Management's Discussion and Analysis (cont’d) 2.2 OUR ORgANIzATION 2.3 gROw ThROUgh INNOVATION OVERALL SALES InCREASES  PERCEnTAGE OF OVERALL SALES FROM OuR bRAnDS  PRODuCTIVITy CuSTOMER SERVICE  SALES FROM nEW PRODuCTS  PEOPLE We are building a high-performance organization by  investing in our people. We intend to develop our future  leaders from within, and thus we are focused on increasing  individual capacity for leadership and track the ratio of  internal hires to external hires. We adopted and implemented  a training and development plan in 2010 for all employees,  and the program continued in earnest in 2011 and will be  continued in 2012.  Maintaining our benchmark sales from new products tells us  that we are renewing our product line in a sustainable way.  We measure annual sales and profits from new products to  provide us with information as to our success in reaching  consumers with new and consistently reliable food choices.  In 2011, sales from new products launched in the previous 24 months were approximately 14% of our sales.  Our strong customer relationships are a competitive strength.  To preserve them, we must consistently strive to exceed  customer expectations. To that end, we measure case fill  rates, our ability to achieve at least 98.5% purchase order  fulfillment is at the top of the industry. For 2011, our purchase  order fulfillment, measured by number of cases of products  shipped compared to what was ordered, was 96.8% in Canada  and 97.6% in the U.S. Our performance in Canada in 2010 was  considerably below expectations due to supply issues for a  number of commodity products, especially shrimp, salmon,  scallops and haddock, but we were able to improve customer  service during 2011. Order fill rates for value-added products  consistently exceed our targets. We have seven manufacturing plants, including six we  own and one that we lease, each with capacity for growth.  We measure throughput, pounds produced per working  hour, and pounds of production on a rolling 12-month basis  to ensure optimum productivity and plant utilization. In  2009, we invested in a high-speed production line for our  Portsmouth plant, which contributed to annual cost savings  and improved our long-term profitability. We are continually  looking for opportunities to invest in projects for our plants  that have a quick financial payback on the initial capital  investment, with the goal of reducing operating costs. As  a result of the December 2011 acquisition we now have a  primary processing operation in China.  Global procurement means that we can access any species  that meets consumer tastes. In addition, we have become  experts in product development. Overall sales increases  provide us an indication on how successful our ideas are.  We aim to achieve at least a 5% increase in sales year-over- year. In 2011, our sales increased by 16.8% in domestic  dollars, resulting from strong organic growth and the  Viking Acquisition. Excluding Viking and the Icelandic USA  Acquisitions, sales in domestic currency increased 9.0%,  compared with our 5.0% target. In terms of volume, sales in  2011 increased 13.6% (4.3% excluding Viking and the Icelandic  USA Acquisitions). We expect 1  volume in 2012 to increase,  but higher seafood costs, which are expected in 2012, will  require us to increase selling prices for most products.  Increased prices are coming at a time when retail customers  are pushing back strongly against price increases, and given  this environment, there is a risk that retailers in particular  will not allow us to increase costs. If price increases are  not implemented, profitability for 2012 may 1  be adversely  affected. Conversely, if the price increases are successfully  implemented, this may 1  result in a decrease in sales volume  as consumers look to competing proteins. Our brands are one of our core strengths. Consequently,  most of our sales are of our branded products. We measure  the percentage of our sales from our brands over a rolling  52-week period, with the goal to keep it at 80%. In 2011, our  brand sales were 79% of total sales. In 2012, we anticipate 1 the percentage of overall sales from our brands will be similar  in 2012, including the Icelandic USA Acquisition. 21 ANNUAL REPORT 2011