Given the total of imported canned tuna consumed in Chile, a loss in the exchange rate has immediately stimulated the sale of this product.
â€Chile ended year 2003 with a high dollar exchange rate, but the new dealings of canned tuna in the country have been done against a more favorable rate and that immediately caused a drop of the consumer priceâ€, stated Rodrigo Correa, CEO of Industria Mar del Sur, when summarizing the favourable situation the canned tuna distributors are currently experiencing; canned tuna has been slowly gaining turnover in supermarket shelves.
At the moment the 100% of the canned tuna sold in Chile is imported, mainly from Ecuador and Colombia. The imported tuna is already canned and ready for consumption.
Consumption Volume Increases
â€What we have seen lately is that the consumption of tuna is booming and therefore producing a decline in the consumption of products such as sardine, which had high sales. Canned tuna is taking the position of a noble and better quality product. Its price has been reduced to the same level as the price of canned sardines,†said Mr. Correa.
According to Christian Vetter, commercial director of Robinson Crusoe. “Given that the total of canned tuna imports in Chile, it has shown swings in the import and consumption volumes due to the exchange rate variations. The price to the public lowered when the dollar fell from $750 to $570 against the Peso, and during that period, tuna importers adapted the price based on the exchange rate, allowing the supermarkets and retailers to project this price reduction to its customers, thus producing an increase in consumption.â€
Mr. Vetter added, “The fact that a consumer can purchase a product for $600, which use to cost $800, boosts the demand. There has been a recovery in the volume of canned tuna in the market, despite of the country’s economic situation. Food products are very sensible to the price.â€
In spite of Chile’s higher tuna consumption, the level is still low compared to figures in other countries. Rafael Undurraga, ICB sales manager, representative of the Colombian owned the Van Camps brand, said “We need to make the consumer aware of the difference between one type of tuna and another. This is still an undeveloped marked, take for example canned tuna steaks: Chile consumes 2,6 tins per capita annually, while other countries report to consume higher quantities. The figures of Colombia indicate 5 tins and the United States 7 tins are yearly consumed per capita. Chile has the lowest consumption in Latin America, reason why we want to boost the development of the tuna steak categoryâ€.
Disloyal consumer
â€Consumer loyalty is a challenge that all companies must undergo to maintain their customers. “The consumer is not so faithful in this product category. This is not the case for seafood, which has various qualities. However with canned tuna, the product tends to be stable as far as quality standards is concerned, there are no great differences and therefore consumers tend to vary from one brand to the other,†said Christian Vetter from Robinson Crusoe.
Is the price factor very important to the consumer?
In general the canned tuna consumer is very sensible to the price. A company can carry a very attractive brand, but if at a given moment the brand does not offer the price the consumer wishes to pay, he can quickly switch to another alternative.
To know about benefits of tuna seems to be a very important element in gaining the consumers preference. Indeed this is one of the main goals of Van Camps. Ana Maria Tagle, brand manager of ICB, analyses this situation and indicates “tuna feeds itself on the high seas, not like the Chilean farmed salmons that are in captivity and are fed with artificial meals. Also it is necessary to say that tuna has Omega 3, a vital component for the human health that reduces the cholesterol, reason we are appealing for people to consume more tuna, for a balanced and healthy diet.â€
Rafael Undurraga, also from ICB, said “this subject is one of the leading elements in the publicity of their product. Tuna has many more proteins and vitamins than beef, therefore if one consumed more canned tuna it would contribute to a more balanced and healthy diet. Therefore, it is necessary to eat tuna at least once a week, and that is the concept that we follow.â€
Tuna increases in warehouses
All the import companies in Chile agree that in the end the retail channel is determining how canned tuna is positioned in the Chilean homes, since it’s in this trade sector where the most sale of canned tuna takes place.
Rodrigo Correa emphasizes that “based on the current stock level in supermarkets; in two years, the canned tuna market has grown two to three compared to the market of canned sardine. First people look for tuna chunks in the supermarkets, but when the price of this product increases, a greater sale of flaked tuna.â€
â€Tuna is a noble fish and is consumed in all the social levels, in its different qualities and brands, it’s a product that has penetrated strongly in the homes and has passed from being something more exclusive to something more massive.â€
The brands Mar del Sur and Robinson Crusoe are handled through Rabié. Robinson Crusoe only offers to the market canned tuna in his variety small loins/fillets, does not handle tuna flakes. And within this segment it supplies tuna in five formats, among them in water, oil and olive oil. Canned tuna in olive oil enters the premium product category, which offers more added value than the others, and is destined towards the more demanding consumer.
The distribution of Robinson Crusoe focuses at the supermarkets and the warehouses, with a strong presence for the wholesale channel. “We distribute to all of Chile; canned tuna is experienced as a product with a friendly flavor, it’s not expensive, and it’s versatile because it can be used in different preparations. For that reason the retail channel is very important, since various brands can be found under in that market segment and is well received by consumers,†concludes the commercial manager.
