In a strategic play to increase shopper access to affordable, sustainable beef amid mounting inflation, Walmart has announced that it has signed an agreement to acquire a minority stake in Sustainable Beef. As part of the deal, the big-box chain will make an equity investment that will help source more top-quality beef from the rancher-owned company’s new beef processing facility.
“At Walmart, we are dedicated to providing high-quality, affordable beef to our customers, and an investment in Sustainable Beef will give us even more access to these products,” said Tyler Lehr, Senior Vice President of Merchandising for Deli Services, Meat, and Seafood, Walmart U.S. “We know Sustainable Beef has a responsible approach to beef processing, one that includes creating long-term growth for cattle ranchers and family farmers. This investment provides greater visibility into the beef supply chain and complements Walmart’s regeneration commitment to improve grazing management.”
Walmart’s investment will help Sustainable Beef open its beef processing facility located in North Platte, Nebraska, which is expected to break ground next month and open by late 2024, a release stated. The investment will also give Walmart representation on the company’s Board.
Sustainable Beef will work alongside cattle feeders and ranchers to understand key elements of the supply chain cycle, including grain sourcing and grazing management. Animal care will follow the Five Freedoms, and there will be a consistent approach to antibiotic use and reporting in alignment with Walmart’s Position on Antibiotics in Animals.
“We set out on a journey two years ago to create a new beef processing plant to add some capacity to the industry and provide an opportunity for producers to integrate their business of raising quality cattle with the beef processing portion of the industry and do it in a sustainable manner,” said David Briggs, Chief Executive Officer of Sustainable Beef. “During this journey, we found that Sustainable Beef and Walmart aligned on continuing to improve how we care for our animals and crops and provide consumers the positive experience of enjoying quality beef.”
To read more about this deal, click here.
As more of the impacts of this investment become available, Deli Market News will keep you in the know.
