From Race Riots to Industry Dominance - The $1B Clearwater Deal and What It Could Mean for Equitable Development
Yesterday, a historic $1 billion deal was announced for the purchase of Clearwater by a First Nations coalition that should serve as a model for equitable economic development, particularly for communities that have been systemically discluded and oppressed by colonialist and modern governments.
For the last three months, the Mi'kmaq (First Nations people from New Brunswick and Nova Scotia) have been fighting for their right to fish, a right enshrined in the treaties signed in the early-18th century and recognized as constitutionally protected by the Marshall Decision in 1999.
The white commercial fishermen in Nova Scotia reacted violently, damanging lobster traps, burning down Mi'kmaq fishing boats and buildings, and raiding and destroying catches of lobster. The First Nations people have been petitioning and protesting the police and Canadian government, but both the police and the government have remained unresponsive.
So yesterday, a group of Mi'kmaq First Nations announced a $1 BILLION deal with Premium Brands Holdings Corp. to buy Clearwater Seafoods.
For those of you not familiar with Clearwater, they are the only buyer for the lobster caught by the non-Indigenous fishermen that have been attacking Mi'kmaq fishermen, and the First Nations ownership of Clearwater radically alters the balance of power.
Clearwater is the largest holder of shellfish licenses and quotas in Canada and one of the largest seafood companies in North America. They also held all eight of the licenses for offshore lobster fishing in the Maritimes prior to the sale of two of the licenses to the Membertou, a Mi'kmaq community, in a $25M deal earlier this month.
While that deal was historic in its own right, it pales in comparison to this $1B purchase agreement.
The purchase of Clearwater is historic for the First Nations, for the global seafood industry, and a model and gold standard for all of us working to advance equitable economic development, particularly in Indigenous communities. This deal will single-handedly advance the economic engagement and empowerment of the First Nations community far beyond anything that has been done by any charitable or governmental organization outside of the First Nations community.
And this deal was only possible because of the First Nations Finance Authority, a financial institution that financed both the Clearwater deal and the purchase of the fishing licenses.
We need to envision a new paradigm for economic engagement and influence. The power and the capital needs to be guided by Indigenous communities.
We must invest in Indigenous banks and financial institutions. We must invest in Black and Latino banks and financial institutions. They are catalytic and can change the trajectory of the economy.
And we must shift ownership of ideas and institutions into the hands of Indigenous, Black, and People of Color.
I very much look forward to seeing how this deal evolves and what it means for the management of the fishery, the employment of First Nations people in the seafood industry, and the growth of the entire community.
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4yI am torn always by engaging in the system with the intent for positive change, while acknowledging that as much as you create change in an industry, the industry also changes you. Past efforts have been ineffective at providing economic stability for minority and impoverished populations, so yes, I believe this level of engagement in commercial endeavors could bring new values to the business culture, and new opportunities for investment in companies that meet your values - not just your financial goals. As a potential model for social change, I hope their journey could be well documented and maintain an ongoing discussion because as innovators, they are going to find many stumbling blocks and pitfalls that new companies could learn from and plan for right out of the gate. Smaller entrepreneurial endeavors may not find the financial backing at that scale, and so will need to be industry savvy and quick on their feet to grow and thrive to the benefit of their community. I am particularly in awe at the targeted strike to purchase a company that already was established, licensed, and it seems had achieve a large portion of market domination for the area. I am concerned about the fallout with the fisherman...we will see.
Culture Creator ~ Partnering With STEM and Social Impact Execs ~ Leadership, Culture & Strategy ~ Speaker ~ Radio Host @KEXP ~ Contributor @Forbes ~ Book "Creating Culture" Coming Soon!
4yThank you for sharing these important stories
I help mothers reclaim time for self-care and career growth with research, wellness memberships, and workplace systems.
4yWow, this is fascinating thank you for sharing!
Organizational Designer, Best-Selling Author, Speaker: Agility, High-Performing Teams, Organizational Learning + Design, Human-Centered Everything
4yWow! This is the kind of radical shift we need more of to have real equity and racial justice.
Wow! What a great story.