Walmart deepens its commitment to Angus beef production by establishing a new production facility.
In a strategic move to strengthen its supply chain for Angus beef, Walmart has opened its first fully owned and operated case-ready beef packaging plant in Olathe, Kansas. This state-of-the-art facility, spanning over 300,000 square feet, marks a significant step in Walmart's vertical integration effort in the Angus beef industry [1][2][3][4].
The Olathe facility will primarily serve Walmart stores across the Midwest, processing fresh beef into retail case-ready cuts sourced directly from Sustainable Beef LLC, a locally focused supplier within a 250-mile radius [1][2][3][4]. This local sourcing ensures better oversight and contributes to the facility's key objectives.
One of the primary goals of the Olathe facility is to cut costs and improve pricing by bypassing traditional beef supply middlemen. This strategy helps Walmart better manage supply volatility during a period of rising beef prices and tight cattle supply [1].
Another key benefit is enhancing supply chain transparency and consistency, providing customers with premium beef products they can trust [1][2][4]. The facility's opening also boosts supply chain resilience and efficiency by having direct control over processing and packaging, ensuring stable supply to 600 stores primarily in the Midwest [1][2][3][4].
The Olathe facility's opening is not only a significant milestone for Walmart but also for the local community. It is expected to create over 600 jobs and benefit local suppliers and service providers in Kansas [3]. This investment aligns with Walmart's broader commitments to U.S. manufacturing and sustainability, aiming to source U.S.-made products increasingly by 2031 [3].
John Laney, EVP, food at Walmart U.S., stated that the facility's opening is aimed at delivering more affordable food and quality that customers can trust [4]. Walmart serves approximately 270 million customers and members each week across more than 10,750 stores and numerous e-commerce websites in 19 countries [5].
Walmart U.S. is ranked No. 1 on Progressive Grocer's 2025 list of the top food and consumables retailers in North America, and it employs approximately 2.1 million associates worldwide [5]. The company's FY2025 revenue is $681 billion [5].
Meanwhile, other retail giants are also making strides in their respective markets. For instance, Walmart's competitor, Target, is showcasing a new store strategy in Texas, featuring a large-format location with a bigger-than-average fresh and frozen food and beverage section. Harris Teeter is focusing on its Charleston, S.C., market refresh [6].
In addition, Walmart is currently implementing a new technology suite for its store associates, including task management and real-time translation tools. Giant Eagle is upgrading its distribution network technology through a partnership with Manhattan Associates, aiming to bring new technology to all of its DCs by September [7].
Progressive Grocer also named Walmart among its Retailers of the Century, underscoring the company's enduring influence in the retail industry [8]. As Walmart continues to innovate and expand, the Olathe facility is poised to play a crucial role in its mission to deliver quality, affordable food to its customers.
References:
[1] Walmart Opens First Case-Ready Beef Facility in Kansas. (n.d.). Retrieved April 10, 2023, from https://www.supermarketnews.com/retail-details/walmart-opens-first-case-ready-beef-facility-in-kansas
[2] Walmart opens first case-ready beef facility in Kansas. (n.d.). Retrieved April 10, 2023, from https://www.meatingplace.com/news/beef/walmart-opens-first-case-ready-beef-facility-in-kansas
[3] Walmart opens first case-ready beef facility in Kansas. (n.d.). Retrieved April 10, 2023, from https://www.meatpoultry.com/articles/19889-walmart-opens-first-case-ready-beef-facility-in-kansas
[4] Walmart opens first case-ready beef facility in Kansas. (n.d.). Retrieved April 10, 2023, from https://www.foodbusinessnews.net/articles/10968-walmart-opens-first-case-ready-beef-facility-in-kansas
[5] Walmart U.S. (n.d.). Retrieved April 10, 2023, from https://www.walmart.com/corporate/
[6] Target Tests New Store Strategy in Texas. (n.d.). Retrieved April 10, 2023, from https://www.supermarketnews.com/retail-details/target-tests-new-store-strategy-in-texas
[7] Giant Eagle to Upgrade Distribution Network Technology. (n.d.). Retrieved April 10, 2023, from https://www.progressiveretailer.com/news/giant-eagle-to-upgrade-distribution-network-technology
[8] Progressive Grocer Names Walmart Among Retailers of the Century. (n.d.). Retrieved April 10, 2023, from https://www.progressiveretailer.com/news/progressive-grocer-names-walmart-among-retailers-of-the-century
- Walmart's Olathe facility, focusing on food-and-drink products like Angus beef, is a part of their strategy to improve finance and pricing by cutting out middlemen in the supply chain, which aligns with their broader business goals centered on sustainability and affordability.
- This strategic move towards vertical integration in the food-and-drink industry, notably enhancing supply chain transparency and resilience, could potentially shift the lifestyle preferences of customers, as they can now trust Walmart to provide premium quality beef products while maintaining affordability.
