Growth through resource expansion
Rooted in Royal Greenland’s North Atlantic Champion strategy lies the ambition to develop our resource base. A number of criteria must be fulfilled before investing in new companies. However, in 2019, Royal Greenland invested in two new companies with privileged access to resources and the right fit in terms of scope of business.
According to Royal Greenland’s North Atlantic Champion strategy, a number of criteria must be fulfilled before the organisation decides to invest in new companies. In specific terms, business expansion depends on new acquisitions being a good fit for Royal Greenland’s existing range; the acquisition must give us privileged access to quotas or landings; Royal Greenland must be able to create added value in the value chain we are joining; and last, but not least, new investments must not expose our activities to major financial risk.
In 2019, Royal Greenland invested in two new companies with privileged access to resources.
A&L Seafood in Nova Scotia is a company that Royal Greenland has known for several years, and with a 25% interest since 2016, via our ownership of Quin-Sea Fisheries.
In 2019, Royal Greenland acquired all shares in this wellrun company, which is known particularly for its snow crab. A&L Seafood makes a significant contribution to the overall strength of Royal Greenland's snow crab activities.
The town of Porvenir is located in the southernmost part of Chile, more than 13,000 km almost directly south of Royal Greenland’s head office in Nuuk. Despite the distance and location – or maybe because of it – Porvenir is not that different from what we know; the cold polar climate, the cold water, the recognised local fish species and the great expertise required to operate and run activities in these special conditions.
At this location, Royal Greenland has acquired 50% of International Seafood, a company that among other things lands and produces three crab species that resemble king crab, snow crab and brown crab, and is a good complement to Royal Greenland’s portfolio. The company also has other products such as scallop and sea urchin, with which we are already familiar.
The company’s products are thus in demand on the world market from the same type of customers as Royal Greenland trades with today. Royal Greenland therefore has the aim that – despite the great distance – we can use our experience and broad presence in the world market to create added value in the value chain in which International Seafood operates.