Export Strategy for Royal Greenland A/S (Year 2023)

Client Overview

Royal Greenland A/S, a major player in the global seafood market, has built a robust portfolio in the production and sale of premium shrimp, fish, and other marine products. Based in Greenland, the company has a widespread presence in Europe, North America, and Asia. Royal Greenland has established itself as a leader in providing high-quality, sustainable seafood, with a special emphasis on sustainably farmed and wild-caught shrimp. Its shrimp offerings are a significant part of its product range, and the company seeks to expand its presence in international export markets.

Research Objective

The objective of this project was to provide Royal Greenland A/S with a detailed export strategy for its shrimp products. The goal was to explore high-growth markets, understand regional consumer preferences, analyze competitor positioning, assess distribution models, and ultimately help the company expand its export reach in regions including the United States, the European Union, and the Middle East. The aim was to position Royal Greenland as a premium, sustainable shrimp supplier globally and enhance its competitiveness in the global shrimp market.

Scope of Work

FMI was engaged to undertake an in-depth analysis of the shrimp export market and formulate a comprehensive strategy for Royal Greenland. The scope included:

1. Demand-side Analysis: Identifying high-growth export markets for shrimp products and assessing demand in key regions.
2. Competitive Landscape Analysis: Evaluating Royal Greenland’s competitive positioning and identifying opportunities for differentiation.
3. Regulatory and Certification Requirements: Understanding the necessary certifications and compliance requirements for shrimp exports in various regions.
4. Pricing and Product Strategy: Developing a competitive pricing model based on market demand and competitor pricing strategies.
5. Distribution Channels: Identifying the most effective distribution channels and potential partnerships to optimize export operations.

FMI’s Approach & Solution

Market Segmentation & Demand Analysis:

FMI began by identifying and analyzing key global markets for Royal Greenland’s shrimp. Key focus regions included the USA, EU, and Middle East. Data on consumer preferences, regional demand for sustainably sourced shrimp, and price sensitivity were gathered. For instance, FMI highlighted that the USA market had a rising preference for responsibly sourced seafood, while the Middle East showed a growing demand for premium, high-quality shrimp. The EU was identified as a mature market with a clear preference for certified sustainable products, creating a lucrative opportunity for Royal Greenland.

FMI's research also included assessing the shrimp consumption patterns and identifying which product formats (frozen, fresh, IQF, peeled, tail-on, etc.) were in high demand. The research revealed that in Europe, frozen and IQF shrimp had high demand, while the Middle East showed a preference for larger-sized whole shrimp. This regional variation helped tailor Royal Greenland's export strategy, focusing on the formats that best matched each market's needs.

Competitive Landscape & Positioning:

A detailed competitor analysis was performed to understand how Royal Greenland’s shrimp offerings compared to other major players in the market, including Thai Union Group, CP Foods, and Mowi ASA. FMI analyzed competitors’ pricing models, product offerings, market share, and sustainability initiatives. Key findings indicated that sustainability was a major competitive advantage, especially in European markets. Royal Greenland’s certification efforts (ASC, MSC) were positioned as a key differentiator in the market.

FMI provided insights into how Royal Greenland could position itself in the competitive landscape by emphasizing its commitment to sustainability. By aligning its marketing efforts around eco-friendly and sustainable shrimp farming, Royal Greenland could effectively compete with major players who were also investing heavily in sustainability but lacked the same focus on premium product differentiation.

Market Entry & Expansion Strategy:

Based on the demand analysis and competitive landscape, FMI recommended a market-specific approach for each target region:

• USA Market: The USA market was identified as a high-growth region for sustainably sourced shrimp. FMI suggested expanding partnerships with large-scale seafood distributors and retail chains like Walmart and Whole Foods. It also recommended leveraging the growing trend towards health-conscious eating by promoting the health benefits of sustainably farmed shrimp. Additionally, aligning with sustainability goals through certifications such as ASC and MSC could boost consumer preference for Royal Greenland’s products.
• EU Market: The EU market is mature but offers substantial growth potential due to a high demand for certified sustainable shrimp. FMI recommended entering the market through trade partnerships and leveraging European trade fairs and expos to increase brand visibility. FMI suggested a two-pronged strategy: forming relationships with large-scale distributors and retailers while also tapping into niche markets with sustainable and traceable shrimp products.
• Middle East Market: The Middle East was seen as a promising market, with an increasing preference for high-quality, premium seafood products. FMI recommended focusing on establishing distribution channels through large retailers and foodservice suppliers in key countries such as the UAE and Saudi Arabia. Additionally, participating in regional seafood expos and marketing Royal Greenland’s products through sustainable seafood initiatives would help the brand gain a competitive edge in the region.

Regulatory Compliance & Certifications:

The regulatory landscape was a key focus area, particularly with regard to export compliance. FMI analyzed the various certifications required for export in target markets. For example, certifications such as ASC, MSC, and GlobalGAP were identified as essential for establishing credibility in the EU and USA markets, where sustainability is highly valued. FMI advised Royal Greenland on the steps needed to achieve these certifications and leverage them in marketing strategies. Additionally, FMI provided an overview of regional import regulations and highlighted the importance of staying up-to-date with tariff and trade policies, especially in the wake of fluctuating international trade dynamics.

Distribution Channel Optimization:

FMI recommended a mix of direct and indirect distribution models for Royal Greenland, focusing on the most effective channels for each region. For the EU and USA markets, direct partnerships with key retailers and wholesalers were suggested. In the Middle East, a hybrid approach combining partnerships with local distributors and regional foodservice providers was recommended. FMI emphasized the importance of maintaining an efficient cold chain from farm to export destination to preserve the quality and freshness of shrimp. The company was advised to invest in logistics infrastructure and collaborate with cold chain logistics partners who specialize in seafood distribution.

Furthermore, FMI highlighted the growing importance of e-commerce for B2C transactions, particularly in the USA and EU markets, where online seafood shopping is gaining traction. As part of the strategy, Royal Greenland was encouraged to build an online presence on popular seafood platforms and offer direct-to-consumer sales options.

Outcome & Impact

The insights provided by FMI helped Royal Greenland to refine its export strategy and expand its presence in key international markets. By leveraging sustainability as a key differentiator, the company strengthened its position in the USA, EU, and Middle East markets, and enhanced its reputation as a responsible and sustainable seafood supplier.

Royal Greenland was able to make informed decisions regarding pricing, distribution channels, and partnership opportunities, leading to a substantial increase in export volume over the following year. In addition, the company’s focus on sustainability resonated with both consumers and B2B clients, providing a strong foundation for long-term success in international markets.

Key Recommendations

• Focus on Sustainability: Royal Greenland’s sustainability efforts were highlighted as key to differentiating its products in competitive markets. Continuing to emphasize certifications such as ASC and MSC in its marketing materials would further strengthen its position.
• Market-Specific Strategies: Tailoring strategies for each region based on demand trends, product preferences, and distribution models was crucial for gaining market share.
• Investment in Distribution Networks: Optimizing logistics and forming strong partnerships with regional distributors were pivotal in ensuring that Royal Greenland’s products could be efficiently delivered to global markets while maintaining product quality.