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## Canadian Operations 

## RETAIL 

From our sales and marketing headquarters in Toronto, the flagship brand of our business, High Liner,  is sold to every major Canadian grocery retailer and club store. It is Canada’s leading retail seafood name. The brand includes more than 100 individual products, from our traditional battered and breaded fish portions to innovative and highly popular premium products that offer a variety of seafood species responding to modern tastes. Retail also includes the Mirabel  and Royal Sea brands , offering unparalleled variety to Canada’s retailers and clubs. Retail also sells private label brands to customers. 

## FOOD SERVICE 

Our Canadian food service business, also headquartered in Toronto, is growing due to our ability, through worldwide procurement, to provide food service customers with new innovative products and new species. Food Service specializes in delivering seafood and menu expertise to restaurant chains and Canada’s leading food service distributors. Food Service products are sold under the High Liner, FPI  and Mirabel  brands. High Liner is the largest frozen seafood supplier in the food service channel. Private labels are also produced for some of our larger customers. 

## 1.3 STRATEgy 

## Overview 

Our overall business is a simple one: we satisfy the seafood preferences of North American consumers. We do not need to be a vertically integrated seafood harvester to achieve this goal. We need to be, and are, seafood experts. We focus exclusively on creating and marketing top-quality frozen seafood. 

Our mission statement describes our business: 

• Our team brings value to our retail, club store and food service customers through our commitment to the development and delivery of high-quality and innovative value-added seafood, and by providing them with a superior customer service level. 

• We increase earnings, and thus shareholder value, by: 

– Partnering with our customers and suppliers 

– Developing our brands 

– Achieving operational excellence 

– Providing leadership, development opportunities, and a safe and pleasant working environment to our employees. 

Seafood is a growing category in the food industry. The global supply of seafood is expanding, and consumer demand is increasing due to the recognized health benefits and taste of seafood. Our growth will be based on these trends 1 . 

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Growth in the global supply of seafood is due to increased aquaculture production and the stabilization of wild-caught species in most areas of the world. However, demand has increased faster than supply, resulting in increases in raw material costs. This increased demand came about as a result of increasing interest from North American consumers in seafood as a healthy food choice. In addition, increasing disposable incomes in countries like Russia and China also increased demand. The trend of increasing demand was reversed, at least temporarily, during 2009 and to a lesser extent in 2010, as a result of the global financial crisis and the changed relationship between currencies of producing and consuming countries. In 2011, demand increased as the economy showed signs of recovery. We expect 1  longer-term demand to continue to increase and we have seen increased costs in 2011 and expect 1  raw material costs in 2012 to increase again for most species that we procure. 

