A Hawke's Bay seafood company's 15 per cent discount for iwi has attracted controversy with some customers claiming a race-based discount is unfair.

Ngati Kahungunu says it is saddened by the reaction, and is offering the discount because Takitimu Seafoods was owned by iwi and all its 32,000 members had a shared stake in the company.

Takitimu Seafoods - the former Hawke's Bay Seafoods purchased by Ngati Kahungunu iwi and rebranded earlier this year - has started advertising the discount in its popular Hastings and Napier stores.

The discount is for in-store purchases only, and includes wet fish as well

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