until, with the Icelandic USA Acquisition (described below) in late  2011, this vision was effectively achieved. Following the  substantial completion of activities to integrate this acquisition  into High Liner Foods’ business, the Company announced in early  2013 an updated and expanded vision, “ to be the leading frozen  seafood supplier in North America ”. The “value-added” modifier was dropped, recognizing that in our  pursuit to be the leading supplier of frozen seafood in North America,  we will continue to focus on growing our value-added products, from breaded and battered items to seafood entrees, but we will also  focus on growing our raw (i.e. unprocessed) frozen seafood product  offerings, which in 2013 represented approximately 32% of our  product sales. This change is not a mandate to become a commodity  trader. We have high standards for margins, return on assets  managed and return on equity and will ensure these are maintained  by continuing to differentiate our raw frozen products by virtue of a combination of branding, marketing, quality and service. We are focused on frozen seafood, because we are experts in this  category and on North America because we continue to see  opportunities for growth in the North American markets, by  building on our position as a leader in frozen seafood in both  Canada and the U.S., particularly in the food service channel. High Liner Foods operates in the North American packaged foods  industry. We process and market frozen seafood, and distribute  products to retail and food service customers. We sell our own  brands, including  High Liner ,  Fisher Boy ,  FPI ,  Sea Cuisine ,  Mirabel , and  Viking  and we manufacture private labels. In late  2011, the Icelandic USA Acquisition added the  Samband of Iceland brand to our list of offerings. In addition, the  Icelandic Seafood brand is licensed to High Liner Foods by the Icelandic Group. In  2013, the  American Pride Seafood  brand was acquired. As at the end of 2013 we own and operate four food-processing  plants located in: Lunenburg, Nova Scotia; Portsmouth, New  Hampshire; Newport News, Virginia; and New Bedford, MA. The  plants in Newport News and New Bedford were acquired as part of the Icelandic USA and American Pride Acquisitions, in 2011 and 2013, respectively. We also operate a leased food-processing  facility in Malden, MA, which was obtained as part of the Viking Acquisition.  At the end of 2012 and in early 2013, we permanently closed our two  processing facilities located in Burin, Newfoundland and Danvers,  MA, respectively, as they were surplus to our capacity needs. These  two plants were our higher-cost facilities and closing them makes  High Liner Foods a stronger, more competitive company. In the first quarter of 2013, we sold the processing facility acquired  in Dalian, China as part of the Icelandic USA Acquisition, to the  minority shareholder. In the first quarter of 2013, we also sold our  joint venture interest in HighKan Holdings Limited (“HighKan”) to  our former joint venture partner. HighKan owns 80% of Dencan  Seafood Limited (“Dencan”), a Chinese company operating a leased  primary fish processing facility in China. Upon selling our interests  in these facilities, we entered into purchase arrangements with both  to continue purchasing product, at the same or similar volumes. High Liner Foods consists of two main business units,  geographically based, being the U.S. and Canada: Our U.S. subsidiary produces and sells value-added seafood  products under the  Fisher Boy ,  High Liner , and  Sea Cuisine  brands.  The business distributes products throughout the U.S. and in  Mexico through traditional grocery stores and club stores, among  others. The club store channel is important to our growth strategy  for the U.S. retail business, and we sell to all major U.S. club store  chains. We have built business in this channel by introducing  innovative premium products under the  High Liner  and  Sea  Cuisine  brands. Our U.S. subsidiary also is the largest supplier of  retail private label processed seafood in the U.S. We produce over  50 different labels for U.S. grocery retailers, primarily breaded and  battered fish sticks and portions. Customer channels in this business include food service operators  in multiple restaurant segments, broad line food service  distributors, specialty seafood distributors, and food processing  companies. High Liner Foods is one of the largest seafood suppliers  to this market especially in value-added products. We are  particularly recognized for our innovative product development  expertise. The acquisitions have added new products and brands  to our food service offerings and have substantially increased High  Liner Foods’ share of the market for value-added seafood products  in the U.S. food service industry. This division also sells a full line  of raw and cooked uncoated seafood to the food service channel.  Products are sold under the  Icelandic Seafood ,  FPI ,  Viking  and  American Pride Seafood  brands. From our sales and marketing headquarters in the Greater Toronto  Area (“GTA”), the flagship brand of our business,  High Liner , is sold  to every major Canadian grocery retailer and club store. It is  Canada’s leading seafood name. The brand includes 100 individual  products, from our traditional battered and breaded fish portions to  innovative and highly popular premium products that offer a  variety of seafood species responding to modern tastes as well as  raw uncoated seafood products for consumers to prepare  themselves at home. We also sell a significant portion of the  value-added products that our customers resell under their own  private labels. Our Canadian food service business, also headquartered in the  GTA, is growing due to our ability, through worldwide  procurement, to provide food service customers with innovative  products and new species. Food Service specializes in delivering  seafood and menu expertise to restaurant chains and Canada’s  leading food service distributors. Food service products are sold  under the  High Liner ,  FPI  and  Mirabel  brands and include both  value-added and raw, or cooked and unprocessed products. High  Liner Foods is the largest frozen seafood supplier in the Canadian  food service channel. Private labels are also produced for some of  our larger customers. Food Service Canadian Operations Retail Food Service 1.2  Core Businesses United States Operations Retail 14 HIGH LINER FOODS INCORPORATED MANAGEMENT’S DISCUSSION & ANALYSIS (CONT’D)