But the fresh prepared foods giant will continue to supply its core salads to the client, which it has not named.
A Bakkavör spokesman told FoodManufacture.co.uk: “As part of the standard tender processes we participate in on a periodic basis, the arrangement to supply a variety salads range currently being produced in one of our factories at Bakkavör Spalding has been awarded to another supplier by one of our customers.”
Thorough assessment underway
The spokesman added: “It is normal practice for retailers to tender products in order to maintain a competitive source of supply.
He added that, while Bakkavör had lost the tender to supply ‘variety salads’, it had retained the business relating to its core salads range.
Discussing the effects of the contract loss, he said:“The loss of this business means we are likely to have to make some changes to a section of the factory affected. This could include transferring people to work in the other factories on site.
“Until we have made a thorough assessment we cannot confirm any details," he added.
Controversial pay plans
Bakkavör’s Spalding complex employs just under 1,200 people and produces dips, sandwich wraps, soups and sauces, as well as convenience salads.
The company attempted to restructure pay scales at the site earlier this year, but abandoned the controversial plans in May after a 90-day consultation with workers and their unions.
In January Bakkavör’s plant in Bourne, Lincolnshire, which makes prepared vegetables, salads and fruits, made 179 workers redundant . It blamed the job losses on difficult trading conditions, reduced volumes and higher raw material costs.