How Traditional Spanish Companies Break Into Foreign Markets

While Spain’s domestic canned tuna market is known for being largely traditional, some Spanish companies indicate developing innovative products has been a must to attract more buyers. Companies Zallo and Albo tell Atuna about the measures they have had to take in order to expand their target market.

The 91 year-old brand, Conservas Zallo, is based in Bermeo – a town that is part of the Basque Country in northern Spain. Zallo describes the canning industry in Bermeo as a “very traditional sector” but the firm has “followed a process of change and an adjustment to new markets”. The company explains this is not solely in terms of the production process but also in the image and development of new product lines.

Zallo tells Atuna its turnaround in the design of its products was in 2011 when it began to be creative in a “more direct and recurring way”. Last year, Zallo launched a new range of tuna products which took the company’s customary bonito del norte (Atlantic albacore) and created a tuna flakes product with innovative flavors. It still uses jars for this line which are typically used by ‘traditional’ brands. However, the biggest sign of change is the cartoon-style packaging used for its Tunakitos range of products, as it is distinctively different to Zallo’s older product range. In regards to the new products, the firm says they are made using the “best raw material and excellent workforce” after it identified a “clear need in a particular market”.

Another Spanish tuna brand with an even longer history and also a very traditional Galician tuna brand is Conservas Albo. It claims canned tuna in the domestic market has “changed little” over the years in terms of the product itself. Albo is one of the oldest in the Spanish canning industry as it has been in the sector since 1869. It also focuses on its bonito del norte product, targeting consumers in search for high-quality tuna products. While Albo acknowledges that the “traditional” brands are dynamic and thus able to adapt to the new demands of customers, it believes much more needs to be done in the development of new, creative products.

The brands that dominate Spain’s tuna shelves are Calvo and Isabel, both of which have been available to buyers for more than half a century. A source tells Atuna that many Spanish consumers are willing to overlook the price or sustainability claims as they “look for the brand they know and trust”. Thus, reputable brands in Spain have gained the trust of consumers in the domestic market. However, the source says although innovative products from these companies could attract international buyers, it may be “risky” for the domestic market due to the “traditional mindset” of Spanish consumers.

These brands look to expand their portfolios by introducing newer, value-added products and Calvo describes innovation as its “main source of competitive advantage”. The brand offers “Calvo Light” in olive and sunflower oil that has 50 percent less fat than Calvo’s original canned tuna. It also has a variety of tuna salads in its product line including Mediterranean Salad and Russian Salad. Although it should be noted, the popular Calvo brand offers yellowfin and skipjack tuna products which are produced on a greater scale and not as costly as the bonito del norte references from Zallo and Albo.

In regards to the packaging process of canned tuna, Albo says it maintains the balance between the “traditional processes of canning” and the “technological advances” developed in the sector. For “quality reasons” the company tells Atuna some of these packaging processes remain the same and are not automated, including hand-packing mussels and sardines. However, Albo indicates its canned tuna is processed using machinery.

Spain is the biggest supplier of canned tuna to other European Union member states, supplying around 20 percent of the overall tonnage of EU imports. In 2017, the country saw a 22 percent rise in exports of canned tuna to other EU markets as Spain shipped over 117,000 tons to nations in the bloc.

On the other hand, Zallo emphasizes that all the processes remain “artisanal” (hand-packed) in its plants, including for tuna. The company adds it moved to a new facility in Bermeo which it describes as a “more modern factory with the possibility to increase the production level”. As a consequence, it has been able to successfully combine the “best of traditions” and product innovation.

Zallo’s aim is based around maintaining the quality of its product while also remaining “committed to innovation”. The company says it has had to channel its efforts competently in order to achieve the greatest efficiency in an increasingly competitive market. The change in the appearance of some of its products comes as a result of wanting to enhance internationalization and establish a presence in the global market. Zallo is currently focused on expanding in the European market while trying to introduce its products to the US, Latin America and also the Arab world.

The traditional aspect of these Spanish tuna firms is linked to the fact that all are family businesses. Founded in 1926 by Atanasio Zallo, Conservas Zallo has passed through four generations and it remains family-owned. Thus the company claims it has been able to preserve its initial values which led the company to gain a “large quantity of loyal customers”. These customers “trust in us, our production process and above all in the quality of our raw material”, the firm states. While ensuring its values are intact, the company says it has had to adapt to appeal to new, increasingly “curious” customers, both on a national and international level.

Albo, on the other hand, started as a family business but this was no longer the case after 2016. The previous owners of Albo were the fifth generation of the family and the firm claims it had over 50 shareholders. While the family agreed to sell the company, some family members are still involved in the business. Albo says the tuna firm is currently going through a “process of change and professionalization”.

Despite undergoing change, Albo still aims to produce canned tuna “with the highest possible quality at the lowest admissible cost”. It is working on the development of new products but also acknowledges that this can be difficult with, what it believes, “medium-term results”. The tuna firm states the canned fish sector has changed very little through the years and therefore, any innovations are introduced “in a progressive way” but not long-term.

It is clear many Spanish firms have taken steps to create increasingly creative products and pander to an inquisitive market. Yet, the brands indicate their traditional core values and image will remain steady in the long haul. Although, with Calvo being partly owned by the Italian tuna giant Bolton Alimentari and thus having links with the global raw material tuna supplier Tri Marine, Spain’s leading brand is becoming increasingly international. Therefore, it is arguable as to how long the Spanish industry can hold on to its traditionalism, while trying to break into competitive, foreign markets.