US Canned Tuna Sales Fall Again By Almost 4%

News 14:02 22/06/2012 KT
(atuna.com) Unlike the progress of the European market, recent trends show U.S. volumes of canned tuna keep shrinking. It is not only the common size of the tuna cans that is shrinking from 6oz to 5oz, but it also the amount of consumers buying them.

A continued major worry for the Big Three, who do not seem to have found a way to turn the trend yet. The U.S. sold about 1.5 billion cans of tuna during the 12-month period ending March 2012, a decrease of 3.6% - or about 58 million cans less - from year-end 2010. These figures are based off equivalization factor, where case volume has been equivalized to a case of 48 five-ounce cans. “The decline in volume for both albacore and lightmeat tuna is the direct result of increased retail prices - everyday and promotional price points.  The leading brands took pricing action due to escalating fish costs,” says Dave Melbourne, senior vice president of marketing at U.S. tuna processor Bumble Bee Foods.

Tight supply of tuna raw materials is not only causing higher retail prices, but it’s also led to the closure of one tuna cannery. In May, Bumble Bee announced it could no longer sustain its packing plant in Puerto Rico due to the reduced production.

With the rising costs, U.S. consumer demand for canned tuna also continues to wane. Since 2000, about 11% of American families have stopped eating tuna. Light tuna, which represents about two-thirds of the country’s tuna consumption, could now especially lose its budget-friendly appeal to those households with lower incomes.

Young consumers – 35 years of age and under – are also less inclined to buy tuna due to the high prices, availability of alternative lunch options and an overall less favorable perception.

But, while the retail prices of canned and pouch tuna have increased, the positive news is that they have not increased in the same proportion as many other U.S. consumer staples, says Melbourne.

Since 2003, the average price of lean ground beef per pound has sharply climbed 49.2%. Meanwhile, the price of a 5-ounce can of “solid white” albacore tuna has increased by 16.7% and a can of “chunk light” tuna has risen by 41.7%.

With the problem of obesity in the spotlight and the new U.S. Dietary Guidelines last year urging consumers to eat more seafood, Melbourne says tuna couldn't be better positioned as a "go to" food.

“Canned and pouch tuna is one of the healthiest food options available in the U.S. market. It is convenient, versatile, and affordable.”

The leading U.S brands – Bumble Bee, StarKist, and Chicken of the Sea – are expected to step up their marketing efforts to educate and engage consumers.

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