Philippine Tuna War Leads To Complaint Over Century Monopoly ff

Philippine Tuna War Leads To Complaint Over Century Monopoly

Source: Malaya Business Insight

Foodsphere Inc., makers of the CDO brand of processed meats, and Century Pacific Group of Companies, manufacturer of the Century brand of canned fish, are in a tuna war.

Foodsphere has filed before the Department of Trade and Industry (DTI) a complaint against Century for allegedly employing unfair trade tactics by thwarting Foodsphere’s production supply and distribution in an effort to suppress competition and retain its monopolistic control over the local canned tuna market.

In a letter to Trade Secretary Peter Favila, Foodsphere accused Century of blocking the entry into the market of its new canned tuna product, San Marino corned tuna, not only in Metro Manila but also in the provinces.

Launched in July, San Marino corned tuna competes with the canned tuna brands of Century Pacific Group.

Foodsphere said the DTI has enough powers to protect consumers against unfair trade practices and ensure stable supply and prices of basic necessities by providing a level playing field for manufacturers, suppliers and distributors.

“We seek relief from you, as the office vested by the law to enforce the different trade and industry laws in the country, pursuant to the policy enunciated under Section 19, Article XII of the 1987 Constitution,” Foodsphere said.

That provision in the Constitution provides that “the State shall regulate or prohibit monopolies when the public interest so requires. No combination in restraint of trade or unfair competition shall be allowed.”

The complaint also sought an investigation of the P6-billion canned tuna industry in the Philippines, 99 percent of which is being monopolized by the Century.

Century, owned by businessman Ricardo Po Sr, produces the Century, 555, BlueBay and Fresca canned tuna brands.

Foodsphere said Century bought out its competitor in the past, BlueBay Tuna from RFM, to retain its leading market share.

“Because of the tactics, which includes restricting the production, supply and distribution of canned tuna in the local market, adopted by the Century Pacific Group, other canned tuna manufacturers either have been eliminated totally in the industry or were discouraged to compete in the domestic arena and resorted in exporting their products, just to avoid competition with the Century Pacific Group,” Foodsphere said.

Foodsphere added that while it is ready to induce competition and bring down prices in the local canned tuna market through San Marino brand, its well-intentioned efforts have been impeded by the tactics employed by the dominant player.

“We have introduced corned tuna as an entirely new category in the tuna market to give the Filipino consumers a better choice, but we were surprised to learn that the dominant player launched a similar product recently,” Foodsphere counsel Raymond Parsifal A. Fortun said in his letter.

Foodsphere said it is studying its next legal step to ensure that the local canned tuna industry becomes competitive and that the industry has a level playing field for all the tuna players.

It said Republic Act 7394, or the Consumer Act of the Philippines, seeks to protect the interest and promote the general welfare of the consumers by establishing standards of conduct for business and industry. It also protects consumers against unfair business practices.

“We believe that the paramount consideration of your office is to protect the welfare of the consumers, by providing them adequate and affordable choices in the market. We also believe that your good office aims to promote fair competition among the different components of a certain business industry,” Fortun said in the letter to the DTI.