Food packing firm Hilton Food has entered into a joint venture (JV) with Portugese retailer Sonae Modelo Continente to supply its stores with a range of packaged beef, lamb, veal and pork products.
As per terms of the deal, Hilton will collaborate with Sonae to redevelop the production facilities of its packing and sourcing subsidiary Sonae Centro Processamento Carnes (CPC).
These facilities will supply packaged meat products to Sonae stores.
Currently, CPC is said to source around 1,000t packaged meat products per week. The products distributed from the facility comprised of mince, roasting joints and other beef and pork based products
The companies plan to initially invest around €22m to redevelop the production facility, which is expected to complete by the end of this year.
Hilton Food Group CEO Robert Watson said: “We are very pleased that this exciting growth opportunity has advanced to a Joint Venture with Sonae Modelo Continente.
“Our progress in Portugal demonstrates further the strength of Hilton’s flexible and versatile business model, enabling us to meet the local requirements of our customers in their territories.”
Sonae Modelo Continente commercial director Eunice Silva said: “We are pleased that the partnership has progressed to a full joint venture agreement in Portugal, which will enable us to strengthen the leadership position of Continente further in the development of innovation and the sustainable promotion of the agro-food business in Portugal.”