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Details
NameClearwater Seafoods
Publication Date2006
IssuesBusiness-Government Relations; Environmental Issues; Mission / Vision / Values; Social Process of Production; Sustainability
DisciplinesAgribusiness; Environment; Government; Marketing; Strategic Management
IndustryAgriculture, Forestry, Fishing and Hunting
SettingCanada; Fishing; C$325 million revenues; 1,600 employees; 2006
Publication TitleHarvard Business School Publishing
Publisher/SourceHarvard Business School Publishing
Author(s)Reinhardt, Forest; Weber, James
Product Code/ISBN9-707-012
Pages33
Accesshttp://harvardbusinessonline.hbsp.harvard.edu/b01/en/common/item_detail.jhtml?id=707012
AbstractClearwater was trying to market value-added products in a traditionally commodities based industry while facing supply uncertainties and regulatory, environmental, and foreign exchange challenges. Clearwater harvested shellfish from the Canadian Atlantic fishery and sold this in markets around the world. They prided themselves on their sustainable fishing practices, which were not the norm for the industry. Seafood buyers traditionally bought on price. Clearwater's innovations and technology investments enabled it to produce a higher quality, value-added product, but it faced the challenge of convincing buyers to pay a premium price. Their products originated from a wild resource under government regulations which limited the size of the catch by both the industry and Clearwater. In recent years, Clearwater operated in an environment with a rising Canadian currency. This reduced profitability because Clearwater's costs were in Canadian currency while its sales were largely in other currencies. The case also discusses the challenges of maintaining a sustainable fishery and uses the collapse of the cod fishing industry as an example. Clearwater was founded in 1976, it went public in 2002, and was still managed by its two founding partners in 2006.



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