Dropping Springs LLC plans to establish Calendar Islands Lobster as the premier brand for lobsters caught by conservation-minded lobstermen in Casco Bay and sold through a fishermen-owned, vertically integrated lobster business

I. Overview of Maine’s Lobster Industry

• Lobster stocks are as healthy as ever, but the lobster business is in a downward spiral.
• During the past 15 years, Maine’s lobster harvest has tripled in volume—that’s good news.
• During this period of record lobster catches, Maine shipped increasing number of lobsters to Canadian processors —upwards of 70 percent of the catch — who then re-imported them into the American restaurant market without the Maine brand.
• Losing Maine’s brand in the market place is really bad news.
• For the past year, Maine’s lobster industry has been reeling from a global slowdown of demand for premium lobsters at the same time that supplies of lobsters are still piling up from the big harvest during the shedder season.
• This situation has led to lobster prices a full $2 per pound below the boat price of last year.

II. Overview of the Calendar Islands Lobster Project

• Dropping Springs LLC is responding to this dire situation by partnering with the Island Institute to test an innovative model for the lobster industry.
• This model is one that expands the role of the fishermen-owned business to include marketing, branding and distribution.
• The leadership of this project, although it reaches out to all fishermen in Casco Bay, comes from Chebeague islanders; in fact, the majority of the co-op members and those who operate the smack boat and oversee general operations have deep roots on the island.

III. Dropping Springs LLC is poised to succeed in this exciting effort because:

1) We have very strong and organized leadership, with fisherman John Jordan at the helm. (John lives on the mainland but owns a home on Chebeague.)

2) We have 29 fishermen in our business (double the number last year).

3) We have either made or agreed to make significant investments in lobster-holding tanks, a lease on a wharf in Portland, with facilities large enough that we will be able to meet regional demands, a portion of the yearly cost of an operations manager, and the purchase of a smack boat.

4) The leadership of Dropping Springs LLC actively participates in state and regional policy discussions – we are ambassadors for the lobster fishery.

VI. The goal is to launch Calendar Islands Lobster on September 14^th, 2009

By cost-sharing an operations manager and providing marketing and branding support, John Jordan will be freed up to work on developing a long-term business plan that will require more traditional investments.

This innovative business model will be available for investors to review within six months.

For more information, please contact John Jordan at 207-318-1188 or Rob Snyder at 207-691-2393.

Supported by the Island Institute, which partners with Maine’s year-round islands

and coastal communities to ensure that they remain vibrant places to live and work.