Is BP on the hook for fish's sullied reputation?

By Kari Huus, msnbc.com senior reporter

After a major oil spill, there are birds to be washed, tarballs to be retrieved and tarnished reputations to be repaired. For seafood from the Gulf of Mexico, promoters say that will likely be a long and expensive road — a cost they expect BP to bear.

“We’re going to need marketing dollars to get out of this hole,” said Ewell Smith, executive director of the Louisiana Seafood Promotion Board, a state entity that markets everything from oysters to tuna caught off state shores. “Our brand has been damaged badly. It may take up to five years to restore our brand. That’s a multimillion dollar, multiyear program to rebuild brand and consumer confidence.”

Photo by Alex Ogle/AFP/Getty Images

A seafood restaurant's sign lights up in New Orleans on July 23, 2010.

BP gave the marketing group $2 million shortly after the Deepwater Horizon accident on April 20, but Ewell said he considered that “a sort of deposit.” The money has been used for crisis communication, seeking to assure the public that seafood from Gulf fishing areas that remained open was just fine.


But restoring the Louisiana seafood brand long term will cost $20 million to $40 million, he estimates – and maybe more. In addition to marketing, the state government wants BP to pay for 20 years of seafood monitoring and other costs associated with winning back consumer confidence. In an April 29 letter, state officials requested a total of $457 million from BP to set the seafood industry right.

“Public confidence in our industry is eroding,” said the letter, addressed to BP CEO Tony Hayward. This is evidenced by a recent USA Today poll, where 13 percent of those polled said they would not eat gulf seafood. This poll was taken before the images of coastal impact were seen on television, and we can only assume the damage is even worse today.“

“We still haven’t had any action on it,” communications director for Lousiana's disaster recovery unit Christina Stephens said of the request.

BP press officer Mark Proegler confirmed the company had received the request and said the company “is in dialogue with state officials on this matter.” He went on to note that ongoing testing has shown Louisiana seafood to be safe. “Also, we're also pleased to see the reopening of fishing areas,” Proegler added in his email response, referring to the state’s decision to reopen some of Louisiana’s commercial fishing waters. That’s a start to reviving the state’s commercial and recreational fishing industries, which collectively generate about $4 billion a year.

What the Seafood Promotion Board is seeking, however, is the means to change the public perception that fish from the Gulf is contaminated, which history suggests can be big chore.

The 1989 Exxon Valdez spill — which only affected Prince William Sound, a small portion of Alaska’s total commercial fishing area—nonetheless tainted the reputation of products from the whole state according to Ray Riutta, executive director at the Alaska Seafood Marketing Institute.

The state marketing organization spent $10 million a year for several years after the spill and brought in a public relations firm that specializes in crisis management to market Alaska seafood, he said. In addition, the state ran a rigorous testing program, said Riutta.

But surveys of consumers in other states showed that it took three to five years to rebuild confidence in the safety of Alaska’s fish, Riutta said.

“The impression (outside the state) was that all the fish in Alaska had oil on them,” he said. “The whole image of the state was tarnished by that and it took years to fix.”

Smith, executive director of the Louisiana seafood board, said the pattern is similar now: People outside the state have the image of thick oozing oil etched into their minds, and don’t realize that many fishing areas were untouched by the slick.

He wants to bring in some big guns to help change that perception.

“We will work with celebrity chefs across the nation, and they will help us get the news out,” he said

But long term, the job is more likely to involve relentless traditional marketing, said Smith.

“We need to bore the consumer out of their minds with good news,” he said.

Discuss this post

Unfortunately, I' don't believe the "you gotta be kiddin me" will work for this article. This squirrel and the Louisiana Seafood Promotion Board feel that they too are justified for a bigger shake down. Folks, if you really want change, throw these bums out.

  • 1 vote
Reply#1 - Fri Jul 30, 2010 3:52 PM EDT
Reply

More than marketing and celebrity chefs, they need inspectors and quality control staff. They need to test the chemical contamination of the seafood in addition to the odor, taste and freshness. In addition to having lost public confidence, the FDA is woefully understaffed. How many inspectors do you need for a $4 billion a year industry? 500? 1,000? If not, I can buy cheap, oil covered shrimp from Asia.

  • 1 vote
Reply#2 - Fri Jul 30, 2010 4:31 PM EDT

If the media did a better job of reporting the facts the public would not have these miss conceptions. I think the media should pay to restore consumer confidence. I encourage BP to resist the extortion that started with Obama and the feds and continues to this day.

  • 2 votes
Reply#3 - Fri Jul 30, 2010 4:57 PM EDT

The fact is that I (and many other Americans) won't eat anything from the Gulf that could be contaminated. Of course BP should pay to get their industry back to normal. Extortion my ass. This company was most likely negligent and has created a huge ecological disaster. We won't know the extent for YEARS. BPis fully liable, unless you think the government should pay out. Which would not surprise me. Poor, poor BP, being bullied by everyone.

  • 2 votes
Reply#4 - Fri Jul 30, 2010 5:48 PM EDT

YEARS .... MAYBE DECADES ..... MAYBE NEVER .... will another once of seafood from the Gulf ever be eaten again!!

What a load of crap !!!!!!!!!! By this time next year, other disasters will have people whining like little babies while they sit in front of their TVs eating LA shrimp. It's the same BS everywhere in this State. Let's get every dime we can out of BP while the getting is good. No mater whether it's the State, businesses or someone that lives 200 miles from the Gulf. It's really sickening. Money's tight everywhere, here's a chance to legally steal some.

Granted, there are folks that should receive compensation like those families that lost loved ones on the rig and perhaps some fisherman to a degree. But when you start whining for money to buy you a mansion and support for the rest of your life .... then in my opinion, you're pretty much worthless.

But like I said, that's just my op. Enjoy your evening.

  • 2 votes
Reply#5 - Fri Jul 30, 2010 6:56 PM EDT

Is BP on the hook for Obama’s reputation? Some people might have thought he was a leader before this happened. Thank God Obama’s endless golfing eventually plugged the well.

    Reply#6 - Wed Aug 11, 2010 12:53 AM EDT

    When it will established that it REALY will be save to eat Gulf Sea Food and beaches as well as natural areas around the coast are w/o oil, only then will people come back. Not before decades...

      Reply#7 - Thu Aug 12, 2010 4:28 PM EDT
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