Hilton and Woolworths extend meat supply contract in Australia

UK’s Hilton Food (Hilton) and Australian supermarket chain Woolworths have extended the meat supply contract by signing a long-term agreement.

Under the new agreement, Hilton Foods Australia (HFA) will be supplying packaged and value-added meat products to Woolworths Supermarkets for the next 15 years.

Hilton chief executive Robert Watson said: “We look forward to welcoming the Woolworths employees in Bunbury and Truganina to our team.

“We have been working closely with Woolworths for five years and we have a deep understanding and respect for each other.

“Our long-term partnership with Woolworths is growing and this is the next phase of an even stronger relationship.

The long-term contract between us displays the mutual trust we have in our partnership and Hilton looks forward to working with the Woolworths team to strengthen further our world-class meat offer in Australia.”

Beginning from 1 July, HFA will take complete control of Bunbury and Truganina meat processing plants.

HFA’s operations at the two meat processing facilities will be subject to a two-year transitional period, after which, the company will be acquiring the relevant assets that are currently owned by Woolworths for A$85m ($66.6m).

According to Hilton, it will commission a new meat processing plant in Queensland during the transition period.

Woolworths Meat director Pat McEntee said: “Woolworths is pleased with the value the current joint venture has created within its meat supply chain and is excited to extend the partnership with Hilton to deliver affordable, innovative and convenient protein choices for its customers.”