Meat Processor Hits Century Tuna Over Retail Incentive Schemeff

Source: Business World

Processed meat producer CDO Foodsphere, Inc. has lodged another complaint against competitor Century Pacific Group of Companies, claiming the latter has been suppressing competition in the local canned tuna market.

In a letter sent to Trade Secretary Peter B. Favila yesterday, CDO Foodsphere said it had discovered “a scheme called ‘voluntary loyalty programs’ employed by the dominant canned tuna manufacturer.”

CDO Foodsphere said the scheme involves offering incentives like rebates to retailers that sell only Century Pacific canned products.

“Based on accounts of people privy to the disagreeable commercial agreement dangled by Century Pacific Group to dealers and retailers, these retail outlets are made to sign contracts, which we are convinced [are] designed to ensure the perpetual monopoly of Century Pacific over the canned tuna sector, CDO Foodsphere’s letter to the Trade department said.

The letter is a follow-up to a complaint submitted to the Trade department in November, in which CDO Foodsphere accused Century Pacific of engaging in “unfair practices” by blocking its market entry in Metro Manila and various provinces.

CDO Foodsphere is the maker of San Marino “corned tuna”.

In July, CDO Foodsphere started selling San Marino corned tuna, competing against market leader Century Pacific’s canned tuna brands such as 555, BlueBay and Century, which have a combined share of 99% of the P6-billion canned tuna industry.

Century Pacific later introduced its own corned tuna product.

Officials of Century Pacific, owned by businessman Ricardo Po, Sr., were unavailable for comment.

CDO Foodsphere legal counsel Raymond A. Fortun asked the Trade department to intervene by calling for a meeting between the parties.