Source: Business Insight Malaya
The Department of Trade and Industry (DTI) will seek to mediate the tuna row between dominant player Century Canning Corp. and competitor Foodsphere Inc.
DTI Undersecretary Zenaida C. Maglaya said no case has been officially filed against one or the other party after Foodsphere complained that Century has been using unfair trade practices in preserving its market dominance.
Foodsphere accused Century of curtailing distribution of its San Marino corned tuna through a voluntary loyalty program where Century is allegedly giving additional incentives to channels in exchange for exclusively carrying its products.
Maglaya said the DTI wants to settle the matter amicably.
Maglaya said the DTI met with the rival companies with no lawyers present after Foodsphere late last year complained to DTI Secretary Peter B. Favila.
“The objective then was to give both parties a chance to comment on what the other party was saying,†she said.
Last Monday, Foodsphere followed up its complaint with another letter, citing the voluntary loyalty scheme as an unfair trade practice.
During the mediation, Maglaya said, DTI does not intend to have any of the two parties’ lawyers present. “If there are lawyers around, anything one says can be used (by the other party) against it,†she said.
She added that DTI wants to avoid the issue from escalating into a legal case. “But if one thinks the other is not fair (in its marketing scheme) despite the mediation, then it could file a case,†Maglaya said.
For now, both are open and willing to sit down and talk but no date has been set for the official mediation meeting, according to Maglaya.
But as an advice, Maglaya said: “We want the market to be open to both of them. They should just co-exist.†She added that the enhanced voluntary loyalty program of Century is a marketing strategy and is not illegal.
Some form of dominance by Century cannot be avoided because it has been in the market of canned tuna longer than Foodsphere which is more into processed meats. It has had long standing relationship with distributors.
“That’s competition,†she said.