CDO-Foodsphere Inc., a new player in the canned tuna sector, has filed a complaint with the Department of Trade and Industry (DTI) against the Century Pacific Group of Companies for alleged unfair trade tactics to suppress competition and retain its monopoly over the estimated P6-billion local canned tuna market.

In its letter to Trade and Industry Secretary Peter Favila dated Oct. 30, 2009, Foodsphere Inc. legal counsel Atty. Raymond Parsifal A. Fortun accused Century Pacific Group of thwarting the Foodsphere’s production supply and distribution.

“The unfair trade practices are adopted by the Century Pacific Group of Companies to keep its monopolistic control over the canned tuna market and to frustrate the essence of fair competition in the commerce,” Fortun said.

Foodsphere is currently into processed meat and canned meats under the CDO, Samba, and Holiday hotdog brands. Last July 30, the company expanded into the canned tuna market with the launch of its corned tuna under the San Marino brand.

San Marino corned tuna is the latest canned tuna product launched in the local market. The product competes with the canned tuna brands of Century Pacific Group, which dominantly controls the canned tuna market in the Philippines.

In the complaint, Foodsphere stated that Century Pacific is blocking the entry into the local market of its new canned tuna product, the San Marino Corned Tuna, not only in the areas of Metro Manila area, but also in the different provinces of Luzon, Visayas, and Mindanao.

The company alleged that the dominant player has employed unfair trade tactics just to keep the new player out of the shelves in the different supermarkets.

Among these tactics are: Making veiled threats to suppliers (tuna fishermen, canning manufacturers) to desist from supplying the needs of competitors; convincing retailers to enter into so-called “voluntary loyalty programs” which are, in essence, agreements to lock-out competitors; and the filing of frivolous complaints with the AdBoard againsts the ads of its competitors.

“DTI has enough powers to protect the consumers against unfair trade practices and ensure stable supply and prices of basic necessities by providing a level playing field for manufacturers, suppliers and distributors,” Fortun said in the letter.

“We seek relief from you, as the office vested by the law to enforce the different trade and industry laws in the country, pursuant to the policy enunciated under Section 19, Article XII of the 1987 Constitution,” the letter further stated.

That provision in the Constitution Fortun said provides that “the State shall regulate or prohibit monopolies when the public interest so requires. No combination in restraint of trade or unfair competition shall be allowed.”