Nutritional Growth Solutions will launch into 403 select Walmart stores in the US in a move which will rapidly expand its presence in its key target market.

Paediatric nutritional products provider Nutritional Growth Solutions (ASX:NGS) has expanded its deal with US’s largest general retailer Walmart.

NGS’s Healthy Heights KidzProtein canisters in chocolate and vanilla will be launched on shelves into 403 select Walmart retail storesacross the US by September.

Furthermore, NGS is transitioning its entire Healthy Heights portfolio of products to Walmart-owned (1P) fulfilment centres for enhanced and accelerated service to Walmart online shoppers.

The company already stocks its range on Walmart.com, the e-commerce channel of Walmart.  NGS CEO and managing director Liron Fendell is optimistic about the expansion into Walmart’s bricks-and-mortar stores.

“The evolution of our Walmart relationship to now include 403 bricks and mortar stores across the US sees the rollout of our retail expansion strategy tracking ahead of schedule and plays a large part in reaching our vision of Healthy Heights becoming a global household name in child nutrition,” Fendell said.

She said having Healthy Heights stocked in Walmart stores coincides with growing consumer demand for nutritional children’s products that are not only healthy, but also tasty, scientifically backed, and safe to use.

She said it is a trend the company is seeing across both the US and in other global markets in which it operates.

“To be able to supply our evidenced based, nutritional products to families across the US from our local manufacturing facility in Utah is a tremendous achievement and we are proud to play a role in children having access to products they need for healthy growth development,” Fendell said.

Doctors at Israel’s world-renowned Schneider’s Medical Centre have for more than 20 years been undertaking research and developing the NGS product range.

Move to reach more customers online

In addition to in-store placement for two KidzProtein products, Walmart is also onboarding the entire Healthy Heights product portfolio to “fulfilled by Walmart” on Walmart.com.

Previously, sales were supported on Walmart.com as “fulfilled by merchant” and supported by NGS’ existing distribution centre.

NGS said the change will improve its ability to reach more consumers and improve both exposure and access to the brand.

The transition to “fulfilled by Walmart” means the retailer will buy directly from NGS, and product will be carried in multiple Walmart-owned distribution centres for enhanced exposure to support rapid delivery and added consumer value.

NGS said the transition from Walmart Marketplace to fulfilled by Walmart from their DC’s is a significant step in NGS’ continued retail growth efforts.

Walmart marketing boost

NGS is also now able to tap into additional marketing activity via Walmart Connect, which will enable the company to reach more Walmart specific shoppers and drive both in-store traffic and online sales.

While unable to quantify the revenue that may be earned from the expanded agreement, NGS deems it significant since it is its first entrance into a major retail store chain in the US.

NGS expanded its grocery presence in the US in June, through an e-commerce distribution agreement with the country’s largest supermarket chain by revenue, Kroger Co (NYSE:KR)

It also builds on the recent US retail expansion distribution through United National Foods Inc, and online through Ralphs.com, Smiths.com, Rangeme.com. and Walmart.com

This article was developed in collaboration with Nutritional Growth Solutions, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

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