

 a clerk. In 1963, 92 percent of the total volume of food sales 

 was handled through supermarkets and similar large self-service 

 stores. 



In 1963, in other words, so-called "impulse buying" was 

 well established. The housewife went into her supermarket 

 and picked fishery products from frozen food cabinets. 



From this analysis, I think we can conclude that there has 

 been a revolution in marketing fishery products in recent years 

 and that the old days have gone forever. But we should not, 

 everything considered, relax and feel that we have nothing to 

 worry about. And so, what about the future? Eric Turnill 

 will tell you something about this. 



Eric Turnill: John Mehos has given you the more significant 

 changes in our industry over the past few years. I wish now 

 to speculate on what our industry should be prepared for in 

 the next ten years, using as a reference projections and studies 

 made by Mr. Arnold Johnson, Senior Economist, J. Walter 

 Thompson Co. 



The postwar revolution in retailing food products has been a 

 creditable experience, providing the consumer the means to 

 buy efficiently and relatively inexpensively compared with pre- 

 war years. The food industry has kept pace and, indeed, in 

 some instances has pioneered new distribution and retailing 

 methods. I believe our industry has more than played its 

 part. I think it creditable that while we may, on occasion, 

 have complained about relatively small per-capita consumption 

 of seafoods in North America, that we did initiate the frozen 

 food revolution and the development of prepared foods. This 

 is very likely to provide us with even greater future challenges. 

 Firstly, let's consider the market. While my references are 

 specifically the United States, I am sure that a parallel exists 

 throughout North America. 



The American population is increasing as a result of natural 

 increase as well as immigration. This is taking place at the rate 

 of about V-f-z'A per year, or 4 million people are being added 

 to the American consuming population each year. In terms of 

 fish and seafood, this represents about 40 million pounds of new 

 sales every year. The population of the United States in 1965 

 is estimated to be 190 million. In 1975 it is likely to be 231 

 million, an increase of 21 r < . This, of course, demonstrates 

 clearly that we will have available then an additional market 

 of over 40 million people. 



There is, of course, another significant feature about this 

 market — the American consumer will have more money. Our 

 authority expects that the basic income of the American family 

 will increase 25% between 1965 and 1975. Even more sig- 

 nificant than the expected increase in basic income will be the 

 amount of money per family above the bare necessities. This 

 so-called spare money will increase much more rapidly than 

 basic income. In fact, the average family will have an esti- 

 mated 98% more "discretionary spending money" available 

 in 1975 than in 1965. I think it inevitable that competition 

 for this money will be more intense and, therefore, we must 

 be more aggressive in our marketing and merchandising ap- 

 proach. Again, the American consumer will likely buy better 

 food, more sophisticated and higher priced foods, and foods 

 more nutritious, healthful and convenient; more prepared 

 seafoods, shrimp, lobster, halibut, salmon, etc. Estimates of 

 Government and industry say Americans will probably spend 

 75% more for food in 1975 than now. 



Here is what this means. Today, the American family- 

 spends $1,034.00 for food eaten at home. In 1975, this figure 

 will be $1,809.00, or an increase of 80%. Also the American 

 consumer will spend 70% more for food consumed away from 

 home — at hotels, restaurants, clubs, drive-ins, etc. 



The circumstances or the conditions under which the con- 

 sumer will buy will tend toward automatic and almost com- 

 pletely self-service. To meet this, the requirements of presell- 

 ing will have to be emphasized. Competition from other foods 

 and demands on the consumer's income, together with the 

 continuing trend of removing the consumer from personal 

 contact, will require aggressive promotion and, above all, edu- 

 cation of the consumer to the advantages of fish and seafoods. 

 This must be a continuing program. It is not self perpetuat- 

 ing. Each generation of consumers has to be educated. We 



38 



