Tesco and Disney Partner on Branded Foods

Tesco, Britain's largest retailer and Disney Consumer Products UK announced an agreement to jointly launch a range of co-branded food products.

The two said Thursday that they are set to start with the production of fresh fruits and later expand to include a variety of products ranging from yoghurt to breakfast cereals, milk and bakery goods.

The first food products featuring fruits will launch in November.

Disney Consumer Products is committed to giving parents food choices they can approve of while at the same time exciting their kids, said Dan Dossa, director, Disney Consumer Products, food, health & beauty UK. Today's announcement with Tesco marks an important milestone for our growing UK food business and we are delighted to work with the UK's leading retailer to make it easier for parents to get their kids to consume a more balanced diet.

At Tesco we are determined to help our customers make healthier choices for their family, said Tesco chilled foods director Kari Daniels. This relationship will offer parents an easy way to make healthier eating fun.

Earlier this month, Tesco also announced that it was to expand its services in South Korea because of its affinity plans to roll out a new range of products and services, and it set plans to launch home delivery services in most of the places in South Korea.

Tesco registered strong first half progress of 1.2%, across the group, despite the challenges posed by start-up investment required to establish new US and direct businesses, said the firm.

Tesco is to open in the US under the name Fresh & Easy, in Los Angeles, Las Vegas and San Diego. Around 60% of the firm's group sales, which reached 24.7bn for the half year, come from international operations.

Correction:An article on Tuesday, October 23, referring to Tesco and Disney partnering on branded foods incorrectly stated that there was a merger between Tesco and Disney. It also misattributed a quote to Kari Daniels and erroneously used a masculine pronoun to refer to her.