New Sealord CEO demonstrates passion for fishing

Graham Stuart, the recently appointed chief executive of Sealord Group Ltd, admits he's on a steep learning curve coming to grips with his new responsibilities. While he may be counting his days into the job, however, his experience in the primary production sector, as well as his passion for the fishing business, is clearly evident.

Maori Affairs Minister Parekura Horomia unveiled a plaque commemorating the opening of AFL's Moana Pacific lobster facility in Awatoto, Napier. From left, AFL executive chairman Robin Hapi, Napier Mayor Barbara Arnott and, far right, Te Ohu Kaimoana chairman Archie Taiaroa.

While this is his first professional foray into the fishing industry, Mr Stuart's experience as group director for strategy at Fonterra, as well as chief executive of Mainland Products, makes him well suited to handling New Zealand's largest seafood company whose tentacles spread to almost every continent of the globe.

“I'm excited about the opportunity to lead a great New Zealand based food business that is at the forefront in developing international markets. I realise I am facing a steep learning curve and my first priority is getting to meet and know as many Sealord people as I can,” he says from his office at Sealord Shellfish in Tahunanui, Nelson. “But I'm certainly not daunted by the challenge. I'm excited by it.”

Mr Stuart falls back on his experience in the dairy industry when discussing his new position. He views the fishing industry as more complex than dairying, partly because there are a number of unknown factors to fishing that are not mirrored through similar dairy enterprises, such as Fonterra.

“There are a lot of complexities in the fishing industry,” he says. “The dairy industry was very two dimensional - fishing is very much a three dimensional industry.” To illustrate his point, he compares the regularity of the dairy industry. “There is certainty in milking four million cows at the beginning of every August, but with fishing, it's sometimes more difficult to ensure supply.”

Originally from Bluff, Mr Stuart spent time in Dunedin as CEO at Mainland, before moving into positions including managing director of Lion Nathan International, commercial director with the New Zealand Dairy Board, chief financial officer at Fonterra and, latterly, group director of strategy for Fonterra in Auckland, which will remain as his home base while he commutes to Nelson.

His latest responsibilities are not easy. Sealord is in the best financial condition it has been for years, reaping the rewards from the previous two chief executive officers who laid the foundations for its present strength. Phil Lough put the world at Sealord's feet, while Doug McKay, who left in April, readied the company to manage difficult economic conditions such as an extremely high Kiwi dollar.

“It's a lot easier to walk into a company that's fallen on hard times; there is a sense of urgency and a clearly understood need for things to change. I think it's more of a challenge to come into a company that's doing well, like Sealord, but has the latent ability to do even better,” he says. “When you get a natural resource that's as attractive as ours, and you have people who are talented and engaged, anything can happen.” “But you have to get the engagement of the people in the industry. Fishing and seafood is their way of life. As an outsider coming in, you need to be sensitive about that. When you think about what these people know and understand, it's very important to take that into account.”

Mr Stuart is obviously proud of the achievements of Sealord, citing the company's safety record. A few years ago Sealord was looking at an employee injury rate of 30 hours per million hours worked. Under Doug McKay that was cut down to 7.4 hours -although a recent serious injury on Rehua points to the need for constant vigilance to ensure staff stay safe. By comparison, Fonterra - which is an inherently less dangerous industry than fishing - sits at about 17 hours per million. He regards it as necessary to become fully involved in the industry, as a means of completely understanding it from the top to the bottom, as well as exhibiting some passion about what's involved. “I would hope that people see me as someone with passion, as well as professional competence.”

First and foremost the objective for him is to make Sealord as good as it can be. Mr Stuart sees Australia as Sealord's beachhead, providing significant and important opportunities for Sealord and Aotearoa Fisheries Limited to work together strategically. In Europe, the three companies in which Sealord has investments - Nordic Seafoods, Caistor, and Europacific - are also good platforms for growth. For Europe, it's important to secure long-term access to fish. “The drive to ensure supply is very strong in Europe,” he says.

He also believes there's a lot that Aotearoa Fisheries can help with in respect of the relationship between Sealord and 50 percent Japanese owner Nippon Suisan Kaisha, Ltd (Nissui). “I'm sure we can grow value there. There's a lot that AFL can help us with in terms of the relationship with Nissui, especially where it gives us marketing opportunities.”

Having said that, Mr Stuart believes Sealord already has one of the best marketing arms of any New Zealand primary producer. Sealord has a marketing reach second only to Fonterra, although Sealord's marketing arms are probably five to 10 years more advanced than Fonterra's in terms of their diversification of supply, and he says Sealord has Phil Lough to thank for that.

He also adds that the Sealord brand is one that instils confidence among New Zealand, and increasingly overseas, consumers.

“Sealord is the 16th most recognised brand in New Zealand, and that's important. As we go forward, consumers will increasingly look for the comfort of a brand. They'll be looking for quality and reliability, and issues such as sustainability and a brand that's environmentally aware,” he adds.

“Consumers will look for certainty in the future and the only way you can give them that assurance is through a strong brand that reflects the values and the ethics of the company. The Sealord brand is iconic in New Zealand, and it's the high standards that are going to make our brand trustworthy.”

While Sealord is currently based in Nelson, it is likely shareholders will see the catching and processing retained in Tasman Bay while the corporate functions move to Auckland. Sealord's head of Australia and New Zealand marketing and the chief financial officer are already based there. But he says don't expect to see immediate change. Over time, the responsibilities will move to Auckland, but it's very much business as usual in Nelson.

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