Lucky Star struggles to meet demand as fish shortages cut production - IOL

Oceana Group has announced a mixed trading performance for the 11 months to August 2026, with its Lucky Star business hit by shortages of fish that weighed on sales.

Oceana Group has announced a mixed trading performance for the 11 months to August 2026, with its Lucky Star business hit by shortages of fish that weighed on sales.

Lucky Star is one of South Africa’s best-known canned fish brands and is a major part of Oceana’s food business. The brand sells canned fish and other canned foods to consumers across the country.

The group said shortages of frozen fish raw material affected production, with local canning volumes falling 60% and canned-fish sales volumes dropping 9%.

"Lucky Star Foods delivered mixed results for the period, with a strong first half followed by a subdued second half through to the end of August. Shortages of frozen fish raw material constrained canned pilchard availability and slowed sales momentum," the group said.

"Total sales volumes declined by 5%, driven by a 9% decrease in canned fish volumes, as limited inventory prevented the business from fully meeting demand. Strong canned meat sales partly offset this decline."

The group also said that "raw material shortages reduced local canning production volumes by 60%, placing upward pressure on per-unit production costs due to fixed production costs not being fully absorbed."

Despite the pressure on production, Oceana said Lucky Star’s operating margins benefited from higher net realised sales values, lower freight and inventory holding costs, a better sales mix and increased volumes of locally caught pilchards.

At group level, Oceana said revenue for the 11 months was in line with the previous period, while operating profit increased.

The improvement was supported by better performances from Lucky Star Foods, its fishmeal and fish oil business in the US, and its wild-caught seafood operations.

However, the group continued to face pressure in its African fishmeal and fish oil business, where lower production and sales volumes resulted in a significant operating loss.