FOOD: BUYING FRENZY BOLSTERS REVENUES

FOOD retailers have been booming in recent weeks. Shoppers have gone into panic mode: pasta, booze and loo roll have been flying off the shelves and online delivery services are swamped.

The frenzy should bolster revenues across the grocery sector but it will feed through to certain suppliers as well. Hilton Food Group, for instance, unveiled an upbeat trading statement last week, saying 2019 figures were ahead of expectations and the current year has started well.

Hilton provides Tesco with all its

beef and lamb – roasting joints, steaks, chops and more specialised goods, such as barbecue-ready burgers or Bolognese sauce. Having focused on red meat throughout its 26- year history, the company recently expanded into fish, vegetarian and vegan products, in response to changing consumer tastes.

Hilton operates in several countries outside Britain, including Australia and New Zealand and much of Northern Europe. In each place, the group tends to work with one large supermarket group so it can build a relationship with t hem and become a partner, not just a faceless supplier.

The strategy is clearly delivering results. Chief executive Philip Heffer is optimistic about the future and doing pretty well in the present. Lockdowns across the world mean people are eating more at home and the good weather here is likely to encourage barbecue enthusiasts to light up their grills, particularly as eating out is no longer an option.

MIDAS VERDICT: Midas recommended Hilton Food Group back in 2008 when the shares were £1.85 and again in 2013 when the price had risen to £3.05. The stock closed last week at £10.24, compared with more than £11 at the beginning of the year. Existing investors keen to bank profits may choose to offload a few shares but they should not sell out completely. This is a solid, well-run business and the 2019 dividend, forecast at 22p, looks pretty secure.