Tesco Central Europe Signs Fresh Food Contract With Hilton
Retail meat packing company Hilton Food Group has announced that it has signed a contract with Tesco Central Europe, to produce and supply fresh food for the retailer.
The two groups also signed a five-year agreement for Hilton to continue supplying Tesco stores in central Europe with pre-packed meat.
"We have a long and successful history of working with Tesco, one of the world's biggest retailers," said Robert Watson, Hilton chief executive.
"This agreement represents an opportunity to enter a growing food segment of the market. We look forward to seeing the positive effect our tried and tested business model will have on this relationship, which will be supported by our flexible and versatile approach to meeting local requirements."
The long-term agreement will involve an investment of around €6 million to build a new factory in Poland, which will produce items such as sandwiches, pizza, ready meals and soups. It is expected that production will begin in the first quarter of 2019.
"I'm delighted that we are extending our deep group-wide partnership with Hilton to bring new manufacturing investment and capability to Poland," said Matt Simister, CEO of Tesco Central Europe.
"Our collective experience and expertise will bring new, innovative and high quality fresh and convenient products to our customers in Central Europe."
Hilton Foods supplies major retailers across Europe, such as Tesco, Ahold, ICA, Coop Danmark and Sonae, as well as Woolwoorths in Australia. Hilton had sales of £1.2 billion in 2016, and has reported that it is making 'good progress' in 2017.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Sarah Harford. Click subscribe to sign up to ESM: The European Supermarket Magazine.