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Innovation The Way For Spanish Canners To Expand Their Market ff

29 November 2007 Spain

A dozen of companies, which are the core of the Galician canning industry and which generate more than 80% of total domestic produce, have been working for months at an innovative way for expanding their market.

 

Product innovation is one of the main strategic lines for both the sector’s main players as for the Spanish Department of Fisheries plan of development.

 

Within a period not exceeding three years, the market will attend a packaging revolution to replace in some instances the traditional 80g steel cans for aluminum cans especially developed for the conservation of prepared seafood meals.

 

The second innovative strategic line relates to a healthy diet. The new products are low in cholesterol, fortified with protein or prepared for specific diets, are becoming another of the experimental branches of industry. These changes mark the new type of Galician preserved seafood.

 

In reality, what the industry is giving, is a warning signal that the mass production of tuna for large supermarkets (private labels) is the most likely to transfer to another location. Especially in the case of direct competition within the European market with canned tuna coming from Asia, with prices about 60% cheaper and production costs up to 30% lower.

 

Canned tuna represents a total of 54% of all products canned in Galicia. However, distribution is very uneven. “There are companies with nearly 100% of its production destined for supermarket’s private labels while others only process for their own brand,” indicated sources from the sector.

 

One of the most unique cases within the Galician canning industry is that of the company Bernardo Alfageme, from Vigo, that during mid last year, contracted its current director general, Miguel Llana, from the multinational food giant Campofrío.

 

Mr. Llana explained that the chance for production relocation in the case of Alfageme is “null”. "Our product line is not based on tuna; tuna is just a product within our product range”, he said.

 

Alfageme, which introduced late last year its strategic plan with the establishment of two new plants in Vigo and Ribadumia, has put on the market a new product line (Miau Pis Pas and Pis Pas Duo) which are basically sea products packed with rice in various styles, ready to heat and eat. Miau is the national leading brand for squid, mackerel, anchovies and sardines. The company’s strategy involves improving its technology in the production process. “However always in Galicia” emphasized Mr. Llana.