out that the primary transportation agency is the processor's first con- 

 tact with the distribution system where his product is physically handled 

 by a distribution agency. Even before this contact is made, however, 

 there is usually an earlier personal contact between the processor and a 

 selling agent in the distribution system ivho may be either a broker or a 

 representative of a chain store organization, or grocer, or some other 

 large lot handler. Usually it is the broker with whom a contact is first 

 madec 



The broker is an expert in the marketing of canned tuna and tunalike 

 products, who knows a great deal about the desires of consumers for those 

 products, the quality of the products of various packers, transportation 

 problems, etc. Brokers. maintain contacts with large lot buyers and through 

 them processors can easily find buyers for their products. Brokers do the 

 work of making contacts to see who wants canned tuna and tunalike products 

 and then consolidate the various needs indicated to them into the form of 

 orders given to their principals, the processors. They are compensated 

 individually for such selling efforts with a remuneration of a certain 

 percentage of the value of the sales they make being paid to them by their 

 principal. 



In 1951 approximately 90 percent of all domestic canned tuna and 

 tunalike products was packed in California. Of that 90 percent slightly 

 over 70 percent was packed by three large fish canning companies. The 

 methods used in marketing canned tuna by these companies and others 

 should give a good representation of the general procedures followed. 

 The information contained in the following paragraphs is assembled to 

 reveal marketing methods of the tuna packers, presently in use, so that 

 a more dynamic knowledge of the tuna processor's problems with respect 

 to dealing with marketing agencies can be acquired. 



The greatest percentage of the canned t\ina pack is sold through 

 food brokers. Most of the balance is sold direct to bi:iyers through 

 packers' regional and home offices or through sales agents. Food 

 brokers do not take title to the commodities they handle, but usually 

 act as an intermediary between processor and buyer. Firms that es- 

 tablish regional sales offices do not as a rule dispense with brokers 

 in the territory covered by the regional office. The regional office 

 is concerned more with supervising the actual physical distribution and 

 sales promotion of the firm's pack. 



There are several types of wholesale distributors and/or organi- 

 zations performing like services that handle the wholesale marketing 



387 



