'Now we need consistency': Land-based salmon company makes retail debut
The harvest demonstrates to both the market and investors that the company now is capable of growing salmon of a certain size, a First Water executive told Intra Fish.
"Once we have a larger and more consistent supply, we can go directly to the retailers and explore product development with them," First Water head of sales and marketing Omar Gretarsson said.
Icelandic land-based salmon farmer First Water has sold part of its first-ever batch of 5-kilogram salmon to domestic retailers Kronan and Hagkaup, marking a key milestone for the company’s growing operation.
While the majority of the batch went to international markets -- the US, France, Spain, the UK and the Netherlands -- First Water is keen to tap the local retail market further, First Water head of sales and marketing Omar Gretarsson told IntraFish.
"This first batch acted almost like market research for us,” Gretarsson said in an interview.
The company was interested to understand how its land-based product would appeal to local consumers, as well as how the local smokehouse --who has a variety of suppliers -- perceived the product.
“This allowed us to show retailers how well such products perform in stores," he said. "Once we have a larger and more consistent supply, we can go directly to the retailers and explore product development with them.”
While the full feedback isn’t in yet, early responses on quality have been positive.
“Now we need to show it again, and constantly,” Gretarsson said.
5-plus kilo focus
The batch sent to retailers amounted to a few metric tons, taken from the just over 100 metric tons harvested earlier in October.
The harvest came from First Water’s newest tank system capable of producing salmon reaching 5 kilograms gutted weight.
“This serves as a benchmark to show that our technology can reliably produce large fish. It also demonstrates to the market and investors that we are capable of growing salmon to this size.”
First Water plans to continue focusing on 5-kilogram-plusfish going forward.
The company currently operates eight tanks, five of which are stocked, with the remaining tanks to be filled in the coming weeks, all of which are geared toward producing the larger-size salmon.
The next series of 5-kilo-plus harvests will be carried out on an occasional basis through the end of the year, after which the company aims to establish regular weekly harvests.
“This is what I’m pushing for,” Gretarsson said.
“We now have the correct sizes and quality for our customers. What we need next is consistency to build the brand and strengthen our position in the market.”
First Water has invested €56 million ($60 million) this year in tanks, equipment, and infrastructure. The first of six planned development phases is expected to be completed in 2027, each designed to deliver a production capacity of around 10,000 metric tons of gutted salmon annually.
Last year, First Water sold 1,274 metric tons of 2.6-kilogram fish.
While awaiting completion of its bigger tanks, the company previously harvested and sold smaller batches of fish, mainly to buyers in the UK and the Netherlands, Gretarsson said.
However, he said, “when you reach bigger sizes, you get more market options.”
Icelandic aquaculture has grown significantly in recent years, and a number of companies -- First Water, Laxey, Samherji, Thor Landeldi and GeoSalmo -- are developing land-based salmon projects that, if realized, could add at least 150,000 metric tons of capacity over the next few years.
While most of First Water’s production will continue to target export markets, the company sees good potential at home, both for locals as well as the country's large tourism sector.
“I hope we can do more in Iceland,” Gretarsson said. “I respect the Icelandic market and am proud of what we’re doing.”
Icelanders traditionally have a strong relationship with seafood and prefer fresh, local products, he said.
“I feel our salmon should be part of that.”