A VC in Vacationland

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Many of you have seen the movie or read the book, The Perfect Storm (featuring, BTW, a Maine lobster woman, Linda Greenlaw). An economic "perfect storm" is what has been happening to the lobstering industry in Maine over the last decade. Loss of working waterfront (only 20 miles exist among the thousands of miles of Maine seacoast), single-boat business models, allegations of price fixing among lobster buyers/distributors, competition from Canadian lobster men (along with serious boundary disputes), sabotage of lobster men 'from away', inability to land side catch products in Maine, plus the global recession depressing luxury good demand, among other factors have turned lobstering into a money-losing business for many boat owners.

Linda Bean, an heir to the LL Bean fortune and fervent supporter of making Maine a better place to work and live, has set out to change the business model of the lobstering industry by putting more control over selling and marketing lobster in the hands of the small lobster man (or woman). Linda Bean's PerfectMaine, in her own words:

"PORT CLYDE LOBSTER COMPANYbuys live lobsters at Maine wharves to supply the best Maine has to offer for quality lobster, wild Maine shrimp, and crab.   I originated it in the beautiful village of Port Clyde where I live (mid-coast, nearest Rockland & Thomaston) where I purchase the highest quality lobsters direct from fishermen to supply a growing number of grocery store chains and restaurants across America.  This company has initiated the first national branding program for Maine lobster, somewhat akin to when Frank Purdue put his name on chicken — to signify it has passed the test for the highest level of quality, texture and taste.  Purdue grabbed America's attention when he proclaimed, "I hate skinny chickens."  Well, I dislike lobsters being called Maine lobsters when they aren't!  My brand lobsters carry a bracelet tag which says they are authentic Maine lobster, wild caught by Maine fishermen using sustainable practices.  Moreover, they tell you exactly where in Maine they came from:  a first achieved by Port Clyde Lobster Company.  Not only have we spring boarded an easily grasped concept, combining the three words Bean-Maine-Lobster to establish a national brand that can be trusted, but we're also the first in the nation with a tag of traceability to the exact Maine source.   We care about our buyers who want to know where their seafood comes from and that it is safe and from a sustainable fishery."

Like any good entrepreneur, Linda Bean is controversial. Many lobster men, suppliers  and distributors resent the rich folks coming in and telling them what to do. Others praise her for being an innovator and saving a way of life in Maine. Clearly, the business model for lobstering is broken and Linda represents an new way forward–branding Maine lobster, buying highest quality product, combining purchasing power to reduce operating costs, reducing middleman involvement in the supply chain and establishing a stable market demand–all good practices when it comes to innovating a broken supply chain.

As a big consumer of lobster and a lover of Maine, I wish her luck.

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