UK-based meat packer Hilton Food has inked a deal with retailer Tesco to supply packed fresh meat products from its facility near Huntingdon, England.
The agreement extends the two companies' relationship until February 2019. Hilton will raise volumes and install new technology within the facility.
The deal will see substantial increase in volumes supplied to Tesco from the Huntingdon site, benefit of which will be obtained in 2015 and subsequent years, according to the company.
Hilton's board has concluded that a lower growth rate is more likely for the company's Western Europe (excluding UK) business segment in 2014.
The company expects the impact of consumer weakness in Western Europe to offset in 2014 by the deal with Tesco.
Hilton stated that it will continue to invest in new facilities and upgrade its Swedish operation with an investment of about £30m through banking facilities and from internal cash resources.
Hilton Food CEO Robert Watson said, "We are proud to have formed a strong, long-lasting partnership with Tesco and we will continue to work closely with them to supply products of the highest quality to their customers."
