High Liner gets a boost from its marketing investment

The company says it benefited from new national ad campaigns and a resilient supply chain in Q2.

new_highliner_packaging

Frozen seafood brand High Liner Foods is boasting year-over-year sales growth of 33.6% in Q2, as well as a 26.8% increase in gross profit, thanks to a robust supply chain and continued marketing investment.

Sales increased to $253.5 million in Q2 2022, compared to $189.8 million in Q2 2021, and sales volume increased 16.7% to 58.8 million pounds. Gross profit increased by 26.8%, to $56.3 million compared to $44.4 million.

In yesterday afternoon’s earnings call, High Liner president and CEO Rod Hepponstall says the company saw growth in retail thanks to new business and product lines, as well as continued ecomm initiatives and marketing investment.

Hepponstall says that while others in the industry have eased off promotion thanks to lack of supply, High Liner outreach continued in the quarter and included national TV, online paid search, social and influencer engagement.

To support marketing, it is offering new pack sizes and different price points for major retailers. The company is also doubling down on what is working by expanding its distribution of its best selling products.

And for the quarter, the company says its overall market share is higher than the prior year in North America, driven in part by a more analytics and fact-based approach to driving trial.

Hepponstall says High Liner is going to keep investing in brands and value added offerings. In retail channels, it’s hoping to continue to promote products and reinvest in the opportunity to grow volumes.

High Liner is seeing success on the value side as inflation is top of mind for consumer, but the premium side is also doing well for those looking for “an elevated dining experience at home.” The CPG says it is seeing success with its more premium wild-caught, and farm-raised frozen brand, Sea Cuisine. A Canadian test of its skin pack line in market in selected locations with a major customer. It’s currently trialing honey chipotle salmon, teriyaki sesame Alaska salmon, and potato and herb crusted cod (see, below).

Sea-Cuisine

“We are encouraged that as consumers enjoyed dining on seafood outside of the home, our retail business remained strong and grew sales and volume compared to the same time last year,” Hepponstall says. “While we have yet to see a major shift in consumer behaviour because of the inflationary environment, we are well positioned to continue to benefit at different price points across our portfolio.”

According to Hepponstall, High Liner is going to increasingly work with food service to feature seafood on the menu and is excited by potential in QSR and exploring menu innovations. A recent QSR LTO, unnamed, is exceeding expectations.

Its global diversified resilient supply chain is an advantage, the company says.