Local Bounti Expands Distribution with Sam's Club

Rhea-AI Summary

Local Bounti (NYSE: LOCL) has expanded distribution with Sam's Club, now supplying leafy greens from its newly opened CEA facility in Mount Pleasant, Texas. The company is fulfilling shipments to six Sam's regional distribution centers from two facilities, including Byron, Georgia.

Kathleen Valiasek, President and CFO of Local Bounti, highlighted the importance of the company's new facilities in Washington and Texas, which provide incremental capacity to meet retail customer demand for fresh, sustainable, locally grown produce. The expansion with Sam's Club utilizes capacity from the Texas facility, leveraging Local Bounti's patented Stack & Flow Technology® in these purpose-built facilities.

Positive

• Expanded distribution with Sam's Club, a major retailer
• New CEA facility in Mount Pleasant, Texas now operational
• Supplying to six Sam's Club regional distribution centers
• Increased production capacity with new facilities in Washington and Texas
• Optimization of operations and application of learnings to new facilities

Negative

• None.

Insights

Market Research Analyst

Expanding distribution with Sam's Club signifies a strategic business development for Local Bounti, especially within the indoor agriculture market. Sam's Club is a major retailer and forging a stronger relationship with them not only increases revenue streams but also enhances brand visibility. This move can potentially broaden Local Bounti's market reach significantly, as Sam's Club serves millions of customers across the country. However, the expansion alone isn't a guarantee of success. The company must ensure consistency in quality and supply to maintain this partnership in the long run.

Financial Analyst

From a financial perspective, the expansion with Sam's Club and the operational readiness of the new Texas facility are promising indicators of revenue growth and scalability. Increasing distribution channels typically boosts sales volumes, which can lead to improved financial performance. The new facility's expected efficiency with Local Bounti's patented technology suggests potential cost advantages as well. Investors should keep an eye on how these developments reflect in upcoming financial results, particularly in terms of profit margins and operational costs.

Tech Expert

Local Bounti's deployment of their Stack & Flow Technology® in the new Texas facility represents a significant technological advancement in controlled environment agriculture. This technology not only aims to optimize space and resources but also enhances the efficiency of production cycles, potentially reducing operational costs and improving crop yields. It's important for investors to note whether this innovation translates into measurable improvements in output quality and quantity, which could set Local Bounti apart from competitors in the indoor farming space.

Now also Supplying Sam's Club from Local Bounti's Recently Opened Texas Facility

HAMILTON, Mont., July 22, 2024 /PRNewswire/ -- Local Bounti Corporation (NYSE: LOCL) ("Local Bounti" or the "Company"), a breakthrough U.S. indoor agriculture company, today announced that it has expanded distribution with its customer, Sam's Club, for its leafy greens production with service commencing from the Company's recently opened CEA facility in Mount Pleasant, Texas.  Local Bounti is now fulfilling shipments to six of Sam's regional distribution centers from two of its facilities, including Byron, Georgia. 

"The past several months have been pivotal for Local Bounti with the commencement of commercial operations at our new growing facilities in Washington and Texas," commented Kathleen Valiasek, President and Chief Financial Officer of Local Bounti. "The incremental capacity afforded by these facilities is critical in our effort to provide our retail customers consistent access to fresh, sustainable, locally grown produce.  In connection with our offtake agreement with Sam's Club, we are thrilled to expand our distribution with them and utilize capacity from our Texas facility.  We have worked tirelessly to optimize our operations and have applied these learnings to our sites in Texas and Washington, both of which are demonstrating the advantages we identified when setting out to leverage our patented Stack & Flow Technology^® at these purpose-built facilities."      

About Local Bounti

Local Bounti is redefining indoor farming with an innovative method – its patented Stack & Flow Technology^® – that significantly improves crop turns, increases output and improves unit economics. Local Bounti operates advanced indoor growing facilities across the United States, servicing approximately 13,000 retail doors. Local Bounti grows healthy food utilizing a hybrid approach that integrates the best attributes of controlled environment agriculture with natural elements. Local Bounti's sustainable growing methods are better for the planet, using 90% less land and 90% less water than conventional farming methods. With a mission to 'revolutionize agriculture, ensuring accessibility to fresh, sustainable, locally grown produce and nourishing communities everywhere for generations to come,' Local Bounti's food is fresher, more nutritious, and lasts longer than traditional agriculture. To find out more, visit localbounti.com or follow Local Bounti on LinkedIn for the latest news and developments. 

Forward-Looking Statements

This press release includes "forward-looking statements" within the meaning of the "safe harbor" provisions of the United States Private Securities Litigation Reform Act of 1995. In some cases, you can identify these forward-looking statements by the use of terms such as "expect," "will," "continue," "believe," "estimate," "project," "intend," "should," "is to be," or similar expressions, and variations or negatives of these words, but the absence of these words does not mean that a statement is not forward-looking. All statements other than statements of historical fact are statements that could be deemed forward-looking statements, including, but not limited to, statements regarding expanded distribution to Sam's Club. These statements are subject to known and unknown risks, uncertainties and other factors that may cause our actual results, levels of activity, performance, or achievements to differ materially from results expressed or implied in this press release. The following factors, among others, could cause actual results to differ materially from those described in these forward-looking statements: the risk that Local Bounti will fail to obtain additional necessary capital when needed on acceptable terms, or at all; the risk that Local Bounti will not be able to close the financings contemplated by the previously announced conditional commitment letters; Local Bounti's ability to effectively integrate the acquired operations of any CEA or similar operations which it acquires into its existing operations; the ability of Local Bounti to retain and hire key personnel; the Company's ability to meet the continued listing requirements of the New York Stock Exchange or cure noncompliance; the uncertainty of projected financial information; if and when the Company will repurchase the stock authorized by its Board of Directors and the impact of the share repurchase program to the Company and its stockholders; Local Bounti's increased leverage as a result of additional indebtedness incurred in connection with the acquisition of Pete's or as the result of the incurrence of additional future indebtedness; restrictions contained in Local Bounti's debt facility agreements with Cargill; Local Bounti's ability to repay, refinance, restructure and/or extend its indebtedness as it comes due; Local Bounti's ability to generate revenue; the risk that Local Bounti may never achieve or sustain profitability; the risk that Local Bounti could fail to effectively manage its future growth; Local Bounti's ability to build out additional facilities; reliance on third parties for construction, delays relating to material delivery and supply chains, and fluctuating material prices; Local Bounti's ability to decrease its cost of goods sold over time; potential for damage to or problems with Local Bounti's CEA facilities; Local Bounti's ability to attract and retain qualified employees, including management; Local Bounti's ability to develop and maintain its brand or brands it may acquire; Local Bounti's ability to maintain its company culture or focus on its vision as it grows; Local Bounti's ability to execute on its growth strategy; the risks of diseases and pests destroying crops; Local Bounti's ability to compete successfully in the highly competitive natural food market; Local Bounti's ability to defend itself against intellectual property infringement claims; changes in consumer preferences, perception and spending habits in the food industry; seasonality; Local Bounti's ability to achieve its sustainability goals; and other risks and uncertainties indicated from time to time, including those under "Risk Factors" and "Forward-Looking Statements" in Local Bounti's Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 28, 2024, as supplemented by other reports and documents Local Bounti files from time to time with the SEC. Local Bounti cautions that the foregoing list of factors is not exclusive and cautions readers not to place undue reliance upon any forward-looking statements, which speak only as of the date hereof. Local Bounti does not undertake or accept any obligation or undertaking to update or revise any forward-looking statements to reflect any change in its expectations or any change in events, conditions, or circumstances on which any such statement is based.

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SOURCE Local Bounti

FAQ

What new distribution expansion has Local Bounti (LOCL) announced?

Local Bounti (LOCL) has expanded distribution with Sam's Club, now supplying leafy greens from its new CEA facility in Mount Pleasant, Texas to six of Sam's regional distribution centers.

How many Sam's Club distribution centers is Local Bounti (LOCL) now supplying?

Local Bounti (LOCL) is now supplying six of Sam's Club regional distribution centers from two of its facilities, including Byron, Georgia and Mount Pleasant, Texas.

What technology does Local Bounti (LOCL) use in its new facilities?

Local Bounti (LOCL) uses its patented Stack & Flow Technology® in its purpose-built facilities, including the new ones in Texas and Washington.

When did Local Bounti (LOCL) open its new facility in Texas?

Local Bounti (LOCL) recently opened its new CEA facility in Mount Pleasant, Texas, as mentioned in the July 22, 2024 press release.