Walmart hatches an exceptional partnership
Months after urging its food producers to improve their animal welfare practices, Walmart has decided to expand distribution of the leading free range egg brand in the U.S.
The happy egg co. is the only U.S. egg brand that is 100% free range with a hen welfare program that covers everything from living conditions to feed to the expertise of the caregivers. To continue its mission of providing humanely produced eggs at an affordable price to consumers nationwide, the happy egg co. says it will now be available in 1,600 Walmart retail locations throughout the U.S.
"Walmart is an agent of change in the U.S. grocery market and our relationship brings us significantly closer to our vision of making humanely raised eggs accessible and affordable," said David Wagstaff, chief operating officer of the happy egg co. "Life for our hens has always meant no cages, freedom to roam outdoors everyday and the ability to do what comes naturally. Increasing our retail distribution with Walmart is incredibly rewarding because it brings an impactful voice to an issue that is the heart of our business, hen welfare."
Recently, Walmart announced its enhanced commitment to humane treatment of animals by adopting the globally recognized "Five Freedoms" of animal welfare, which bans the use of extreme confinement systems for farm animals. The retail expansion with the happy egg co. further validates Walmart's commitment to continuous improvement in the welfare of farm animals in its supply chain.
According to the Food Marketing Institute's annual U.S. Grocery Shopper's Trends study issued on June 10, the number of consumers who think it's important that grocery stores practice animal welfare has grown from 17% to 21%, elevating this issue as top-of-mind for U.S. shoppers. Further, an annual survey released by the American Humane Association revealed that 94.9% of respondents are concerned with animal welfare and a majority indicated that they are willing to pay more for humanely produced eggs. The Humane Society of the United States (HSUS) refers to the transition of a more humane approach to the nation's food system as an "unstoppable trend".
Meanwhile, one of the largest egg producers in the U.S. reported results for the fourth quarter and fiscal year ended May 30.
Net sales at Cal-Maine Foods Inc. for the fourth quarter of fiscal 2015 were $403.0 million, compared with net sales of $371.6 million for the fourth quarter of fiscal 2014. The company reported net income of $46.1 million, or $0.96 per basic share and $0.95 per diluted share, for the fourth quarter of fiscal 2015, compared with $31.5 million, or $0.66 per basic share and $0.65 per diluted share, for the fourth quarter of fiscal 2014.
For the fiscal year 2015, net sales were $1,576.1 million, compared with net sales of $1,440.9 million for the prior-year period. The company reported net income of $161.3 million, or $3.35 per basic share and $3.33 per diluted share, for fiscal 2015, compared with net income of $109.2 million, or $2.27 per basic share and $2.26 per diluted share, for the same period in fiscal 2014.
Dolph Baker, chairman, president and chief executive officer of Cal-Maine Foods, Inc., said: “Our financial and operating performance for the fourth quarter of fiscal 2015 marked a strong finish to another record year for Cal-Maine Foods. Sales for the fourth quarter were up 8.5 percent over the prior year, reflecting a 6.2 percent increase in total dozen shell eggs sold and 2.6 percent higher average selling prices compared with the fourth quarter of fiscal 2014.Specialty egg sales were a key driver of our performance for the year as we continued to expand our market reach. For fiscal 2015, sales of specialty eggs accounted for 19.8 percent of our total number of shell eggs sold and 27.2 percent of our shell eggs revenue. With the growing consumer demand for specialty eggs, we have also pursued additional opportunities to further enhance our product mix and offer a wide variety of healthy choices.The recent outbreaks of Avian Influenza (AI) in the upper Midwestern United States this spring have had a significant impact on our industry. Due to the outbreaks, it is estimated that the national flock has been reduced by over 40 million laying hens and pullets, or approximately 13 percent. As a result of the reduced supply, egg prices have moved significantly higher in recent months. While the warmer summer months seem to have reduced further transmission of AI, egg prices are expected to remain high until the national laying hen flock can be replenished."
