Sainsbury's salmon. (Photo Credit: Sainsbury's)

Hundreds of jobs in Young's Seafood face risks due to contract loss with Sainsbury's

Grimsby-headquartered Young's Seafood managers confirmed the firm has lost GBP 100 million fresh and smoked salmon processing contracts with Sainsbury's.

This situation could result in the loss of between 400 and 600 jobs and a processing facilities located in Grimsby and Fraserburgh.

"Sainsbury's wished to protect its Scottish salmon sourcing credentials and believed an alternative proposal could better achieve this objective. This alternative proposal also offered Sainsbury's a dedicated facility,” pointed out Pete Ward, CEO of Young's Seafood Limited, The Grimsby Telegraph reported.

Meanwhile, a spokesperson from the firm admitted the company would now have to start looking at a number of options before entering into any consultation process.

Sector sources consulted by FIS.com informed that the giant seafood processor seemed to be competing with world-leading salmon farming business Marine Harvest to retain the supermarket's own-label work, after the Norwegian-owned global player moved into processing, buying factories in Scotland and Poland.

After explaining the salmon contracts will transfer from Young's to Sainsbury's new supplier from November 2015, the firm’s CEO pointed out: "Sainsbury's remains an important customer for Young's and we will continue to work together in other categories to deliver great fish and seafood products to Sainsbury's customers.”

"We will be engaging with our employees and other stakeholders to discuss the implications for our business and how we can best position our company to achieve long term, sustainable growth in the current competitive market place,” Ward added.

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Address:	Ross House, Wickham Road
City:	Grimsby
State/ZIP:	England (DN31 3SW)
Country:	United Kingdom
Phone:	+44 1472 585 858
E-Mail:	[email protected]
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