Hilton Food Group has signed an agreement with ModeloContinenteHipermercados (Sonae) to co-operate for the supply of retail packaged fresh meat into Sonae stores in Portugal.
Under the terms of the agreement, Hilton will work with Sonae to improve the production facilities located in Portugal. It plans to produce a wide range of packaged meat products at the facility.
The co-operation between the two companies will initially run for a period of 6 - 9 months.
After the completion of the initial period of co-operation, the companies are expected to establish a joint venture to implement the partnership.
Hilton CEO Robert Watson said: "This is an exciting growth opportunity for Hilton Foods to work with Sonae, Portugal's leading food retailer, utilising our tried and tested business model in the Portuguese market.
"As we have previously demonstrated, our flexible and versatile business model enables us to meet local requirements with customers in each country and as such, we are able to enter new territories successfully. We continue to look for further opportunities for geographic expansion."
Sonae director Eunice Silva said: "Continente will strengthen its leadership in the development of innovation and in the sustainable promotion of the agro food business in Portugal."
Hilton is a retail meat packing business supplying major international food retailers in thirteen European countries and Australia.
It earned a revenue of £1,094.8m in the last fiscal year ending 3 January 2016. It made investments to modernise and expand capacity of UK site in Huntingdon, to service increased volumes for Tesco.
In September 2015, it commenced production at a new retail packed meat facility, near Melbourne, operated by the joint venture formed with Woolworths in Australia.
