market
Grand Shrimp’s current 7-year strategy is to produce and sell farmed Whiteleg shrimp within a 100-mile radius of production locations in nine US domestic markets. This strategy will capitalize on the growing demand and consumption of shrimp that is currently heavily dependent on imports (over 90% of shrimp consumed in the US is imported). Additionally, Grand Shrimp sees head-on, tail-on live whiteleg shrimp as a largely untapped market where demand far exceeds supply. Live shrimp is also a very popular choice among growing Asian communities in US major metropolitan markets and will garner premium sales prices. Producers will have the opportunity to sell higher value fresh product as transportation limitations are removed.
Aquaculture is the fastest-growing form of food production in the world.
Shrimp Types and Whiteleg Shrimp Popularity
There are over 300 species of shrimp worldwide. The most extensively farmed shrimp is the Whiteleg shrimp (Litopenaeus vannamei). While this species is native to the eastern Pacific Ocean, these shrimp are farm raised worldwide and represented 53% of the total production of farmed crustaceans in 2016 globally₂. This species is popular due to its sweet taste, low fat content, general resistance to disease and fast growth rate.
U.S. Shrimp Supplies
Shrimp is a multi-billion-dollar market in the US (with $6.5 billion in sales in 2017, 14% higher than in 2016₃), large enough to affect the GDP of most countries. Most of the shrimp consumed in the US is imported from South Asian and South American countries and there is growing concern about the health and safety of imported seafood products coming into the US due to rampant antibiotic use and dangerous bacteria and pathogen levels in the shrimp. Additionally, shrimp consumption in the US continues to grow and supplies of domestic and imported shrimp were at record high levels in 2017 with the average retail price of shrimp at 3-4% higher than 2016₄. In 2013, it was estimated that while 90% of shrimp consumed in the US was imported, less than two percent was inspected by US regulatory agencies, raising concerns about the health and safety of these imported shrimp supplies₅.
Shrimp Health Benefits
Grand Shrimp will eliminate the risks of disease, dangerous bacteria and pathogens and contamination associated with imported shrimp supplies allowing the US market to take advantage of the many health benefits that are, in part, driving the strong growth in consumption of shrimp in recent years. Shrimp are rich in astaxanthin, which helps to prevent various chronic health diseases and supports brain and heart health. Shrimp also increase the levels of good HDL cholesterol, are low in carbohydrates and calories, high in protein and are packed with healthy nutrients₆.
Distribution Channels
The target market for the shrimp raised by Grand Shrimp will be large restaurant chains, high-end retail markets such as Whole Foods dedicated to high quality and sustainable food offerings, and wholesalers. With initial expansion plans focused within the US major metropolitan markets there will be more than adequate channels for sales and distribution. Already, in Southern California, high-end restaurants and seafood retailers have expressed strong interest in the Grand Shrimp product due to its purity, high density and superior taste to other providers’ fresh shrimp.
