Update from the processing sector

Processor ISI sees boost for first half revenues

Iceland Seafood International (ISI), which has expanded into salmon in a big way in recent months, has posted a healthy increase in profits and revenue for the first half of this year

SALES shot up by 15% to €208.3m while the pre-tax profits more than doubled from €2.2m in H1 2020 to €4.8m this time.

It said there had been strong growth in southern Europe, notably Spain and Italy, and its Irish businesses had performed particularly well during the period.

Ten months ago it completed the acquisition of the specialist artisan Irish smoked salmon business Carr & Sons for €6.5m.

Then in May this year it acquired an 80% stake in the premium-quality Spanish salmon processor Ahumados Dominguez.

The last move was the latest in a series of major acquisitions by this fast-expanding global seafood trader, which has extensive interests across the globe, including the UK, where it owns Grimsby-based Havelok Seafood.

ISI said the first two months of this year got off to a slow start, but result showed a good recovery after that.

“Sales growth in southern Europe was driven by strong demand in Spain and Italy from March onwards, after easing of Covid-19 restrictions.

“Total divisional sales during H1 2021 at €77.8m were 24.1% up on same period last year. Demand in the HORECA sector is recovering, but activity is still significantly below pre-Covid-19 levels.

“At the same time retail sales are increasing, with new retail agreement kicking in during Q2. The sales team in retail were strengthened with recruitment of an experienced sales manager in the period.

“The proposed acquisition of Ahumados Dominguez will strengthen and broaden Iceland Seafood’s retail position in Spain, and opens new opportunities selling high-quality salted cod products in Spanish retail.”

In Ireland operations continued to perform well, showing significant sales growth from previous year. The

“Food-service sales have improved”

Irish entities were well prepared for Brexit, the company said, and in a better position to service local retail customers than suppliers outside Ireland.

The merger and integration of the UK operation continued to be challenging during Q2. The process has been more complex and costly than anticipated, not helped by external factors such as Brexit, Covid and disruptions in transportation, especially from Asia.

ISI added: “Foodservice sales have improved following easing of restrictions in May and June, but activity is still well below pre-Covid levels. Actions were taken... to improve efficiency.

“With Iceland Seafood’s strong customer base and the new state-of-the-art Grimsby factory, the outlook and potential for the UK business remains strong, whilst this year results will be severely impacted by the situation.”

Joint venture promotes sustainable shellfish

TWO family-owned shellfish businesses in the UK and the Netherlands have teamed up in a joint venture to produce a new range of cooked mussel dishes.

Krijn Verwijs Yerseke BV from the Netherlands (which trades under the “Premier” brand) and UK-based Offshore Shellfish Ltd are the joint owners of Premier Offshore VOF, which was incorporated into Dutch law at the beginning of September.

The owners said the new venture offers “a new vision for rope-grown, pre-cooked mussels, which require just a few minutes in a pan or microwave to produce a restaurant-quality meal”. The new products will be sold alongside Offshore and Premier’s fresh shellfish.

Developed by top Dutch development chef Asher Bachrach, the initial range includes a taste of the Orient with Bangkok Mussels, a traditional French dish with Avignon Mussels, and a taste of Belgium with Classic Mussels.

Offshore Shellfish farms sustainable shellfish in what was previously an environmentally degraded area off the coast of south-west England.

Co-founder and Managing Director John Holmyard said: “It is very exciting to be working with such a prestigious and established company as Krijn Verwijs. Our aims and objectives on ‘green’, ‘blue’ marine development match each other well. The new collaboration will be of great benefit to both businesses, and will make our mussels available to consumers across Europe and further afield.”

He added: “It is rewarding to see that our mussel farm has created a habitat that has resulted in an increase in biodiversity and productivity of the area. Our mussel lines and the surrounding seabed provide a wide range of ecosystem services, including food, shelter, nursery areas and protection for many marine species, from shrimp to lobsters, seaweed to sea urchins.”

Offshore Shellfish grows native blue mussels (Mytilus edulis) on suspended ropes in the open sea, between three and six miles away from the shore. Mussels are grown at low density in strong, oceanic currents.

SalMar chief buys into German seafood business

SalMar’S President and CEO, Gustav Witzøe, is continuing his expansion plans by buying into a German seafood business – one that deals in wild-caught fish as well as the farmed variety.

He used his investment company, Kverva Industrier aS, to acquire a 45% stake in lübbert GmbH & Co, based in Bremerhaven.

Lübbert said: “With Kverva by our side, we have access to resources for ever-increasing growth. We are excited to be able to work with one of the industry’s most important and largest players.”

The two businesses have worked closely together for some time and say the new partnership will strengthen these connections while maintaining the independence of the individual companies.

“The investment in Lübbert is an excellent opportunity to strengthen and further support the development for the Kverva companies in the German market. We are very happy to embark on this journey together with the Lübbert team,” said Olav Holst-Dyrnes, Investment Director with Kverva.

The management of Lübbert will continue as previously, with Sven Braasch and Birte Tutas as managing directors. lübbert deals in a variety of fish, including cod, haddock, tuna and swordfish, and it is a distributor for Norwegian brand Frøya sushi-grade salmon.

Witzøe has been very busy of late launching a potentially exciting offshore farming venture with the technical investment company Aker ASA and buying a stake in Refsnes Laks, a family-owned salmon business in Norway.

However, he missed out on his bid for Norway Royal Salmon, which went to NTS.