Regal Record Rebuts Recession

MEDIA RELEASE
8 January 2009

Regal Record Rebuts Recession

Flagship brand Regal Salmon© has led a 30 per cent jump in December New Zealand sales for The New Zealand King Salmon Company.

The company has always had good growth in the highest demand month of December but the almost one-third jump in NZ sales are in contrast to most commentators’ predictions of a tight economic climate for consumer spending. Prices were only slightly up on last year as the company looked to recover some external inflation costs.

Some export markets have been less buoyant, however the weaker Kiwi currency has boosted New Zealand King Salmon’s export returns.

New Zealand King Salmon chief executive Paul Steere says the result reflects a remarkable effort by the company’s sales team.

“To support our team we have continued to broaden our product portfolio as well as focusing on producing the best quality salmon available from grow-out while also enhancing our processing and distribution abilities.”

Mr Steere says Kiwi consumers are demanding Regal salmon as a mainstream protein.

“With its high Omega-3 content plus being an excellent source of protein, vitamins and minerals including selenium, Regal salmon is one of the safest and best foods for wellbeing of all ages.”

New Zealand King Salmon sales rose by 13 per cent during the calendar year to just under $80 million. Strongest sales growth was in the NZ market followed by North America where sales to Canada more than doubled and were up by 30 per cent to the USA.

Japanese sales were slightly down as the company maintained its product premium in the face of discounted competing supply. Similarly Australian growth was weaker than previous as Tasmanian production surged.

The broadening of the product portfolio provided growth in the company’s value added range of products as the sales gains of 13 per cent were from only a one per cent increase in volume. A long term contract for value added items in North America, high specified salmon to Europe and continued growth of specialty products in New Zealand saw better than ever revenue contributions per harvested salmon.

“It has been a momentous year for the company with both highs and lows,” Mr Steere says. “It is very encouraging to end the year on a high, especially with the growing Kiwi preference for our Regal salmon as a versatile, nutritious and tasty food at an economical price.”

ENDS

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