A Different Kind Of Salmon Heads to Market
Product differentiation is beginning to pay off for a fledgling Cape Breton smokehouse as it secures its first big distribution contract for its unique-tasting salmon.
Scatarie Smoke House of Louisbourg this week began shipping its cold-smoked rum-cured Atlantic salmon to Sobeys stores across the Maritimes, just in time for the holiday party season. The contract means that, for the first time, consumers on a wide scale will be able to taste a delicacy that Scatarie owner Sidney Forgeron, a former fisherman, has spent years developing.
"It's prime time to be going into the stores; the timing couldn't be better," said Hugh Richards of Fortune Seas Canada Ltd., who brokered the deal for Scatarie. "We're trying to develop a year- round market for Scatarie salmon, but Christmas is when market exposure is at its peak for such products."
Scatarie's rum-cured salmon is a product unique in Canada. The moist mild-smoked delicacy, with a hint of salt and a subtle flavour supplied by Lamb's Navy Rum, has received rave reviews at various food and trade shows, from specialty buyers, and by the Canada Food Inspection Agency.
It's taken years of research and development by Mr. Forgeron and his wife, Denise, to reach this stage. Along the way, they've invested between $70,000 and $80,000 of their own capital, and been aided by a $25,000 loan from Nova Scotia Economic Development and $21,435 financing by Enterprise Cape Breton Corp. In addition, Scatarie had previously received a $47,500 contribution from the federal Crown corporation and wage-subsidy assistance from Human Resources Development Canada.
Economic Development Minister Gordon Balser lauded the Forgerons' entrepreneurial spirit and the hard work and patience they've invested in building their own business.
"Here are Nova Scotians who had a good idea, saw an opportunity to not only create jobs at home, but to take control of their own future. And then they took the time to develop and research the idea to ensure success," said Mr. Balser. "The government supports this kind of business thinking and economic development, and it sees advantages in giving a small boost.
"There's the obvious payback in terms of jobs and tax revenues, but there's also the returns that can't be quantified: personal confidence, community pride, and a can-do attitude that inspires other entrepreneurs."
Senator Bernie Boudreau, Government Leader in the Senate and Minister responsible for Nova Scotia, added: "The federal government is pleased to be able to assist local entrepreneurs achieve their business goals. The Forgerons have worked hard to develop an innovative product and now they are bringing it to market. In the process they are creating jobs for local people."
Scatarie Smoke House was born of a personal economic need and an almost idle observation four years ago, when Mr. Forgeron took a trip to the West Coast and sampled some of the region's smoked products.
"I was in the fishing industry 23 years on lobster boats and in fishing plants and things weren't looking good for me, so I had decided to try to get to something else," he recalled recently. "In B.C., I noticed nobody was doing anything different with their smoked salmon."
Mr. Forgeron returned home and began researching the ins and outs of owning and running a fish-smoking operation. By early 1998, Scatarie Smoke House, named after his mother's island birthplace off the coast of Cape Breton, was ready to develop a different smoked product.
This past spring, Scatarie moved into a leased corner of the old National Sea plant in Louisbourg and acquired processing equipment that allowed for greater capacity and long-term economic viability. A problem with a packaging supplier hamstrung the enterprise for months, but when that was finally sorted out in October, the smoke house geared up for some serious production.
Today, Mr. Forgeron is one of Scatarie's six employees, including three part-timers, who cure up to 2,000 pounds (900 kilograms) of salmon each week. At capacity expected by mid-2000 Scatarie intends to have 14 employees processing 7,000 pounds (about 3,150 kilograms) a week. First-year sales revenue is projected to top $1.3 million.
With production running smoothly, and his broker working on developing international markets, Mr. Forgeron is able to focus on his product. With the help of sushi chefs, he's already developed a second line: sake-cured Atlantic salmon for the Japanese palate.