US food company Monterey Pasta has said that the retail division of its second-largest customer, Wal-Mart, has stopped selling Monterey’s pasta and sauce under its private label.

“Obviously, we are disappointed to lose the private label business from a customer of this size – however, moving customers to our branded products is more in keeping with our overall strategy of building the Monterey Pasta brand,” said Monterey Pasta’s CEO and president, Jim Williams.  

Monterey Pasta said it is in discussions with Wal-Mart to introduce the company’s new reduced-carbohydrate CarbSmart product line in the near future.  

Scott Wheeler, Monterey Pasta’s chief financial officer, said the lost business was worth $3m in sales, reported Reuters.