REG - Hilton Food Grp Plc - Hilton Foods and Walmart Canada supply agreement

Hilton FoodAnnouncement

14/09/2023 07:00

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RNS Number : 3717M  Hilton Food Group PLC  14 September 2023

 

Hilton Food Group plc

 

Hilton Foods to open first North American food park site, entering long-term
supply agreement with Walmart Canada

 

 

Hilton Food Group plc ("Hilton Foods" or the "Group"), the leading
international multi-protein food business, is pleased to announce that it has
signed a long-term supply agreement with Wal-Mart Canada Corp ("Walmart").

 

Hilton Foods will open a new manufacturing facility in Eastern Canada to
supply Walmart's Supercentres with a range of protein products, starting with
beef, lamb, pork, seafood and moving into some added-value products. The new
Hilton Foods facility will provide robotised store order picking into
Walmart's distribution centres.

 

This partnership represents a significant step forward for both Walmart and
Hilton Foods in fulfilling increasing consumer demand across Canada for high
quality, good value and increasingly sustainable protein products. Through the
partnership, Hilton Foods will apply its strong ESG credentials underpinned by
its Sustainable Protein Plan to the North American market.

 

It is proposed that Hilton Foods' newly formed subsidiary, Hilton Foods Canada
Inc, will finance the new food packing facilities, with commencement of
production targeted for 2026. Hilton Foods intends to lease the production
facility and its investment in plant and equipment will be debt funded with
principal expenditure commencing in 2024 and continuing throughout 2025. The
Group's leverage is expected to remain at comfortable levels during this
investment phase.

 

This announcement contains inside information which is disclosed in accordance
with the Market Abuse Regulation.

 

Steve Murrells, Hilton Foods CEO, commented:

"We are delighted to be partnering with Walmart. This agreement further
extends our global footprint and will be our first manufacturing facility in
North America. 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. Hilton Foods and Walmart share the same high
standards of sustainability and we are looking forward to providing Walmart
with the service and range of quality products for which Hilton Foods is
known."

 

Sam Wankowski, Chief Merchandising Officer, Walmart Canada added:

"With our customers top of mind, we're sparking change in the way Walmart
Canada sources proteins in Canada. Our new agreement with Hilton Foods - their
very first in Canada - is a win for our customers.  We're strengthening our
delivery of quality products at low prices and with more sustainable packaging
to Canadians, while still continuing to support Canadian farms and ranches."

 

Sourabh Malik, Vice President Food, Walmart Canada added:

"At Walmart Canada, when we see an opportunity to strengthen our business that
will benefit our customers, we will always do what they deserve - and exceed
their expectations. The new protein processing solution with Hilton will
ultimately provide Canadians with fresh, consistent Walmart Brand protein in
the sizes and cuts they're looking for."

 

 

 

Notes

 

About Hilton Foods

Hilton Food Group plc is a leading international food and technology-led
supply chain service partner, serving retail and food service customers and
their consumers.  We serve our customers with outstanding protein products,
and leading technology across our high quality, multi-category proposition of
meat, seafood, vegan and vegetarian, easier meals and supply chain services.
We are an international business of over 7,000 employees, operating from 24
technologically advanced food processing, packing and logistics facilities
across 19 markets.  Growing internationally across Europe, Asia Pacific and
North America.  For almost thirty years, our business has been built on the
purpose of growth and success through long-term partnerships with our
customers, our people, our suppliers and the communities we are part of.
Many of these partnerships have been forged over several decades, and together
we target driving long-term value.  We deliver this through 'The Sustainable
Protein Plan', our commitments and science led targets across our three ESG
pillars of people, planet and product.

 

About Walmart Canada

Walmart Canada operates a chain of more than 400 stores nationwide serving 1.5
million customers each day. Walmart Canada's flagship online store,
Walmart.ca, is visited by more than 1.5 million customers daily. With more
than 100,000 associates, Walmart Canada is one of Canada's largest employers
and is ranked one of the country's top 10 most influential brands. Walmart
Canada was recently recognized as a LinkedIn Top Company of 2022 and was also
named one of Canada's most popular brands (based on Google searches). Walmart
Canada has made a commitment to regeneration - focusing on equitable
opportunity, sustainability, community, ethics and integrity. Since 1994,
Walmart Canada has raised over $500 million to support communities across
Canada. Additional information can be found at walmartcanada.ca and on Walmart
Canada's social media pages - Facebook, Twitter, Instagram and LinkedIn.

 

 For further information please contact:

 Hilton Food Group plc                     Tel: +44 (0) 1480 387214
 Steve Murrells, CEO
 Matt Osborne, CFO

 Headland Consultancy                      Tel: +44 (0) 20 3805 4822
 Susanna Voyle
 Will Smith
 Joanna Clark

 Walmart Canada
 Stephanie Fusco                           stephanie.fusco@walmart.com
 Sarah Kennedy                             sarah.kennedy@walmart.com

 

 

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