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Red Lobster Supply Chain (Seafood Catch (2009 (World consumption (35 mmt,…
Red Lobster Supply Chain
Seafood Catch
1950
20 mmt
2000
95 mmt
five fold increase
2009
Aquaculture
35 mmt
World consumption
35 mmt
12 lb capita per year
US consumption
16 lb./capita
2009
Darden Inc.
$600 Million
228 Million pounds
live seafood
122 million pounds
edible weight
Largest buyer of Seafood in US
Sourced Fish
Farmed
WIld
Around the globe
Procurement policy
Staying close to water
Making deals with fishermen and
seafood processors
Buyers
Visited suppliers
regularly
To communicate
Quality requirements
Monitor quality
Monitor environmental
practices
Inspected to ensure
no substandard
food enters supply chain
Believed
Cut seven days from sea-to-store
By buying at sea
vs Wholesales
Substantial advantage over
competition
Because of
Scale and
Experience
In Seafood
Business
Aquaculture would play
role in sustainability of oceans
Distribution chain
16 distributors
Seafood
26 locations
supply fresh seafood
to restaurants
Fresh food is delivered
daily 6 days per week
Live lobster
Delivered through
overnight express delivery
three suppliers in
Maine and
Massachusetts
Other items
Delivered by truck
12 distribution centers
Positive Points
Obsession over quality
Industry leading
role in setting
standards
Insisted on
Lobster Conservancy
policy
Ban on Lobsters
that were out of
certain range
small and large
Worked with
New England
Acquarium
To identify seafood
items that were not
fished sustainably
Orange Roughy
Chilean Sea Bass
Removed these from menu
Develop Plans for improving
sustainability of the Oceans
Biomass
Worked with Aqua Culture Industry
First Chain to insist of
Suppliers certified by
Aquaculture Certification Council
Cost effective
production method
2010
Farm raised samon
2/3 total world supply
75% less Inflation
adjusted price
since 30 years
Shrimp followed same
pattern
Advantages
Consistent cost
supply chain advantage
Fish grown to order
based on quantity
Intended portion size