Local Bounti Corp., an indoor vertical grower based in Hamilton, Mont., has confirmed an offtake agreement with Sam’s Club for its leafy greens production starting at its greenhouse in Byron, Ga.
An offtake agreement is a binding contract between a company that makes a product and a company that needs to buy that product. It formalizes the buyer’s intention to purchase a certain amount of the producer’s future output, according to Investing News.
“This exciting commercial development represents a powerful endorsement of our dedicated team that works tirelessly to deliver the highest quality locally grown produce to our customers,” Local Bounti president Brian Cook said in a news release.
Cook said the company will continue to seek sound ways to allocate its capital, with financial efficiency in mind, as it keeps expanding operations. National relationships like this one with Sam’s Club helps advance the corporation’s facility network.
Local Bounti will implement its Stack & Flow Technology at the new Georgia facility to meet existing demand. This proprietary method of indoor farming combines vertical farming and greenhouse-growing technologies to deliver high yields of diverse leafy greens at great unit economics, according to the release.
Through this process, Local Bounti can grow produce in an environmentally friendly manner that increases harvest efficiency and reduces the cost and carbon footprint of the production and distribution process.
Local Bounti supplies about 10,000 retail locations with its two brands, Local Bounti and Pete’s.
