Morrisons launches food manufacturing firm ‘Myton Food Group’ – analysts predict ‘spin-off’

Morrisons has launched a new food production group, Myton Food Group, which encompasses all of the supermarket’s unique food manufacturing assets.

The division has 10 manufacturing sites across the UK, supplying eggs, meat, chilled, flowers, seafood, produce and baked goods. The firm registered trademarks and the web domain in March, with the website going live this month.

Two senior retail analysts shown the website by Better Retailing described it as the first steps towards a ‘spinoff’ of Morrisons’ food production arm.

The timeline coincides with Morrisons’ attempts to tackle its problematic levels of debt following its takeover by private equity groups in 2021. Despite a £220m sales and leaseback of its logistics sites in December, credit ratings agency Moody’s still downgraded Morrisons debt from ‘stable’ to ‘negative’ in February 2023, a month before the trademarks were first filed.

Myton Food Group’s website makes a pitch for work from outside of Morrisons stating : “At Myton Food Group, we have a legacy to be proud of. We’re British farming’s biggest single direct customer, we buy from highly valued suppliers and we’re passionate about the quality of our food, but also the way we work as a team, in partnership across our supply chain.”

It describes its relationship with the major grocer stating: “We have our roots in the Morrisons Supermarket business.”

Morrisons is the only major grocer to own its own food production supply chain, creating own-label products for itself and other firms. These are sold across its own stores and also to independent shops from the grocer’s growing wholesale and franchise offerings.

Morrisons has been approached by Better Retailing for comment.