Millennials are killing canned tuna, but the industry is fighting back

Bumble Bee Chunk Light Tuna in Oil

Geri Lavrov | Getty Images
Bumble Bee Chunk Light Tuna in Oil

Another one bites the dust. This time, millennials are killing canned tuna, according to a Wall Street Journal report.

Consumption of canned tuna has dropped 42 percent per capita from the last 30 years through 2016, according to U.S. Department of Agriculture data. And the industry places the blame on younger consumers, who want fresher or more convenient options.

“A lot of millennials don’t even own can openers,” Andy Mecs, the vice president of marketing and innovation for Starkist, said to the Journal.

The struggle of the three largest canned tuna companies, StarKist, Bumble Bee Foods and Chicken of the Sea International, mirrors that of others in the packaged food industry, like Campbell Soup and Kraft Heinz. Younger consumers are turning away from processed foods, and new competitors are catering to changing tastes faster than the industry’s giants.

To Ken Harris, managing partner at Cadent Consulting Group, the bigger picture is about convenience.

“In the last 15 years, can openers became passe,” Harris told CNBC.

Harris, who has worked with canned tuna businesses, believes that the traditional companies have fallen behind because it’s a low-margin business and investing in packaging falls low on the list of priorities. The main priority for canned tuna companies now, according to Harris, should be packaging that makes it easy to remove and drain the tuna.

StarKist started re-thinking its product line-up in earnest about three to five years ago when the decline of tuna accelerated, Mecs said in an interview with CNBC. He remembered reading a newspaper article a few years ago about millennials recoiling from cereal because the bowl had to be cleaned. For him, the story reiterated how much consumers care about convenience.

Upstarts like Wild Planet Foods and Safe Catch market their tuna as safer and higher quality and are slowly eating into the big three’s market share, the Journal said. According to Nielsen data as of October, smaller brands (not including private labels) control 6.3 percent of the market, up from 3.7 percent in 2014, the Journal said.

To stage a comeback, the traditional tuna makers are taking a page from those brands. Bumble Bee and StarKist both have premium brands that they market as sustainable.

They’re also focusing on the products that are working. Tuna pouches don’t require a can opener, and StarKist told CNBC that sales of its pouches are increasing by 20 percent annually. For the first time, the Pittsburgh-based company sold more pouches than their most popular can size in 2018.

Kroger’s Home Chef, a meal-kit company, has partnered with the tuna brand to put its yellowfin tuna pouches in kits next year.

Bumble Bee and StarKist have also turned to flavors favored by millennials, like sriracha.

Chicken of the Sea is pitching it to younger consumers as a snack. The San Diego-based company started selling resealable cups of its flavored tuna this summer.

Bumble Bee and Chicken of the Sea weren’t immediately available for comment when CNBC reached out.

[“source=cnbc”]

Samsung Cuts Profit by $2.3 Billion After Killing Galaxy Note 7

Samsung Cuts Profit by $2.3 Billion After Killing Galaxy Note 7

Samsung Cuts Profit by $2.3 Billion After Killing Galaxy Note 7
Samsung Electronics Co. cut its third-quarter operating profit outlook by $2.3 billion (roughly Rs. 15,375 crores) after ending production of its fire-prone Galaxy Note 7 smartphones, the first sign of how much the crisis will cost South Korea’s largest company.

Profit will be KRW 5.2 trillion ($4.63 billion or roughly Rs. 30,953 crores) instead of KRW 7.8 trillion in the three months ended September, the company said in a regulatory statement Wednesday. That effectively erases all the mobile business profit that analysts had been projecting. Revenue will be KRW 47 trillion instead of KRW 49 trillion (roughly Rs. 2,91,384 crores). Samsung cut its guidance for the third quarter less than a week after it was first issued, as costs from the global recall escalated and it decided to kill off the Galaxy Note 7. The company has been scrambling for answers in the wake of reports that smartphones were exploding, including supposedly safe models.

(Also see: Samsung Galaxy Note 7 Recall: The Name That Wasn’t Meant to Be)

“This is a huge cutback,” said Greg Roh, an analyst at HMC Investment Securities Co. “It means Samsung has reflected not only the sales loss from the shutdown but it also means it would bear the costs of the inventories of Galaxy Note 7s in the channel as well as the components they bought a few months back because they can no longer sell the Galaxy Note 7 at all.”

Wednesday’s announcement is the first time the company has put a price on the debacle; analysts had estimated it would cost at least $1 billion. Samsung’s shares have tanked this week as new fire reports emerged. The stock has slumped 10 percent in the past three trading days, wiping $21 billion (roughly Rs. 1,40,385 crores) from its market value.
(Also see: Galaxy Note 7 Fiasco Could Burn a $17 Billion Hole in Samsung Accounts)

Samsung’s mobile division was projected to report operating income of KRW 2.7 trillion (roughly Rs. 16,056 crores) in the quarter, according to estimates compiled by Bloomberg. Roh said the revised outlook probably erased that number. “We expected the mobile division to see about KRW 2.6 trillion previously but it will only see a mere KRW 0.3 trillion in the third quarter,” he said.

© 2016 Bloomberg L.P.

Samsung Galaxy Note7 Samsung Galaxy Note7
KEY SPECS
NEWS
Display
5.70-inch
Processor
1.6GHz
Front Camera
5-megapixel
Resolution
1440×2560 pixels
RAM
4GB
OS
Android 6.0.1
Storage
64GB
Rear Camera
12-megapixel
Battery capacity
3500mAh
See full Samsung Galaxy Note7 specifications
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Tags: Samsung, Galaxy Note 7, Galaxy Note 7 Recall, Samsung Recall, Smartphone, Mobiles, Home Entertainment, Wearables, Tablets, Android, Internet

[“Source-Gadgets”]

Facebook Is Killing Paper App on July 29, Removes It From App Store

Facebook Is Killing Paper App on July 29, Removes It From App Store

HIGHLIGHTS

  • The news reading app was released in January 2014
  • Facebook will shut it down on July 29
  • The newspaper-like design of the app was lauded by many

Two years ago, Facebook unveiled a Flipboard-style news reading app called Paper for its iOS users. Even though the app was well received by critics, it failed to garner a sufficient audience that could motivate Facebook to make it thrive. The social giant has now announced that it will not support the Paper app from July 29.

Users who have Paper installed on their iPhone reportedlygot a notification announcing the death of the app. The Paper app was just like any other News apps, collating news and disseminating it across categories like politics, technology, and food. The design of the app was one of the key highlights, giving it a newspaper-like feel. It opened and closed an article like a newspaper would, and the overall design of the UI was lauded by many.

The app courted copyright controversy soon after launch in February 2014. Another app by the same name made by New York-based FiftyThree raised objections, and accused Facebook of stealing the name. The Paper app by FiftyThree is a drawing and colouring app for iPhone and iPad users, and has been downloaded more than a million times from the App Store. At that time, Facebook did not pay any heed to the threat, and continued with the launch of the app.

Two years later, it’s clear the app did not fly as Facebook intended it to. According to research firm app Annie, Paper has not managed to enter the 1,500 most downloaded apps since December 2015. The app last received an update in March 2015, and was of course never even released on Android.

As of Friday, the app has removed from the App Store, and can no longer be downloaded by new users. For all existing users, the Paper app will stop functioning from July 29.

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Tags: Apps, Facebook, Facebook Paper app, Paper app, Social
[“Source-Gadgets”]

PayPal is killing its home windows phone, BlackBerry and Amazon apps

On June thirtieth, PayPal is forcing all its Android and iOS users to update their apps to version 6 in the event that they have not yet. note how windows smartphone, BlackBerry and Android fireplacecustomers are not included in that list? it really is due to the fact the employer is killing its apps for thosesystems at the equal day. PayPal didn’t give an explanation for why it decided on shutting down its non-Android and non-iOS programs. In her announcement post, PayPal vice president Joanna Lambert bestreferred to that everyone can nevertheless get right of entry to the mobile website and that it isnonetheless possible to send P2P bills via BBM or to send cash from their inbox on Outlook.

The assertion submit additionally said:

“It become a tough decision to not assist the PayPal app on these cellular structures, however webelieve it’s the right issue to make sure we are investing our sources in creating the very pleasantreports for our customers. We continue to be committed to partnering with cellular device providers, and we apologize for any inconvenience this will purpose our clients.”
regardless of the carrier‘s motive is, you can say goodbye to those apps — we doubt the agency willchange its thoughts before the end of June.