Shopify (NYSE:SHOP) is in the news Wednesday following the announcement of a deal with Chipotle (NYSE:CMG) to set up a virtual farmer’s market.
This deal has Shopify working with Chipotle to create virtual storefronts for the restaurant chain’s suppliers. This will allow them to sell their goods directly to customers. Chipotle says this is vital to help its suppliers overcome economic difficulties caused by the novel coronavirus pandemic.
Chipotle notes that it’s covering the costs of the storefronts for its suppliers for the first two years. It’s starting out with virtual farmer’s markets for Niman Ranch, Petaluma Creamery, Mckaskle Family Farm, and Meister Cheese.
Chris Brandt, CMO at Chipotle, said this about the Shopify news.
“It can be intimidating for many family farms to change the way they do business, so we’re giving our suppliers the right tools and resources to successfully launch improved eCommerce platforms. Our Food with Integrity values start with our farmers and helping them adapt to new technologies and ways of reaching the consumer is crucial for both the future of the farming industry and Chipotle.”
Chipotle is planning to promote these new virtual farmer’s markets via its TikTok channel. This will have Chad Brauze, CMG’s Director of Culinary and Menu Development Chef, sharing recipes inspired by the supplier’s offering on the channel.
SHOP stock was up 6.9% and CMG stock was up 1.6% as of Wednesday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.
