Walmart acquires stake in sustainable beef startup
Walmart is acquiring a minority stake in a rancher-owned, premium beef company to expand its sourcing of sustainable meat, the retail giant has announced.
Terms of Walmart’s deal with North Platte, Nebraska-based Sustainable Beef LLC were not disclosed. But Walmart said the transaction would give the retailer representation on the beef company’s board.
Walmart’s investment will help Sustainable Beef open a beef processing facility at its Nebraska headquarters. The facility is expected to break ground next month and open by late 2024 and will hire more than 800 workers, the company said in a statement.
“At Walmart, we are dedicated to providing high-quality, affordable beef to our customers, and an investment in Sustainable Beef LLC will give us even more access to these products,” Tyler Lehr, Walmart’s SVP of merchandising for deli services, meat and seafood, said in a statement. “We know Sustainable Beef LLC 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.”
Sustainable Beef LLC began early in 2021 to focus on vertical integration of beef production, according to an agricultural industry report. The company grew out of supply chain disruptions caused by the pandemic. The new processing plant has a goal of processing 1,500 head of beef per shift, per day, the report said.
The processing facility, located atop a city wastewater lagoon, will cost at least $325 million, the report noted.
“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,” David Briggs, CEO of Sustainable Beef, said in a statement. “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.”
By Heather Lalley / Winsight Grocery Business
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