Tuna canner Alliance Select to fish for own raw materials

A tuna canning company bought six fishing boats to ensure direct access to its raw materials.   “With the acquisition of the fishing vessels, ASFII expects to ease its dependence on fish suppliers for its tuna business as it will give the company direct access to raw materials,” Alliance said in a disclosure.   Alliance Select Food International Inc. (ASFII) disclosed to the Philippine Stock Exchange Monday that it bought the vessels from BSJ Fishing & Trading Inc., a Malabon-based deep-sea fishing company.   “The fishing vessels from BSJ Fishing settles in full BSJ Fishing’s obligation to ASFII for fish deposits totaling approximately $ 15 million.   Thus, “it represents another step by (Alliance) in the direction of vertical integration,” the tuna canner added.   The acquisition followed incorporation of Alliance Select with Indonesian fishing company PT Van de Zee – 80-percent owned by Alliance Select’s Indonesian subsidiary PT IAFI – and the acquisition of 80-percent equity in Akaroa Salmon NZ Ltd., a New Zealand-based marine farmer and processor of fresh and smoked salmon.   Alliance Select claimed the Akaroa investment would strengthen the Philippine-based company’s salmon portfolio and direct access to raw materials.   It was also envisioned to target a particular market segment by offering Akaroa's fresh portion cuts to institutional and retail buyers – hotels and restaurants – in Singapore, Hong Kong, US, South Korea, and Japan.    In January 2009, Alliance Selected bought a 39-percent interest in Prime Foods New Zealand Ltd., a New Zealand-based processor of smoked salmon as an approach diversifying its product line.   Alliance Select accounts for a market capitalization of P1.523 billion with an 87.21 percent public float level.   Its primary products are canned tuna for institutional and retail buyers. — Marc Jayson Cayabyab/VS, GMA News