to: asmi board of directors from: hannah lindoff, senior

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DATE: May 6, 2020 TO: ASMI Board of Directors FROM: Hannah Lindoff, Senior Director of Global Marketing & Strategy RE: International Program Report The international program received a Market Access Program (MAP) funding award of $4,453,652 for FY21. The FY 2021 international program spend plan also includes $1,540,000 in Agricultural Trade Promotion Program (ATP) funds and $2,495,000 in matching funds, for a total budget of $8,488,652 to conduct marketing programs in nine regional programs across the globe. Included in this budget are ATP funds specifically set aside to fund activities managed by the technical program, communications program, and sustainability program. This budget reflects the broad diversification strategy that ASMI international embarked upon with the advent of ATP funding in 2019. The budget also reflects a five year spend plan for ATP. Although official confirmation is pending, we have received un-official confirmation that our proposal to extend ATP across five years rather than three has been approved.

With the outbreak of a novel coronavirus first detected in China in December 2019, the ASMI international program began to deal with the effects of COVID-19 at the beginning of 2020. Shipments to China had already slowed substantially due to the ongoing tariff situation, but the extension of the Lunar New Year and extended shutdowns in processing facilities and ports sent ripple effects throughout the global supply chain and as early as late January, ASMI saw its first cancelled events.

In February, ASMI welcomed the first ever millennial in-bound mission to Alaska, bringing buyers from the “next generation” to Seattle and Kodiak. Alice Ottoson-McKeen and Alysha Guthrie hosted the mission, which included buyers from the Netherlands, Germany, France, Ukraine, and Mexico, along with two US participants. . While we had planned to welcome a participant from Hong Kong, the US travel ban barred his travel. Sales have already been reported, qualified trade leads gathered, and ASMI noted an emphasis on sustainability from all participants.

On February 29th, Nicole Stangeland and Hannah Lindoff, along with five industry members, embarked on the ATP funded trade mission to Peru. The mission visited three processing facilities in the north of Peru, all of which eagerly welcomed the group, noting that their operations suffer from a roughly 30% reduction in productivity due to lack of local supply. The mission also arranged one on one meetings in Piura and Lima and extensively focused on regulatory issues. The US Ambassador to Peru and the president of the Peru Association of Industry (and former Vice President of Peru) attended the ASMI reception and pledged their commitment to working with the proper agencies to overcome regulatory hurdles in order to open the Peruvian processing sector for Alaska seafood. While the trip was rated by one participant as “The best mission I’ve been on in 15 years,” and in almost every sense exceeded expectations, it was overshadowed by news from the home front of the spreading COVID-19 outbreak, the postponement of the Boston show and a growing sense of unease. All participants returned safely to their homes on March 7th. A follow up trip from NOAA has been postponed, however, when the situation normalizes we anticipate progress.

The list of events cancelled or postponed continues to grow, with the Seafood Expo Global (SEG) taking the lead spot as the most important and expensive ASMI event to enter the murky area of postponement. The Foreign Agricultural

ASMI International Programs

ASMI International Program Report, Spring 2020 | 2

Service (FAS) will allow ASMI to carry forward unspent MAP funds to the year FY 21. Thus, FY 21 may benefit from a potential surge in funding. However, if an event, such as a trade show, takes place twice in FY21, due to postponement from FY 20, the MAP funds that ASMI international spends on the show would not be a true surge in funding, but rather a wash, due to the costs simply moving from one FY to another. However, if said show cancels or ASMI does not attend due to an unsuitable date, the international program will then have the extra MAP funds to spend in FY21. Trade shows are only one example of the many unknowns in regards to unspent FY 20 MAP funds moving into FY 21, but we can assume that a notable amount of MAP funds will move from FY20 to FY21.

In order to best allocate carry-forward MAP funds into FY21, the international program has asked the IMC to attend four online “check-in” sessions throughout the spring and summer, beginning April 21st, which would have been the first day of SEG. During these sessions, the committee and the OMRs will discuss market situations and needs. Through this correspondence, ASMI international will determine our strategy, looking for the most effective use of carry-over MAP funds. The international program proposes to provide a “supplementary budget report” to the IMC and BOD in late August when final MAP numbers are available and clearer pictures of market situations may materialize.

A slight thawing of trade relations offers a glimmer of hope for an even playing field in years to come. Alaska product has successfully entered the China market through the new exclusion process. While imperfect, we can hope this small step is a harbinger of better trade relations to come.

CANCELLED/POSTPONED MARKETING ACTIVITIES Activity Region Original Date Status Foodex trade show Japan March 10-12, 2020 Canceled Shibuya & Omotesando Women's Run Japan March 22, 2020 Canceled Chef Training Seminar Shenzhen China February 1, 2020 Postponed Chef Training Seminar Dalian China February 1, 2020 Postponed Chef Training Seminar Hangzhou China February 1, 2020 Postponed FHA Food and Beverage show SE Asia, Singapore March 31 - April 2, 2020 Postponed Thaifex Anuga trade show SE Asia, Thailand May 26-31, 2020 Postponed SIAL Show China May 13-15, 2020 Postponed Boston Seafood show, Mentaiko Booth Japan March 15-17, 2020 postponed APAS Brazil May 18-21, 2020 Postponed Salon de Gourmets SEU March 30-April 2 Postponed Alimentaria SEU April 20-23, 2020 Postponed Guinervau in-house trade show SEU March 16, 2020 Postponed Alaska Seafood Reception at US Ambassador SEU March 18, 2020 Postponed Alaska Seafood Reception Madrid SEU March 19, 2020 Postponed Young Chefs Competition SEU April 20, 2020 Postponed Princes Sainsbury Promo NEU April 20, 2020 Postponed Seafood Expo Global WEU April 21 – 23, 2020 Postponed Ethic Ocean Chef Contest WEU March 20 – June 30, 2020 Postponed

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Thiriet Promotion WEU March 15 – April 2020 Canceled Vici Surimi Roadshow WEU March 1, 2020 Postponed World Food Poland CEU April 21 – 23, 2020 Postponed GastroVision CEU March 12 – 16, 2020 Postponed Transgourmet Inbound Mission CEU July 13 – 17, 2020 Canceled

CHINA MARKET UPDATE

• China will lower import tariffs on products ranging from frozen pork and avocados to semiconductors this year, but tariffs for surging seafood imports will stay the same. This year, China will implement temporary import tariffs, which are lower than the most-favored-nation tariffs (MFN), on more than 850 products. By comparison, 706 products were taxed at temporary rates in 2019. For 18 seafood products on the temporary tariff list this year, all will continue to benefit from lower rates with no changes. Other past revisions -- such as earlier in 2018 and in late 2017 -- included lowering tariffs for some frozen shrimp products from 5% to 2%, as well as on imports of frozen salmon. Tariffs on US shrimp broodstock and fishmeal were lifted in September of 2019, however, as part of the first batch of tariff exemptions implemented by China. This spells only temporary relief but the text-only agreement of phase one of a trade deal suggests things are moving in a positive direction.

• A Chinese company founded by an entrepreneur from China's oil and gas sector has launched what it says is the

country's first privately financed pilot offshore salmon farm, which launched a 16 by 8 meter cage from a shipyard to test Atlantic salmon farming in the Yellow China Sea in Weihai, Shandong province in December. The pilot project is part of Neptune Blue Ocean Development’s plan to produce up to 20,000 metric tons of Atlantic salmon annually in the Yellow China Sea at offshore farms. Given rising demand for seafood, coupled with the swine flu which limited pork supply by 20% this year, China has been trying to prove it can farm salmon in its own waters. This trend provides more evidence of a greater shift toward the promotion and support of seafood consumption.

• For now, fresh Atlantic salmon fillets served sashimi style account for the bulk of the 100,000 metric tons of China's

imports, versus only about 20,000 in frozen imports. China’s Atlantic salmon import industry is starting to show signs of a slowdown. Major e-commerce retailers such as JD.com and Alibaba Group have muscled smaller distributors out of the market as they struggled with high packaging costs and the lack of dedicated cold chain storage. Overall, seafood e-commerce slowed to a growth of 22.9% and 398 million orders or CNY 16.9 billion, versus an increase of over 30% the year before. About a third of that was fresh seafood deliveries, and most of the biggest growth gains are now coming from smaller Tier III and IV cities, with the larger cities showing signs of maturity. Now, China should see slower levels of growth in these large cities, as the smaller areas will be the ones experiencing rapid growth.

• Pollock block prices are set to stabilize in 2020 after three years of price increases. In 2017, prices for pollock fillet

blocks have surged with 2019 prices up $1,200 per-metric-ton over the bottom in 2017. US and Russian fishing companies are aiming for an increase of around $50-$100/t in the prices for pin-bone out (PBO) fillet blocks to $3,600/t [ex-warehouse], which Chinese processors hope will see double frozen blocks to $3,300-$3,400/t (cost and freight, CNF). As the trade war encouraged more Russian Alaska pollock to China, the market saw more smaller-sized fish and catches with lower volume. This, plus the consolidation of China’s processing industry, have contributed to costs, leading to the price increase. Once-frozen product will lead the way, followed by double-frozen. China should continue to see high demand for processed products, like pollock, due to greater demand for convenient food products domestically.

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ACTIVITY UPDATE CONSUMER PUBLIC RELATIONS Micro-Movie Story Video Promotion Short films or “micro-movies” are an increasingly popular way to introduce products to the public, especially among younger generations in China, as they tend to browse the internet anytime, anywhere with their smart-phone in-hand. Information is spread within a few seconds when a reader looks at a video advertisement versus an article. ASMI China took advantage of this trend by producing a micro-movie that introduces and delivers the concept of Alaska seafood as pure, natural and sustainable to the general public. The movie is made up of a series of vignettes each focused on a different Alaska seafood item being enjoyed in a heartwarming setting. A wide range of products were featured including pacific cod, wild Alaska pollock, wild Alaska pollock roe, yellowfin sole, salmon, sea cucumber and black cod.

Advertorials and Advertisements Advertorials and advertisements are some of the most effective ways to promote the special attributes of Alaska seafood: “wild, natural, and sustainable” with excellent quality and rich nutritional content. One advertorial was place in Global Gourmet in December. The Global Gourmet ad provides a general description of Alaska seafood, calling attention to its surroundings and diversity of species. LED BILLBOARDS Digital Airport Ads in Beijing and Shanghai, September 30 – October 20 For ASMI China’s digital airport ads campaign, Beijing’s Capital Airport and Shanghai’s Pudong and Hongqiao Airports were targeted, where Alaska seafood digital advertisements were featured from September 30 – October 20, including a heavy travel period for National Day. The digital advertisements featured eight Alaska seafood species including, pollock, yellowfin sole, salmon, snow crab, king crab, cod, sea cucumber, and pollock roe. The ads were shown across 573 electronic ad stations, and shown for 15 seconds each rotation. In total, ad exposure reached over 17 million. It was

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believed that airports are high traffic areas of target consumers with high levels of interest in travel and food. By placing these ads, ASMI China hoped to boost brand recognition among consumers and influence future consumption. RETAIL MERCHANDISE Haierxin in Harbin (6 outlets), October 1 – 31, 2019 For the month of October, ASMI China partnered with Haierxin in Harbin, located in the northeast region of China. Six outlets participated in the event, which saw promoters at each store promoting Alaska seafood with the help of POS materials and food samples. Black cod and pollock were highlighted through this retail event, due to their popularity. The northeast region was once an industrial powerhouse for China through the 80s and 90s due to the automobile industry but has since transitioned to produce other goods thanks to government investment. Renewed growth in the area has raised the standard of living and purchasing power of residents making retail promotions attractive. Maxvalu in Guangzhou (5 outlets) on October 15 – November 15, 2019 Guangzhou has been a mature seafood market for many years making it an important market for ASMI China. From October 15 – November 15, a retail promotion was held with the Maxvalu store, a brand managed under Aeon, Asia’s largest retail enterprise. Five stores were involved, with promoters setting up a small stand to let consumers know about black cod, cod, and pollock. Buntings and counter cards provided decoration as promoters handed out samples and engaged with shoppers. American Food Festival at Wushang Supermarket on November 29 – December 12, 2019 Wuhan has served as a key transportation hub for China and shown rapid economic growth. As a promising environment, ASMI China sought to penetrate the Tier II city, leveraging an ATO Shanghai American Food Festival at 20 of Wushan Supermarket’s stores, a large regional retailer. During the two-week event, Alaska yellowfin sole, black cod and sea cucumber were promoted by sales promoters who also distributed product samples. Dressed in ASMI aprons they helped to answer questions and engage with the shoppers to give the promotion a personal feel. Additionally, there was a grand opening ceremony, interactive cooking demo, and competitive discount. Cooperating with ATO Shanghai worked out well and partnering with a chain-retailer with 20 store locations assisted with a strong delivery of the ASMI message. TRADE SHOWS China Fisheries and Seafood Expo, October 30 – November 1 ASMI China has been participating in the China Fisheries for the past 20 years. The event is China’s largest seafood show and attracts thousands of domestic and international attendees from the retail, catering, hotel/restaurant/catering, food services, import/export trade and manufacturing sectors. With such a large platform, it is perfect for promoting the AMSI message and promoting Alaska seafood. Four booth spaces were reserved to feature King Crab, Snow Crab, Dungeness Crab, Sockeye Salmon, Black Cod, Pacific cod, Pollock, Yellowfin Sole and roe products. At the show, the ASMI China team answered questions from attendees about products, helped with 1-on-1 meetings, handed out food samples, and secured trade contacts and leads. Through the show, 27 trade leads with specific requests, and 110 general requests were obtained. Alice Ottoson-McKeen International Program Coordinator and Susan Marks Sustainability Certification Advisor were also on hand to help out and provide their expertise. It was a great first-hand learning experience and a great opportunity to engage with the local market.

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Hong Kong Restaurant and Bar Show, September 3-5 ASMI International joined the Hong Kong Restaurant and Bar Show after Seafood Expo Asia abruptly cancelled due to the political situation in Hong Kong. The show still attracted key seafood buyers and ASMI staff and industry members to meet new trade members, potential customers, maintained relationships with current customers and expanded the presence of Alaska seafood in Hong Kong, at a time when the Hong Kong market has become more vital and lifeline for exports that once went to China. ASMI’s international program Director also used the opportunity to meet with the Hong Kong ATO director, meet with each Asia program, conduct an Asia strategy session, and meet with WUSATA and American Indian Foods to discuss alignment throughout the year. TRADE PUBLIC RELATIONS Trade Gatherines in Guangzhou, Shenzhen, Hong Kong and Qingdao, October ASMI China hosted a series of the trade gatherings in the key southern cities of Guangzhou, Shenzhen, on the 11th, and Hong Kong on October 15th, as well as in Qingdao on October 30th. By inviting important players in the local seafood economy, ASMI China can educate them about Alaska seafood and best understand the area’s seafood market. A total of over 240 seafood trades attended the events. At each event, a presentation is given to refresh or educate the traders, importers, retailers, and hotels about Alaska seafood species, background information about ASMI, marketing events, and more. Afterward, a multi-course tasting menu is served so that participants can better understand taste and food applications of the seafood. Trade gatherings are a great way to maintain and develop relationships with the traders who help with visibility of Alaska seafood products and also demonstrate confidence in the market, especially through the attendance of the various ATO trade offices. Their presence is a strong sign of commitment to the seafood market. The largest trade gathering event for ASMI China is its annual reception, held on October 30th, and the first night of the China Fisheries and Seafood Expo. It was a solid and enjoyable event bringing together approximately 100 key players in the seafood industry, and an ideal opportunity for Alaska seafood suppliers and Chinese traders to converse. Shanghai Wine and Dine Festival, October 18 On October 18, 2019, ASMI China participated in the Shanghai Wine & Dine Festival, organized by ATO Shanghai. It was a large food-centered event held in Shanghai, attended by the general population and especially those with close ties to food, such as foodies and those in the restaurant business. ASMI China showcased Alaska cod through a celebrity kitchen demonstration, cooking workshop, and bazaar, among many events aimed at raising awareness for the wonderful foods. Cod samples were distributed to allow people to experience the quality and taste of Alaska seafood by a promoter, who explained further about Alaska seafood and some of the nutritional content. A fun and enjoyable food-focused event is an ideal platform for drawing attention to Alaska seafood and showing how great it is. ATO Hong Kong Disney Land Hotel Product Showcase, November 19 Given the Sino-US trade war, the area of Hong Kong has gained importance for ASMI China. As a free trade region, it is not affected by the punitive tariffs and is also a mature seafood market, with generally high, quality seafood consumption. On

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November 19, ATO Hong Kong organized a US product showcase at the Hong Kong Disney Land Hotel, a great opportunity to further promote ASMI. Nearly 100 people attended, a mix of local food & beverage importers/distributors, retailers, hotel/restaurant food & beverage managers. Members of the ASMI China Hong Kong office helped at a booth station featuring coho salmon and Alaska arrowtooth flounder. The hotel’s culinary team created some dishes featuring these ingredients that were present to the attendees. With the growth of restaurants and hotels in the region, the team was able to make some good connections and increase awareness of Alaska seafood. ONLINE PROMOTION Online sales promotion with FreshFresh, December 15 – 29 For the second half of December, ASMI China partnered for the second time with FreshFresh for an online sales promotion. With the popularity of online sales, launching a promotion at the end of the year capitalized on consumer spending and attracted a lot of exposure. Cod, black cod, pollock, and yellowfin sole were promoted in the event, comprising, popular, core, and lower price point products. An advertisement was featured on their website as well as their app to attract shoppers. By featuring many touch points, ASMI China can gain the most exposure for Alaska seafood. ASMI China and FreshFresh were pleased with the results and hope to extend cooperation. Online sales promotion with Benlai.com, December 29 – January 5 ASMI China partnered for the second time with Benlai.com from December 29 – January 5, 2020 for an online promotion. As a fast-growing an online platform, ASMI China felt it valuable to build on last year’s initial collaboration. During the event from December 29 – January 5, a banner was hosted on the main page of the Benlai App, while another banner appeared on their fresh products page for the rest of the promotion. The promotion was announced through their official WeChat account, and they sent 100,000 texts to remind loyal members of the promotion. Finally a full page advert was published in Beijing Walker, a featured magazine in Beijing taxis and restaurants. As the second collaboration, ASMI China was pleased to continue building a relationship with a smaller, specialized food retailer, balancing out cooperation with larger platforms. Online/Offline promotion with Tmall, December 15-29 With eCommerce continuing to shape the lives of future generations, ASMI China decided to launch a promotion through Tmall, one of the largest platforms, tapping the official Tmall stores for Fishing Beauty and DahuangXiansen. Fishing Beauty has worked well with ASMI China in the past and Dahuan Xianshen has seen good sales of black cod, making both valuable partners. From December 15 – 29, 2019 black cod, thorny head, pollock, and yellowfin sole were promoted through their online stores. At the same time, ASMI China participated in an off-line promotion, a food/goods market, conducted at Western Academy of Beijing, a leading international school in Beijing, with students form international and affluent families residing in the Beijing area. A booth was manned and products like black cod and thorny fish were featured. POS materials like pull-up banner and banner flags were used to decorate the booth. In addition, food samples were provided so attendees could become more familiarity with Alaska seafood. Over 500 people attended the event. . Website Updates and WeChat Maintenance ASMI China’s website was updated each month in October, November, and December. During the second quarter, the ASMI China website received 86,246 hits. Strong web traffic during October coincided with ASMI China’s digital airport ads campaign, which ran from September 30 – October 20, 2019. TRADE SEMINARS Trade Gatherings in Tier II Cities With availability of ATP funding, ASMI China felt that exploration of newer markets would be beneficial to promoting Alaska seafood for the long term. Up to this point, all trade gatherings were held in Tier I cities where awareness of Alaska seafood was generally higher, as was disposable income. For this trade gathering campaign, leading Tier II cities were targeted, areas with faster growth of disposable income spending and overall development. All of these locations were

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located further inland, and, for the first time, ASMI China set foot in Lanzhou, Gansu province, a region in western China. At each gathering, a more comprehensive presentation was given to traders, importers, wholesales, and retailers, allowing them to better understand Alaska seafood species and learn more about ASMI and relevant marketing support. Following each presentation was a tasting menu allowing for participants to enjoy Alaska seafood and truly understand its taste and quality. Through the meal, ASMI China was able to better form relationships and create a stronger indemnity for the seafood industry in each of the cities. In addition, the close interaction was a way gain a better understanding of the local seafood economy. By raising awareness in new cities, ASMI China hope to create a strong brand image and develop local seafood sales of Alaska seafood for the decades ahead. Support from the ATO offices by way of attending events also helped to make an impact with attendees. Their physical presence demonstrated confidence in the sea food market and future growth. Key Trade Panel / Training Salons:

• Trade gathering in Harbin, October 10, 2019 • Trade gathering in Shijiazhuang, October 10, 2019 • Trade gathering in Zhengzhou, October 10, 2019 • Trade gathering in Shenyang, October 11, 2019 • Trade gathering in Changsha, December 12, 2019 • Trade gathering in Fuzhou, December 13, 2019 • Trade gathering in Chongqing, December 6, 2019 • Trade gathering in Xi’an, December 5, 2019 • Trade gathering in Lanzhou, December 6, 2019

FOODSERVICE PROMOTIONS Menu Promotion at Essence of Europe in Chengdu, September 30 – October 28 With ASMI China’s focus on newer markets and Tier II cities for the year, holding a menu promotion was an opportunity to sustain the marketing momentum. ASMI China partnered again with Essence of Europe for a menu promotion September 30 – October 28, 2019 at four restaurant locations. ASMI China and the restaurant have collaborated five times previously. The dining special featured some more premium Alaska seafood including black cod, halibut, and snow crab. Additionally, a WeChat post was made through the “Eat Well” (Hao Hao Chi Fan) account, with 200,000 subscribers, and, 10 media platforms were invited to the restaurant to report on the dining experience. A range of ASMI POS materials including dining mats, mini posters and menu cards were produced to create a festive atmosphere for the event. Menu Promotion at Hyatt on the Bund in Shanghai, September 30 – October 30 During FY18/19, ASMI China recommended Executive Sous Chef Davis Zhou from the Hyatt on the Bund in Shanghai to participate in a culinary retreat in Naknek during the fourth quarter to better understand Alaska seafood and apply that knowledge back in China. Building on this relationship, a menu promotion was launched September 30 – October 30, featuring cod, black cod, pollock and yellowfin sole in a variety of dishes for a wonderful seafood buffet. The hotel, with magnificent views, was a wonderful venue in which to hold the dining special, matching the quality of the seafood being served. By continuing to promote Alaska seafood through new and high-end partners, ASMI China can reinforce a quality brand image for Alaska seafood. Menu Promotion at Pullman Wenzhou in Wenzhou, October 1 – October 30, 2019 ASMI China partnered with the Pullman Wenzhou hotel to hold a menu promotion from October 1 – 30 in Wenzhou, capturing a promotion in a rising Tier II city. As these areas continue to modernize, it is important to promote and build up the Alaska seafood brand over time so that it can be embraced by locals. At the menu promotion, cod, pollock, black cod, rock sole, and snow crab were featured as part of the buffer. Additionally, special POS materials like table mats and various background boards were created to add flavor to the atmosphere. As awareness for Alaska seafood grows, ASMI China will continue to build the brand image in neighboring areas such as Wenzhou.

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Menu Promotion at Unkai Hotel in Guangzhou, October 25 – December 25 The area of Guangzhou has proven itself as a mature seafood market that ASMI China continues to invest in. With strong seafood consumption habits already, it is important to ensure visibility increases so that brand awareness for Alaska products can reach future generations. ASMI China decided to collaborate with Unkai Hotel Guangzhou, a luxury boutique hotel to offer an Alaska seafood buffet special featuring cod, black cod, pollock, rock sole and snow crab. The promotion lasted from October 25 – December 25 and was decorated with a variety of Alaska seafood-themed materials like dining mats, floor advertisements, and doorway decorations. It will be key for ASMI China to work with both small and large hotels in the area to maximize awareness and drive sales. Menu Promotion at Novotel Century in Hong Kong, December 9 – January 8 ASMI China looked back again at its positive relationship with Novotel Century Hotel over the years in Hong Kong for another menu promotion from December 9 – January 8, 2020. The Pepino Restaurant is popular and feedback about the food is quite good. By partnering with the same partner, ASMI China can build a familiar brand image for local consumers. For the event, special POS materials like menu, posters, flyers and tent cards were developed. Along with this, 10 KOLs posted online to remind residents of the event and ads on the OpenRice, Hong Kong's most popular dining guide, written by locals. Menu Promotion at Asia International Hotel in Guangzhou, December 15 – January 14, 2020 From December 15 to January 14, 2020 ASMI China partnered with Asia International Hotel for a dining promotion. As a mature market, promoting in Guangzhou means delivering a range of seafood as ASMI China did for this promotion, working with some core, lower price-point products like yellowfin sole, and pollock, as well as premium items like black cod and snow crab, and rockfish. Menu promotions are a good way to engage with consumers and educate them on Alaska seafood. The high-end clientele, convenient location, and amazing views of this hotel make it a suitable partner for the long term. TRAINING SCHOOL PROGRAM Chef Training School Program with New Oriental Training School in Dalian and Chengdu, October 14-18, 21-25 The continued growth of the HRI industry makes targeting chefs a valuable tool for ASMI China. With this in mind, ASMI China partnered with the New Oriental Training School to hold two separate training promotions at their Dalian and Chengdu branches. These locations represent efforts by ASMI China to target newer, Tier II markets. A week-long course was developed for the students to better understand cod, pollock, and yellowfin sole. Given the trade war, these have become staple products being used by many kitchens in hotels and restaurants. The course designed for the students involved both lectures about product and their characteristics, as well as kitchen time to apply what they learned. Approximately 300 students attended the program at each school to boost their knowledge of Alaska seafood. It is believed that increasing their knowledge will increase their usage of the product in their future careers. CHEF COMPETITION Chef Competition with Guangzhou Association of 5-Star Hotel Executive Chefs, December 15-, 16, 2019 ASMI China has worked hard to raise awareness of Alaska seafood and ASMI in the mature market region of Guangzhou, holding promotions and partnering with an array of retailers and hotels. For this promotion, ASMI China was able to collaborate with the Guangzhou Association of 5-Star Executive Hotel Chefs to hold a chef competition. On December 15, a culinary competition was held with 20 culinary chef teams from the association, consisting of two members each. Each

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team prepared a dish featuring Alaska black cod, plus a choice of pollock or yellowfin sole. Their dishes were judged by a panel of master chefs who would award 1st, 2nd, and 3rd place prizes, along with awards for taste and creativity. The next day, a dinner reception was held to celebrate the results, with chefs, members of the chef’s association and media attending. Almost 100 people gathered for the awards presentation, group dinner, and photos. The 10 media platforms attending helped provide even more coverage of the event. By holding chef competitions, ASMI China hope to raise visibility of Alaska seafood in the HRI sector and encourage use among chefs moving forward.

JAPAN MARKET UPDATE According to trading statistics, the monetary value and volume of all seafood imported from January to November 2019 were almost the same year-on-year at JPY 1,506,276,000,000 (USD 13,819,000,000) and 2,112,240 MT respectively.

As for November import data, the overall supply volume was 211,789 MT, almost the same as in November 2018. In terms of fish species, fresh salmon, fresh tuna and eel, crab, and Itoyori surimi imports decreased while shrimp and Pacific squid increased sharply in value and volume.

Overall November 2019 showed a decrease in salmon supply volume by 11%, a key reason being the decrease of frozen Chilean coho supply, 17% in value and 10% in volume, due to the long delay of shipments caused by the labor strike. The import data for November shows that frozen Chilean coho supply decreased, and the new season harvest, mainly 4-6 size, is projected to sharply increase from December. The import of frozen sockeye salmon from the U.S. increased to 788 MT, 86% year-on-year, while Russian sockeye import volume decreased by 29% year-on-year. Imports of Alaska pollock surimi increased in volume (13%) and value (15%).

Some Japanese fisheries concluded with their lowest harvest records again in 2019. The total Pacific saury caught was 40,517MT (decrease of 66% vs. 2018), and the total chum Salmon harvest in Hokkaido was 15.2 million (decrease of 27% vs. 2018), and the chum salmon harvest value was JPY 28.72 billion (USD 262.21 million; a decrease of 34% vs. 2018). Also, the total Pacific squid caught did not reach 50,000MT. Many Japanese seafood processing companies are now facing the urgent need to secure alternative raw materials as these seafood species have been part of the essential seafood items for Japanese daily food consumption habits.

The announcement made by the Japan Retail Industry Association said that the sales amount of seafood category products in November was more than that of the same month in 2018, since warmer and dry weather during the year attracted more consumers to retail stores. The sales of tuna sashimi assortments, and kirimi slice products, including yellow tail and salted salmon, increased substantially. Sushi assortment box and bento lunch box sales also went well. However, sales of oysters, Pacific cod, and surimi for Oden (a Japanese style hot pot) were slow due to customers opting for other dishes suited to the warmer weather experienced during the year.

Core consumer prices rose 0.5% in November from a year earlier, affected by the consumption tax hike that increased the cost of dining out, but the pace of inflation remained far below the Bank of Japan’s 2% target. The nationwide core consumer price index, excluding fresh food prices, rose for the 35th straight month following to 0.4% Oct. 1 consumption tax increase from 8 to 10%, the Ministry of Internal Affairs and Communications said. Without the effects of the tax increase and a free preschool education and nursery program introduced by the government also on Oct. 1, prices rose 0.2%.

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ACTIVITY UPDATE CONSUMER PUBLIC RELATIONS Alaska Governor’s Visit to Japan, November 3-7 Alaska Governor Michael J. Dunleavy and First Lady Rose Dunleavy traveled to Japan Nov. 3 – 7 on an official trade mission to promote Alaska’s natural resources. ASMI staff worked closely with the governor’s office in planning the trip to incorporate Alaska seafood into the itinerary, including an Alaska seafood industry reception and three interviews with seafood trade press. The reception connected Governor Dunleavy with key members of the Alaska seafood industry in Japan. During his remarks, the governor highlighted Alaska’s exceptional fisheries management standards and expressed his support for Alaska seafood’s close trade relationship with Japan. “The Alaska seafood Industry and the State of Alaska wish to reaffirm our commitment to the Japanese market and look forward to continuing this long partnership,” Dunleavy said. The visit resulted in ten articles and a total ad value of $33,755. CONSUMER DEMOGRAPHIC OUTREACH Consumer Survey – Atka mackerel, Pacific cod, and rockfish ASMI Japan worked with the consumer survey company Rakuten Insight to conduct an online survey to identify the potential needs and opportunities for promoting Alaska Atka mackerel, rockfish and Pacific cod, which are already deeply rooted to the Japanese diet. The survey took place from October 25 through 28, 2019. The target was general consumers, both men and women in their 20s, 30s, 40s, 50s, 60s and over, living nationwide. The screening condition was those who go to local supermarkets to purchase seafood. RETAIL MERCHANDISING Tohoku Business Matching Shows, September 4 and 10 ASMI Japan participated in four business matching shows at regional seafood markets in the Tohoku region (North East region of Japan), where Alaska Seafood products have been traditionally consumed for several decades as an essential items of people's diet. ASMI Japan host its own booth at the shows to boost sales of Alaska origin products by the four wholesalers, and displayed general POS materials to introduce visitors, mostly regional retailers and restaurant owners, to the attributes of Alaska seafood items and ASMI's promotional resources such as POS materials.In Sendai Central Wholesale Market, Sendai Suisan and Sento Gyorui organized the showcases on September 4th. In Aomori Central Wholesale Market, Aomori Gyorui and Aomori Chuo Suisan organized the showcases on September 10th.

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AEON Surimi Promotion, October 30 – November 5 and November 6-12 AEON Retail, one of the most powerful Japanese retailer groups, developed new private brand products made mainly of Alaska pollock surimi for their brand "TOP VALUE." The new products are crab leg surimi products in three flavors (sesame, basil, mustard-mayo), fish nugget products and surimi products. AEON Retail, which operates 625 GMS nationwide, sold the new products starting in September. ASMI Japan supported recipe production and leaflets to promote these new Alaska pollock products as well as to send messages about the attributes of Alaska pollock. ASMI Japan also provided information for AEON Net shopping (e-commerce) to post on their website. ASMI Japan also supported in-store demonstrations at AEON's major outlets of 25 stores in November. OISIX Online Shopping Promotion, October 25 to 31 ASMI Japan conducted an Alaska seafood promotion with Oisix ra Daichi, an online food supermarket founded in 2000. After two absorption type mergers of midsize online catalogue shopping retailers, Oisix has become one of the largest Japanese online/catalogue retailers for organic vegetables, additive free processed foods and other food products and ingredients with particular emphasis on food safety. Oisix ra Daichi sales for the last fiscal year were JPY 64,000 million ($593 million), and it is growing each year. The customers of "Oisix ra Daichi" match ASMI’s ideal target market, who are willing to pay higher prices to meet their demands for food safety and quality. Also, the purchased products are delivered to homes nationwide, so ASMI can reach to customers directly throughout Japan. ASMI Japan supported promotional activities for Alaska seafood items, including Alaska pollock fillets, herring roe, Pacific cod, black cod and Atka mackerel. ASMI Japan partially supported the costs of development and maintenance of the Alaska seafood tie-up page on the online store. Alaska Seafood Fair at Uoriki, October 15-17 ASMI Japan supported Alaska Seafood Fairs at approximately 70 stores of UORIKI company, which was founded in 1930 and has continued to prosper since the foundation. The Alaska seafood fairs took place from October 15 to 17 and featured chum salmon, salmon roe (ikura and sujiko) and Alaska pollock roe (tarako). On October 15 and 16, ASMI Japan sent 20 demonstration staff to the Tokyo metropolitan area, one demonstration staff per store for seven hours per day. In addition, ASMI Japan distributed a variety of attractive Alaska Seafood POS materials to 70 stores. The informational materials educated consumers about wild, natural and sustainable Alaska seafood. Coop Tohoku Alaska Seafood Fair and Prize Campaign, November 21 - December 18 The Tohoku region of Northeast Japan has been traditionally one of the most important consumption areas for Alaska seafood products. Consumers Cooperative Tohoku (Coop Tohoku Sunnet Federation) consists of nine single Consumers' Cooperatives in six prefectures in Northeast Japan with a total of 103 stores, and they have around 1.76 million consumer members. ASMI Japan supported an Alaska Seafood Fair at Coop Tohoku, which took place from November 21st to December 18th, 2019, to boost their sales of Alaska seafood, promoting sockeye salmon, sujiko (sockeye salmon roe) and Pacific cod, with the other regular Alaska seafood items. ASMI Japan sent POS materials featuring the key Alaska Seafood products to all Coop Tohoku locations. As part of the fair, ASMI Japan also supported an "Alaska Seafood Prize Campaign" in which consumers who bought Alaska Seafood Fair items worth more than 500 yen (US$4.40) were entered into a lottery for the chance to win Alaska Seafood prizes.

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Alaska Seafood Fair at Nakajima Suisan, November 25 - December 1 ASMI Japan supported an Alaska Seafood Fair at Nakajima Suisan, a company that operates seafood specialized stores, usually located in the food sections of high-end department stores. Nakajima Suisan sells a wide variety of Alaska seafood, including lesser-known items such as black cod, chum salmon, sujiko sockeye salmon roe and pollock roe. ASMI Japan sent demonstration staff to 21 stores in the Tokyo Metropolitan Region between November 29 to December 1, one demonstration staff per store, 8 hours per day. In addition, ASMI Japan sent a variety of attractive Alaska Seafood POS materials to every store. ASMI created the sales pitches for demonstrators to educate consumers about natural, wild and sustainable Alaska seafood. Seibu Department Store Gift Season Promotion, November 30 - December 26 There are two traditional gift-giving seasons in Japan: "Oseibo" gifts are given in winter and "Ochugen" gifts are given in summer. Both usually consist of premium quality food and beverages. The gift markets have been shrinking due to several factors including population decline and changes in culture. However, there is still stable demand for premium quality seafood as a special gift and these are important markets for higher grade raw materials from Alaska. ASMI Japan wanted to re-develop the gift market to gain new opportunities for Alaska seafood and to add special value to the products made with Alaska seafood. ASMI Japan placed an Alaska Seafood advertorial in Seibu Department Store's winter 2019/2020 Gift Catalogue to promote the range of Alaska seafood items that are listed in the catalogue as gift items. The department store produced and distributed 600,000 copies of the catalogue, which were delivered directly to consumers' homes for them to order items by mail / online. The advertorial features an endorsement of Alaska Seafood from UOKYU, whose products are considered premium and suitable for special gifts. ASMI Japan can promote Alaska seafood as 100%, wild, natural and sustainable and an ideal ingredient for making Japanese food. Similar contents were featured on the Seibu Department Store website. In addition, the Alaska seafood products listed in the catalogue clearly state the origin of Alaska. Herring Roe promotion with Ito Yokado, December 28 ASMI Japan supported a herring roe promotion in collaboration with Ito-Yokado to boost demand during the New Year period. Ito-Yokado is the hypermarket brand of Seven & I retail group. There are 159 Ito-Yokado stores operating in Japan. ASMI Japan collaborateed with Ito-Yokado to promote Alaska Herring Roe during the end-of-year sales period, for one day on December 28, 2019. ASMI Japan sent demonstrators to 40 Ito-Yokado flagship stores nationwide, one demonstration staff per store. In addition, ASMI Japan sent herring roe POS materials to all Ito-Yokado stores. ASMI created the sales pitches for demonstrators to educate consumers about natural, wild and sustainable Alaska seafood. Herring Roe promotion support for SEIYU (Walmart Japan) store,s December 2019 ASMI Japan supported a year-end Alaska herring roe promotion for SEIYU (Walmart Japan) to boost sales for herring roe made with Alaska origin sack-roe herring. SEIYU is one of the most influential Japanese retail brands and is owned by Walmart. There are 334 stores across Japan. ASMI Japan provided herring roe panels and posters to the main SEIYU outlets, including the flagship shops. Herring roe promotion at Zakobano Asaichi with Osaka herring roe, November 23 With herring roe wholesalers from the Osaka central market and other herring roe trade associations, ASMI Japan participated in Zakoba-no Asaichi, the morning market in Central Osaka, to promote Alaska origin herring roe, on November 23, 2019. The theme of the event was "Look, experience, taste - boost your food knowledge!" encouraging children to enjoy and appreciate food. This event has been running since 2011, four times a year at the public park beside Central Market in Osaka. Many families visited this event with visitor numbers between 6,000 to 10,000. ASMI Japan conducted a sampling of Alaska herring roe in collaboration with Santsune company, a distributor of herring roe products. A professional chef served unique herring roe dishes (approximately 1,000 dishes) for participants, making Alaska seafood attribute pitches. ASMI Japan provided educational materials including original recipe cards of herring roe.

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Second Pollock Promotion at AEON Stores ASMI Japan supported a second AEON Alaska pollock promotion in December 2019 as follow up to a similar promotion in September and October. AEON Retail chain, one of the most powerful Japanese retailer groups, has been focusing on Alaska pollock, as its wildness, sustainability, traceability, health, safety, nutrition (high quality protein) and functional elements (including benefits for muscle-strengthening). AEON Retail, which operates 21,996 stores nationwide as of November 25, 2019, promoted a variety of Alaska pollock products such as Alaska pollock fillet portions and various surimi products such as Chikuwa tube surimi, at 10 flagship stores on December 3rd. ASMI Japan supported this promotion by sending demonstrators to sample Alaska pollock products as well as provide leaflets to deliver consumer educational information about Alaska seafood and Alaska pollock products. Tokyo Sustainability Symposium, November 7-8 The Tokyo Sustainable Seafood Symposium is one of the biggest events in Japan’s sustainable seafood movement. The symposium was held in Tokyo on the 7th and 8th of November, 2019. Management executives, decision-makers, CSR managers, and investors around seafood, retail, and food industries attended the symposium (advance registration is required). ASMI Japan was a sponsor of the Tokyo Sustainable Seafood Symposium 2019 and the ASMI and RFM logos were displayed on decorative banners, in the printed program and on the regisration website. Additionally, ASMI had a 60 minute breakout session where Susan Marks, ASMI Sustainability and Ceritfication Advisor, Akiko Yakata, ASMI Overseas Marketing Representative, and Mr. Matsumoto of Japanese Consumer’s Cooperative Union discussed the theme “Understanding the Power of Sustainability in Seafood Branding from Alaska’s Public-Private Partnership.” TRADE PUBLIC RELATIONS AND ADVERTISING Trade Advertising for Herring Roe Special ASMI Japan placed advertisements in three major seafood industry publications - Suisan Keizai Shimbun, Minato Shimbun and Suisan times. These three publications issued special editions for herring roe sales peak season to follow and boost the demand of the 2019 winter gift season, as well as "Osechi" New Year delicatessen. ASMI Japan placed advertisements in each of the publication's special issues, and each media spent an independent article space to promote Alaska origin herring roe by introducing ASMI Japan's activities related to herring roe.

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TRADE SHOWS Busan International Seafood and Fisheries Expo, November 6-8 ASMI participated in the US pavilion at the Busan International Seafood and Fisheries Expo in Busan, South Korea, November 5-8, 2019. The Busan Seafood show is the third largest seafood show in Asia and featured 420 exhibitors from 27 countries. The US Agricultural Trade Office (ATO) for Korea sponsored the US pavilion, which included spaces for the ATO, ASMI and two Alaska seafood companies (American and Trident). ASMI staff handed out Korean and English informational materials, answered questions about Alaska seafood products and met with the ATO representatives to learn more about the market and discuss potential partnerships between the two organizations. ASMI does not have an overseas marketing office in Korea, so partnerships with government organizations are vital to progress in the region. WEBSITE DEVELOPMENT AND MAINTENANCE Addition of RFM Section to ASMI Japan Website ASMI Japan maintains the ASMI Japanese website by updating it with the latest information and resources on Alaska seafood. The target audience for the website includes seafood, retail and foodservice industries as well as media and general consumers. ASMI Japan expanded the relevant sections of the website by developing an RFM site including the introduction and overview of RFM, Seal guidelines, and Chain of Custody (CoC) information. In addition, the latest information including updated news for the seafood industry trade, press releases for the media, announcements of upcoming promotional events and campaigns updated/featured. ASMI Japan also responded to any problems on the website and featured in the report accordingly. FOODSERVICE PROMOTIONS Alaska menu fair in collaboration with Omosan Street, October 12-13 ASMI Japan collaborated with "Omosan Street" (a free magazine distributed in the Shibuya and Omotesando area of Tokyo) to run an Alaska seafood menu promotion, which took place at four restaurants (Ristorante CAVACAVALLO/ Cuisine de HARUNO/Mangia Pesce/un cafe) in the Omotesando and Shibuya area from October 12 to 30. The Omotesando and Shibuya area is known as one of the most pleasant neighborhoods in Tokyo. As a major luxury shopping destination, it’s also home to some of the most elegant examples of modern architecture and shopping in Tokyo. There are approximately 200 seats in the restaurants, and this venue is extremely popular among local residents and tourists. The chefs from each restaurant developed a special recipe for this Alaska seafood fair, using Alaska snow crab, salmon roe, rock fish, salmon and black cod. Alaska Seafood seminar at Yatsugatake Kogen Hotel, November 4 ASMI Japan conducted a special Alaska marriage seminar in collaboration with Yatsugatake Kogen Hotel on November 4, 2019. Yatsugatake Kogen Hotel announced the marriage seminar to the owners of second houses in the Yatsugatake area, and VIPs for Sogo-Seibu Department store through their members network. The targeted audience was food and wine lovers and wine connecters. The venue was the main dining hall of Yatsugatake Kogen Hotel, which is under Seven & i group, and quite renowned with a good reputation. The Executive Chef made special recipes using snow crab, rockfish, sockeye salmon and yellowfin sole. During the event, ASMI Japan's celebrity ambassador Mr. Shinya Tasaki made a presentation about Alaska seafood titled, "The Marriage of Alaska seafood to French cuisine and US wines." He focused on fishing, species and the environment of Alaska seafood. Participants had opportunities to taste the Alaska seafood recipes and study Alaska seafood itself.

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Wild Alaska Pollock Food Truck Promotions at Bicycle Racing Events, November 23 -24; December 15, 21, 22 ASMI Japan sent a food truck to five bicycle events to introduce Alaska pollock products to the participants as well as the visitors. ASMI Japan worked with Chef Takeguchi of the Spanish restaurant "Taberna Esquina" to promote special "athlete-friendly" Alaska pollock recipes. Chef Takeguchi developed a new recipe using Alaska pollock fillets and Alaska pollock roe special for the promotion. This activity was in collaboration with the members of a professional cycling team "Bicistelle" (https://www.bicistelle.com/), with promotional pitches about Alaska Seafood and Alaska pollock attributes including nutritional function.

WESTERN EU (FRANCE, BELGIUM) MARKET UPDATE In the second quarter of the marketing year, ASMI explored new market channels and increased its network by attending a variety of tradeshows and congresses. By participating in as many of the leading food industry gatherings as possible, trade, HRI or manufacturing, the program and Alaska seafood in general gains more visibility and improves the brand awareness among potential partners. Alongside this approach to widen the network, ASMI continued to work with existing partners to implement promotions and information campaigns in WEU countries.

The most important part of the consumer program was the education campaign focusing on younger kids and elementary school students, including their teachers and parents. These information and cooking workshops are designed to overcome the constraints of getting youngsters to eat fish, make them familiar and comfortable with Alaska seafood product and provide advice to their parents of how to prepare and serve seafood at home.

During the past quarter, ASMI finalized the planning for numerous new POS events as well as conducted the first promotions in French supermarkets. The goal is to directly influence buying decisions, inform consumers about products and the origin Alaska and strengthen the market position.

In the HRI market, ASMI renewed the collaboration with its most important partner Flunch and extended the partnership beyond its December launch date. By targeting chefs and gastronomists at tradeshows, as well as approaching young HRI students in specialized schools, ASMI is paving the way for success in the upcoming years.

ACTIVITY UPDATE CONSUMER PUBLIC RELATIONS Semaine du Gout Partnership The second round of education classes through the Semaine du Gout partnership for elementary school kids took place, including a workshop day during which the audience learned about healthy eating, what ingredients should be part of a balanced diet, good nutrition and why it is important to be selective with the foods available in supermarkets. The presentation day also addressed parents and teaching staff by helping them create a good diet plan including seafood for their families. This activity enabled ASMI to connect with more than 800 kids, parents and teachers.

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Pudlo Thirty years ago, the first Pudlo culinary celebration took place in Paris and for the anniversary, the organizers executed a high-end event. ASMI was an active sponsor of the reception with an information counter to distribute materials while Alaska seafood was a key ingredient for the flying dinner buffet served to guests during the night. The key topics of the event were quality and sustainability for responsible indulgence and ASMI reached 400 foodies and 42 high-end chefs through its participation at the tradeshow.

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RETAIL MECHANDISING In cooperation with the French importer and distributor Fjord King, ASMI rolled out an in-store promotion in 200 stores of the organic retail chain Naturalia, the market leader of this sector in France. In scope of the campaign, advertisement banners were placed in the stores to highlight the products of the brand Nature Ocean including their smoked sockeye salmon, keta salmon roe, and Tarama made from Pacific cod roe. It was the first promotion in the organic / all-natural sector in the French market. Advertisements were placed in the stores for one week prior to Christmas to draw attention to the high-value assortment of the brand for the holidays. Overall, ASMI promotional materials were displayed for 1,200 days in 200 stores of Naturalia. Fjord King estimated the value of the event with around USD 144,000. Consumers reached through the promotion based on the average number of visitors per store was 780,000

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FOODSERVICE PROMOTIONS The cooperation with Flunch began with the first advertisements going online in December. Alaska seafood was introduced and described on the official website featuring dishes with a variety of products from Alaska that were also promoted on the Flunch online order system. While the majority of its traffic is in their restaurants, the online order/delivery sector is becoming more important and relevant. Therefore, it was a good opportunity for ASMI to have exposure in this channel in addition to the traditional advertisement in their stores. The Flunch online order system records over 2.5 million users per month. Sales numbers will be reported when available.

HRI TRADE SHOWS Chef19 On October 7 and 8, ASMI exhibited at the Belgian gastronomy tradeshow Chef19. It was the first time the program participated in the event and the goal was to connect with chefs and gastronomists in Belgium. The show was small but productive with only professional visitors. Aside from restaurant and kitchen managers, several HRI suppliers and traders for the HoReCa sector walked the show. ASMI handed out materials for chefs (preparation brochures, species and buyers guides) as well as interviewed chefs stopping by the booth. During the show, ASMI made connections to 51 chefs and seven new distributors which whom a cooperation in the future could be possible. ASMI sampled over 600 plates of smoked wild salmon. HoReCa From November 17 - 19, the HoReCa Belgium trade show took place in Gent. Again, this was a first time for ASMI and it turned out to be a strong event. Partnering with the local FAS office, ASMI was located next to the USA booth. The show attracted professionals with representatives from the catering, foodservice, manufacturing, gastronomy and wholesale sector. The most important contacts made were the head of Vici Europe, the buyer from Sligro Food Group and the CEO of Shore Ostende. During the days of the show, ASMI handed out 8,000 brochures. CHEF EDUCATION The first part of the Semaine du Gout workshops for HRI students and designated chefs started in December. The goal was to educate future

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gastronomists about selected sustainable products including identifying Alaska as premium seafood. ASMI’s goal is to convince these young students to purchase Alaska products for their own restaurants in the future. Information was focused on the wild and pure characteristics of Alaska seafood, the sustainable fishing principles and the species available in the WEU markets. The partnership has resulted in reaching an audience of 350 HRI/gastro students by educating them on the benefits of Alaska seafood and familiarizing them with Alaska seafood products through cooking lessons.

CENTRAL EU (GERMANY, AUSTRIA, SWITZERLAND, CZECH REPUBLIC, AND POLAND) MARKET UPDATE During the second quarter of the marketing year, ASMI prepared for the key selling season around Christmas while participating in leading tradeshows in the fall season for the CEU food industry. The goal was to spread ASMI brand messaging and to increase ASMI’s network of industry supporters in trade and HRI. While promoting the origin FAO67 was cut back, a stronger focus was put on environmental-protection, sustainability and the wild and pure nature of Alaska seafood. As primary audiences today are reached through social media, including opinion leaders of new media channels, online promotional campaigns are essential. Following positive past collaborations, contracts with key influencers were renewed in scope of cooperative activities with important industry partners. Additionally, features in traditional broadcasting media outlets, such as television and print magazines, were supported to maintain visibility in these media channels. Aside from generic placements, ASMI partnered with industry supporters to further increase impact and transparency to consumers. Trade partnerships continued and successful point of sale activities took place across the region. Saving budget while generating value, ASMI supported sales catalogs and retail flyers for seafood traders supplying CEU markets with Alaska products. At the same time, preparations for activities in the strong spring season started in November. Important new contacts were made at tradeshows with potential for new opportunities in the upcoming months and years. Working with chefs and gastronomists and targeting decision makers from the HRI sector remains an essential part of the program. ASMI attended key events for the sector in CEU markets while continuing preparations for larger campaigns scheduled for March and April. Using the additional ATP funding, new informational materials were produced to help promote Alaska seafood and spread the message of Alaska’s sustainable fisheries. ACTIVITY UPDATE CONSUMER PUBLIC RELATIONS Friedrichs Influencer Workshop In collaboration with ASMI’s long-time partner Friedrichs, a new edition of the influencer workshop was executed. While in the past year, a group of new media spokespersons had the chance to receive a general overview of the processing of

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Alaska salmon, this time the guests received a more detailed look behind the scenes. The goal was to explain more about quality control beginning with the strict guidelines and rules for sustainable fishing in Alaska. The influencers had the opportunity to check the raw materials and learn how to identify quality seafood and the differentiation between wild salmon from farmed fish. Afterwards, they were able to work with the product in the professional environment of the Friedrichs facility, creating their own versions of the traditional smoked sockeye salmon. The concept was to get them familiar with the Alaska seafood and create a bond through a shared, hands-on experience. All guests shared live content with their followers during the workshop, as well as afterwards on their blogs and social channels. 66 posts with content about Alaska Seafood and Friedrichs shared by the guests who visited the facility, reached an audience of 34.9 million. Die Räucherei / NDR TV Appearance In cooperation with Die Räucherei, ASMI and Alaska seafood was broadcast on German TV screens. In scope of a facility visit, a television crew of NDR (the Northern German broadcasting channel), Joachim Kunkel, CEO of Die Räucherei, discussed and prepared different kinds of seafood wearing an ASMI apron with a visible ASMI logo for a large audience of viewers. The television appearances on NDR had estimated viewers of more than 700,000.

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RETAIL MERCHANDISING Wechsler Retail Sampling The smoked salmon promotion in partnership with Wechsler continued into the strong pre-Christmas season with several in-store events taking place in supermarkets across Germany. Feedback received from consumers is very positive and the product meets the demands and interests of the younger customer generation. The next large period of promotions will take place in spring around Easter.

Vici Partnership Following meetings at trade shows in Belgium, we met with the European representatives of the large seafood trader Vici. They are particularly strong in the surimi segment. As a first step in a new collaboration, they are interested in running a promotion supported by the food truck in Germany and later in Belgium. We are also working on a plan of a combined EU-wide cooperation strategy. FOODSERVICE PROMOTIONS The Stadtmenü cooperation came to an end in November. In scope of the promotion, 14 restaurants in Dusseldorf listed Alaska seafood as special item on their menus. Most restaurants chose Alaska salmon as their feature item. These special menus were mentioned in media coverage for the campaign and advertised to increase the number of guests at participating restaurants. Through Stadtmenü, ASMI reached a number of 25,480 guests visiting the restaurants serving special Alaska dishes. The media reach of publications related to the event was recorded at 3.4 million. TRADESHOWS On October 5, 2019, ANUGA, the largest food tradeshow in the world, opened the doors for its 100-year anniversary. With more than 7,400 exhibitors from around the globe, the show attracts an average of 160,000 people from close to 200 international markets, every two years. Covering all product categories and trade channels of the modern food industry, the show is the number one meeting platform for manufacturers, importers, traders and brokers. As in previous years, most buyers came from Europe, the Middle East and Asia, with considerable growth from the Middle East.

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Taking advantage of this event, ASMI was represented at various locations through cooperation with industry partners such as Die Räucherei and Friedrichs, as well as our own efforts. “Chef of the Year” drew the largest crowd as the final celebratory event where ASMI was advertised as a Gold sponsor. The Alaska seafood logo could be found on all materials for the event, the booth and backdrops, as well as on the cooking jackets of all chefs participating in the competition finals. Additionally, Alaska wild salmon was featured as a key ingredient of one of the Michelin star chefs for the reception after the finals. The tradeshow reached more than 35,000 professionals in scope of ANUGA and ASMI connected with the next generation of chefs through the “Chef of the Year” competition. The contest generated a media value of more than USD 1.6 million and reached more than 11 million through trade press publications. CHEF EDUCATION ASMI participated as a main supporter in the Polish Chef Congress in Warsaw. After visiting the event the first time in the past year, it was decided to attend again as it has proven to be a perfect platform to reach chefs, restaurant owners and gastronomists in Poland. ASMI had an information counter and served samples of Alaska seafood. The goal was to explain to chefs the benefits and superior characteristics of Alaska seafood, which species and products are available in the Polish market and how they can be used in the kitchen. We took the chance to interview visitors to get an overview of the current market position of Alaska seafood and what chefs think about the products and the origin. Working closely with the local FAS office, Alaska was also a big part of the USA pavilion and Alaska seafood was served during the Taste of the USA dinner that was organized for selected chefs and journalists. ASMI met with 93 chefs and restaurant owners during the Polish Chef Congress, served 543 dishes showcasing Alaska seafood and distributed 938 informational brochures about Alaska and its seafood products to Polish professionals.

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NORTHERN EU (U.K., IRELAND, THE NETHERLANDS, FINLAND, DENMARK, SWEDEN) MARKET UPDATE The dominating news of the second quarter in the NEU region has been the political developments in the UK and Brexit. December saw the emphatic re-election of a conservative (right-wing) government who is committed to completing Brexit by the end of January 2020. After January 31, the UK will enter into a 'standstill' transition period with the EU until the end of 2020. During that period, the two sides will try to agree to the terms of a future trading relationship. There are also high hopes for a rapid US-UK trade deal with plans to negotiate a post-Brexit free trade deal with the US and the EU at the same time, which should deliver some optimism for companies exporting to the UK. The UK economy is set for a post-Brexit boost after the general election victory ended short-term uncertainty for business. Business optimism has risen. Exchange rates remain a key factor in the performance of Alaska seafood in the region. The pound rallied against the dollar with the certainty of Brexit experienced by the election however, its post-election gains over the euro and dollar were diminished as a no-deal Brexit remains a possibility with the Prime Minister planning to enshrine in law that the Brexit transition period must end by the end of 2020. We could still be in for a bumpy few months ahead. In the UK, a third of Brits are eating less meat than two years ago, more than a quarter said they planned to look for better quality meat or fish when making purchasing decisions. The meat-free category is now worth £404.9m, following an increase of 18% in value and 13.6% in volume. Fish and chips is the latest British favorite to get a vegan makeover, with Quorn launching both battered and breaded “fishless fillets,” while Waitrose introduced ‘Fishless Fingers.’ In foodservice, pub chain Greene King introduced a vegan fish and chips dish across selected branches and that was followed by Britain’s first vegan fish & chip shop. Opportunities abound for seafood in the context of this meat-free trend, with 55% of UK consumers saying they wanted to eat more seafood in a recent poll. Sustainability is high on the agenda with 71% of shoppers saying they planned to take a specific action to reduce their environmental impact over the Christmas period. Meanwhile Tesco is evaluating the environmental impact of farmed salmon. ACTIVITY UPDATE CONSUMER PUBLIC RELATIONS LEAP Christmas Events ASMI NEU agreed to support LEAP with two consumer facing events in the lead up to Christmas to boost the sales of smoked sockeye salmon. These events included the popular BBC NEC Christmas Food Expo in Birmingham and the Hampton Court Palace Festive Fayre. To raise the awareness of Alaska Seafood, ASMI funded merchandise to dress the stands. Merchandise included branded stockings, sticker sheets and pens as well as two five-foot teddy bears with an ASMI branded t-shirt, which were used to run on-stand competitions. Entrants had to guess the number of fish shaped sweets in a jar to be in with the chance of winning.

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CONSUMER ADVERTISING ASMI Advent Calendar To raise the profile of seafood at Christmas – a peak time for smoked salmon sales in particular - NEU rolled out an advent calendar on Instagram featuring Christmas facts, Christmas themed recipe ideas and spot competitions. NEU invested budget in the paid promotion of all competition posts to convert followers and grow the social media platform. The rest of the posts received engagement organically.

RETAIL MERCHANDISING Waitrose Christmas Promotion Christmas is a key time to support a salmon focused retail campaign, NEU invested funding with New England Seafood to promote sockeye salmon (smoked and sides) throughout December and January. The campaign included the following tactical elements, increasing sales by an estimated 56,000 units (to the value of £260,000). Actual results expected in Q4. Current Quarter Results:

• Half page ad in Waitrose Weekend Magazine (340,000 circulation / 1,020,000 reach) • The activity resulted in increased sales of wild Alaskan sockeye salmon: +5,000 units equating to +£51,000 • Sponsored LEAP Wild Alaskan Smoked Sockeye salmon online to appear as number one listing (as below) • Between December 4 and January 1, there were 28,047 searches for smoked salmon • Activity helped increase sales by +11,000 units equating to +£52,000

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FOODSERVICE PROMOTIONS The Staff Canteen Network Lunches ASMI NEU has committed to the sponsorship of a series of 12 B2B networking lunches throughout FY20, featuring one per month. This series provides NEU the opportunity to grow the ASMI brand within the foodservice sector and to develop trade contacts with supplier details and intelligence. The lunches are hosted in recognized and prestigious venues throughout the UK, with 15 chefs attending each one. One species from the Alaska seafood product portfolio is served at each event for chefs to sample. NEU also uses these gatherings to circulate the HRI survey and grow ASMI’s social media presence.

The Staff Canteen Live College Tour This event marked the final installment of FY19’s Live College Tour series – a live panel debate with established chefs at some of the UK’s leading catering colleges. These events have been attended by the college students and staff; offering insight into the world of hospitality and providing career advice for those wanting to follow in the footsteps of industry greats. NEU agreed to sponsor these events, raising the profile of Alaska’s portfolio from the grassroots up with product samples and the opportunity to address the audience. Another goal was to deepen relationships with contacts in the education sector ahead of the soft launch of Seafood University. This final installment was hosted at Milton Keynes College and was attended by approximately 70 students.

SOUTHERN EU (SPAIN, PORTUGAL, ITALY) MARKET UPDATE One of Europe’s leading importers of Alaska pollock surimi, Angulas Aguinaga, bought a majority stake in the Italian smoked salmon producer Riunione Industrie Alimentari at the beginning of 2020. This purchase will expand ASMI’s opportuinties to collaborate with AA and Riunione in the promotion of origin-identified Alaska pollock surimi products in Spain and Italy, and to convince Riunione to label with Alaska origin their smoked wild king and sockeye salmon. Spanish seafood processor Congalsa, which in 2019 began producing and selling 100 g. portions of single-frozen Alaska pollock fillet cut from fillet blocks, purchased Portuguese seafood processor Sulpasteis in early 2020. Sulpasteis currently sells Alaska keta salmon steaks. The merger offers ASMI a good opportunity to expand its promotion of Congalsa’s Alaska pollock fillet portions into Portugal and at the same time to work with Sulpasteis to expand their line of Alaska seafood products. Barcelona-based smoker Benfumat was purchased in 2019 by Collins Capitol Desarrollo, owner of the Taragona-based smoker Reyes y Varón. Benfumat recently announced its plans to continue to develop its premium quality brand in 2020 which includes origin-identified smoked wild Alaska king salmon and smoked Alaska cod. The purchase will hopefully allow Benfumat greater opportunity to collaborate with ASMI in the promotion of its high-end smoked Alaska seafood products.

Southern EU


ACTIVITY UPDATE TRADE SHOWS Seafood Expo Global 2021 Preparatory Visit to Barcelona ASMI participated in the orientation visit to the Fira Barcelona trade show facilities and supplier meetings on Nov. 13, and visited various Barcelona hotel in preparation for the SEG 2021 trade show in Barcelona, Spain. The trip was arranged with the help of Liz Plizga of Diversified and Constanti Serragllonga of Fira Barcelona. RETAIL MERCHANDISING Collaboration – Carlos Ríos In coordination with the in-store promotions in El Corte Inglés, ASMI-SEU sponsored a stop-motion video by Realfooding influencer Carlos Ríos, https://www.instagram.com/p/B3uEdOjC3nU/ which he posted on his Instagram, Facebook and website feeds on October 18 to over 1 million followers. Rio’s wild Alaska salmon video was part of a wider social media-based collaboration with the nutritionist and influencer Carlos Rios. His motto is "real food" and our products fit perfectly with his concept. This summer Alaska Seafood Spain sent Carlos to the Alaska Seafood Culinary Retreat to get to know the country and culture of wild Alaska seafood. Since with the publication of Carlos Ríos' post on Instagram, the Alaska Seafood Spain account has increased 1,884 followers. Dia de la Hostelería Makro Spain The Dia de la Hosteleria (Day of the Restaurateur) is an HRI event, organized by Makro, one of the biggest cash & carry chains in Spain, along with the Spanish Federation of Hospitality (Federación Española de Hostelería), and the Federation of Chefs and Confectioners (Federación de Cocineros y Reposteros de España). The event was celebrated in 27 countries by the Makro/Metro Group and in Madrid, Spain featured:

• A chef fun run • Tastings, show cookings and training sessions • 16 “meals at 50 meters” prepared by chefs Fran Vicente, Rodrigo de la Calle, Iñigo Lavado and Iván Muñoz

The goal of the event was to support the Spanish HRI sector. Different restaurants and cafes in Madrid could participate in the event and promote their business. Within the event, ASMI organized tasting at the Japanese restaurant Kappo, promoting wild Alaska sockeye, coho, Pacific cod, sablefish, pink salmon roe, and king crab. CHEF/TRADE IMMERSION AND E-IMMERSION Luis Barradas Recipe Videos Portuguese chef, ASMI ambassador, Luis Barradas, created 12 recipe videos, featuring Alaska wild salmon, Alaska cod and Black Cod. The videos are used in ASMI Social media and other materials. The list of the recipes:

https://www.instagram.com/p/B3uEdOjC3nU/

https://restaurantekappo.com/

Southern EU


• Alaska Wild Salmon with Cockle and Chorizo • Alaska Wild Salmon with Pea Puree • Alaska Wild Salmon breaded with Lemon Rice • Braised Alaska Wild Salmon Sashimi with Sweet Potato • Salad with Wild Alaska Salmon • Spring Roll with Alaska Wild Salmon • Alaska Wild Salmon in Puff Pastry with Winter Vegetables • Alaska Black Cod with Creamy Coriander Rice • Curry with Alaska Cod • Alaska Steamed Cod • Alaska Cod with Pak Choi and Purple Purée • Alaska Black Cod Ramen

EASTERN EUROPE (RUSSIA, UKRAINE, AND CIS) MARKET UPDATE Russia While annual growth nearly doubled in Q3 from Q2’s upturn, available data looks mixed, signaling that the upturn was likely boosted by temporary factors. On one hand, falling inflation, improving consumer confidence, a stable ruble and monetary easing by the Central Bank boded well for overall domestic demand in Q3. On the other hand, retail sales growth slumped in Q3 amid an uptick in the unemployment rate, signaling that consumer demand remained lackluster in the quarter. Moreover, conditions remained challenging on the external front: merchandise exports fell at the sharpest pace in three years in Q3 amid faltering commodity prices. Turning to Q4, data paints a similarly mixed picture. Sustained monetary policy easing, lower inflation and a supportive budget policy likely spurred consumption in investment activity at the beginning of the quarter. With that said, industrial output growth slumped to a five-month low in October, on a downturn in mining activity. Ukraine GDP grew solidly in the third quarter, according to a flash estimate. Although the details behind the release are not yet available, buoyant private consumption was likely in the drivers’ seat given wages continued to grow strongly in the period and consumer confidence soared to a 12-year high in September. Industrial production, however, recorded a fourth consecutive drop in September, suggesting the industrial sector likely restrained overall activity somewhat. Meanwhile, on the political front, an IMF mission returned to the country in November to resume negotiations on a new program to replace the USD 3.9 billion arrangement expiring in January. Reports suggest that the future of PrivatBank, which was forcibly nationalized in 2016, remains a sticking point in talks. A quick approval of a new arrangement could help stoke improving confidence in the economy, although delays risk curtailing gains. ACTIVITY UPDATE TRADE SERVICING Viciunai Promotion In 2019, Viciunai launched a new product “Snow crab surimi sticks” with an improved recipe and increased content (52%) of wild Alaska pollock surimi, which is among highest percentage on the market. In support of the product launch, a joint ASMI-Vici promotion took place across the Baltics (Lithuania, Latvia, Estonia). The ASMI logo was placed on the packaging of the product, which is the first such case with Viciunai. A landing page in three languages (Lithianian, Latvian, Estonian) was created at alaskasnowcrab.lt. Vici developed a series of recipes with “Snow crab surimi sticks” that featured Alaska Seafood logo on photos.

http://alaskasnowcrab.lt/

Eastern EU


A campaign “snow crab surimi sticks” targeted health cautious millennial consumers. The campaign positioned surimi sticks as a healthy sporty snack. Project included placement outdoor and indoor banners in sport clubs, that provided comparatives between “Snow crab surimi sticks” and regular quick meal/snacks, highlighted advantages of crab sticks as a product of sustainable fishing, that has a wild natural origin of protein. The campaign also included insets in radio entertaining programs, which brought positive flavor to the promotion and complimented the banner campaign in terms of providing additional lively information about the product and its health benefits. The digital campaign included articles in on-line media and banners. Shelf stoppers were placed in ELVI, MEGO, RIMI stores. Cooperation with social media influencers was a major part of the campaign, as well. Focus was given to the introduction of Alaska‘s wild, nature, sustainable fishing traditions, and wild Alaska pollock that originates from this special place. Over 20 opinion makers participated in the campaign. Ovidiu Tarbuc’s Social Media Promotion Ovidiu Tarbuc, the 2019 Culinary retreat participant, supported Alaska Seafood with a series of posts on his personal social media pages. In total, 20 posts and InstaStories were published on Instagram, Facebook and Twitter.

Winter soup with wild Alaska salmon. Hot salad with wild Alaska salmon.

Baked wild salmon. Quiche with wild Alaska salmon.

Salmon roe New Year presents for Chefs in partnership with Fontegro At the end of December ASMI partnered with Fontegro – the leading Ukrainian Chefs Association. Fontegro included Alaska frozen pink salmon roe at their New Year gift set and presented it to the best known, more influential Ukrainian chefs. Results: 15 best known and more influential Ukrainian chefs tasted Alaska frozen pink salmon roe and distributed information on their social media profiles.

Eastern EU


Ukrainian Importers of Fish and Seafood Association SMM promotion, Ukraine The Association of Ukrainian Importers of Fish and Seafood unites fish industry representatives in the country. The association has become an important platform for representatives of fish business firms. ASMI has used UIFSA’s social media platforms to post Alaska related information for over a year. During Q2, four posts were published on UIFSA Facebook page https://www.facebook.com/uifsa.ua (more than 2,000 followers). Posts were boosted among ASMI target business and consumer audiences in Ukraine, which increased the total reach to 120,000 people. Three Alaska articles were published on the website http://uifsa.ua/en/ in the section “Advice from Alaska Seafood,” with the total readership 5,500 people. Two Instagram posts were placed on the private page of the Association’s head https://www.instagram.com/dimazaggi/. The total reach was 20,000 people. The topics of the articles and posts covered information on Alaska wild salmon and salmon roe. The main goal of the promo was to educate the Ukrainian fish industry about Alaska Seafood and its distinctive features and to increase brand recognition. Final consumers also had access to the posts. The published posts are provided in the table below. TECHNICAL EDUCATION Eeu.alaskaseafood.org Web Site Development, Ukraine The website development includes the development of a new concept, design, and texts copyright.

https://www.facebook.com/uifsa.ua

http://uifsa.ua/en/

https://www.instagram.com/dimazaggi/

Eastern EU


KOL partnership Klopotenko Evgeniy Klopotenko: young Ukrainian chef, participant, and winner of amateur Masterchef-5 Ukraine TV contest. Owner of the restaurant “100 year ago before.” He has 55k YouTube subscribers, 66k Facebook audience, and 413k Instagram followers. Klopontenko is also among top opinion makers in Ukraine on modern nutritious kid’s diet. The chef is an active agitator for changes in Ukrainian food culture, return to cultural background, traditional and healthy ingredients. Klopotenko acts as an expert participant in modernization of Ukrainian school menus. He developed a cookbook dedicated to modern kids’ recipes for Ukrainian schools, which was officially used in over 1,840 schools across the country. Campaign’s website: cultfood.info. ASMI worked with him to create a kids recipe with wild Alaska pollock, salmon and other seafood and placement of recipes in the "Dishes for Kids" section on klopotenko.com. Announcements: photo of seafood preparation, mention "wild Alaska pollock" in the recipe. Publications on Eugene's social media. Posts: myths about frozen pollock, its benefits for children and more, Alaska salmon roe benefits. Collection of Alaska Pollock Recipes.

SOUTH AMERICA MARKET UPDATE The South America region offers significant opportunities for Alaska Seafood, especially for being a relatively new consumer market with growing seafood consumption and a potential reprocessing center for Alaska seafood. As a reprocessing center, both Peru and Ecuador stand as key countries to process Alaska seafood for other international markets, including South American destinations such as Brazil, Colombia and Chile. With 200 and 104 registered processing-commercial facilities, respectively, local industries have been facing a high volatility in their production volumes as local seafood species harvest volumes have been fluctuating over the past years due to environmental changes. Being so, Alaska seafood appears as a viable competitive alternative to support local industries back to operating at full capacity. As a consumer market, seafood consumption levels having risen across the region, with important highlights to Brazil, Mexico, Chile, Colombia, and Peru. A strong consumer demand associated with a growing purchasing power, in addition to seafood playing an important role in a thriving gastronomy, are key in these markets. As urbanization levels rise, smaller households gain further purchasing strength and consumers show more interest towards health-conscious and sustainable products. The existence of Free Trade Agreements (FTAs) between the U.S. and important countries in the region such as Chile, Colombia, Peru, and Mexico, also encourages ASMI to dedicate efforts to these markets and motivates them in develop long term strategies to grow exports into the region as Alaska seafood entering most of the countries duty free. ACTIVITY UPDATE RETAIL MERCHANDISING ASMI Brazil conducted in-store promotions in support of Alaska cod, pollock, keta, sockeye and pink salmon. The participating outlets consisted of nine retail chains in São Paulo/SP, Recife/PE, Salvador/BA, Brasília/DF and Florianopolis, Joinville and São José/SC. ASMI recipe flyers and samples of Alaska seafood products were distributed to the public, as well as signage including a Nanook bear totem and a branded promotional photo totem. • In Recife/PE, ASMI had three sales professionals working during 64 days in seven outlets of the chain BIG (former Wal

Mart). • In Salvador/BA, ASMI had two sales professionals working during 48 days in six outlets of the chain BIG.

South America


• In São Paulo/SP, ASMI had four sales professionals working during 48 days in 12 outlets of the chains Carrefour, Mambo and Natural da Terra.

• In Florianopolis, Joinville and São José/SC, ASMI had three sales professional working during 20 days in three outlets of the chains Bistek, Giassi and Imperatriz.

• In Brasília/DF, ASMI had one sales professional working during 12 days in four outlets of the chains Mercado Malunga and Super Box.

TRADE PUBLIC RELATIONS Venda Seu Peixe (“Sell Your Fish”) Workshop – Brazil ASMI sponsored the “Venda Seu Peixe” (“Sell Your Fish”) workshop and round of one-on-one meetings held by Seafood Brasil magazine and trade show organizer Francal Feiras; the event launched the first edition of Seafood Show Latin America, to be held in São Paulo September 20 – 22, 2020. The first day of the event was dedicated to a workshop, which reunited representatives of eight different countries and over 100 key players in the Brazilian seafood trade and retail. The event discussed the international seafood market, current Brazilian consumption levels, and trends at the retail, foodservice, and other segments. ASMI OMR Carolina Nascimento provided a 20-minute presentation on the U.S. and Alaska seafood industry, species, competitive advantages, business opportunities and Alaska seafood as a sustainability benchmark. On the second day, several meetings between suppliers and buyers were held, in which ASMI met with eight buyers. The Sustainable Fisheries in Alaska – Class by Chef João Leme ASMI collaborated with ABREGEL (Brazilian Association of Chefs) and Chef João Leme for the organization of a class titled “The Sustainable Fisheries in Alaska” offered during São Paulo Tech Week to 35 people. The B2C event focused on the Alaska origin as a benchmark of sustainability and on the nutritional advantages of wild and natural seafood. ASMI provided Alaska sockeye and keta salmon for tasting, which were served after the chef’s presentation. The event also included the participation of the new FAS/ATO Director Nicolas Rubio, based at the São Paulo post. Alaska Seafood branded recipe flyers, informative materials and recipe books were also distributed to guests.

TRADE SERVICING Trade Seminars in Peru On November 26 and 28, ASMI organized two trade seminars in Lima and Piura, Peru, targeting Peruvian distributors, processors, importers, and retailers. The seminars provided the audience with detailed information about Alaska seafood industry and species, including harvest, seasonality, quality, sustainability, competitive advantages, existing markets for the products worldwide, opportunities for importing Alaska seafood raw material for reprocessing in the country and developing new wild, natural and sustainable Alaska seafood products. Attendees had the opportunity to taste samples of the five species of Alaska salmon and four species of whitefish, including Alaska pollock, Alaska cod, Alaska sablefish and Alaska halibut.

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The seminar in Lima was attended by 25 participants, including 10 leading seafood processors in the country, in addition to associations and Government agencies as FAS/USDA, Sanipes (Peruvian Sanitary Authority), PromPerú, ASIPAR and Ministério de la Producción. The event in Piura had 19 representatives of 10 companies. At the end of the two seminars, participants expressed interest not only in learning more about Alaska species, but also indicated their interest in participating in the ASMI Trade Mission to be held in Peru in March 2020. Trade leads were shared with the Alaska seafood industry; it is known that some members are already in direct contact with Peruvian buyers as a result of the activity.

U.S. Agribusiness Trade Mission (ATM) to Mexico ASMI South America staff participated at the ATM mission organized by the USDA to Mexico City, Mexico, in order to better understand the market for Alaska seafood in the country, products currently available at retail and foodservice levels and opportunities to grow exports to the aforementioned market. Retail tours were carried at Walmart, Sam's Club, Costco, Soriana, Superama, Sumesa and City Market. Jose Madeira and Carolina Nascimento, ASMI OMRs in South America, participated in 17 one-on-one meetings, including La Comer, Piscimex Group, Gar Alimentos and Swift Mexico. Opportunities were found for most of Alaska seafood species, especially wild Alaska salmon and Alaska pollock; also for Alaska cod, crabs, halibut and black cod. Formats go from H&G for reprocessing, until retail products (including cans).

South America


FOODSERVICE TRAININGS Praça São Lourenço Restaurant ASMI provided one training for Praça São Lourenço, aiming at educating the restaurant’s staff on the advantages of wild seafood, health and nutritional benefits, sales speech and specific details on all wild salmon and whitefish species available at the Brazilian market. Mr. João Paulo Gentille, Partner of Praça São Lourenço, was among the Brazilian participants of the FAS Cochran Mission held at the last quarter, and since then has been buying 100kg of Alaska keta salmon fillets weekly. Impressed by his experience in Alaska and from the very positive feedback from his customers, he asked for a special training for the restaurant’s Maitre, chefs, waiters and hosts to learn further details on how to properly present their dishes. The experience was very positive, with the restaurant being chosen by ASMI to host the Nutrition workshop on December 4th. Mr. Gentille expects for weekly purchases to continue for the next quarter, and is considering adding more Alaska species to their menu after the positive feedback by guests during the workshop.

Noronha Pescados’ Foodservice Sales Team ASMI provided one training for Noronha Pescados sales team in São Paulo/SP, which have increased since their success with the local foodservice over the last quarter. ASMI provided in-depth information to six sales professionals on Alaska seafood wild, natural and sustainable aspects, nutritional benefits, differences to farmed seafood, sales speech and recommendations. GR SA Institutional Catering ASMI organized one Chef training during the quarter. The training was given by Chef Celso Lacerda, an experienced professional already familiar with Alaska Seafood, for GR SA’s kitchen staff. The company is a renowned institutional catering and distribution company, with over 40 years of experience and with a purchasing volume of 2 to 3 MT of fish per month and over 1 million meals served per day. GR SA has already purchased 5 MT of Alaska pollock fillets square portions, and partnered with ASMI to provide training to its staff on their HQ in São Paulo-SP. Chef Lacerda prepared two dishes to be approved on GR’s official menu: a regular roasted and a breaded version. Dishes developed during the kitchen staff training were tasted by GR SA’s commercial and events’ teams. The training was evaluated as very productive, with the company being highly interested in increasing purchased volumes of Alaska pollock portions. ASMI expects a final feedback from the company in the next quarter, and will keep following up regarding new sales, trainings and Alaska seafood focused events.

South America


FOODSERVICE PROMOTIONS Nutrition Workshop – Brazil ASMI organized a nutritional workshop focusing on the nutritional benefits and competitive advantages of wild Alaska seafood. The event was attended by nutritionists, physicians and market experts focused on retail, foodservice and specialized media. The Workshop featured five presentations that addressed topics such as business opportunities and the new market strategy; nutritional advantages of wild Alaskan seafood; benefits of Alaska seafood for infant development, focusing on omega-3; the contribution of Alaska seafood to an improved sports performance associated to a healthy diet; and sustainability and nutrition as business strategies. In addition, Nicolas Rubio, ATO/FAS Sao Paulo Director was one of the speakers, proving welcome remarks to the audience. The event was held at Praça São Lourenço and was attended by 105 guests. Furthermore, a reception was held with tasting of Alaska keta salmon, Alaska king salmon, Alaska pollock, Alaska halibut and salmon roe. After the presentations, a dinner was also served whose menu included Alaska sockeye salmon and Alaska cod.

TRADE MISSION Trade Mission to Peru, March 1-6, 2020 ASMI organized a trade mission to Lima and Piura, Peru from February 29 to March 6, 2020. The mission consisted of a delegation of five Alaska Seafood industry members and the trip provided them with the chance to learn first-hand about the Peruvian market, visit processing plants, supermarkets and restaurants, understand trade/consumer behavior, conduct trade meetings and also educate South American players about Alaska seafood’s attributes, variety of species, harvesting and processing methods, and more. The mission provided networking, and public relations and is the starting point for exporters to develop relationships with local major players.

SOUTHEAST ASIA MARKET UPDATE

While growth in Southeast Asia remains robust, data from the first half of 2019 indicates it has been slower than forecasted. The most recent Asian Development Bank (ADB) data suggests that Southeast Asia has grown less than anticipated, resulting in slight downward revisions to growth forecasts which now stand at 4.8% (2019) and 4.9% (2020),

SE Asia


down from 4.9% and 5.0%, respectively. Meanwhile, regional inflation for 2019 is now expected to fall to 2.4% from the previous forecast of 2.6%.

The region’s more open economies are facing the combined impacts of the United States (US)-China trade tensions and a dip in the electronics cycle, although this has partly been offset by strong domestic demand according to the ADB in last month’s supplement to its Asian Development Outlook report issued in April.

The ADB’s main economic forecasting product, the Asian Development Outlook is published each April with an update released in September and brief supplements in July and December – with Singapore, Thailand and the Philippines among the regional economies which have seen cuts in their forecasted gross domestic product (GDP) growth rates for 2019.

The outlook for the other three ASEAN countries in the report – Indonesia (5.2%), Malaysia (4.5%) and Vietnam (6.8%) – remain unchanged from April.

“Even as the trade conflict continues, the region is set to maintain strong but moderating growth,” said ADB Chief Economist Yasuyuki Sawada. “However, until the world's two largest economies reach (an) agreement, uncertainty will continue to weigh on the regional outlook.”

Singapore, Thailand and the Philippines Weak manufacturing and external trade in Singapore have seen the country’s GDP forecast for 2019 dip from 2.6% to 2.4%. However, the country’s service sector has helped boost the economy, particularly information and communication – which grew by 6.6% year on year in the first quarter of this year. The growth in the sector comes in spite of Singtel – Southeast Asia's largest telecom operator – posting its lowest net profit in 16 years according to its annual report that was released in May.

In Thailand, the ADB forecasted the nation’s economy to grow by 3.5%, a drop from the original forecast of 3.9%. Weaker global trade caused exports to contract by 4.5% year-on-year in the first five months of 2019, weighing on growth. Private consumption and investment remain strong, and a sustained growth in income, low unemployment and stable prices have helped to drive private spending.

In the Philippines, the ADB cut the country’s GDP forecast from 6.4% to 6.2% largely due to the delayed passage of the national budget which held back government spending. As in other ASEAN countries, the Philippines’ growth in exports also slowed as a result of lackluster global trade and economic activity.

However, there is widespread evidence that the redirection in trade and production has benefitted ASEAN. Vietnam, for example, expanded its exports by 6.7% in the first five months of this year buoyed by a 28% rise in exports to the US.

Vietnam and Cambodia Vietnam has been the fastest-growing economy in Southeast Asia this year and growth in the first half of 2019 is estimated at 6.8% year-on-year despite agriculture being hindered by a prolonged drought and African swine fever. Growth in industry – especially manufacturing – remained robust and foreign direct investment (FDI) rose by 27 % in the first five months of 2019 from a year earlier.

Driven by a rapid expansion of exports such as garments and robust internal demand, Cambodia's GDP grew from 6.9% in 2016 to 7.0% in 2017 to 7.3% in 2018. At 7.0%, the country’s forecast for 2019 during the ADB’s April report was the highest among all ASEAN member states. However, no data on Cambodia was available in July’s supplement report.

SE Asia


Mirroring the ADB’s confidence in the country, the World Bank and the International Monetary Fund (IMF) have also predicted that Cambodia's economy would grow by nearly 7.0% in 2019.

While a drawn-out trade conflict between the US and China could severely undermine investment and destabilize growth in the region, other factors such as rising oil prices, currency depreciation and the uncertainty surrounding Brexit are also important issues surrounding economic growth in ASEAN.

Other threats to ASEAN’s progress and prosperity include climate change and the risk of natural disasters – the consequences of which affect the poor and the marginalized in developing countries disproportionally.

Although ASEAN economies have remained resilient in the face of current economic challenges, the region has to stay vigilant if it is to operate successfully in an increasingly connected trade and financial system.

Overall, strengthening domestic demand will offset weaker export growth and strong consumption –spurred by rising incomes, subdued inflation, and robust remittances – should boost economic activity in ASEAN.

ACTIVITY UPDATE TRADE SERVICING/EVENTS Trade Servicing Meetings The SEA representative team held trade service meetings in Singapore, Thailand, the Philippines, Indonesia, and Vietnam during the second quarter. The team also worked closely with our social media contractor in Bangkok to launch the ASMI SE Asia website and Facebook pages in English, Thai, and Vietnamese languages. The ASMI Whitefish Buyer’s Guide and “Alaska Seafood A to Z” brochures were also translated to Thai and printed for distribution to the Thailand trade. Translations to Thai language have also been started on the Salmon and Whitefishe buyer’s guides. Translation to Vietnamese language for all of the Buyer’s Guides is underway

CHEF SEMINARS The American Inspired Chef, October 21-22, Phuket ASMI SE Asia supported this event organized by FAS on October 21-22 in Phuket. Chef Tam, the American Inspired Chef, featured U.S. ingredients, including Alaska pollock, pollock roe, pink salmon, U.S. beef, California cheese or milk, U.S. dehydrated potatoes, and Washington apples, together with local Thai Southern herbs and vegetables. The event’s goals were to:

• Raise awareness of the quality, wild, natural and sustainability of Alaska seafood products and other U.S. food ingredient products among Thai culinary students in Phuket; • Promote innovative applications of U.S. food products to the food service industry in Phuket; • Educate culinary students on the use and application of U.S. food products.

The event had two components: 1. Culinary training and cooking demonstrations by Chef Tam for culinary students, agricultural students, and young professional chefs at Faculty of Hospitality and Tourism, Prince of Songkla University on Oct 21. 2. Chef’s table dinner event at the Pool House, Hyatt Regency Phuket Resort. Chef Tam prepared five courses using U.S. American foods and Thai Southern local herbs and vegetables to create wow menus for 60 VIP’s, press, restaurant owners, chefs, and importers.

SE Asia


“Ideas, Inspirations, and Insights with Alaska Seafood,” November 21, Bangok ASMI Southeast Asia and FAS Bangkok hosted a one-day seminar on November 21, 2019 for Thailand seafood processors, importers, food service distributors, retailers, and media representatives. Titled “Ideas, Inspirations, and Insights with Alaska Seafood”, the seminar was held at the Hyatt Regency Bangkok. The event gathered 84 guests from 34 companies, including four suppliers of Alaska seafood: Icicle Seafoods Inc., The Alaska Guys Pte. Ltd., Trident Seafoods Asia Co., and Sugpiaq Seafood Company. It included a technical seminar and luncheon for Thai executives in Thailand’s food service, quick-serve and mid-range restaurants, retail, seafood processing, and media sectors. The event featured three Thailand-based chefs who prepared a range of menu items including Alaska pollock, roe, surimi, cod, pink and keta salmon, and rockfish. All of these Alaska species have potential in Thailand’s foodservice and retail markets. Prior to the event, ASMI provided product samples to the three chefs for menu preparation and product development. The excellent trade contacts and lessons learned from this event helped ASMI SE Asia define next steps in Thailand and similar activities in other Southeast Asia markets.

to: asmi board of directors from: hannah lindoff, senior

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