When the tide turns: Iconic SA brand battles fish shortages

Cape Town – South Africa’s iconic Lucky Star canned-fish brand is facing supply pressures after shortages of frozen fish raw materials constrained production and left the business unable to fully meet demand.

According to BusinessTech, Lucky Star owner Oceana Group said the brand delivered mixed results in the 11 months to the end of August, with a stronger first half followed by weaker performance in the second half.

“Shortages of frozen fish raw material constrained canned pilchard availability and slowed sales momentum,” Oceana said.

The shortage resulted in Lucky Star’s total sales volumes falling 5%, while canned-fish volumes declined by 9%. Local canning production volumes dropped by about 60%, increasing the cost of producing each unit as fixed manufacturing costs were spread over lower production volumes.

Business Day reported that limited inventory meant Lucky Star could not fully meet demand for canned pilchards, although stronger canned-meat sales helped cushion the decline.

Jobs

Oceana said inventory levels ended the period “significantly lower” than the previous year because of the constrained fish-supply environment.

The latest difficulties follow months of supply problems. In June, The Namibian reported that Oceana had temporarily consolidated its West Coast canning operations because of fish shortages. The company said the move was necessary after the full local South African pilchard quota had been caught and it struggled to secure sufficient imported frozen fish.

“This decision was made to protect jobs and ensure our employees can continue to earn an income,” Oceana said at the time.

Despite the pressure on Lucky Star, Oceana’s overall business remained relatively resilient during the latest reporting period. The group said revenue was broadly in line with the previous year, while operating profit increased, supported by improvements in Lucky Star, wild-caught seafood and its US fishmeal and fish-oil operations.

Full financial results 

However, its African fishmeal and fish-oil business remained under significant pressure, with production volumes falling 73% because of lower industrial fish landings and reduced pilchard trimmings resulting from lower cannery production, according to Moneyweb.

The supply problems are also unfolding against concerns over South Africa’s sardine stocks and the pilchard herpesvirus detected in local sardines.

TimesLIVE reported that Brimstone Investment Corporation CEO Mustaq Brey said Lucky Star was relatively insulated from the local virus issue because about 85% of the fish used in its cans is imported.

Oceana is expected to release its full financial results for the year ended August on 26 November 2026.

The company, which describes Lucky Star as an iconic brand producing canned food consumed by millions of people daily, continues to face the challenge of securing sufficient fish supplies to maintain production and meet consumer demand.

Picture: X / @LuckyStarSA

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Compiled by Glaan Sibuyi

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