How Walmart's Great Value Brand Is Able To Keep Its Milk Prices So Low

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Walmart is known for being home to some of the cheapest groceries on the shelf, and its Great Value milk is no exception. For example, a local Miami Walmart advertises a gallon of Great Value whole milk at $2.88, while a gallon of the popular Borden brand is listed for $5.84. The dramatic difference in price is the result of Walmart's ability to control production strategically, employ a carefully curated pricing model, and use the power of large-scale operations to stay ahead of the competition.

Walmart doesn't just sell milk; it helps make the product. For instance, it already owns a milk processing plant in Indiana. As of this writing, a second facility is expected to start operations in Georgia in 2025, and another is set to open in Texas in 2026. The chain can cut out third-party processing companies while also benefiting from tax incentives. Its processing plant led to nearly $3 million in tax credits in Indiana. Similar arrangements could create savings of up to $8 million in Georgia and an estimated $9 million in Texas. The result is a streamlined supply chain and lower prices on the shelf.

In many cases, Great Value milk has come from the same regional dairies that supply the big name-brand versions. By sourcing directly and handling distribution internally, the retailer is eliminating the middleman expenses and reducing transportation costs. Combined with a massive national infrastructure, Walmart can deliver milk at prices few competitors can match.

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Walmart's low-cost milk is just one example of its playbook: Whether it's cereal, chocolate bars, or another popular product, Great Value offers more affordable alternatives to name brands. Even as grocery prices rise nationwide, the grocery store continues its retail takeover, thanks in part to that dynamic. Rather than spend extra on eye-catching branding, customers can reach for Great Value items that often perform similarly to the brands we know. For example, our comparison of Great Value Milk Chocolate Crispy Wafer Bars and Kit Kats showed how choosing lower-cost alternatives doesn't always mean getting lower quality.

As Walmart expands and updates its stores across the country, its already-massive distribution network is only getting stronger. Having more control over the supply chain enables Walmart to offer steady prices. It even beat out Target in the battle of the cheapest groceries despite the fact that the latter store also has low prices. For example, even though a Miami Target lists a gallon of Good and Gather whole milk for $2.89, Walmart can still charge a penny less. Great Value may not have the frills of national brands, but for shoppers focused on affordability, it delivers.