Friday, April 19, 2013

Icicle calls it quits on Adak

Here's a press release from Icicle Seafoods:

April 19, 2013

Icicle continues Alaska expansion, plans to close Adak operation

Icicle Seafoods Inc. has decided to close its operation in Adak, in the Aleutian Islands, citing concerns about the short- and long-term health of the region's Pacific cod resource and increased regulatory uncertainty.

"Icicle has worked incredibly hard in the two years since we took it over to make the Adak plant a viable operation," said Amy Humphreys, Icicle's new president and CEO. "We strongly support policies that encourage the development and sustainability of Alaska's coastal communities and recognize this goal is often best achieved with a resident fishing fleet and year-round seafood processing operation. However, given the questionable outlook for the Pacific cod fishery in the area and the high costs of operating in this remote location, we have decided to focus our resources in other areas within our Alaska operations."

Icicle Seafoods has invested heavily elsewhere in Alaska in recent years, most recently completing the purchase of a second shore-based seafood processing facility in Bristol Bay. The addition of the Wood River facility in Dillingham will significantly increase Icicle's capacity to produce high-quality sockeye salmon fillets. Herring and chum and pink salmon will also be processed at the facility.

The purchase was the final step of Icicle's acquisition of Snopac Products assets, which began in 2012.

"The strategic acquisition of the Wood River facility is yet another step in our growth strategy as a leading processor of salmon and other seafood products," Humphreys said. "Icicle is well-positioned with its diversified harvesting and processing infrastructure and its broad, quality product offerings to further strengthen and build upon the founding vision put into motion almost 50 years ago: to be a superior, diversified seafood company offering premier service and commitment to our customers, fishermen and employees."

Previous Alaska investments include the major expansion of Icicle's Petersburg processing facility in 2011; the purchase of the processing vessel Snopac Innovator, renamed the Gordon Jensen in honor of one of Icicle's founders, in the spring of 2012; the installation of a new cod production line on the Gordon Jensen; and the purchases of the AFA trawl catcher vessels Hickory Wind and Progress, in 2011 and 2012.


Anonymous said...

The major processors business plan:

Any plant grossing less than 500% return on capital investments is a loser. Pathetic greed experts.

Anonymous said...

Igorant fool.

Anonymous said...

Igor was Dr. Frankenstein's retarded murderous assistant.

Anonymous said...

Marty Feldman was the best Eye-gor!

Anonymous said...

Adak is problematic. Sea lion restrictions, limitations on vessel length for state water fisheries, etc. Icicle lost their ass as did their predecessors. Trident maybe.......or maybe it's just time to call it quits.

Anonymous said...

Icicle got 2 shots at Adak, the first one courtesy of Ben Stevens. Then they got to pretty much skate on their NMFS fine from the first go around. Wind power didn't make it any cheaper to operate way out in the middle of no where, making it:

Fool me once, shame on you; fool me twice twice, shame on me.

Icicle just poured good money after bad on the second go around. Maybe Kjetl still wants back in...

Anonymous said...

Speaking of Icicle, is there a Sitka herring advance price from them or anyone else?

Anonymous said...

$500 is going to be the initial advance.

Anonymous said...

Who was "Frau" (can't pronounce or remember--but she stole the show). When Igor said "walk like this this" was great too. Who was the guy that could spin his hand around? Will Icicle shut down the Petersburg plant like they've always threatened too?

Anonymous said...

Cloris Leachman...Frau Blucher.

Igor: "what hump?".

I don't know about the Petersburg plant. Good question.

Anonymous said...

Petersburg is the only salmon plant they have that could possbly make any money. The rest of it is just garbage.

Anonymous said...

How can there be any meaningful reporting on Icicle's decision to quit Adak without the obvious connection to the global collapse of cod prices? Deckboss, as usual, demonstrates no knack for connecting the dots and only a propensity to republish press releases.

Anonymous said...

How can there be any meaningful reporting on Icicle's decision to quit Adak without the obvious connection to the John Woodruff's crappy management of the harvesting side of Icicle?

Umbriago said...

Didnt Icicle know that power was expensive in Adak when they started? The only thing not working for Icicle is the world cod prices, and being a strong company, they should be able to wait that issue out. Howver, since they are owned by a private equity company, its all about the profit today-immediately, not tomorrow. thats why Dennis G is gone.

Anonymous said...

Tricicle, re-learning the fishing industry with training wheels.

As soon as you get processors run by people from outside of the industry, it is soon time for a failure. Fishermen are not accustomed to taking the corporate line of bull. Something about spending time out on the water sets your bullshitometer with an unpredictable redline.

Anonymous said...

He's a rock star amongst industry VPs
Everyone knows that.
As for power costs. They were 5 times the level last time ISI was out there.

Icicle management. Good decision here. Just because bundrant has been the most successful boots-on seafood processor doesn't make it so for fishermen. Denkinger is the exception. There are more companies in the boneyard because of idealistic fishermen boots-on leadership than corporate leadership.

so now you 'haters' and anonymous processor quarterbacks have a great entree into the fish business.

At .90 cents a kw hour and the great world market for cod, just roll out there with a few dozen million and make your mark. Have patienc, yeah, it'll turn around.

Be tough. Be a processor. Go west you brain-addled anonymous wimps. Norquest, Icicle 1, Kjetil, Aleutians Spray, Icicle 2...... They just weren't tough enough. You icicle-bashing morons with one hand on the keyboard... You are just the guys who need to go try adak....


Anonymous said...

BobbyT, I usually find your posts to be just a bunch of opinionated blather. But I like you 3:18 am post. Thanks

Anonymous said...

BobbyT, Woodruff was saved when Dennis was let go only because there was no one in the organization left to take his place. His understanding of processing fish is good, his business savvy and rapport with fishermen and the industry has been a bad thing for Icicle and will continue to provide fodder as long as he does what he does. He might be a rockstar at Icicle, but hardly when judged against his peers.

Denkinger must be careful not to overextend his reach as he establishes himself in the Bay. It is a whole different ball game. The model allows and works for treating all start and/or investor fishermen well in the casual fishery that is SE. However, BB is a survivors game and there simply will not be enough time to give every investor and/or all star fisherman their corporate handjob on each tide. Good luck if they can pull it off, but the potential for lost moeny looms large in the horizon.

I agree with you re: Adak. Tough place to do business.

Anonymous said...

Woodruff a rock star? Not quite Bobby T.....but he does the best he can with the hand he is dealt.

As for TD, he has done well, but the Bay may be his "bridge too far".

Anonymous said...


Anonymous said...

Interesting that Icicle has holdings in 2 salmon farms. Icicle as a new private equity firm not caring about alaska wild fish and with a CEO that can't tell the difference between Cod and Halibut. Its all about making the investors money. they can cite all the woes they want, all the problems that occur now have been issues from the get go. Icicle used to be "for fisherman by fisherman", now its "farmed salmon by former-oil execs".

Anonymous said...

Ah, but Icicle isn't making their investors money. That's why Dennis is gone. Desperation set in. These investors want to flip the company and make a tidy profit, not take a loss. probably a mis calculation on their part. The story for them can get worse from here.

Anonymous said...

"Be tough. Be a processor. Go west you brain-addled anonymous wimps. Norquest, Icicle 1, Kjetil, Aleutians Spray, Icicle 2...... They just weren't tough enough. You icicle-bashing morons with one hand on the keyboard... You are just the guys who need to go try adak...."

Having actually worked in Adak, your comment is idiotic, like most of your's that I've read in the past. Why must you always be THE MAN, when you actually don't know ____.

Mark Ervice, Homer.

Anonymous said...

Great to have someone sign his name
Good on you Mark.

So your point is what?

You think Icicle shouldn't have left but stuck it out?

I supported icicles decisions to go out there twice and I supported their decision to leave twice.

Do you disagree? Great you worked out there. I was simply defending the company while others were attacking it. Got some backers with cash? Let's go give her a whirl. Been to Adak myself. Once. Dad spent a bit of time out there. Great place.

Wish someone could keep a presence out there for fishermen.

I must say I am impressed by your candor and ability to sign your name

Now it is truly YOU who are the MAN

A man with a name who seems to know ----

Warmest regards