It's been a roller-coaster year for US canned seafood giant Bumble Bee. After an acquisition offer from Thai Union was held up by US competition authorities, the future of the company, now owned by private equity group Lion Capital, remains a bit unclear, and will be until authorities make a decision on whether or not the deal can move forward.
The US canned seafood market remains under pressure, CEO Chris Lischewski told IntraFish, and while that will continue to be a challenge, he sees some bright spots next year with new investments in innovation, and new US Food and Drug Administration (FDA) dietary advice that may encourage Americans to eat more fish.
We asked Lischewski to look back on the year, and ahead to 2016.
What were the most significant developments for your business in 2015?
1) The acquisition by Thai Union (December 2014) followed by year-long review by the US Department of Justice that is not yet concluded.
2) The continued growth in fishing capacity and catching technology leading to significant over-supply and collapse in skipjack price.
3) The increased pace of consolidation at US retail putting significant pressure on manufacturer margins: Walmart and Kroger now hold a more than 35 percent share of US food sales.
4) A continued decline in consumption of canned seafood despite lower product costs and on-shelf pricing.
Looking ahead, what will be the three most important developments in 2016?
1) The resolution of Bumble Bee-Chicken of the Sea ownership structures in the US market.
2) Regional Fisheries Management Organizations achieving the political will to make meaningful progress on sustainability measures surrounding IUU, capacity, FADs, harvest control rules and some form of quotas.
3) An announcement by FDA of new dietary guidelines and advice regarding seafood, hopefully utilizing scientific evidence (i.e. their own Net Effects report published earlier in 2015) to offset the poorly crafted advice issued in 2004 that scared consumers – especially pregnant women – away from seafood.
What changes and developments do you expect your business to undergo next year?
1) Potential new ownership structure.
2) Increased investment in innovation with a focus on quality, health & wellness and convenience.
3) Greater focus on M&A given the challenges inherent in achieving organic growth.
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