VeChain is providing blockchain technology for a newly launched food tracking program in China. It’s a partnership between the Chinese department of Walmart and consultancy company PricewaterhouseCoopers. The program launched with immediate effect and increased the value of VeChain native token, VET, with 50 percent after the announcement.
The price increase for VET came out of nowhere, but shows the blockchain companies can provide useful technology to major corporations. Especially in the case of supply chain tracking. Tracking food is becoming more and more important, and Chinese consumers value the origin of their food. Ever since the 2008 Chinese milk scandal, which hospitalized 54 thousand babies and killed six of them, Chinese consumers tend to buy western baby and infant formula instead of Chinese brands.
It’s interesting to see Walmart using a public blockchain technology provided by VeChain, instead of an in-house developed one. It shows that major corporations are also eyeing public blockchains for their services. Currently BMW and VeChain are testing a program to combat mileage fraud, while VeChain’s MyStory program has also partnered with smaller companies, like several Italian vineyards.
Walmart isn’t new to the blockchain game. Late 2018 the American branch of Walmart partnered with IBM for their Food Trust program. This program also involves companies like Albertsons, Carrefour, Nestle and Unilever.
Walmart issued a mandate last year to its suppliers of leafy greens, stating that they had to be on the blockchain by the end of September 2019. Failing to do so, would mean that Walmart would terminate the contract.
Also published on Medium.