Morrisons could supply rival grocers as turnaround pressure mounts
Morrisons is reportedly in talks to sell food to rival supermarkets as itlooks to broaden its manufacturing business and reduce its debt pile.
The Bradford-based supermarket is hoping to strike new supply agreements for its Myton food production arm as part of its wider turnaround plan, according to The Telegraph.
Myton, one of the UK’s largest food manufacturers, operates 17 sites across the country and supplies Morrisons with products including sweet and savoury pies, meat, fish, eggs and flowers.
The division already supplies a number of independent retailers, but is now understood to be exploring deals with larger supermarket chains.
Representatives from rival food retailers have reportedly been invited to visit one of Myton’s factories in recent weeks to discuss potential supply arrangements.
Morrisons is also said to be looking at opportunities to supply large hospitality businesses through Myton, and has held showcase events to promote its British-made produce.
A Morrisons spokesperson said: “Myton is an independent, high-quality food manufacturing business and has always served other customers as well as Morrisons.
“It has 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.”
Morrisons is continuing efforts to cut costs and reduce debt following its £7bn takeover by US private equity firm Clayton, Dubilier & Rice in 2021.
The supermarket’s net debt stood at £3.17bn at the end of its most recent financial year to 26 October, 2025, down from the £6.6bn debt burden it took on after the deal.
Morrisons reported a statutory pre-tax loss of £381m for the year, narrowing from a £414m loss the previous year. Total revenues rose 3.2 per cent to £15.8bn, while like-for-like sales increased 2.8 per cent.
The company has been under pressure in recent years as competition from Aldi and Lidl intensified, pushing Morrisons out of the traditional Big Four supermarket group.
It has also been cutting jobs and closing underperforming stores as part of its turnaround.
Last week, Morrisons said it planned to close 100 loss-making Morrisons Daily convenience stores over the coming months, putting hundreds of jobs at risk.
The retailer also put around 200 roles at risk at its Bradford head office in April, following a separate move to make its convenience buying and operations teams redundant, affecting around 100 employees.
Morrisons chief executive Rami Baitiéh said in March that the supermarket market remained “highly competitive”, with grocery growth falling short of previous expectations.
He added that the business was “watching current international events closely, alert to the impacts on consumer confidence and supply chains”, and would “continue to do what we can to mitigate effects on our customers”.
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