January 30, 2014

Thai Union Frozen (TUF) products' 10% growth target for its tuna business is achievable despite the flat growth of canned tuna in developed markets, says a company executive.

Wai Yat Paco Lee, head of investor relations and corporate investment at the world's largest tuna canner, said that while the tuna market in developed countries has grown by only 2-3% yearly, there are still many other markets where tuna is not yet a popular dish.

Private labels such as house brands developed by retailers are also growing in many markets. Mergers and acquisitions have continued to be part of TUF's growth strategy, besides organic growth.

Tuna contributes half of TUF's income. The recent spike of tuna raw material prices had halved the firm's profits reported for January to September of last year. However, Lee told reporters that the latest trend starting less than six months ago was that tuna prices have continued to decrease, and reaching US$1,400-US$1,500 a tonne at present is quite favourable for the global tuna market.

TUF, which owns many leading canned and frozen seafood brands including John West, Chicken of the Sea, Sealect, Petit Navire and Mareblu, claims 20% of the world's canned tuna production, which is estimated at 1.4 million-1.5 million tonnes, valued at about US$6 billion-US$7 billion annually.

"This article is made possible through the contribution of www.fis.com"