Monday, June 30, 2008

South Korean company now canned tuna king South Korean food company Dongwon announced it would acquire the StarKist canned tuna company from Del Monte Foods, The deal is for $363 million. Dongwon is already dominant in canned tuna in Korean, with a 75% market share. It also owns the world's largest tuna fishing fleet. The move will make the company #1 in tuna worldwide, with further expansion plans in Europe and South America. Del Monte acquired StarKist in 2002, from Heinz Foods. The brand, with its famous "Sorry, Charlie" ads, is the #1 canned tuna brand in the US with 37% market share. As tuna costs have risen (due to scarcity), StarKist's margins have been reduced as well. Del Monte's other brands include College Inn broths, Meow Mix cat food, and Milk-Bone pet snacks. Fish, like other food commodities, are becoming more valuable, and we've seen US #2 tuna canner Bumble Bee sold off in recent years as well. It's another step in the concentration of dwindling resources into fewer hands. 8:38:16 PM

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