Does That Can Of Tuna Seem Smaller? Star-Kist Is Downsizing
Downsizing strikes again.
You know how it goes: Suddenly you notice that you aren't getting as much of that favorite product in its package as you used to. Those incredible shrinking candy bars come to mind.
And now we have: Star-Kist tuna.
Last week, the transition began taking place in stores around Seattle. Quietly, the familiar 6 1/2-ounce cans are giving way to 6 1/8-ounce cans. (That's the size that, if you add enough celery and mayonnaise, makes about two sandwiches.)
The 3/8-ounce difference represents ``about two-eighths loss of packing liquid (oil or water) and one-eighth ounce or probably less'' loss of tuna, says Star-Kist spokesman Erik Bloemendaal.
The old and new cans look almost identical.
The switch is especially confusing because competitors such as Bumble Bee and Chicken of the Sea retain the 6 1/2-ounce size - for the moment.
Other brands, however, are expected to downsize and match the new Star-Kist size.
While it may not seem like a lot of difference, the decrease will add up to a substantial saving to the tuna companies.
Jim McCafferty, general counsel for Van Camp Seafood Co. Inc., which owns Chicken of the Sea, said tuna manufacturers are feeling a lot of pressure from grocery store owners, who use canned tuna as a promotional item and expect the manufacturers to lower the prices accordingly.
Also, he said, the packers are expecting cost increases because of an April agreement in which some companies, including Chicken of the Sea and Star-Kist, said they would not use tuna caught in nets with dolphins.
But Star-Kist says none of this is why it decided to go the downsizing route.
Instead, Bloemendaal said, the main reason is that consumers said Star-Kist chunk light tuna - the biggest seller - was ``more liquidy'' than competitors'.
The second reason, he said, is that Star-Kist also produces cat food and uses the same can for both tuna and cat food. The company believed the smaller can would benefit the appearance of the cat food.
McCafferty of Chicken of the Sea speculated that Star-Kist downsized to gain a temporary price advantage. It will take seven or so months before competitors can catch up, sell cans at the same smaller size and thus begin driving prices down to reflect the new cost, he said.
``Prices will be driven to reflect the manufacturer's (new, lower) cost,'' he said. ``That doesn't necessarily mean because there's a few percent reduction in the cost (to the manufacturer), there will be a few percent reduction of the price.
``But Star-Kist would gain for a while; this is something they wouldn't broadcast, and you could get seven months of advantage. That would be worth it to them.''
Star-Kist says it already has lowered its ``list'' price, from $45 to $40 a case to grocers, but said much of that reflected the discounts it already gives major retailers; also, fishing has been good.
McCafferty notes that Star-Kist is the market leader, with about a 40 percent share, with Bumble Bee and Chicken of the Sea each having about 20 percent. (Bumble Bee did not return phone calls.)
In the meantime, McCafferty said, things will be rather confusing, because ``even if we changed over tomorrow, there will be a lot of 6 1/2-ounce merchandise around for at least six months.''