December 2014 | view this story as a .pdf

Hello, Maine, The World is Calling:

Turns out we don’t know everything there is to know about the lobster market. Now’s our chance to seize a global opportunity.

Story & Interview by Colin W. Sargent

In Paris on rue Coquillière, you can snap up a lobster roll for 28 euros ($35 U.S.) at the trendy Lobster Bar, the talk of the town.

As restaurateur Mathieu Mercier puts it, “Le pitch: Faire avaler aux gourmets parisiens sa lobster dwich’ mania tout droit débarquée des côtes outre-Atlantique.” Translation: Maine lobster is très chic across the sea. Everything has changed. And the astonishing thing is, we Mainers are the ones who will have to re-imagine lobster in order to capture emerging global opportunities.

“We think that China is likely the biggest international market for lobster of all kinds, Maine included, and growing the fastest as well,” says Matt Jacobson, the new executive director at Maine Lobster Marketing Collaborative, with offices above Three Dollar Dewey’s on Commercial Street in Portland. “South Korea is also a significant market.”

As demand has increased, the received wisdom Mainers cherish about lobsters has become less and less valuable. For example, the recent surge in interest has little to do with hot-buttered lobster (which has slipped from 54-percent of dishes to 36 percent) while emerging flavors such as cilantro, wasabi, ginger, and mango are transforming the dish and therefore our desires.

Enter Jacobson, 53, a Naval Academy graduate and Air Force pilot; former President and COO of the St. Lawrence & Atlantic Railroads; former CEO of Maine & Co., a business statistics non-profit specializing in bring new business into the state; and former candidate who sought the Republication nomination for Maine governor in 2010. Intent upon upgrading the database we use for investing in the future of Maine lobster, Jacobson has commissioned Chicago statisticians Technomic to serve notice on what’s being served on menus across the country.

These graphs are beyond enlightening. How important are the new flavors?

While some of the specifics we are seeing from the menu surveys are unexpected, the information certainly whets our appetite for more data to base our marketing decisions. Chefs are using Maine lobster in new and fascinating ways. I tried a recipe the other night for Thai-spiced Maine lobster tails with coconut. Fabulous!

Tough work, but someone has to do it. Another graph seems to reveal that lobster rolls–loved by Mainers, diners in Manhattan, a spectacular exception in Paris, and a few food truck customers in San Francisco–are comparatively undiscovered elsewhere. Is this a huge marketing opportunity?

One of our board members, Luke Holden, is the Luke of Luke’s Lobster–one of the successful lobster-roll food trucks in New York City and now Washington, DC. Luke and his company, Cape Seafood, have really been a leader in this innovative way to market. His success, coupled with the data from this and other sources, leads us to believe that Maine lobster rolls might work in a lot of places.

You’ve suggested that some of our prior information about Maine lobstering verges on “fable.” Your starting point has been to secure reliable data about present shipping and wholesaling. Is that because we can’t know where we’re going until we know where we are?

Information about where Maine Lobster is popular and where it commands the highest price are issues we are very interested in learning more about. We are beginning to define the specific data we could use. Sharing of information within the industry will allow all the players, including the Collaborative, to make better business decisions.

Does this mean our presumptions about marketing lobsters have had us trying to sell our lobsters to a vanished demographic?

I’m not sure I accept the premise–the industry has done a pretty good job over time–after all, some estimates are that the Maine Lobster Industry is worth more than $1B to the Maine economy. That said, more information and data about our customer’s attitudes, preferences, and locations will only make us stronger. And while marketing food is complex and not without challenges, we are starting from an extraordinarily strong position. One data point here: We asked 21 of the country’s best marketing agencies if they might be interested in partnering to help us market Maine lobster, and all but three submitted proposals. We have a great brand. We have the best stories about the people who catch the fish; where they do it; and the unique sustainability of the Maine Lobster fishery. I am very optimistic that a focused, data-driven marketing effort will have demonstrable results.

You’ve met your marketing counterpart from the pork industry. What did he know that you don’t know?

There are more than 20 Federal “Check Off” programs administered by the USDA that help market beef, pork and other commodities. Several state boards do similar jobs but are sponsored at the state level, like Maine Lobster Marketing Collaborative. The COO from the American Pork Board was extremely generous with his time. And while there was much to learn from him, he did tell me his budget for pork will be about $97M this year. It puts our $1.5M for 2015 in perspective. He also has granular data about his industry: He knew for example that a 1-percent decrease in the supply of pork resulted in a 3-percent increase in price at the retail level. That sort of detailed data about pork really sparked my interest in developing similar useful data about Maine lobster.

One shocker graph shows the West Coast and South mention lobster more often on menus than the East Coast. Really?

There are at least two take-aways here. First, we are starting from a position of strength: Maine lobster is loved all over the U.S. That is really good news as we try to extract more value for our industry. The second thought is that lobster consumed in New England is often served at home and not necessarily in a restaurant. No matter what, data like this will help inform us where we ought to go to be the most successful.

What do these graphs not tell you that you’re hoping to learn?

I’d like to learn more about the value equation. Who pays most for Maine lobster and why? Where can our processors and wholesalers sell their products for the most value? As we get farther away from Maine, the costs of logistics rise. Finding markets that value Maine Lobster but don’t require extensive and expensive supply chains will be a focus for us.

Please tell us how it is that Maine lobsters are called Boston Lobsters in China, and what you hope to do about it.

Primarily in Asia, but in other overseas locations, it is not hard to find “Boston Lobster” featured on a menu.  This is because the point of debarkation in the United States was the port of Boston, and that’s what’s printed on the Customs documents. That documentation follows straight through to the menus.  Branding Maine Lobster is our challenge, and one that we will systematically approach all over the world.

What’s one advantage Mainers don’t understand about the Maine lobster business?

One of the things that is unique and special about our fishery is that every lobster is caught and inspected by hand. That sort of care and dedication of our lobstermen and women is unique and inspirational. Look for us to be telling their stories around the world in the near future.

If you were to appear on Shark Tank in support of Maine lobster futures, how would you sell it?

I think the biggest macro trend that is important for us is the notion of sustainability and traceability. There is a powerful trend in food where people all over the world, and especially in the U.S., are interested in where their food comes from; how it is harvested, and by whom.

Tell us about the marketing competition and what will happen after the early December reveal?

We’ve contacted more than 20 of the best marketing agencies in the world. And nearly all of them have expressed interest in partnering with Maine lobster. We are in the process of determining which of them will be best for us and are excited at the quality work we are seeing…After we make our final decision, we’ll get to work right away defining the data we need to get and begin to make some choices about where we target our efforts.

Are we talking about celebrity endorsements (Mary Tyler Moore, not so much. But maybe Diane Keaton)?

We haven’t a clue yet! A lot will be determined by which geographic areas we target and which sales channels we focus on.  There are plenty of celebrities who might be interested in helping us, but we haven’t yet decided how, or if, we might go about that.  I could also see us partnering with celebrity chefs along the way. The data will guide us on the most effective way to proceed.