Increasing Profits of Clearwater Seafoods
The following suggestions can help Clearwater Seafoods to increase their profits in coming years:
Exports
The sharp decrease in the Canadian dollar has been beneficial for Clearwater as they are reliant on exporting their products. China provides a lucrative export market for Clearwater as the demand for seafood is increasing in the most populated country in the world (Casey, 2016).
Invest in Scallops
The revenue stream in Clearwater has been supported by their competency in fishing scallops. Also, the company has managed to add additional value to scallops by adding the Argentinean scallops to their product depth. Clearwater needs to add more to their depth in scallop trade and boost their revenue (Casey, 2016).
Promote their Commitment to Sustainability
The company has maintained its commitment to sustainability as all of their core species have maintained MSC (Marine Stewardship Certification) since 2012.
This means that MSC, an international NPO (non-profit organization) considers the seafood harvested by Clearwater as ‘responsibility caught’ (Casey, 2016).
Acquisitions
Clearwater needs to add more species to their portfolio to increase their revenues. With the highly regulated system of quotas and licenses in Canada, the company needs to look abroad. On the same direction, Clearwater has already bought Britain’s largest shellfish company, Macduff Shellfish Group for 94.4 million pounds. Shellfish is exactly the product that they need to add to their portfolio as it has a well developed market and can increase their profits (Financial Post, 2015).
Trans-Pacific Partnership
Clearwater is exporting to different countries, but many of them are charging tariffs for market entry. TPP provides Clearwater a great opportunity to take advantage and sell in markets where tariff barriers are restricted (Casey, 2016).
References
Casey., Q. (2016, 19 February). Clearwater Seafoods rides the export wave of good fortune. Retrieved 26 January 2017 from, http://business.financialpost.com/executive/c-suite/clearwater-seafoods-rides-the-export-wave-of-good-fortune
The Financial Post. (2015, 9 October). Clearwater Seafoods to buy U.K.-based Macduff Shellfish for $195 million. Retrieved 26 January 2017 from, http://business.financialpost.com/investing/clearwater-seafoods-to-buy-u-k-based-macduff-shellfish-for-195-million
