View all newsletters
Receive our newsletter - data, insights and analysis delivered to you
  1. News
April 7, 2020

UK meat packer Hilton Food Group to enter Belgium

Hilton Food Group, the UK-based meat processor, is to add to its roster of markets in continental Europe.

By Dean Best

Hilton Food Group, the UK-based meat processor, is to add Belgium to its roster of markets in continental Europe.

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

The London-listed business, which runs production plants in six countries in Europe, plus Australia, is to open a factory in Belgium in September.

The facility, for which Hilton declined to disclose the location, will supply red meat to Benelux retail giant Ahold Delhaize. Hilton’s plant in Tychy in southern Poland supplies Ahold stores in the Czech Republic and Slovakia.

Hilton said the new facility in Belgium would cover all the “red-meat requirements” of Ahold Delhaize’s Delhaize chain. 

Approached by just-food, Hilton said it would solely operate the site but the company would not disclose if it would own the facility outright. Asked why Hilton had decided to enter Belgium, the company said the country was “a very attractive market”, with “high consumer spending”.

The disclosure of the new factory in Belgium came alongside the publication of Hilton’s annual financial results. Revenue rose 10% to GBP1.81bn (US$2.23bn), with volumes up 7.8%. The UK accounted for a little more than half Hilton’s revenue at GBP960.9m.

Operating profit was 12.9% higher at GBP52.3m. Net income, representing profit for the year attributable to owners of the parent, was GBP37.6m, 9% up on last year.

Executive chairman Robert Watson said: “In 2019, we successfully executed our strategy of continuing to grow and diversify our offering with the opening of our biggest factory yet in Brisbane, Australia, a move into other high-growth proteins including vegetarian and sous vide, building on our existing retailer partner relationships and investing in our facilities.

“We continue to grow volumes and profit and explore opportunities to develop our cross-category business in both our domestic and overseas markets. Whilst the Covid-19 outbreak will test our established business continuity programmes, to date, thanks to the dedication and resilience of our teams who have responded superbly, we have risen to the challenge.”

Hilton said its plants remain “fully operational” amid the coronavirus outbreaks worldwide. 

Watson said: “We have established business continuity and flexible buy models and supply options, which may be tested during this period as we continue to play our part in feeding the nation and supporting ongoing demand. 

“The resilience of the Group in the face of the uncertain challenges presented by Covid-19 has been assessed by applying significant downside sensitivities to the group’s cash flow projections. Allowing for these sensitivities and potential mitigating actions, the board is satisfied that the group is able to continue to operate well within its banking covenants and has adequate headroom under its existing committed facilities. So far we have coped well with the challenges and are confident that through our local operating model and financial strength we are well placed.”

Related Companies

Free Report
img

What’s the forecast for the food and grocery industry?

The food and grocery sector thrived during the pandemic, largely due to the shutdown of the food service industry and the sector’s subsequent necessity, panic-induced bulk purchasing, and spending more time at home. The market has grown as a result of inflation. Consumer unwillingness to go out and socialize, and the reopening of several hospitality facilities, helped maintain the demand for groceries, particularly online, in 2021. As consumer behavior changes, we consume more food and drink at home, and inflation increases basket sizes. GlobalData predicts that the sector will continue to hold a higher share than had been predicted prior to the pandemic. This is true despite the fact that the food and grocery sector's share of overall retail will decline from its peak in 2020. This report will discuss market forecasts and key themes in the global food & grocery industry in 2022 and beyond. It covers:
  • Market drivers and inhibitors
  • Five-year forecasts and the impact of COVID-19
  • The performance of the online channel versus offline
  • Major trends in the market including rapid delivery, ambient retailing, supply chain disruption, and inflation
Assess developments within this sector to help your business thrive in 2022 and beyond.
by GlobalData
Enter your details here to receive your free Report.

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every other month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Just Food