Oct 25, 2017|
JD.com Enters Exclusive Strategic Partnership with Smithfield, World’s Top Pork Processor and Hog Producer
JD.com has announced a strategic partnership with Smithfield Foods, Inc., a global food company and the world’s largest pork processor and hog producer. Under the agreement, JD will become the exclusive seller of the Virginia-based company’s frozen pork products in China.
Smithfield will offer pork products popular in China, such as pigs’ feet, bellies, tenderloins and other cuts to JD’s more than 258 million customers, with more to be introduced in the future. Smithfield’s debut on JD.com marks the first time it is selling its fresh frozen pork to customers online in China. JD expects to sell some 22 million pounds of Smithfield U.S. pork over the next three years.
China is the world’s largest producer, consumer and importer of pork. According to official estimates, Chinese pork imports more than doubled in 2016, reaching a substantial 1.6 million tons shipped, primarily from the U.S. and Europe.
Meat products are a fast-growing category for JD. In the first half of 2017, gross merchandise volume (GMV) from direct sales of meats on JD increased more than 780 percent year-over-year, with imported meat accounting for more than 30 percent of those sales. In June 2017, sales of imported pork were nearly double the prior month. Online orders for fresh and frozen meat come chiefly from first and second-tier cities, leaving huge potential for growth in online sales from the rest of the country.
“Consumers put their trust in Smithfield every time they eat one of our products,” said Kenneth M. Sullivan, Smithfield Foods president and CEO. “That’s why the safety and quality of our foods is fundamental to our success as a company, and why our corporate mission is simply to provide ‘Good food. Responsibly.’ Working with JD, we have full confidence that consumers across China will enjoy the freshest possible pork products. JD is truly a leader in cold chain delivery, ensuring our meat will be delicious when it reaches Chinese consumers.”
Richard Liu, JD.com chairman and CEO, said, “Ensuring the quality, safety and reliability of everything we sell is part of JD’s overall commitment to our customers. When it comes to food, and particularly a major staple of Chinese households like pork, this is even more critical. That’s why we are pleased to be working with Smithfield, a trusted and respected partner with a long history in the industry, to offer easy access to high-quality choices for even more families around the country.”
JD’s extensive cold chain logistics capabilities will ensure Smithfield’s products arrive at customers’ doors safely and rapidly. Smithfield’s frozen pork will be cold-chain transported from the U.S. and stored in JD’s own warehouses in China. From there, JD can deliver it to customers in more than 100 cities across the country within 48 hours – and to many in as little as six hours. With its complete cold chain solution, JD can monitor the temperature and humidity of products from warehouse to delivery. JD’s cold chain logistics network currently includes 11 cold chain warehouses in China, enabling the delivery of fresh products to customers in 300 cities.
JD, Smithfield, and Shuanghui, Smithfield’s sister company in China, will also cooperate on marketing, supply chain, cold chain logistics, technology, as well as other areas.