The Great Tuna Scandal
Tuna is a nutritional goldmine. It has protein, B-Complex vitamins, vitamin A, vitamin D, iron, selenium, phosphorus, and of course the famous omega 3 essential fatty acids. Its worth in actual gold, however, is a trickier matter.
A little fishy
In recent years, the financial aspect of this watery industry has come under fire. For what, you ask? For allegations of price fixing. The allegations first came to light in 2015, when the US Department of Justice launched an investigation into the global tuna canning industry. According to their findings, executives from the three companies met regularly to discuss prices and coordinate their pricing strategies. Turns out, several major tuna producers—including StarKist, Bumble Bee Foods, and Chicken of the Sea—colluded to fix prices and limit competition in the canned tuna market.
Tuna canning at Maryland Tuna in Cambridge, Md. circa 1955. (Source: Flikr)
Hooked and reeled in
And there you have it. StarKist pleaded guilty to price fixing in 2018 and was fined $100 million. Similarly, in 2017 Bumble Bee Foods pleaded guilty to conspiring to fix prices and was fined $25 million. Chicken of the Sea cooperated with the DOJ's investigation and was not fined, but several individual executives from the company were charged with price fixing. There was also a class-action lawsuit from aggrieved tuna-loving consumers.
Tuna fishing. (Source: Wikimedia Commons)
Can you put a price on it?
The price fixing scandal has had significant repercussions for the canned tuna industry, which has since struggled to regain consumer trust. The global canned tuna market is expected to decline at a compound annual growth rate of 4.67% in the next five years. Customer concerns about sustainability (think overfishing) and the impact of the COVID-19 pandemic don’t help, either.
The traditional tunafish sandwhich from Gotham Bagels, on fresh-baked pumpernickel.
On to calmer seas
This tuna scandal added extra problems to an industry caught in a changing market. While the companies involved have been held accountable for their actions, the scandal has also highlighted the need for greater transparency and competition in the industry. In response to these challenges, some tuna producers have been working to improve their sustainability practices and to diversify their product offerings. For example, you may have seen the new line of pouches that feature flavored tuna and other seafood from StarKist, or the snack kits that feature tuna from Bumble Bee Foods. We at Gotham Bagels are hopeful. We just don’t think tuna salad is going out of style anytime soon.