Management's Discussion and Analysis (cont’d) 1.2 CORE BUSINESSES 1. VISION, CORE  BUSINESSES,AND  STRATEGY United States Operations RETAIL FOOD SERVICE 1.1 VISION High Liner has been in business since 1899. Our name has been a fixture in Canadian grocery retailing for more  than 80 years and today Captain High Liner is one of the most highly recognized consumer brand icons in Canada. We are leveraging our Canadian strength to build upon our established retail presence in the United States and Mexico by introducing more of North America to the High Liner brand.  In late 2007, High Liner acquired the North American  manufacturing and marketing business of FPI Limited,  including FPI’s prominent food service business  headquartered in Danvers, Massachusetts. At the end of  2010, High Liner acquired Viking Seafoods, Inc. (the “Viking  Acquisition” or “Viking”). Viking is a value-added company  serving the U.S. food service seafood market from Malden,  Massachusetts.  At the end of 2011, High Liner acquired the U.S. subsidiary  and Asian procurement operations of Icelandic Group h.f.,  one of the largest suppliers of value-added seafood to the  U.S. food service market. (See Section 5.1 of this document  and the Business Acquisition Report filed on SEDAR on March  16, 2012 for more details on this important acquisition (the  “Icelandic USA Acquisition” or the “Acquisition”)). Although our roots are in the Atlantic Canada fishery, we  purchase all our seafood raw material and some finished  goods from around the world. From our headquarters in  Lunenburg, Nova Scotia, we have transformed our long  and proud heritage into worldwide seafood expertise. We  deliver on the expectations of the modern consumer by  selling seafood products that respond to their demands for  convenient, tasty, and nutritional food at good value.  At High Liner, our reputation for delivering outstanding  seafood products is an advantage in the competitive North  American market. Our vision sets our overall direction: We focus on frozen seafood, because we are experts in this  category. We focus on value-added, as that is where we can  gain the most differentiation from our competitors due to  our excellent product development skills. We focus on North  America because we see many opportunities for growth in  the North American markets. The acquisitions that we have  done in the past few years truly solidify our position as the  leader in value-added frozen seafood in both Canada and the  United States, especially in the food service channel. Customer channels in this business include food service  operators in multiple restaurant segments, broad line  food service distributors, specialty seafood distributors,  and general line food processing companies.  FPI  is one of  the largest seafood suppliers to this market. Due to the  strength of the  FPI  brand, this business is being managed  as Fishery Products International, a division of High Liner  Foods. It is particularly recognized for its innovative product  development expertise for the food service channel. The  Viking and Icelandic USA Acquisitions added new products to our food service offerings and has substantially increased High Liner Foods’ share of the market for value-added  seafood products in the U.S. food service industry. Our U.S. subsidiary produces and sells seafood products  under the  Fisher Boy, High  Liner and  Sea Cuisine  brands. The  business distributes products throughout the United States  and in Mexico. 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 Sea Cuisine  brand.  Fisher Boy  and  Sea Cuisine brands are now sold under the umbrella of the  High Liner brand so that we can market our products more efficiently.  Our U.S. subsidiary also is the largest supplier of retail private  label processed seafood in the United States. We produce over  50 different labels for U.S. grocery retailers, primarily breaded  and battered fish sticks and portions. High Liner consists of two main business units,  geographically based, being the United States and Canada: We own and operate six food-processing plants located in:  Lunenburg, Nova Scotia; Burin, Newfoundland & Labrador;  Portsmouth, New Hampshire; Danvers, Massachusetts;  Newport News, Virginia; and Dalian, China. The Newport  News and Dalian plants were part of the Icelandic USA  Acquisition. We also operate a leased food-processing facility  in Malden, Massachusetts, which was obtained as part of the  Viking Acquisition. High Liner 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  Royal Sea,  and we manufacture private  labels. Late in 2010 the Viking Acquisition added the  Viking family of products to our portfolio. In late 2011 the Icelandic  USA Acquisition added the  Samband of Iceland, Seaside  and  Seastar  brands to our list of offerings. In addition, the  Icelandic  Seafood  brand is licensed to High Liner by the Icelandic Group.  15 ANNUAL REPORT 2011 We will be the leader in value-added frozen seafood in  North America.