Saving Seafood

Restaurant, catering group nears settlement with Chicken of the Sea on price-fixing suit

May 28, 2019 — A group of restaurants and catering companies have reached a USD 6.5 million (EUR 5.8 million) agreement with San Diego, California, U.S.A.-based Chicken of the Sea and its parent company, Thai Union, to settle a lawsuit alleging price-fixing.

The lawsuit stems from a price-fixing scandal in the U.S. canned tuna market exposed by a U.S. Department of Justice (DOJ) investigation in which Chicken of the Sea served as the whistleblower. The scandal led to prosecution of Chicken of the Sea’s primary co-conspirators, Bumble Bee Foods and StarKist. Both companies pleaded guilty to criminal charges in cases brought by the DOJ.

Chicken of the Sea’s potential settlement with the restaurants and catering companies, proposed Friday, 24 May, still must be approved by U.S. District Court for the Southern District of California Judge Janis L. Sammartino, who has not yet formally certified the grouping of affected companies involved in the agreement as an official class in the lawsuit. The parties suing claim to represent companies that indirectly purchased packages of tuna in 40-ounce sizes or greater from DOT Foods, Sysco, US Foods, Sam’s Club, Walmart, or Costco from June 2011 through December 2016.

Parties in the so-called “commercial food preparers” class involved in the proposed settlement include Capitol Hill Supermarket, Janet Machen, Thyme Cafe & Market, Simon-Hindi LLC, LesGo Personal Chef, Maquoketa Care Center, A-1 Diner, Francis T. Enterprises d/b/a Erbert & Gerbert’s, Harvesters Enterprises, LLC d/b/a Harvester’s Seafood and Steakhouse, Dutch Village Restaurant, Painted Plate Catering, GlowFisch Hospitality d/b/a Five Loaves Cafe, Rushin Gold LLC d/b/a The Gold Rush, Erbert & Gerbert, Inc., Groucho’s Deli of Raleigh, Sandee’ s Catering, Groucho ‘s Deli of Five Points, and Confetti’s Ice Cream Shoppe.

Read the full story at Seafood Source

US tuna companies face class-action lawsuits over “Dolphin-Safe” claims

May 15, 2019 — In the midst of dealing with numerous price-fixing lawsuits, Bumble Bee Foods, Chicken of the Sea, and StarKist now face class-action complaints over the “Dolphin-Safe” claims on their tuna products.

While Lion Capital-owned Bumble Bee, Thai Union-owned Chicken of the Sea, and Downgon Industries-owned Starkist claim that their products are “Dolphin-Safe,” that is not the case, according to the racketeering and fraud complaints filed in United States District Court in San Francisco, California, U.S.A.

The “Dolphin-Safe” label signifies that no dolphins were killed or seriously injured as a result of the catching of the tuna contained in their products. But the suppliers’ tuna fishing practices “kill or harm substantial numbers of dolphins each year,” the lawsuit against StarKist stated.

“And, because defendant does not adequately trace or otherwise identify the tuna that is not ‘Dolphin-Safe’ and physically segregate and store it separately from any tuna that may be ‘Dolphin-Safe,’ defendant may not label any of its products as ‘Dolphin-Safe,’” the StarKist complaint said.

While StarKist “does not comment on pending legal matters”, Michelle Faist, senior manager of corporate affairs for StarKist Co., told SeafoodSource, the supplier “will not purchase any tuna caught in association with dolphins.”

“StarKist Co. is committed to protecting the dolphins and was the first company to adopt a dolphin-safe policy in April 1990,” Faist said.

The policy states that: “StarKist will not purchase any tuna caught in association with dolphins. StarKist continues its practice of refusing to purchase tuna caught with gill or drift nets, which are known to be dangerous to many forms of marine life. StarKist condemns the use of these indiscriminate fishing methods that trap dolphins, whales, and other marine life along with the intended catch of fish.”

Read the full story at Seafood Source

South Pacific Tuna Corporation executive director criticizes global tuna trade

April 26, 2019 — J. Douglas Hines, until recently one of the owners of the fleet operated by the South Pacific Tuna Corporation, said he exited the business because he believes the U.S. tuna-fishing fleet has to “play to a different standard.”

Hines, who has since branched into vegan seafood alternatives, formerly worked as the chief operating officer and board director of canned tuna firm Bumble Bee Foods and held executive positions at Chicken of the Sea and Mitsui before building a fleet of tuna-fishing vessels operating in the Western Pacific Ocean. He sold his ownership stake of the vessels to one of the company’s U.S.-based partners in 2018, but will stay on as executive director and board member with the South Pacific Tuna Company through 2019, he told SeafoodSource.

Hines cited overlapping and unfair standards for the U.S. fleet as the primary reason for his decision last year to sell off his investment in the fleet of 14 purse-seiners, saying current norms in the industry are not sustainable.

“If you look at the oceans, between the pollution and overfishing, they’re a mess,” he said. “The high seas are particularly troublesome – there’s no law there. And you can walk over the ocean on the back of all the Chinese vessels that are out there.”

Read the full story at Seafood Source

Bumble Bee CEO Tharp sees bright retail future for tuna, but in pouches not cans

January 22, 2019 — Jan Tharp, the interim president and CEO of Bumble Bee Foods, sees tuna fish retail sales growing at a strong rate again but taking a different shape in the not-so-distant future, she told a packed room at the National Fisheries Institute’s Global Seafood Marketing Conference, in San Diego, California.

She was looking at charts of data from Information Resources Inc. (IRI), a Chicago, Illinois-based company that monitors retail sales trends. They showed total sales for seafood up 18%, from $9.8 billion in 2011 to $11.6bn in 2018, and the sale of tuna pouches up 12.3% in the past year.

The sale of seafood shelf-stable seafood was up only 2.9% in 2018, however. And household purchases of canned light tuna have dropped from 48.1% of tuna segment sales in 2014 to 39.3% in 2018, according to IRI.

Read the full story at Undercurrent News

Bumble Bee, FCF partner on albacore improvement projects

January 17, 2019 — Bumble Bee Foods and Taiwanese trader Fong Chun Formosa Fishery Company (FCF) are to partner with Ocean Outcomes on an initiative to improve fishing practices of the albacore longline tuna fisheries in the Indian Ocean and Western and Central Pacific Ocean, from which Bumble Bee sources.

“As we procure a significant amount of albacore tuna annually to meet demand for our products, we are in a unique position to help ensure the long term sustainability of longline albacore fisheries,” said Mike Kraft, vice president for sustainability at Bumble Bee.

“All of that tuna comes from healthy stocks. This initiative will launch two fishery improvement projects (FIPs) to help ensure those stocks remain healthy, while working to close identified gaps between current fishery operations and other MSC [Marine Stewardship Council] principles.”

A positive transformation of tuna management and tuna fishing practices is gaining momentum, especially in the purse seine sector — but not all harvesting sectors are as far along, the firms said.

Recent catch sector engagement initiatives – such as the Global FIP Alliance for Sustainable Tuna (GFAST) – have made progress in addressing the challenges of international management of tuna fisheries, but there is clearly an opportunity to increase participation from Northeast Asian longline fleets, they added.

Read the full story at Undercurrent News

Bumble Bee Foods, LLC and FCF Partner with Ocean Outcomes to Improve Longline Tuna Fisheries

January 15, 2019 — The following was released by Bumble Bee Foods, LLC, FCF Fishery Company, Ltd., and Ocean Outcomes:

Bumble Bee Foods, LLC, FCF Fishery Company, Ltd., and Ocean Outcomes have announced a major initiative to improve fishing practices of the albacore longline tuna fisheries in the Indian Ocean and Western and Central Pacific Ocean from which Bumble Bee sources.

“As we procure a significant amount of albacore tuna annually to meet demand for our products, we are in a unique position to help ensure the long term sustainability of longline albacore fisheries,” said Mike Kraft, Vice President, Sustainability at Bumble Bee. “All of that tuna comes from healthy stocks. This initiative will launch two Fishery Improvement Projects (FIPs) to help ensure those stocks remain healthy, while working to close identified gaps between current fishery operations and other MSC principles.”

A positive transformation of tuna management and tuna fishing practices is gaining momentum, especially in the purse seine sector, but not all harvesting sectors are as far along. Recent catch sector engagement initiatives – such as the Global FIP Alliance for Sustainable Tuna (GFAST) – have made progress in addressing the challenges of international management of tuna fisheries, but there is clearly an opportunity to increase participation from Northeast Asian longline fleets.

“This bold step by Bumble Bee, FCF and their supplying longline vessels blazes a trail for key tuna catchers to join the sustainable tuna movement,” said Daniel Suddaby, who is leading the project for Ocean Outcomes.

Bumble Bee sources its albacore tuna through FCF, a Taiwanese-founded company that works closely with fishing vessels. FCF, a partner in the initiative, will work with their associated longline fleets towards improved fishing practices.

“This is a fantastic opportunity for FCF to proactively engage the hundreds of tuna vessels we work closely with on a journey towards global best practices,” said Fong Lee, Sustainability Officer at FCF.

“We know sustainable tuna fisheries require robust harvest strategies. And we know transparent monitoring of fishery impacts is critical for addressing any negative effects on surrounding ecosystems. These FIPs will work towards both those goals,” said Suddaby.

As a next step in the initiative, project partners are formalizing both the Indian Ocean Albacore Tuna Longline FIP and the South Pacific Albacore and Yellowfin Tuna Longline FIP. As part of that process they are developing FIP workplans and recruiting FIP participants.

Bumble Bee Foods, LLC, headquartered in San Diego, is North America’s largest branded shelf-stable seafood company, offering a full line of canned and pouched tuna, salmon, sardine and specialty protein products marketed in the U.S. under leading brands including Bumble Bee®, Brunswick®, Snow’s®, Wild Selections® and Beach Cliff®, and in Canada under the Clover Leaf® brand. Bumble Bee’s mission is to provide healthy and nutritious products and meal solutions that are sourced sustainably. The company actively promotes the responsible stewardship of global fisheries resources and is a founder of the International Seafood Sustainability Foundation (ISSF)—a global partnership of scientists, tuna processors and WWF, the global conservation organization.

FCF Fishery Company, Ltd. (FCF) is one of the world’s largest marine products integrated supply chain service provider companies specializing in tuna. An industry leader in sustainability and traceability, and FAD-free fishing policy, FCF works closely with governments and non-governing organizations to ensure the environmental sustainability of tuna stock and marine life products around the globe.

Ocean Outcomes (O2) is an international organization which works with local communities, fisheries, and the seafood industry to improve the environmental, social, and economic sustainability of fisheries and aquaculture operations.

As the guilty pleas pile up in tuna case, will consumers ever get anything back?

November 6, 2018 — First, Chicken of the Sea came forward as a whistleblower. Last year, Bumble Bee Foods pleaded guilty, followed by StarKist Co. in October.

The big three tuna companies — familiar names on the shelves of your nearest grocery store — have been under investigation by the U.S. Department of Justice for keeping the price of canned and pouched tuna artificially high.

It’s a high-level antitrust case involving lots of big companies, but it’s also the kind of case that reaches all the way down to the grocery store checkout and family budgets.

Thomas Burt, an attorney with the law firm Wolf Haldenstein Adler Freeman & Herz, said with consumer cases like this, “Psychologically, these hit home in a way that others don’t.”

“If a group of companies fix the price of basic industrial chemicals or computer chips that we use in the devices around us, the psychological distance is further. We don’t feel it as directly,” Mr. Burt said. “This is a product that people have a relationship with. They know this brand. They’ve eaten it since they were kids.

“It’s a kick in the pants for consumers,” he said.

It remains to be seen if consumers will be directly compensated in some way, and, if so, how.

The packaged seafood market, which also includes salmon, shrimp, clams and the like, is a multibillion-dollar industry in the United States. Tuna represents about 73 percent of the market and generates about $1.7 billion in annual sales, according to court documents.

Read the full story at The Pittsburgh Post-Gazette

StarKist admits fixing tuna prices, faces $100 million fine

October 22, 2018 — StarKist Co. agreed to plead guilty to a felony price fixing charge as part of a broad collusion investigation of the canned tuna industry, the U.S. Department of Justice announced Thursday.

The DOJ said StarKist faces up to a $100 million fine when it is sentenced. Prosecutors allege that the industry’s top three companies conspired between 2010 and 2013 to keep prices artificially high.

“We have cooperated with the DOJ during the course of its investigation and accept responsibility,” said StarKist chief executive Andrew Choe. “We will continue to conduct our business with the utmost transparency and integrity.”

StarKist is owned by South Korean company Dongwon Industries, one of the largest tuna catching companies in the world. The parent company’s website carries pledges to abide by ethical standards and good corporate citizenship.

The scheme came to light when Thai Union Group’s Chicken of the Sea attempt to buy San Diego-based Bumble Bee failed in 2015, according to court records. Chicken of the Sea executives then alerted federal investigators, who agreed to shield the company from criminal prosecution in exchange for cooperation.

Bumble Bee Foods last year pleaded guilty to the same charge and paid a $25 million fine, $111 million lower than prosecutors said it should have been. Prosecutors said they feared putting the financially struggling Bumble Bee out of business with a high fine and agreed to let the company make interest-free payments for five years.

Read the full story from the Associated Press at the Gloucester Daily Times

Bumble Bee: Trump’s tuna tariffs ‘devastating’ for firm

September 21, 2018 — US tuna canning company Bumble Bee Foods warned the US Trade Representative (USTR) in a letter that the now-confirmed tariffs against imports of Chinese tuna would be “devastating” for the firm.

The tariffs — which will come into play on Sept. 24 at 10%, and then go to 25% on Jan. 1, 2019 — will hit US imports of yellowfin, skipjack, and albacore tuna loins, all of which are required by Bumble Bee’s Santa Fe Springs, California factory, wrote CEO Jan Tharp.

The tariffs, which were initially proposed by USTR on July 10, will hike the cost of raw materials, which in turn will “certainly lead to higher prices for US consumers”, Bumble Bee’s leader said.

“We are very concerned with the proposed tariff on tuna loins and the impact that these tariffs will have on our supply chain, global competitiveness, and US operations,” Tharp said. “The proposed tariff on tuna loins will have a devastating effect on Bumble Bee given that our business model is to import tuna loins for further processing and canning in the US by American workers.”

Read the full story at Undercurrent News

 

Bumble Bee CEO indicted on federal price-fixing charges

May 17, 2018 — The CEO of Bumble Bee Foods faces up to 10 years in prison on charges he conspired to illegally set prices on canned tuna in the United States.

A federal grand jury on Wednesday 16 May indicted Christopher Lischewski on a single count of price fixing. He is scheduled to be arraigned on 29 May in U.S. District Court in San Francisco, California.

According to the indictment, Lischewski “knowingly joined and participated” in a conspiracy to suppress and eliminate competition by fixing prices on packaged seafood sold in America. He and other unnamed co-conspirators held meetings and exchanged information on not just pricing data but sales, supply, demand, and production.

Read the full story at Seafood Source