How Luciano Pirovano Wants To Change The Tuna Industry

When he first entered the tuna business in 2003, Bolton’s Luciano Pirovano says the idea of sustainability was not a big thing. Almost 15 years on, like many, he now regards this as a major issue, and one that recently motivated him to take the position of ISSF Chair. While improvements have been made, there are still key sustainability challenges that need to be addressed, ones that keep Bolton’s own sustainability commitments on a fairly long-term path.

Pirovano’s first position was Marketing Manager of Domestic Business at Bolton Alimentari, the leading tuna firm in the Italian market, with dominant Rio Mare brand in its portfolio. “Those years were really important for me,” he told Atuna. “I learnt so much about Bolton’s biggest market, Italy; about the company’s brands and strengths…”

Later, around 2007, he says that sustainability became a major issue, addressed at all tuna meetings, and one that could not be ignored by the global sector. “That was at the time when I moved to International Marketing, where I began working on markets in which sustainability was already a major factor.”

He actively took part in Bolton’s launch of Rio Mare’s corporate social responsibility project, “Qualità Responsabile” – which he says embodies the firm’s commitment to complete quality, pursued responsibility, respect for the environment and the rights of people along the supply chain. This is “in order to guarantee environmental, economic and social sustainability.”

Not long after, in 2009, when tuna sustainability discussions had snowballed, is when Pirovano says that he was involved in the process of setting up the International Seafood Sustainability Foundation (ISSF), of which Bolton is a founding member. ISSF now claims to represent over 70 percent of the global tuna buying power, with major fishing and processing companies being either founding or participating firms.

With his own career timeline being just one example, the Bolton Exec. sees several distinct changes in the makeup and behavior of the tuna industry, compared to when he first stepped in. “I’d say most of all, companies have been working harder and harder to anticipate the requests from a variety of stakeholders – NGOs, retailers and consumers – to pay attention to sustainability.

“Today, more than ever, companies are aware of the role they have to play in the social and environmental fields.” He adds that among consumers, things are also changing very fast, and in the last few years the issue of sustainability is increasingly impacting buying decisions in the stores, sometimes more than price and brand; a trend the industry must react to.

Against this backdrop, Pirovano admits that a company of Rio Mare’s and Bolton’s size has extra responsibility in catering to these demands and in guiding industry development to bring more sustainable products to the tuna market.

Despite not having a large range of MSC products so far, he is keen to promote Bolton’s own sustainability commitments, which include a 2024 goal of 100 percent of its tuna and fish products being sourced from MSC certified fisheries or Fishery Improvement Projects (FIPs).

However, with several other big tuna players having similar goals, but planning to reach them earlier, Atuna questioned Pirovano on the fairly long-term deadline for Bolton, which at the time of its implementation gave the firm seven years to meet its target. The long-term commitment is based on two main considerations, he said.

“The first is that this commitment covers 100 percent of our procurements, our entire production and the totality of our brands. Given that at the Cermenate plant we produce 3 million cans each day, it is easy to understand how much effort is required to achieve this objective.”

The second factor we need to keep in mind, he says, is that “today, unlike other species of fish, the percentage of MSC-certified tuna available worldwide is around 20 percent. This is why there is still some way to go for us and our stakeholders along the path of increasing the number of certified fisheries.”

Bolton’s commitment, encompassing 100 percent of its tuna products, suggests that sourcing from MSC fisheries will be the priority for the firm, however it leaves itself the opportunity to also source tuna from FIPs. The amount of tuna FIPs operational across the global fishery has grown notably in recent years, and although they are launched with a goal of reaching MSC certification, very few have made it there to date, something Pirovano seems eager to change in his ISSF role.

Despite this FIP proliferation, Pirovano believes that addressing sustainability, which is vital, will not be a smooth path for the industry. However he thinks that the pressure of doing so can be turned into a major value creation opportunity for the market, which is much needed at this time.

“It’s true for us as it is for the entire industry; value creation will be the biggest challenge. We must all be totally focused on how we can create value in our business.” It is going to be complicated, he admits, “given that the industry is tackling a number of critical issues.” He talks among other factors, of rising raw material prices and an old-fashioned perception of tuna products.
However, the Bolton Exec. is adamant that by focusing on sustainability, boatowners, processors and brands can all boost the value of the market, and when combined with innovation in product development, this can be even further enhanced.

As well as the challenge of sustainability issues, a general perception that the tuna industry is “a little old-fashioned” is also something that the market needs to tackle, Pirovano states. There needs to be continued modernization, he notes, and as well as bringing new, fresh references to the market, brands need to “work on communication in-store and through a variety of channels like TV and Digital.”
An outdated tuna industry, which has been taken over by the introduction of recent food offerings like fresh ready meals, according to Pirovano, has driven major tuna firms to concentrate largely on innovation. “This has sped up enormously,” he notes, with companies developing products “that more closely cater to consumer food trends, as they seek healthy, tasty, nutritionally-balanced and versatile products.”

Within Italy, where he believes that growth is achievable for Rio Mare, Pirovano says the brand’s leadership and innovation has enabled it to create value. He mentions the company’s Insalatissime product range, a number of tuna-salad products, which include tuna meat accompanied with various vegetables and other ingredients.

Previously speaking to Atuna, the Bolton Exec. explained that Italian market growth is imminent. His words reflected a 22 percent YoY climb in Italian canned tuna imports in the first few months of 2017, coupled with a modest rise in pre-cooked tuna loin purchases for domestic production.

This is partly thanks to the convenience of the product, Pirovano believes; an alternative to fresh fish that is cheaper, more practical, and has a long shelf-life, allowing the canned tuna industry in the country, which is largely focused on quality, to perform well.

“We’re counting on major growth in our international markets too,” he states. “Today, the Rio Mare brand has a presence in more than 50 countries around the world,” through products like tuna in olive oil, but also with the Insalatissime line, which is a value-added addition to the brand’s portfolio.

It was explained that despite the challenges he has referred to, Bolton’s production has increased in volume terms, which Pirovano notes is also due to the contribution of new international markets that have been entered. The company’s plant previously mentioned, Cermenate, based in Como, Italy, is one of the largest in Europe, and one of the most modern in the world, he states, and it produces 3 million tuna cans per day for worldwide distribution.

In line with this described growth in Bolton’s business itself, Pirovano sees one of the major changes for the industry in the next few years being increased market concentration, as he expects the biggest players to become more and more successful. “Over the years, as a result of acquisitions, the number of companies in the sector has fallen in numerical terms, while companies have grown in size.”
But with growth comes responsibility. Over the next few years, he believes that the firms that continue to grow will face an increasingly tricky path, reiterating one major point; “without doubt we’ll all have to keep working on environmental and social sustainability in our supply chains.”

This is one focus that motivated Pirovano’s take up of the ISSF Board of Directors Chairman position. “It is with honor and pride that I currently hold the Chair of the ISSF’s Board of Directors. I am fully aware of the responsibility my role brings, and I believe that the organization can successfully achieve the ambitious goals it has set itself.”

Explaining the premise under which ISSF was first established in 2009, Pirovano says that the target was creating an organization that would bring together the most authoritative marine biologists, the most important NGOs and the WWF, to give concrete form to shared commitments to improve the health of the oceans and make fishing as sustainable as possible.

“Our belief is that achieving tuna sustainability requires a global, collaborative and scientific approach by the different stakeholders.” Although Pirovano thinks that the ISSF is keeping faith in its principles, he indicates that eight years on, the goals have not yet been reached.

He does stress that ISSF has taken significant steps forward in the projects it has launched, however, while at the same time rising to new challenges and opportunities. This is all with the target of ensuring the global sustainability of tuna stocks and the marine ecosystem, as well as reducing bycatch.

While he says that there is clear alignment of common goals between ISSF participating companies, it seems that more can be done in terms of industry adoption. By stating that “scientists tell us…if all ISSF measures and recommendations are fully implemented, bycatch in tuna fisheries will be reduced by 50 percent or more;” he himself admits that companies need to do more to fully adopt these important measures.

He explains - with little revelation into what has concretely been achieved - that the current ISSF Strategic Plan is set to end this year. “I’m pleased to help lead the organization as it develops its next strategic plan,” he adds, outlining three specific issues he’s most passionate about: FADs, FIPs and Participation.

According to Pirovano, the ISSF has been working for years to improve FAD characteristics, data collection and management. “Recently, ISSF adopted a conservation measure for the use of non-entangling FADs…But I think we still have some work to do on this issue in cooperation with ISSF-supported scientists and biologists. We can further enhance FAD characteristics and work together with RFMOs and other stakeholders to better manage this fishing gear.”

This approach echoes the characteristics of ISSF, which has in recent years increasingly shown a shift towards becoming a lobby group. It recommends sustainability improvements to RFMOs, and generally puts the responsibility on them to make needed conservation changes. This style has been taken rather than urging the large-scale base of major tuna companies that make up its participating members to take their own combined initiative, which could have the ability to drive a major shift in the industry.

Pirovano acknowledges this in part, by noting that as an ISSF Participating Company, Bolton is taking part in its advocacy activities targeted at RFMOs. “In tangible terms, what we needs to give action to the proposals in ISSF’s position statement submitted to the RFMOs before every meeting.” 

In terms of FADs, already mentioned as a priority for the Bolton Exec., ISSF has generally focused on trying to make the devices sustainable, rather than directly looking to reduce their use. However, Pirovano stresses that Bolton’s own view is that FADs should not only take new more environmental designs, but the amount of FADs used should be limited in number, which could suggest a different approach is coming to the ISSF Board. As well as this, the firm advocates for improved supply-vessel management.

Now taking a lead within ISSF, FADs are not the only priority point for Pirovano. He believes that FIPs are becoming a fundamental tool in tuna business and market expectations. “ISSF tools can be used to enhance the number of robust FIPs that will be able to enter in full assessment for being MSC certified,” he says. “I would like to see the connection between FIPs and ISSF tools functioning more seamlessly.” While the ISSF does note that the aim of its conservation measures is to see tuna companies reach the MSC, it doesn’t actively encourage them into MSC assessment.

Another of his key areas of concentration will be in ISSF participation, he says, stressing that “for ISSF to be most effective in its work, tuna processors in all countries should be engaging with the organization. While ISSF participating companies represent approximately 75 percent of the world’s canned tuna processing capacity, some gaps remain,” adding that he wants to bridge these.

Despite admitting that there is much more to be done, Pirovano is firm in his belief that ISSF has played an integral role in bringing together diverse players when it comes to sustainable tuna. For 2016, he points to the fact that the organization carried out an increasing amount of projects, including ones for reduction of by-catch; it increased the number of vessels listed on its ProActive Vessel Register and it involved a higher number of stakeholders in its advocacy work, including retailers. To date, however, there has been no concrete data released on exactly how ISSF conservation measures have reduced bycatch or contributed generally to improved sustainability.

With the focus back on Bolton, the challenge of under-pressure tuna stocks and the issue of bycatch has been felt directly by the firm, one example being the overfished status of yellowfin tuna in both the Atlantic and Indian oceans. Yellowfin is the dominant tuna species in canned tuna products on Italian shelves, where Bolton sales are dominant. Through a diversification policy, however, the company says it has managed to mitigate any pressures linked to this, including the 15 percent purse seiner yellowfin catch reduction implemented in the IO this year.

Thanks to “flexibility in sourcing”, spreading purchases over fishing areas, the firm says “we are rapidly succeeding in changing fishing oceans to cope with any problems of stock criticality that may arise.”
With sustainability, innovation and value-creation at the forefront of Pirovano’s priorities within both Bolton and ISSF, he’s not expecting a smooth road ahead for the next few years. However, he seems ready and eager to tackle any obstacles that are thrown on the path, to improve not only the health of the stocks, but to sustain and grow Bolton’s own livelihood in the canned tuna market.

While his individual passion is undisputable, the question will be whether Bolton, as a major industry leader, will realize its own sustainability targets, especially as the deadline draws closer. However, with the time limit still around seven years off, the pressure will not be mounting on the company just yet.

Despite this, there will be a close watch on whether Bolton will develop into the industry-guiding example that Pirovano wants it to be, and ultimately if the changes he makes while Chairing the ISSF Board will also take the global tuna sector to the next sustainability level. The Bolton Exec. has a lot of responsibility on his shoulders.