Supermarket chain Morrisons is seeking to expand its food manufacturing arm, Myton, by supplying rival supermarkets and hospitality firms with products including pies, meat and eggs as the grocer attempts to reverse years of losses.
The supermarket has reportedly invited representatives from major retailers to visit its factories as part of efforts to secure new supply deals and make greater use of spare production capacity.
In its latest financial accounts, the supermarket revealed losses of £381m for the year to Oct 26, following a hit from its £281m debt interest bill. At the end of its latest financial year, its net debt stood at £3.1bn.
The high debt level is an overhang from its £10bn takeover by private equity firm Clayton, Dubilier & Rice in 2021.
More recently, Morrisons has embarked on a drive to strip out extra costs as it seeks to revive its fortunes. Recently, it announced it was closing 100 convenience stores. It has also shuttered a number of its cafés and counters.
Despite wider financial pressures, Myton is believed to be one of the stronger-performing parts of the business. Morrisons sees its manufacturing capability as a key differentiator from rivals, with chief executive Rami Baitiéh previously insisting the division remains central to the company’s long-term strategy.
Baitiéh has argued the manufacturing arm is a point of difference for Morrisons, with many of its rivals forced to source from a range of different suppliers rather than owning their own factories.
In January, Mr Baitiéh said that manufacturing was part of the “DNA of Morrisons – it’s going to stay”.
A spokesman for Morrisons said: “Myton is a high-quality food manufacturing business and has always served other customers as well as Morrisons.
“We have been growing this area of the business over recent years by attracting new customers in retail, food service and food manufacturing, to build a broader base for the business both in the UK and internationally. Myton does not comment on the detail of its customer relationships.”