Hilton Food signs long-term supply agreement with Tesco Central Europe

Specialist retail packing company Hilton Food Group has signed a five-year agreement with Tesco Central Europe to produce fresh food.

The agreement will involve the construction of a new factory in Poland and support Hilton Food Group’s strategy of providing its global retail partners with a diversified food offer.

The company is planning a sale and leaseback for the new facility, which will see a €6m investment.

Production at the factory is expected to commence in the first quarter of 2019 and will manufacture sandwiches, pizza, ready meals and soups.

Tesco Central Europe CEO Matt Simister said: “I’m delighted that we are extending our deep group-wide partnership with Hilton to bring new manufacturing investment and capability to Poland. Our collective experience and expertise will bring new, innovative and high-quality fresh and convenient products to our customers in Central Europe.”

Both companies have also reached an additional five-year long-term agreement, under which Hilton will continue to supply pre-packed meat to Tesco’s Central European stores.

Hilton chief executive Robert Watson OBE said: “We have a long and successful history of working with Tesco, one of the world’s biggest retailers.

“This agreement represents an opportunity to enter a growing food segment of the market.”

Last year, Hilton recorded sales of £1.2bn and employed 3,000 people across its sites.

Tesco serves its customers from more than 6,800 stores in countries across the UK and Ireland, Central Europe and Asia, as well as online.