Thai Union Group

Thai Union Group PLC.

Type	Public Limited Company
Traded as	SET: TU
Industry	Food
Founded	Thailand (March 17, 1977)
Headquarters	72/1 Moo 7, Sethakit 1 Rd, Tambon Tarsrai, Amphoe Mueang Samut Sakhon, Samut Sakhon 74000 [1]^:3, Thailand
Area served	Worldwide
Key people	Thiraphong Chansiri (President and CEO) Kraisorn Chansiri (Chairman) Cheng Niruttinanon (Executive Chairman)
Products	Seafood (Frozen, Canned, Chilled)
Revenue	125 billion baht[2]
Net income	6.1 billion baht[2]
Total assets	115.4 billion baht[1]^:16
Total equity	47.5 billion baht[1]^:17
Number of employees	46,500 (2015)
Website	www.thaiunion.com

Thai Union Group is a Thailand-based producer of seafood-based food products.

Thai Union^[1]:10 was founded in 1977. It was listed on the Stock Exchange of Thailand (SET) on 22 November 1994. In 2015, Thai Union's tuna business accounted for 37 percent of revenues; the shrimp business, 29 percent; sardines/mackerel, six percent; salmon, nine percent; pet food, seven percent; value-added products (prepared foods), 12 percent.^[2] Thai Union's self-avowed goal is to achieve US$8 billion in revenue by 2020.^[1]:12

Brand portfolio

Thai Union's brand portfolio includes familiar international brands, Chicken of the Sea, John West, King Oscar, Petit Navire, Parmentier, Mareblu, and Century, as well as Thai brands Sealect, Fisho, Bellotta, and Marvo.

Thai Union is the world's largest canned tuna processor and a global leading seafood processor. The company's existing plant facilities worldwide can be found in Thailand, France, Ghana, Portugal, Papua New Guinea, Poland, the Seychelles, Vietnam, and the United States. In 2010, when Thai Union purchased MW Brands (now Thai Union Europe) of France from Trilantic Capital Partners, the deal included plants in France, Portugal, the Seychelles, and Ghana. When the company purchased MerAlliance in 2014, it added salmon processing plants in France, Poland, and Scotland.

TU's shrimp production in Thailand was 250,000 tonnes in 2015. That figure is expected to rise to 270,000–300,000 tonnes in 2016.^[2]

History

The Thai Union Group was established on 17 March 1977 as Asian Pacific Thai Tuna Co, Ltd. with initial capital of 25 million baht. It was renamed Thai Union Frozen Products PLC in March 1988 until September 2015, when, as part of a significant rebranding by the company, the company became Thai Union Group PLC (TU).^[3] This was part of an attempt to "integrate all its [Thai Union] subsidiaries under a single new corporate vision, mission and core values, as well as one unified corporate brand."^[3]

In late-2010, Thai Union Frozen Products acquired MW Brands (now Thai Union Europe), from Trilantic Capital Partners. In the same year, the company expanded and diversified into the pet food business with U.S. Pet Nutrition LLC.^[4]

In 2013 Thai Union became the first Thai company to join the UN Global Compact, an initiative aimed at "promoting sustainable and socially responsible policies."^[5] Thai Union is also a founding member of the International Seafood Sustainability Foundation (ISSF).

In September 2014, the group signed a deal for MW Brands to take over 40-year-old French company MerAlliance, the fourth largest smoked salmon producer in Europe. The terms of the deal, which were expected to significantly enlarge the group's chilled seafood business, were not disclosed. MerAlliance's revenue for the year to 31 March 2014 was US$220 million.

Thai Union were included in the Dow Jones Sustainability Indices (DJSI) in 2014^[6] and 2015.^[7] The company was the "only Thai company featured" ^[6] and the first to "join the food category" ^[6] of the index.

Corporate ethics

• In 2012 Thai Union developed its strategy for sustainability and this developed into its sustainability philosophy, "We can. We care. We connect."^[8]

• In its 2014 sustainability report, Thai Union outlines its "Our Communities" policy, which is the company’s principle of "supporting and working with communities where we operate..." ^[9]:51 This is part of a wider policy of corporate social responsibility (CSR) and action taken by Thai Union includes working with "coastal communities on marine resources protection and restoration..."^[9]:51, establishing Thai Union child care centers in partnership with Labor Rights Promotion Network (LPN) in Samut Sakhon^[9]:53, and coordinating with the Migrant Workers Rights Network (MWRN) to promote knowledge of labour and social welfare regulations among its migrant employees.^[10]

• In 2015 Thai Union released new codes of conduct which replaced the company's 2013 code of conduct.^[11] The new codes are "more stringent", allowing for higher levels of "accountability and transparency". Thiraphong Chansiri, Thai Union President and CEO stated that the new codes showcased Thai Union's commitment to "...earn the trust of customers, consumers and the world by operating with integrity and high ethical standards,..."^[12]

Legal issues and criticism

• Thai Union has been accused of using "slave labour" in its supply chain. Thai Union was named, but was not a defendant, in a lawsuit brought against Nestle Corporation for violating California laws.^[13] Thai Union has been under scrutiny since the July 2015 publication of a New York Times article that cited a former slave fisherman stating he was held captive on a vessel supplying a mother ship that ended up selling to TU's Songkla canning operation.^[14]

• Greenpeace has accused Thai Union Group of being "...seriously implicated in horrendous human rights and environmental abuses" and warned shareholders and investors "of the financial risks associated with these destructive and harmful practices."^[15] The company faces a number of other legal challenges.^[16]

• In December 2014 Thai Union announced it would spend US$1.5 billion to acquire Bumble Bee Foods. That deal was put in jeopardy after the US Department of Justice announced it began an anti-trust investigation into the company over-pricing and competitive practices. Thai Union abandoned its purchase plans in early-December 2015 after US officials objected on the grounds that it would reduce competition. "'Consumers are better off without this deal," Bill Baer, assistant attorney general of the US Department of Justice's anti-trust division, said....'Our investigation convinced us—and the parties knew or should have known from the get go— that the market is not functioning competitively today, and further consolidation would only make things worse.'"^[17]

• In October 2015 Greenpeace accused Thai Union subsidiary John West (UK) of making a "plainly false" claim that customers can trace its tuna back to the vessel that caught it. John West's website includes a tool that allows customers to enter the can code to "see exactly where your fish came from".^[18] The tool does not identify sources of Thai tuna and instead invites customers to email John West. Greenpeace has ranked John West last in sustainability surveys because 98 percent of its tuna was caught using "fish aggregation devices" that kill other marine wildlife.^[19]

• Thailand's seafood industry, and by implication, Thai Union, was the subject of a year-long study of the Thai shrimp industry commissioned by Nestlé. The report, conducted by Verité on behalf of Geneva-based Nestlé, was released on 23 November 2015. It found "indicators of forced labour, trafficking, and child labour to be present among sea-based and land-based workers."^[20][21]

Response

• Thai Union explained its commitment to the protection of human rights in its response to the New York Times. A corporate spokesperson stated that the company worked to prevent "...any human trafficking or any human rights violation of any kind"^[22] and highlighted the procedures that are in place, such as routine audits of its canneries and boats in port to ensure against forced and child labor.^[22]

• Thai Union released a statement in response to the accusations made by Greenpeace in 2015. It reiterated its commitment to human rights and the company's vision of "...an industry that respects the oceans and protects marine life, offers safe employment for millions of people around the world, supports the development of coastal communities and continues to provide a safe, affordable and healthy food source for a global population well into the future."^[23] Thai Union also noted that it works closely with the International Seafood Sustainability Foundation (ISSF) to "...benefit the wider tuna fishing industry" and concluded by calling on Greenpeace to join the "...industry debate that is already underway, to work towards achieving our shared objectives."

• In a statement issued on 10 December 2015, Thai Union declared that it will cease working with all shrimp processing subcontractors by the end of 2015. The company said that it would bring all shrimp processing operations in-house to enable full oversight. All processing work will be directly controlled by TU to ensure that all workers, whether migrants or Thai, have safe, legal employment and are treated fairly and with dignity. TU estimates that subcontractors employ about 1,000 migrant workers.^[24] Andy Hall, a British human rights defender and a migrant worker specialist based in Thailand, said that "Thai Union,...must be commended for belatedly moving seafood primary processing in house."^[25]

See also

• List of seafood companies
• Companies portal
• Food portal

References

1. "Thai Union Frozen Products Public Company Limited Annual Report รายงานประจำป 2014/2557" (PDF).
2. Apisitniran, Lamonphet (2016-02-25). "Thai Union cheers record sales, profit". Bangkok Post. Retrieved 26 February 2016.
3. "Thai Union launches global master brand, changes logo".
4. "Thai Union Corporate History".
5. "Thai Union becomes signatory to UN Global Compact".
6. "Thai Union becomes first Thai food member of Dow Jones sustainability index for emerging markets".
7. "Thai Union makes Dow Jones sustainability index for second year running".
8. "Thai Union’s sustainability hub".
9. "TUF Sustainability Report 2014" (PDF).
10. "TU's migrant worker education kicks off". The Nation. 2015-10-10. Retrieved 5 December 2015.
11. "Codes of Conduct (3)". Thai Union. Retrieved 5 December 2015.
12. "Thai Union looks to earn trust with new code of conduct". Undercurrent News. 2015-09-30. Retrieved 5 December 2015.
13. "Thai Union named in slavery lawsuit filed against Nestle". Undercurrent News. 2015-08-28. Retrieved 6 October 2015.
14. Urbina, Ian (2015-07-27). "'Sea Slaves': The Human Misery That Feeds Pets and Livestock". New York Times. Retrieved 6 October 2015.
15. Forbes, Graham (2015-10-04). "Not Just Tuna: The truth behind the world's biggest tuna company". Greenpeace International. Retrieved 6 October 2015.
16. Mokkhasen, Sasiwan (2015-10-05). "Greenpeace Calls Out Thai Union Group Over Fishing Practices". Khaosod English. Retrieved 6 October 2015.
17. Gibson, Kate (2015-12-04). "Big tuna: Chicken of the Sea won't net Bumble Bee". CBS Moneywatch. Retrieved 5 December 2015.
18. "Discover the Story Behind Your Can". John West. 2015-10-14. Retrieved 15 October 2015.
19. "John West tuna: Greenpeace challenges tracing claims". The Guardian. Press Association. 2015-10-14. Retrieved 15 October 2015.
20. "Nestle says forced labour, abuse common among Thai seafood suppliers". Bangkok Post. 2015-12-24. Retrieved 5 December 2015.
21. Recruitment Practices and Migrant Labor Conditions in Nestlé's Thai Shrimp Supply Chain (PDF). Verité. November 2015. Retrieved 5 December 2015.
22. "'Sea Slaves': The Human Misery that Feeds Pets and Livestock".
23. Allmand, Ms Sasinan (2015-10-05). "Thai Union Statement" (PDF). Thai Union. Retrieved 5 December 2015.
24. "TU acts to end worker mistreatment". The Nation. 2015-12-10. Retrieved 10 December 2015.
25. "Activist urges EU to rethink approach". Bangkok Post. 2015-12-14. Retrieved 16 December 2015.

External links

• Official website
• Thai Union partners with migrant workers' rights group
• Thai Union looks to earn trust with new code of conduct
• Thai Union makes Dow Jones sustainability index for second year running