Saving Seafood

Proposed settlement from Chicken of the Sea in class-action suit rejected by judge

January 27, 2020 — A proposed settlement between a class of commercial food-preparers and Chicken of the Sea, one of the three U.S. canned tuna companies found to have conspired to fix the prices of their products, has been rejected by the judge overhearing the case.

U.S. District Court for the Southern District of California Judge Janis L. Sammartino rejected a payment of USD 6.5 million (EUR 5.9 million), saying it is not clear the settlement provides enough money to those harmed by the price-fixing.

Read the full story at Seafood Source

Mom-focused seafood marketing campaign delivers healthy returns in US

May 30, 2019 — Soon after a U.S. pediatric doctors’ group said that children need to eat more seafood, the Seafood Nutrition Partnership (SNP) delivered some hopeful news for the cause, confirming that its recent marketing campaign targeted at mothers was highly successful.

In partnership with seafood suppliers such as Starkist, Trident, Bumble Bee, and Verlasso, the coupon and digital campaign that ran for eight weeks during Lent generated a 300 percent return on investment, SNP said. The organization’s investment of USD 100,000 (EUR 90,000) produced approximately USD 300,000 (EUR 269,000) in sales growth, SNP President Linda Cornish told SeafoodSource.

Notably, sales of seafood in supermarkets in Indianapolis, Indiana, where the pilot campaign took place, rose 2.4 percent during the promotional period. Frozen finfish soared more than 11 percent, far outperforming national sales growth of less than 3 percent, according to SNP.

“We surveyed local moms and poured over a lot of data to really understand the audience. We found that Indy-area moms like seafood and they want to eat it more, but they didn’t think their families would eat it,” Cornish said.

Read the full story at Seafood Source

U.S. consumers sue Bumble Bee, Chicken of the Sea, StarKist over ‘dolphin-safe’ tuna claims

May 14, 2019 — U.S. consumers sued Bumble Bee, Chicken of the Sea and StarKist, accusing the country’s three major packaged-tuna brands of deceiving them into thinking their tuna is caught only through “dolphin-safe” fishing practices.

The proposed class actions filed on Monday said the defendants employ fishing techniques that kill or harm dolphins, and do not always use safer, costlier pole-and-line and other methods used by such rivals as Whole Foods and Trader Joe’s.

The consumers said this makes the defendants’ dolphin-safe labels false and misleading, violating the laws of several U.S. states including California, Florida, New Jersey and New York.

They also said StarKist violated federal racketeering law through its alleged dealings with foreign fishing companies.

Concern about dolphin safety “makes tuna fish consumers no different from Hindus attributing zero value to beef products, or vegans attributing zero value to animal products, or vegetarians attributing zero value to meat, fish, and poultry,” the complaints said.

StarKist said it does not discuss pending litigation, but would not buy tuna “caught in association with dolphins.” It also condemned “indiscriminate fishing methods” that trap dolphins along with the intended catch.

Read the full story at Reuters

SCeMFiS Members Attend Seafood Expo North America Following Second National Science Foundation Grant

March 15, 2019 — The following was released by the Science Center for Marine Fisheries:

The Science Center for Marine Fisheries (SCeMFiS) brings together industry and academia to conduct groundbreaking fisheries research, and is the only research center funded by the National Science Foundation (NSF) dedicated exclusively to fisheries science. As a result of its research track record, NSF awarded SCeMFiS a “Phase 2” second 5-year grant to continue its work. This funding shows that SCeMFiS met the high expectations of NSF for Phase 2 approval, a feat that not every Phase 1 center accomplishes.

Industry members of SCeMFiS will attend this year’s Seafood Expo North America and are available to be interviewed.

Factors that contributed to NSF’s determination that SCeMFiS merited a Phase 2 award included:

  • Successfully undergoing a vigorous 5-year NSF review that included external reviewers;
  • Ongoing solid support from contributing industry member companies and organizations;
  • An extremely high retention rate of contributing members;
  • The exemplary quality of research conducted by SCeMFiS principal investigators.

With its newly approved grant, SCeMFiS plans to use the next 5 years to focus on ways to reduce scientific uncertainty in fisheries science; the effects of climate change on fish stocks and fishing communities; resolving issues between fishing and offshore energy interests; and developing sound ecosystem-based fisheries management.

Since its founding in 2013, SCeMFiS has been at the forefront of finfish and shellfish research. Working with members of the fishing industry, SCeMFiS scientists have conducted innovative studies, including producing the first age-frequency distributions for ocean quahog, and being one of the only institutions to study species like chub mackerel and longfin squid.

“The work of our academic partners at SCeMFiS has been vital in improving our understanding of the species we harvest,” said Jeff Reichle, CEO of Lund’s Fisheries, which was one of the original members of the SCeMFiS Industry Advisory Board. “The more we know about these species, the better we’re able to harvest them sustainably.”

The SCeMFiS industry members attending the Seafood Expo are committed to continuing this scientific partnership. Industry members on the SCeMFiS Industry Advisory Board review, approve, and fund all SCeMFiS projects, which are selected to fill gaps in data and meet the industry’s unfilled scientific needs.

“In the last five years, we’ve been able to study and improve the understanding of some of the most pressing scientific issues facing the fishing industry,” said Center Director Dr. Eric Powell, of the University of Southern Mississippi, one of the academic members of SCeMFiS. “We are looking forward to continue our collaborative partnerships and tackle the scientific questions affecting fishermen the most.”

SCeMFiS members will be at the following locations at Seafood Expo North America:

Lund’s Fisheries: Booth 951

Sea Watch International: Booth 423

The Town Dock: Booth 2133

Seafreeze Ltd.: Booth 2407

Bumble Bee

Walmart resolves anti-trust lawsuit against Chicken of the Sea

May 23, 2018 — Walmart has reached an agreement with Thai Union’s Chicken of the Sea International regarding antitrust claims initially brought forth by the retailer back in October 2016, and later amended in May of 2017.

The terms of the agreement will see Tri-Union Seafoods – which trades as Chicken of the Sea International – pay a cash settlement to Walmart and partner with the retail giant in a series of joint programs and new product promotions. New product innovations will also be launched and featured across Walmart stores in the United States as a result of the agreement, Chicken of the Sea said in a press release.

Groups of American wholesalers, retailers, and foodservice outfits began filing lawsuits in 2015 alleging that the three biggest providers of canned tuna in the United States – Tri-Union Seafoods, StarKist, and Bumble Bee – had conspired to “fix, raise, maintain, and/or stabilize prices for PSPs [packaged seafood products]” in the country. The series of lawsuits, as well as Thai Union’s failed bid to purchase Bumble Bee in 2015, spurred the U.S. Department of Justice (DOJ) to launch its own criminal antitrust investigation, examining claims that the three companies had colluded to increase prices for packaged tuna from 2008-2010, until at least July 2015.

Read the full story at Seafood Source

 

Lawsuit takes aim at kings of the tuna industry

June 5, 2017 — Clandestine phone calls. Surreptitious emails. In-person meetings to avoid a paper trail.

The purpose of all the secrecy? To keep the price on packaged tuna — the quick source of protein found in cans and pouches — artificially high.

New details of exactly how the country’s three largest tuna companies, including Pittsburgh’s StarKist Co., allegedly spent years sharing information and collaborating are included in a pile of amended complaints submitted last month in federal court by numerous grocers, restaurants and suppliers.

It’s the latest round in an ongoing court battle alleging price fixing in the packaged seafood industry. Bumble Bee Foods and Tri-Union Seafoods, which trades under Chicken of the Sea, both based in San Diego, are also named.

The U.S. Department of Justice, which is conducting its own investigation into alleged price fixing in the industry, announced in early May that Bumble Bee Foods agreed to pay a $25 million fine after pleading guilty to conspiring with competitors to fix prices. The DOJ said the company also is cooperating with the antitrust investigation. It’s the third charge to be filed in the investigation.

The DOJ had released information that triggered the amended complaints, according to one attorney.

A spokesperson for Starkist, Chicken of the Sea and Bumble Bee declined to comment on pending litigation, but in 2016 attorneys representing StarKist urged the court to dismiss the case. They argued that it’s not unusual for people working in the same industry to know each other and to meet at industry gatherings.

But a lot of retailers are arguing that the evidence shows the exchanges were not so innocent.

The latest court documents — which are heavily redacted — include details such as Walmart and Ohio-based grocer Kroger charging that executives “used misleading subject lines on emails to affirmatively conceal the conspiratorial nature of their communications from those not involved in the conspiracy.”

Read the full story at the Pittsburgh Post-Gazette

U.S. Tuna Industry Objects To New Proposed Labeling

April 29, 2016 — PAGO PAGO, American Samoa — Tri Marine International, whose local operations include a tuna cannery, and National Fisheries Institute (NFI) both contend that the new interim final rule by the federal government on dolphin safety labeling is due to a recent sanction of the US by the World Trade Organization in a long standing case which pits the US against its neighbor, Mexico. They say it is an unfair and unproductive burden to U.S. seafood companies that does not resolve the protracted WTO litigation, nor improve on the existing dolphin-safe operational performance.

Industry officials told Samoa News that the new interim final rule (or IFR) will only increase operational costs for the US tuna canneries, who are already faced with stiff global competition, and that the US canneries have been adhering to dolphin safe labeling standards set by the federal government for many years.

This was echoed by NFI president, John P. Connelly in an Apr. 22 letter to the National Marine Fisheries Service (NMFS), who is seeking public comment on the IFR for “enhanced document requirements and captain training requirements to support use of the dolphin safe label on tuna products.”

“Consumers purchasing canned and pouched tuna from Bumble Bee Foods, Chicken of the Sea, and StarKist should be confident that the ‘dolphin-safe’ label the retail packaging bears means just that,” Connelly wrote.

The three canneries are the major US producers of tuna products.

Read the full story at the Pacific Islands Report

Feds Dive Into Giant Tuna Price-Fixing Case

January 22, 2016 — SAN DIEGO (CN) — An ongoing antitrust case against seafood giants got even bigger as the federal government has intervened in litigation against the likes of Bumble Bee, Tri-Union Seafoods, StarKist, and others.

U.S. District Court Judge Janis Sammartino held a status conference Wednesday in a room filled to the brim with more than 50 lawyers from around the nation, hoping to move the case forward.

The U.S. Department of Justice Antitrust Division filed an unopposed motion to intervene in the lengthy litigation on Jan. 13. The feds are seeking a limited stay of discovery to aid in an ongoing federal grand jury investigation in the Northern District of California, into whether the biggest canned tuna producers violated the Sherman Act by conspiring to fix prices.

  The original class action complaint was filed in San Diego by Olean Wholesale Grocery Cooperative on Aug. 3, 2015. Dozens of lawsuits over price-fixing by the three biggest packed-seafood companies have since trickled into San Diego Federal Court after being transferred from other courts across the nation.

     The three companies control 73 percent of the U.S. market: Bumble Bee, 29 percent; StarKist, 25.3 percent; and Tri-Union, 18.4 percent, according to the complaint.

     Both Bumble Bee and Tri-Union Seafoods, which makes Chicken of the Sea brand shelf-stable tuna, are headquartered in San Diego – once the tuna-fishing capital of the world.

Read the full story at Courthouse News Service