Young's Seafood confirmed it has lost a contract to supply fresh salmon and smoked salmon to UK retailer Sainsbury's.

Pete Ward, CEO Young’s Seafood, said: "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 a dedicated facility. 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."

The company said it is anticipated the salmon contracts will transfer from Young’s to Sainsbury’s new unnamed supplier from November.

Young's did not detail whether it anticipated job losses as a result. "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. As we move forward, exploring a number of new business opportunities, our focus continues to be on serving our customers and consumers and on our commitment to providing high quality, good value, fish and seafood," Ward said.