Hilton Foods expands into Canada with Walmart agreement

(Sharecast News) - Food packaging business Hilton Foods is to expand into the North American market after entering a long-term supply agreement with Walmart Canada. The company, which currently operates across 13 European markets through partnerships with retailers like Tesco, Costco and Rimi, is opening a new manufacturing facility in Eastern Canada to supply Walmart's supermarkets with a range of protein products.

These will initial start with beef, lamb, pork, seafood, before moving into some added-value products, the company said in a statement on Thursday.

"This agreement further extends our global footprint and will be our first manufacturing facility in North America," said Hilton Food's chief executive Steven Murrells.

"It is another sign of the strength of our customer offer, as well as growing consumer demand for high quality, affordable, protein products, which we can deliver through our scale, international experience, and supply chain expertise."

Newly formed division Hilton Foods Canada will finance the new facilities, and is expected to start production in 2026. The investment in plant and equipment will be debt funded with spending to kick off in 2024, however the group said its leverage is expected to remain at "comfortable levels during this investment phase".