Premium Brands, co-owner of Canadian seafood supplier Clearwater Seafoods, said its seafood business has been hit by consumers shifting away from premium products to lower-cost items because of inflation-fueled food costs.

Issues are compounded by softer consumer demand at retail and higher inventory levels across the frozen seafood industry that continued into the second quarter.

This had led to some pressure on premium seafood, leading consumers to shift buying patterns from more mainstream retailers to more discount orientated stores, Premium Brands CEO George Paleologou told analysts during the company's second quarter earnings call this week.