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Premium Brands Holdings foresees ongoing difficulties for the seafood industry

Premium Brands Holdings foresees ongoing difficulties for the seafood industry Premium Brands Holdings Food and Beverage Business

Premium Brands Holdings anticipates challenges in the seafood market due to lobster supply and consumer demand in Canada.

During a discussion with analysts, CFO William Kalutycz mentioned the difficulties faced by the company’s Premium Food Distribution division, which experienced a 2.9% sales decline in the past 12 months.

Kalutycz explained, “The sales contraction in Premium Food Distribution was mainly due to the challenging consumer environment in Canada affecting premium beef and seafood sales. The other factor was the ongoing lobster supply challenges caused by poor fisheries in Maine and South Nova Scotia.”

Looking ahead, Kalutycz expressed optimism, stating, “We see these challenges as temporary. We expect the consumer environment in Canada to improve as inflation and interest rates normalize in 2024. Additionally, the lobster supply issues were due to unfavorable weather conditions, with healthy lobster biomasses remaining.”

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