Key Takeaways:
- Local Bounti Corporation (Profile) has received a two-year agreement to supply living butter lettuce to 13 distribution centers for a multinational retailer.
- The produce will be sourced from Local Bounti’s facilities in California and Texas.
- The agreement aligns with Local Bounti’s strategy to optimize production capacity for specific customer needs.
- The company projects achieving positive adjusted EBITDA by the second quarter of 2025.
Supply Agreement Details
Local Bounti Corporation (NYSE: LOCL), a U.S.-based indoor agriculture company, announced a two-year agreement with a multinational retailer. The agreement includes supplying living butter lettuce to 13 of the retailer’s distribution centers, with the produce sourced from Local Bounti’s existing California facility and its newly established Texas location.
This agreement reflects Local Bounti’s approach of aligning production capabilities with customer requirements to support efficient distribution and maintain product quality.
Strategic Focus on Customer Needs
Local Bounti CEO Craig Hurlbert noted the significance of aligning production capacity with market demand: “This new award with a large multinational retailer is a prime example of the demand for fresh, sustainable, locally grown produce and the unmet need for capacity that we are addressing with our expanded footprint across the southern U.S. By methodically aligning our capacity with specific customer demand, we are able to offer unique and high-quality products that differentiate us in the market.”
Hurlbert emphasized the role of strategic planning and collaboration with retail partners in securing the agreement: “This award is the direct result of our customer-centric approach, ensuring that every capacity decision we make directly connects to and supports our retail partners’ needs.”
Operational and Financial Goals
Local Bounti’s discussions with retail partners have focused on tailoring its facilities for specific product needs to improve efficiencies across its operations. By optimizing facility outputs, the company aims to enhance its performance and streamline distribution.
The company has stated that these efforts support its objective of achieving positive adjusted EBITDA by the second quarter of 2025.
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