LONDON (ShareCast) - (ShareCast News) - UK based meat packers, Hilton Food Group announced on Thursday it had signed a long-term supply agreement with Tesco Central Europe to produce its fresh food.
The five-year agreement would require approximately €6m worth of investment from Hilton to be put towards the construction and fit-out of a new state of the art factory in Poland wherein Tharis would be producing the likes of pizzas, soups, and other assorted ready meals.

Production is expected to commence in the first quarter of 2019.

Robert Watson, chief executive of Hilton, 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. 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. We continue to look for further opportunities for geographic expansion."

The agreement expands upon the existing five-year agreement between the two that sees Hilton supply Tesco with the majority of its pre-packed meat.

As of 1000 BST, shares had crept forward 1.78% to 770.00p.

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