Source: La Republica
The competition between Calvo and Sardimar is getting tougher as they expand their markets and introduce their new products.
The consumption of canned tuna in Central America and the Caribbean has an annual value of more than $ 134 million. That’s why companies strive to gain market share.
Costa Rica is the battle field, given each Costa Rican consumes an average of 2.5 kilos of canned tuna per year, equivalent to 55 billion cans.
Sardimar, company of Costa Rican capital, moved its pawn towards the United States and European markets. This year it began to export its premium brand of tuna, Neptune, to major US and European supermarket chains. Sardimar is also researching the entry of its products to more Caribbean and South American countries. In both regions, it is in the process of selecting a distributor for its brands.
Sardimar also launched a new presentation for its light tuna in reusable plastic container. By 2012, it will launch four new canned products.
“We have invested $ 10 million to modernize our equipment and build a laboratory for the development of new products,†said Shirley Romero, Sardimar’s Director of Corporate Communications.
The company’s investment budget for next year will be about $ 12 million to be distributed in technological improvements at its plant in Puntarenas and the construction of a new office building in San Jose for commercial and administrative purpose.
In the meantime, the Spanish multinational Grupo Calvo has this year increased its presence in the region and has entered the Colombian market.
The company’s goal is to achieve a 20 percent market share in Colombia within medium term, becoming the second commercial alternative. Colombia consumes 40,000 tons of tuna annually, with a market value of $ 180 million, while the total consumption in Central America is 11 million tons.
“We also look forward to expanding our market share in the Caribbean, mainly in the Dominican Republic and Puerto Rico, where we have corporate interests,†said Victor Perez, Calvo’s Commercial Director for Central America, the Caribbean and Colombia.
This year, the company introduced tuna in canola oil and spicy vegetables. It also said that it would be launching new tuna products in 2012.
Calvo has invested $ 150 million in the last five years, including the construction of its plant in El Salvador and the modernization of its processing equipment, among others.
Despite the expansion of both Sardimar and Calvo, Costa Rica continues to hold the leading position in sales and consumption of canned goods in the region.
According to a study by the market analysis specialist, Nielsen, the domestic market reaches $ 93 million. Tuna is the main canned fish product sold in Costa Rica, while Guatemala, Honduras and Nicaragua consume more canned sardines.
Based on market share, Sardimar is still the dominant player with 70 percent. Meanwhile, Calvo closed the year with 14 percent.
The estimated sales growth of the Spanish firm is 55 percent, thus closing this year with a profit of more than $ 13 million.
“Our entry into the region has stimulated a healthy competition that has influenced prices and has directly benefited the consumer,†Perez said.
Calvo’s entry to the region in 2007 sparked a fight between the two companies, first in the legal arena, with both parties making allegations of unfair competition.
However, this year’s battle has been focused on the commercial area, with both parties gaining more market share in the region.
