Can This Commodity Stem Price Decline With 750% Increase In Promotional Spend?
Hard times in the Maine lobster market, may mean good times for New England-based properties that can increase consumer appetite. With the price of Maine lobsters down about 30% since last year, Maine's Lobster Advisory Council has unanimously voted to approve a brand new $3 million promotional budget, which is a 750% increase over the roughly $400,000 that the Lobster Promotional Council currently spends to market the famous delicacy.
Maine lobsters wouldn't be the first commodity to use mainstream promotional tactics to buoy demand. Look no further than the California Milk Processor Board's famous Got Milk? campaign launched in the 90's. Since that time, other commodities ranging from avocados to pistachios have spent on sponsorships.
The Kennebec Journal reports that the new promotional budget will be phased in over the next three years. While the budget could be a boost to the industry, look for promotional expenditures to be closely scrutinized since the plan calls for additional marketing costs to be passed down to lobstermen in the form of higher licensing fees.