Calvo commits to diversification

After ten years of operations in Central America, the Spanish company Calvo has been successful in positioning its tuna brand as the second most important one in the region, and now aims to diversify its product offerings.

In Costa Rica, in particular, Calvo estimates it has 14.6 per cent of Top of Mind Positioning, according to what El Financiero reported.

But positioning the brand in the Costa Rican market has not been an easy task: it entailed significant losses in the first three years the firm has been operating in this country.

This is added to the strong competition of Alimentos Prosalud, the company that dominates the Costa Rican market with a 70 per cent participation stake with its brands Sardimar and Tesoro del Mar.

However, with its regional plant located in El Salvador operating at one third of its installed capacity of 35,000 tonnes per year, Calvo plans to further strengthen in this area.

The company is first brand in Spain and Brazil, and second in Italy and Central America, and according to its CEO Manuel Calvo, in Costa Rica the firm does not intend to gain further market through the strategy of lowering prices.

"When one sells per price, the trend to lower the quality is usually high," he told the newspaper El Financiero in an interview during a visit to the country.

To Calvo, the most important factors are profitability, brand image, the quality of the products and the commercial image.

"The brands that grow in the food world are those that are committed to quality as the main driver," ensured the executive.

With regards to the tuna consumption in Central America, the Spanish entrepreneur stressed that it is a product that is widely accepted and said he does not see "a limit to consumption in the country or in the region."

Calvo explained that the global strategy of the group is to become a global food company covering other sectors apart from fish. In this regard, he indicated that in Spain they sell prepared dishes with meat and vegetables; and in Brazil, frozen pizza and canned vegetables. "This division represents 15 per cent of our business," he explained.