Today JBS Swift announced their $2 billion dollar intentions to cut out the need for butchering at the grocery store. The Greeley Tribune has more:
In paperwork filed with the Securities and Exchange Commission, JBS intends to offer the company up for public stock offerings to continue its growth strategy into the next five years. The growth includes expanding its value-added options, such as seasoned beef cuts, plus increasing its distribution network. The distribution network includes in-house cutting rooms, whereby meat would be cut and packaged ready for the supermarket shelves, also known as case-ready.Shares soared after the announcement. Bloomberg reports that, "JBS jumped 5.6 percent to 7.50 raise at 2:02 p.m. New York time in San Paulo trading, the highest since June 10. The stock has jumped 52 percent this year."
“This might be the next big step in case-ready beef and pork since Walmart said they were going to 100 percent case-ready in 2000 and had to pull back,” said Steve Kay, publisher of Cattle Buyer's Weekly, a California-based trade magazine. “We thought case-ready was going to be the big revolution in the way beef was distributed to retail, and it became a slow evolution and has not made much progress in last several years.”
Why the emphasis on case-ready distribution? Drovers has some answers:
“Case-ready distribution is a growing trend in beef marketing,” says Randy Irion, director of channel marketing for the National Cattlemen’s Beef Association, as it offers several advantages to packers and retailers.
The main points for case-ready beef:
- Longer shelf life
- The retailer can stock cuts based on trends, regions, and demand, instead of having to use up primals
- Easier to restock and control inventory
- Targeted distribution
