It was reported that Asda would move its shrimp business to Lyons Seafoods, while Young’s’ chilled cod and haddock contract would be lost to New England Seafood International (NESI). However, neither Asda nor Young’s agreed to comment directly on the veracity of the report.
Commenting on the loss of the contracts, Young’s said: “While we’re naturally disappointed to not have retained this business, Asda remain an important customer for Young’s where we will continue to work together across several categories to deliver great fish and seafood products for their customers.
“Our existing relationships with multiple retailers and our recent natural whitefish, salmon and coated fish contract wins demonstrate our ongoing expertise and leadership in own-label and our ability to retain and grow business.”
It is currently unclear when the contract move is to take place.
An Asda spokesman confirmed with Food Manufacture that Young’s would continue to be a “significant partner” of the supermarket, but when asked about the contracts with Lyons and NESI, said it would “never comment on the details of our commercial arrangements”.
The news of Young’s losing these contracts came amid plans by the seafood processor to sell the company, with the first round of bids due in last week.
Parent company Lion Company revealed it was putting Young’s up for sale last month, opening the bidding process for 100% of the business. Bankers from corporate finance firms Stamford Partners and Houlihan Lokey have been working with Lion to facilitate the sale.
Meanwhile, earlier this month, Young’s confirmed it would be closing its Pinneys site in Annan, Scotland towards the end of this year. A spokesman said that it had not been able to agree any viable alternatives to the closure of the site.