Morrisons courts rival grocers in bid to widen Myton supply deals

Morrisons is in advanced talks with other British supermarkets to supply own-brand pies, meat, and eggs produced by its Myton manufacturing division. Sainsbury’s and other rivals have toured Myton production sites, and Morrisons has shifted from guarding its 17 UK manufacturing sites to offering output to competitors for profitable third-party volume. Myton produces Morrisons’ sweet and savoury pie ranges and also supplies meat, fish, eggs, and flowers. Myton already serves independent retailers and is being pitched to hospitality groups through events highlighting British-made production. Morrisons carries a £3.1bn net debt inherited from a 2021 leveraged buy-out, and interest costs remain a major burden despite debt reduction efforts.

"Morrisons is in advanced conversations with rival British supermarkets to start supplying them with own-brand pies, meat and eggs produced by its Myton manufacturing division, as chief executive Rami Baitieh hunts for fresh sources of revenue to ease the grocer's heavy debt burden."

"The Bradford-based chain, one of the so-called Big Four, is understood to have ushered buyers from competing retailers into a Myton factory in recent weeks, with Sainsbury's among the grocers to have toured production sites previously. The push marks a notable shift in posture: Morrisons has historically guarded the output of its 17 UK manufacturing sites as a competitive moat, but is now willing to feed rivals' shelves if it brings in profitable third-party volume."

"Myton is one of the country's largest food manufacturers and produces Morrisons' sweet and savoury pie ranges, while also sourcing meat, fish, eggs and even flowers for the supermarket. It already serves a clutch of independent retailers and is now being pitched to large hospitality groups as well, with showcase events held in recent months to highlight its British-made credentials."

"In its most recent set of accounts, covering the 52 weeks to 26 October, the grocer posted a pre-tax loss of £381m after absorbing a £281m interest bill on its borrowings. Net debt stood at £3.1bn at the year-end, an overhang from the £10bn leveraged buy-out by US private equity firm Clayton, Dubilier & Rice in 2021."

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