Walmart Doubles Down on Dairy Production
Walmart is adding another link in its vertical supply chain. Following the summer opening of its latest case-ready beef facility, the retailer is expanding its dairy production capability.
To ensure product availability and manage quality, Walmart is planning to operate its own milk processing facility in Valdosta, Ga., in the southern part of the state. The retailer is investing $350 million in the creation of the facility that is expected to be up and running in 2025.
Walmart first got into the dairy business in 2018 with a milk processing facility in Fort Wayne, Ind. The new plant in Georgia will produce a variety of milk products using ingredients sourced from dairy farmers in the Southeast region. The finished products, including gallon, half gallon, whole, 2%, 1%, skim and 1% chocolate milk varieties, will be sold under the Great Value and Members Mark store brands. Distribution will span more than 750 Walmart and Sam’s Club stores in the region.
Bruce Heckman, VP, manufacturing private brands, and Tyler Lehr, SVP, merchandising, chilled, adult beverage and convenience, for Walmart, noted in a new blog post that the planned dairy plant will create more than 400 new jobs in the area and provide customers with products that meet their lifestyles and needs. “It will bolster our capacity to meet the demand for high-quality milk, while making our supply chain more resilient, and building even more transparency around sourcing,” they wrote. “The new facility continues Walmart's commitment to building a more resilient and transparent supply chain to deliver high-quality products.”
In June, Walmart announced the opening of a second case-ready beef facility in Olathe, Kan. The retailer is tightening up its supply chain in other ways, too, like investing in rancher-owned Sustainable Beef LLC and vertical farming company Plenty.
Each week, approximately 230 million customers and members visit Walmart’s more than 10,500 stores and numerous e-commerce websites under 46 banners in 24 countries. The Bentonville, Ark.-based company employs approximately 2.3 million associates worldwide. Walmart U.S. is No. 1 on Progressive Grocer’s 2023 list of the top food and consumables retailers in North America. PG also named the company as one of its Retailers of the Century.
