15 Minutes With Calvo’s European CEO
The constant reduction in price of tuna products and unsustainable fishing practices are the main concerns of Alberto Encinas, European CEO of one of the most successful Spanish tuna companies, Calvo. Sitting down for fifteen minutes with him at this year’s European Tuna Conference in Brussels, where he presented on the future of Europe’s canned tuna market, Atuna picked his brain to find out what changes he has observed in the last years, and his expectations for the industry going forward.
With nearly twenty years of experience in the tuna industry, Encinas has seen several major ups and downs in the sector, which have all had their impact on the direction of the business. In his various positions within Calvo he has garnered expertise from all corners of the business, stretching from the sourcing of raw material to sales and marketing, and to analyzing mergers and acquisition opportunities, before stepping into the position as CEO of the European Division last year, being responsible for the development of Calvo in this market.
Encinas tells Atuna that one of the main changes he has witnessed since he started working in the industry is the snowballing trend of continuously reducing the price of tuna products, which he argues can cause significant damage in the long term. He emphasizes the fall in tuna consumption that has been seen year after year in the US, stating that a constant attempt to reduce the price of the product can eventually destroy the market.
Pushing up the price of tuna is a necessity in order to give tuna the worth it qualifies for, Encinas says. “In a way I don’t think we are giving tuna the value it should have. It is a very high value protein that is sometimes sold at a very low price, and this is one of the main concerns I have regarding tuna.”
“My desire would be that we really put tuna at the level it should be as a superfood, because now we really don’t give it the value that it deserves.”
Encinas points out that European supermarkets are increasingly using tuna as a tool to attract shoppers, with more and more price reductions being introduced to entice them into the stores. This transformation is also connected to the rise of private label which has been witnessed by the CEO.
With a strong reputation as Spain’s leading canned tuna brand, Calvo, which is 40 percent owned by Italian group Bolton, stepped into the private label segment of the market for the first time recently. A few months ago came the unexpected revelation that the company will start supplying private label canned tuna to Spanish discount retailer Dia. Calvo management themselves said the move was surprising, as previous generations of Calvo leaders have been very reluctant to enter into the private label business.
As well as this diversification within Spain, Calvo also has a firm grasp on other markets worldwide, with presence in around 75 countries, and the firm is constantly looking to promote tuna consumption outside of its Spanish home base. Encinas previously held the position as CEO of Calvo’s Americas division and also CEO of Calvo’s Brazilian subsidiary, Gomes da Costa. Through these roles he has contributed to making Brazil one of the group’s main money makers. South America is one of the regions seen as having a potential for substantial growth in canned tuna consumption, and the firm wants to reach supermarket shelves in new countries in this continent, seeing little opportunity to expand in Spain, where it is already the market leader.
Although Calvo hasn’t particularly stood out on concrete sustainability policies, sustainability is a priority for Encinas. While Calvo owns a fleet of nine vessels in the Atlantic and Pacific ocean, six of these being purse seiners, Encinas says that he would ideally like to see tuna catches stabilize or even decrease from now, content that he has observed the tuna industry as a whole sway more in favor of responsible fishing.
From a Calvo perspective he says: “I think this is good news because we are completely in favor of establishing additional controls on fishing efforts and in trying to reduce worldwide catches.”
Despite showing no big push towards sustainability certification like MSC for its products, other responsible measures have been taken on by Calvo; becoming a member of the International Pole & Line Foundation (IPNLF) and having pole and line caught tuna packed in jars as a niche part of its product portfolio. Additionally, Calvo also recently announced its initiative to start auditing its tuna suppliers to make sure they meet its social and environmental standards, a process that will start later this year. The firm has also been giving increased attention to social responsibility lately.
Recognizing all of these shifting aspects in the ever-changing tuna sector, there is never a dull day according to Encinas. “It is a very dynamic industry, every year is different so you never really get bored. You need to be prepared to change, in a way it is very demanding because there is no way of predicting the future in this business. It really gets my adrenaline pumping!” ■