Diving overview:
- Walmart announced Wednesday that it will open a milk processing facility in Valdosta, Georgia, in 2025.
- The dairy facility will create approximately 400 new jobs and mark a $350 million investment in Lowndes County, where it will be located, according to a press release from Georgia Governor Brian Kemp.
- The newly announced facility builds on Walmart’s efforts to take more ownership of its fresh produce supply chain.
Dive Insight:
The Walmart-owned and operated milk facility is intended to enhance the retailer’s ability to meet demand for high-quality milk and increase transparency around sourcing, two senior Walmart executives said in a blog post. .
The facility, scheduled to break ground later this year, will use ingredients sourced from local farmers, said Bruce Heckman, vice president of manufacturing and private brands, and senior vice president of merchandising, chilled, adult beverages and convenience. Tyler Lehr writes. In a blog post.
The new facility will process and bottle whole, 2%, 1%, skim and 1% chocolate milk in gallon and half-gallon sizes for Walmart’s Great Value and Sam’s Club Member’s Mark brands. The facility’s products will be sold at more than 750 Walmart stores and Sam’s Clubs throughout the Southeast.
“The opening of our milk processing facility in Valdosta, Georgia will be an important milestone in delivering on our commitment to providing the high-quality milk our customers expect at everyday low prices. ” said Mr. Lehr. Heckman said in the post.
The Valdosta milk facility is Walmart’s latest move to take more control over its food supply chain. In 2018, The retailer opened its first milk processing facility in Fort Wayne, Indiana.
The company is currently building its first owned and operated case-ready beef facility in Olathe, Kansas. In early 2020, Walmart opened its first facility to support its beef supply chain in Thomasville, Georgia. The Georgia facility is operated by beef production company FLP Foods.
Walmart said in a blog post that it has also made equity investments and long-term commercial agreements with rancher-owned Sustainable Beef LLC and vertical farming company Plenty.
Walmart continues to steadily gain market share in the grocery sector. In its second-quarter results, Walmart US recorded “strong” market share gains in the grocery category, driving the category’s 6.4% growth in same-store sales for the quarter.
Other retailers and grocers are also bringing private label production in-house to better control their supply chains. Costco, for example, is increasing its control over meat processing at its facilities. As of late February, Albertsons operated 19 food production plants, including seven milk plants, three soft drink bottling plants, three bakery plants, two ice cream plants, and two ice cream plants. factory, One grocery and processed food plant, one ice plant and one soup plant per 10-K filing.