Indigenous Coalition Buys Ownership in Canada's Largest Seafood Company.

After months of conflict and intimidation by non-Indigenous commercial fishermen, Indigenous fishing communities in Canada celebrated a huge win in November when theMi'kmaqFirst Nations coalition bought a 50% ownership stake inClearwaterSeafoods, the largest seafood company inAtlanticCanada. This case reviews the groundbreaking acquisition and asks students to discuss the potential for Indigenous coalitions to form similar partnerships in other industries and countries.

Case

Learning Outcomes

Students should apply to learn in strategic management and in diversity, equality, and inclusion to discuss how theClearwaterSeafoodsacquisition might influence the relationship between industry and Indigenous communities going forward.

For 13,000 years, Indigenous peoples in Canada have successfully andsustainablyfished theAtlantic, but for generations, they have been notably absent from commercial profit in the seafood industry. Tensions between Indigenous and non-Indigenous fishermen have always been high,recently peaking in NovaScotia. Indigenous fishermen have the right to fish, even in the off-season, for all manner of seafood to establish a"moderate livelihood."This right was established by the Supreme Court in 1999 in what is known as the Marshall decision, but the term was never clearly defined, leaving a wide berth of interpretation for both sides and paving the way forhigh racial tensionsthat still exist today.

In November, theMi'kmaqFirst Nations coalition(made up of participating communities from theMembertouandMiawpukekFirst Nations) partnered with Premium Brands Holdings Corporation to acquireClearwaterSeafoods, Canada's largest wild seafood company. As50% commercial owners ofClearwater,Mi'kmaqcommunities entered into the single largest investment in the seafood industry by any Indigenous group in Canada. Many other First Nation communities in the area, including thePaqtnkek,PictouLanding,Potlotek,Sipekne'katik, andWe'koqma'q, have expressed interest in joining theMembertouandMiawpukekin acquiring a stake inClearwater.

Why Is It News?

TheClearwatertransaction isvalued at CAD 1 billion (USD750 million), which includesClearwater'sdebts. TheMi'kmaqFirst Nations coalition will put up CAD 250 million for its share and will have full ownership ofClearwater'seight offshore fishing licenses (allowing for the harvest of lobster, scallop, crab, and clam in a tract of the ocean calledLFA41). TheMi'kmaqalready owned two of these licenses from a September purchase that cost CAD 25 million.

The new partnership is expected to reachannual sales of overUSD1.3 billion. Chief Terry Paul ofMembertouFirst Nations says that, although the management structure will stay the same, they hope theMi'kmaqwill be integrated into the company as everything from a"deckhand to potentially being theCEO."Economists and scholars agree that Indigenous-led businesses lead topositive effects throughout society, as Indigenous people are more likely to reinvest their profits into the land and the people on it.

The acquisition is heralded as a positive business move for all concerned.Clearwateralready has an infrastructure of global distribution and access to highly valued wild seafood products. Premium Brands brings expertise in product creation, plus positive customer relationships in Canada and the United States, and the First Nation coalition brings generations of knowledge about sustainable fishing and long-term goals to improve the wild catch seafood industry. Not only is the acquisition a positive step forward for equality and corporate social responsibility, but it quite simply may have been the smartest business moveClearwatercould have made. In the attached file you will find the Class video: https://www.dropbox.com/s/ou9simu7ne2mko8/Class%20week%208.mp4?dl=0

Please answer only one of these questions for your personal Analysis - Min 200 words:

1. Why is this move so significant for both Indigenous groups and large companies?

2. Is there potential for similar Indigenous coalitions to make strides in other countries or industries?