WEBVTT - Pandemic Pushes Lobster Prices Higher

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<v Speaker 1>This is Bloomberg Business Week with Carol Messer from Bloomberg Radio. Well,

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<v Speaker 1>I've had my first lobster of the season, courtesy of

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<v Speaker 1>No in Connecticut and Costello's Clamshack. It was pretty amazing

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<v Speaker 1>clams and lobsters they sell there. But I gotta say

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<v Speaker 1>when I think of lobster, I definitely think of Maine,

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<v Speaker 1>which accounts for nearly all of America's total lobster harvest.

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<v Speaker 1>It's roughly a half a billion dollar year industry for

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<v Speaker 1>the state of Maine. So here with how the business

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<v Speaker 1>is going, how the season is shaping Applet's head to

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<v Speaker 1>Maine and to Mark Merrell. He is the founder and

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<v Speaker 1>CEO of Get Maine Lobster. It's seven online delivery service

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<v Speaker 1>of lobsters and more. They've been doing it for several decades.

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<v Speaker 1>And he joins us on the phone from Portland's Maine. Mark,

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<v Speaker 1>nice to have you here. How are you doing great?

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<v Speaker 1>Thanks for having me. Well, I'm jealous. It's one of

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<v Speaker 1>the most beautiful states in the country. Um. First of all,

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<v Speaker 1>before we look forward, I want to look back a

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<v Speaker 1>little bit. Tell me about the past year and what

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<v Speaker 1>it was like for you guys. It was it was

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<v Speaker 1>pretty wild. Um, you know, demand spikes for services like ours.

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<v Speaker 1>It felt like it felt like overnight. It wasn't a

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<v Speaker 1>little gradual. Um, but you know, sourcing and supply chain,

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<v Speaker 1>the stress on set up tops, box materials. It was

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<v Speaker 1>interesting all these things emerged that impact the ability to

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<v Speaker 1>move a good like lobster to say, you know, your

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<v Speaker 1>house and New York or someone in Los Angeles, and um,

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<v Speaker 1>we had the benefit of you know, food service and

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<v Speaker 1>casinos and cruise ships. Right, they were no longer big

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<v Speaker 1>lobster customers. So we had plenty of lobster available for

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<v Speaker 1>quite a long time, for you know, a good eight

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<v Speaker 1>ten months. We didn't have to fight for sourcing. Um,

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<v Speaker 1>that's changed today. But well that's an interesting Well initially,

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<v Speaker 1>you know, it's interesting, you know, Mark, we talked to

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<v Speaker 1>a lot of folks and they say, you know, initially

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<v Speaker 1>we thought our business we were doomed. Was it like

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<v Speaker 1>that for you guys initially or was it No? People

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<v Speaker 1>were saying okay, because they quickly moved online. They just

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<v Speaker 1>were ordering more and more. Which one was it? So

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<v Speaker 1>my financial advisors said, hey, we have to have the talk.

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<v Speaker 1>You need to get prepared just in case and they said, yes,

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<v Speaker 1>that would be the responsible thing for us to do.

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<v Speaker 1>Let's do that. I said, However, what I'm noticing is

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<v Speaker 1>higher than normal velocity with orders, and so I think

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<v Speaker 1>we're going to have the opposite effect. You know, we did.

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<v Speaker 1>We grew. It's pretty wild. That is crazy. Wow. During

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<v Speaker 1>the pandemic um and as you said, like so many

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<v Speaker 1>of us and so many companies, big, small, middle size

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<v Speaker 1>just kind of being able to tap the supply chain

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<v Speaker 1>that they needed. Um. And that's even with as you said,

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<v Speaker 1>the cruise industry, right, they were they weren't there anymore, right, Yeah,

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<v Speaker 1>they're no longer customers. So think about a large purveyor

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<v Speaker 1>and they have stocked in their freezers that are you know,

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<v Speaker 1>the size of small homes, and they're preparing to release

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<v Speaker 1>that you know in the off season. Well all of

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<v Speaker 1>their customers left overnight, so they were freaking out. Um.

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<v Speaker 1>But then there was companies like mine that said, hey,

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<v Speaker 1>I need to fill my freezer, Can I take yours?

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<v Speaker 1>And then so so it shifted right and and that

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<v Speaker 1>was great. And plus you know some of them you know,

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<v Speaker 1>turned around and thirty days later they were filling online

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<v Speaker 1>as well. So good for them. For being able to pivot.

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<v Speaker 1>So we were ahead. I was just to say, you know,

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<v Speaker 1>we were designed perfectly for an instant So what are

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<v Speaker 1>you seeing right now? Demand is still very very high. However,

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<v Speaker 1>supply is extremely low. Um. Example, it's Father's Day weekend.

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<v Speaker 1>We sold a lot of lobster roal kids, and I

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<v Speaker 1>did not procure the last of my lobster meat until

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<v Speaker 1>four o'clock last night. That's just in time, just in

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<v Speaker 1>times down to the second. Well, we were actually prepared

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<v Speaker 1>to note we have an email in queue notify people

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<v Speaker 1>that we're gonna have to delay their order a day.

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<v Speaker 1>And you know the catch has been low. Um, that's

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<v Speaker 1>typical this time of year. There's less traps in the

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<v Speaker 1>water here in Maine. Um, I think they're waiting until um,

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<v Speaker 1>you know, the lobster's get a little bit closer to shore.

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<v Speaker 1>You know, they're migrating right now, head into you know,

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<v Speaker 1>cooler waters, better environment for them to begin to shed

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<v Speaker 1>their shell and them. So, yeah, it's an interesting time.

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<v Speaker 1>It's sourcing is very very difficult. We don't have access

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<v Speaker 1>to the what I call hero products you know that

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<v Speaker 1>people love, you know, larger tales and things like that.

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<v Speaker 1>You want to get back to Mark Merrel. He is

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<v Speaker 1>founder and CEO of Get Main Lobster. It's a seven

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<v Speaker 1>online delivery service of lobsters and more, delivering seafood from

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<v Speaker 1>docks to doorsteps in twenty four hours. They've been doing

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<v Speaker 1>it for several decades. Mark still with us on the

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<v Speaker 1>phone and portly made. So okay, as you said, the

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<v Speaker 1>catch is low this time of year, supply is very low.

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<v Speaker 1>So how much is my lobster going to cost me? Uh?

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<v Speaker 1>It's I've never seen it this high this time of year.

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<v Speaker 1>And you know, really the live lobster isn't too crazy,

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<v Speaker 1>but you know, it's when you converted into lobster meat,

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<v Speaker 1>you know. I'm sure he saw in the New York

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<v Speaker 1>Times thirty four dollar lobster roll. I mean that's real

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<v Speaker 1>and uh wow. Um. The interesting thing though, is, you

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<v Speaker 1>know consumers are are being understanding and they really want lobster.

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<v Speaker 1>Demands still really high. Um, you know, so I won't

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<v Speaker 1>see the price moving much unless catch increases dramatically, which

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<v Speaker 1>it is supposed to. Um. Even then, I don't know

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<v Speaker 1>if they'll be a drastic drop or not. I haven't

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<v Speaker 1>seen anything like this before. It's interesting. It is interesting. Well,

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<v Speaker 1>tell me a little about because you guys, I know,

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<v Speaker 1>think about and are involved with sustainable fisheries in terms

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<v Speaker 1>of getting your seafood. I think we just take mark

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<v Speaker 1>for granted that fish or lobsters or shrimp or scallops

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<v Speaker 1>or whatever. Oysters. Um. I spend time in the Long

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<v Speaker 1>Island Sound, so I see the lobster traps. You know

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<v Speaker 1>we have to dodge them. Um. You go a little

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<v Speaker 1>bit further app by Fisher's Island, you see um or

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<v Speaker 1>off of Oyster Bay, you see the oyster traps. What's

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<v Speaker 1>involved in in farming when it comes to fish specifically,

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<v Speaker 1>and how do you do it in a in a

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<v Speaker 1>healthy way? Is sustainable way? Um? Well, it's it relates

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<v Speaker 1>to lobster and the we can't catch anything that's blow

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<v Speaker 1>point nine pounds, nothing above four. And if we catch

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<v Speaker 1>our pregnant female, we mark them by cutting a v

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<v Speaker 1>notch and one of their chins, and then we put

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<v Speaker 1>her back in right, and she's going to help breed

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<v Speaker 1>a whole bunch of more lobsters. And everything's still done

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<v Speaker 1>by hands. And lobstermen are independent. They're very much committed

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<v Speaker 1>and have been since the industry started with sustainability. I mean,

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<v Speaker 1>it's a huge markets remain right, we need to keep

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<v Speaker 1>it going. In the same thing with main scuts, right,

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<v Speaker 1>the season is not very long. Um We're always very

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<v Speaker 1>thoughtful about any kind of species that we're fishing to

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<v Speaker 1>make sure that it's not over. Fish has plenty of

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<v Speaker 1>time to recoup. You know, consider seafood industry FEA. Food

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<v Speaker 1>consumption is increased dramatically in the last two so you know,

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<v Speaker 1>we really have to as consumers, we really should be

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<v Speaker 1>thinking about diversifying a palette. Uh, not just focusing in

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<v Speaker 1>one particular species extent your favorite. You know, venture out,

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<v Speaker 1>try some new things. Restaurants are always bringing new things

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<v Speaker 1>to market. We just started selling um um a trout

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<v Speaker 1>that comes out of Upstate New York and steelhead trout

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<v Speaker 1>and it's a beautiful farmed, clean fish and organic feed

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<v Speaker 1>and everything. It's it's a beautiful fish. And we're always listening. Well,

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<v Speaker 1>you know, we talk a lot about food on this

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<v Speaker 1>broadcast and on air specifically, and we talk a lot

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<v Speaker 1>about sustainable farming generally and kind of feeding the world.

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<v Speaker 1>What's and also about innovation within the food space. What's

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<v Speaker 1>the innovation in your space or is it, you know,

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<v Speaker 1>the way you gather it's very similar to how it

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<v Speaker 1>was done ten years ago, twenty years ago, fifty years ago.

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<v Speaker 1>And yeah, I think the innovation lies with how can

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<v Speaker 1>us consumers are evolving in we feel busier. I don't

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<v Speaker 1>know if we are, but we feel busier. Right. So, um,

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<v Speaker 1>my particular business, we're focused on ready to ready to heat.

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<v Speaker 1>So how can I design because the technology is there?

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<v Speaker 1>Restaurant five star quality meals that are flash frozen, twider

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<v Speaker 1>to your door, stuff, put them in the oven. Twenty

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<v Speaker 1>minutes later you're having this amazing meal and like a

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<v Speaker 1>lobster risotto with the tarragon butter, you know, or sounds good,

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<v Speaker 1>you know. We yeah, we put together at Topino and

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<v Speaker 1>uh send everybody the ingredients and I had to do

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<v Speaker 1>a little bit of work. But you know, we have

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<v Speaker 1>a lot of home chefs now because of last year,

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<v Speaker 1>so it's kind of neat being able to get more creative.

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<v Speaker 1>The demand is there. Well, it's interesting to what you

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<v Speaker 1>said that how people have to kind of expand their

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<v Speaker 1>palette and one of the things that's enabled people to

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<v Speaker 1>kind of go in a completely different different places all

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<v Speaker 1>of the plant based food and there's plant based shrimp.

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<v Speaker 1>We're seeing it go into the seafood market as well.

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<v Speaker 1>What do you think about that? Yeah, you know, it's

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<v Speaker 1>funny you mentioned that because it's part of our expansion

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<v Speaker 1>plant is to get into you know, more plant and land. Right.

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<v Speaker 1>We want to be able to serve anyone and everyone

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<v Speaker 1>based upon their dietary preferences. Were even coming out with

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<v Speaker 1>a new summer box that includes some vegan burgers. But

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<v Speaker 1>as it relates to designing, you know, vegan shrimp and

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<v Speaker 1>vegan tuna and even it's crazy stuff that's going in

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<v Speaker 1>the labs where they're building a chicken breast from nothing. Um,

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<v Speaker 1>that one's peculiar to me. I don't know how people

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<v Speaker 1>are going to feel about it, but plant based is

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<v Speaker 1>a big thing, and we should be designing the flavors

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<v Speaker 1>that people love so that they can feel like they're

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<v Speaker 1>not missing out. Right, it's a big thing, and am

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<v Speaker 1>I missing out if I become plant based? And um,

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<v Speaker 1>it's kind of neat that people can engineer flavors, uh

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<v Speaker 1>and textures for those people. So I'm all about it. Well,

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<v Speaker 1>I love to hear that. Um, we've just got about

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<v Speaker 1>forty fifty seconds left here, what kind of summer do

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<v Speaker 1>you think it's going to be when it comes to sales,

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<v Speaker 1>when all of a said and done as quickly. Yeah, yeah,

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<v Speaker 1>I'm confidence gonna be great. I'm excited that. Um, the

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<v Speaker 1>local main businesses are going to be very very busy

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<v Speaker 1>this summer, So that's exciting. UM And I know that

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<v Speaker 1>people are gonna want me to ship them some lobsters,

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<v Speaker 1>and you know, we love that. I think the catch

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<v Speaker 1>is going to increase. I think we're a couple. We're

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<v Speaker 1>delayed by a couple of weeks and slowly but surely

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<v Speaker 1>everything will kind of get back to normal. You know,

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<v Speaker 1>the price may or may not change. Some people are

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<v Speaker 1>telling me it's not going to change. Some people are saying, yeah,

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<v Speaker 1>it's going to go down. So you know, we just

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<v Speaker 1>kind of watch and we try to, you know, create

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<v Speaker 1>value and be transparent. All right. Well, I gotta love

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<v Speaker 1>love some of your boxes and your your combinations on

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<v Speaker 1>your website. Marks, so nice to talk with you. Have

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<v Speaker 1>a good season. Mark Morral, founder and CEO of Get

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<v Speaker 1>Main Lapster lop Stuff. That's what I said. Joining us

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<v Speaker 1>from Portland, Maine,