The man who changed Canada's lobster industry and his $1B deal to sell Clearwater

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The Nova Scotia visionary created billion\u002Ddollar seafood empires, and helped Indigenous communities return to the waters.

Ultimately, Risley has evolved from a university dropout who initially failed in multiple businesses to one of Canada’s most dynamic entrepreneurs.

The federal fisheries department announced it was creating a fourth surf clam licence for 2018 ­— representing a quarter of the total allowable catch ­— and would award it to an Indigenous entity in Atlantic Canada or Quebec. Clearwater would still hold three Arctic surf clam licences, covering 75 per cent of the TAC.

The company’s primary argument, however, was this: the Arctic surf clam was a product of little value until Clearwater pioneered new markets and better harvesting technology in the mid-1980s; therefore, any new quota holder was simply benefiting from Clearwater’s expensive and time-consuming efforts in building the sector from nothing.

For Risley, it was further proof the Canadian fishery was myopic. “This is why the industry is a stupid industry,” he told me. “It wouldn’t happen with any other of our natural resources.

In July 2018, Ottawa suddenly cancelled the Five Nations deal without explanation and said a new bidding process would be held for the Indigenous surf clam licence, this time to be reviewed by an independent third party. So Clearwater still held its three Arctic surf clam licences and 100 per cent of the annual quota ­— but for how long? The company decided it wouldn’t wait to find out.

The second irony of the “clam calamity” ­— as Clearwater director Brendan Paddick put it ­— emerged later, with the 2021 sale of Clearwater, which was arguably the most significant initiative involving reconciliation to occur during Trudeau’s first five years in office ­— and yet he had nothing to do with it. It was orchestrated in large part by John Risley.

“Look, we’re about to put Clearwater on the market and it makes a lot of sense for both the buyer ­— whoever that buyer is ­— and for you as a community to get involved,” Risley recalled telling the group. “We’d love to have you involved.” “Several directors finally put it to them and said, ‘Guys, you can’t continue to make statements like that and not put them into action. … What the eff are you up to?’” Paddick recalled.

On Sept. 25, 2020, Clearwater’s board began negotiations with Premium and FNC Holdings, a coalition of seven Mi’kmaq First Nations, assembled and led by Membertou. The result was a $1-billion deal unanimously approved by Clearwater’s board. For strategic reasons ­— stemming from lessons gleaned from the Arctic surf clam fight ­— FNC held all the quotas included in the deal.

 

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