Business
New Territory Agreement
New Territory Agreement.
About this update from Hilton Food Group Plc
[{"type":"text","content":"\n RNS Number : 1507D Hilton Food Group PLC 27 November 2009 \n \n\n\n \nHilton Food Group plc\n\nHilton to begin supplying Denmark's leading food retailer\n\nHilton is pleased to announce that it has signed a long term agreement with Coop Danmark, Denmark's leading food retailer, to supply retail packaged fresh meat into all their stores across the country from 2011.\n\nUnder the terms of the agreement, after an initial roll out period Hilton will supply each of Coop Danmark's five formats, covering around 1200 stores. The stores will be supplied from a newly constructed state-of-the-art facility located adjacent to Coop Danmark's distribution centre at Aarhus, in the Jutland region of Denmark. Products supplied from the plant will include mince, sliced, added value and other pork, beef, lamb and veal products. The business is expected to create approximately 220 jobs in the Jutland region of Denmark.\n\nConstruction of the facility will commence early next year, with production and supply from the facility to Coop Danmark coming on stream in mid 2011.The building will be leased from a third party and the remaining capital expenditure will be wholly financed by Hilton, with the investment during construction and for the first two years of production expected to be approximately €22m. This investment will be financed primarily from banking facilities and also from internal cash resources.\n\nThe plant will have a capacity in the mid range of other existing Hilton facilities. Hilton will be supplying products across Coop Danmark's multi-format portfolio including the convenience, discount, supermarket and hypermarket stores. It is estimated that start-up volumes in the first year will be below full capacity but with volume growth deliv...