Pure Norwegian Seafood uncovers illicit sale of frozen salmon

– This is a very serious matter. Quality and credibility are crucial for our entire industry. The investigation is not a verdict and does not give final answers, but it documents activities that are both surprising and disappointing. Considerable work has been done to address these issues, and we are continuing those efforts, says Helge Kvalvik, Chair of the board at PNS.

The board of PNS first suspected irregularities at the end of October 2023. Through board resolutions and instructions, the sale of frozen salmon was halted, affected products were recalled and the frozen salmon storage was sealed. Two individuals in the company were suspended. EY was engaged at the beginning of November to conduct an investigation, where preliminary conclusions and findings are now available.

– The most serious issue, in our opinion, is that the investigation uncovers systematic and concealed sales of salmon that should not have gone to human consumption. Specific customers have, upon request, been able to purchase frozen salmon that is self-dead, damaged, sexually mature, or so-called floor fish, says Kvalvik

– In addition, production fish has been exported. This category of salmon is suited for human consumption, but must be processed and corrected in Norway before export, according to Norwegian regulations. It is serious that production fish has been exported without first being corrected in Norway, says Kvalvik.

The Norwegian Food Safety Authority was first notified early in November. PNS has had a dialogue with the authority throughout the investigation. The suspicion has not been made public earlier out of consideration for the investigation. Norwegian authorities have been informed about the findings and conclusions. According to the board’s assessment, the following preliminary findings are defined as serious:  

• The investigation shows that PNS has sold frozen salmon that, according to Norwegian regulations, is not suitable for human consumption. According to the findings, this includes self-dead fish, floor fish, and sexually mature fish. The sale of these categories of fish is illegal.
• According to the investigation, the sale has occurred to a limited number of customers, especially in Eastern Europe. The findings suggest that the customers were aware of what they were buying and specifically demanded frozen salmon in these categories.
• The investigation points to around 20 possible customers in European countries, including Norway. The investigation has not been able to determine where the final products have ended up.
• According to the findings of the investigation, these kinds of sales have been ongoing for several years. The investigation estimates that salmon, which, according to Norwegian regulations, is not suitable for human consumption, constituted just under one percent of the total volume of fish in PNS between 2020 and 2023, amounting to around 500 tonnes.
• The investigation shows that PNS has also exported production fish without it first being processed domestically according to regulations. This kind of salmon is not unsuited for human consumption but has external damages that must be corrected in Norway before export. The investigation indicates that a total of between 300 and 400 tonnes of production fish has been exported in the last four years.
• Independent experts, commissioned by PNS, have thawed frozen salmon of the types sold from the warehouse and examined them. None of the samples tested positive for Salmonella. The percentage of samples with Listeria monocytogenes was somewhat higher than what is expected to be found naturally. Listeria bacteria were not detected in muscle samples but only on the outside of the fish.

– After the investigation and other examinations, we have no indications that anyone's health has been affected by the sales of these categories of frozen salmon. That is important, even if it does not make the matter less serious, says Kvalvik.

– These activities have been kept concealed. Neither the board of PNS, Måsøval as a supplier, nor the auditors have discovered it until now. There have been inspections and controls from the Norwegian authorities in recent years, but the activities have not been possible to uncover. We must learn as much as possible from this matter, says Kvalvik.

Måsøval acquired 65 percent of PNS in 2021. Chairman Kvalvik is also the CEO of Måsøval, which additionally has been a supplier of salmon to PNS.

– It was Måsøval, as a supplier, who first became suspicious. The board of PNS then closely followed up and started uncovering the activities. It is now important for PNS to take care of both customers and employees, while we follow up on the findings from the investigation and cooperate with the authorities, says Kvalvik.

Remy Strømskag has been acting CEO of PNS since the end of October 2023.

– These have been tough months for everyone working at PNS. PNS and our employees are rightly known and recognized for the high quality of the products we export. It is tough to acknowledge that the company has exported frozen salmon that does not live up to our standards. This should have been reported and addressed earlier. We are now working together to ensure that something like this will never happen again, says Strømskag.

PNS provides as detailed information as possible about the preliminary findings in this press release. Out of consideration for further processes with the authorities and internally, PNS will be cautious about going into further details at the current time.

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