Butcher Box’s grass-fed beef lands in Target stores
After a decade in the subscription business, ButcherBox is selling fresh, grass-fed beef in grocery stores with a tightly curated five-SKU launch in 1,463 Target locations.
Reba Hatcher, chief commercial officer at ButcherBox, told Modern Retail that the exclusive retail debut aims to complement the company’s existing business at a time when shoppers are looking for healthier food options. Target, in particular, was seeking grass-fed beef as part of its new focus on health and wellness, Hatcher said. It’s also tapping into demand from protein-hungry shoppers.
The assortment includes two types of ground beef and three steak cuts — ribeyes, New York strips and top sirloins. Hatcher said these tend to be quick grabs for people who are navigating what she calls the “4 o’clock problem,” when they don’t know what they’re making for dinner.
“You have to make sure it’s products that they can easily cook and that it’s what they’re familiar with,” Hatcher said. “Those five products have been top movers in grocery, so we figured that would best match up with what people are doing, while also giving them that healthy option at Target.”
The launch comes after ButcherBox surpassed $570 million in revenue last year and had its busiest December yet by number of boxes shipped. It’s also an evolution of the company’s partnership with Target, which began in April when it started selling curated boxes of frozen products via Target’s online marketplace.
The company this week also announced a price increase for its main box, from $169 to $179. The company said in an email to Modern Retail that it has absorbed rising costs since its last price increase in 2022. But this year’s increase is offset by the buying power it gains from taking on Target wholesale orders. “The short answer is that the Target partnership didn’t drive our price increase — if anything, it helped reduce it,” Hatcher said.
Still, Hatcher said, while in-store sales can be a critical driver for new subscriptions, ButcherBox wants to stay true to its online origins.
“The main measures of success is that we’re showing up with a quality product, we’re seeing the product move on shelves, and we’re able to give the right attention to our subscription business, all at the same time,” she said.
Noah Bremen, founder and CEO of the omnichannel brand partner Pltfrm, said that having an existing community of shoppers to draw from is a boost for any DTC brand that enters retail. But beyond that, Bremen said, it’s paramount to have a strong partnership with the retailer to ensure shoppers notice that there is something new and different to buy.
“You don’t want a retailer to just stick you on a shelf without showing off why you’re unique and what’s special about your product,” he said. “If you launch and they’re not really partnering with you, but you’re just going in? That’s a miss for that brand.”
On shelf, ButcherBox is showing up with bright teal labels and signage announcing its arrival. Target highlighted the launch in its press release last week about its new wellness offerings, and there will be extra online advertising promoting the products for in-store orders.
Beyond trying to attract new customers, Hatcher said ButcherBox will also give a heads-up to existing subscribers who may be looking to get ButcherBox fresh for that night. Company data shows that around a third of its customers live within three miles of a Target.
Hatcher said the company also wants to compete on price and is keeping products in line with Target’s private-label Good & Gather brand — like $7.99 for a pound of ground beef or around $10.99 for a 10-ounce New York Strip. To that end, it’s an opportunity to reach a customer who is comfortable with in-store ground beef pricing but averse to signing up for a three-digit subscription.
“We want to make sure we come to market with something very competitive,” she said. “We’re really trying to drive trial-based actions from a lot of customers and want them to feel like they’re getting a great value.”