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NYC Investor Forum Presentation: Bakkafrost diversifies into non-traditional salmon markets

The United States, Asia and Eastern Europe are now among the growth markets for the Faroese Atlantic salmon producer.

Oslo-listed Faroese salmon producer Bakkafrost has been working to expand its sales beyond its traditional markets.

It was seeing particularly "strong development" in the United States, Asia and Eastern Europe throughout the last year.

For example, 86 percent of its sales came from continental Europe in 2002. By 2017, 15 percent of sales came from continental Europe, said Regin Jacobsen, CEO of Bakkafrost, at the recent IntraFish Seafood Investor Forum in New York City.

Sales to Eastern Europe and Asia increased, while sales to EU and United States decreased in the first quarter of this year, compared with the same period last year.

The EU market decreased from 46 percent in Q1 2017 to 31 percent in Q1 2018, while US market sales decreased from 19 percent to 16 percent year-on-year.

Jacobsen said while there has been a slow-down in the first quarter, there is a "strong consistent growth trend" in the United States overall.

Sales to Asia meanwhile jumped from 13 percent to 21 percent over the same period and Eastern Europe rose from 22 percent to 32 percent.

Going forward, Bakkafrost has a multi-channel strategy of geographical diversification, of targeting retailers, wholesalers and the catering segment, Jacobsen said.

Watch the video below to hear what Jacobsen had to say about why salmon is "so competitive" compared to other animal proteins.

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