Vallarta Supermarkets has positioned itself as a leader in AI-powered food waste reduction, becoming one of the first regional grocers to deploy the technology at scale.
The family-owned California retailer completed the rollout of Smartway’s solution across 39 stores, marking a milestone for U.S. grocery operations.
From the outset, the initiative aimed to deliver operational transformation, not a limited technology pilot. At the same time, the partnership represents Smartway’s first full-scale deployment in North America.
A Pressing Challenge for the U.S. Grocery Sector
Food waste remains one of the most costly contradictions in the U.S. food system. In 2023, the United States wasted an estimated 91 million tons of food, while 18 million households faced food insecurity, according to the USDA.
Although households generate the largest share of waste, grocery retailers account for roughly 20% of total losses. These losses often stem from manual data checks, inefficient markdowns, and limited store-level visibility.
In many cases, products discarded on the shelf exceed their profit margins. As a result, federal and state authorities aim to reduce food waste by 50% by 2030.
However, adoption of advanced tools remains limited across the sector. Industry estimates show only 13% of retailers currently use artificial intelligence-based solutions.
Against this backdrop, Vallarta Supermarkets embraced AI-powered food waste reduction as both a business and operational priority.
“To have global impact, addressing the U.S. market is essential,” said Smartway co-founders Christophe Menez and Paul-Adrien Menez.
Rapid Deployment Across 39 Vallarta Stores
Speed became a defining factor of the project.
First, Vallarta launched a three- to four-month pilot across five stores to validate results and workflows. Next, teams dedicated one month to planning, alignment, and operational preparation. Finally, Vallarta deployed the technology across 34 additional stores in just five weeks.
Today, the solution operates across center store grocery, deli, frozen, and dairy departments. These areas traditionally demand significant labor for expiration tracking.
Smartway’s on-device artificial intelligence automatically identifies products approaching expiration.
As a result, teams reduce manual checks and minimize execution errors.
Related Article: Vallarta Supermarkets Expands its Reach with its First Store in Arizona
How AI-Powered Food Waste Reduction Reshapes Store Operations
The shift to AI-powered food waste reduction has changed daily operations across Vallarta stores.
Store teams now receive clear, prioritized guidance on which products require immediate action. Consequently, employees work more efficiently and focus on higher-value tasks.
At the same time, headquarters teams gain real-time visibility into store-level performance. This transparency replaces paper-based reporting and eliminates box-checking behaviors.
Rodrigo Jimenez, director of shelf edge at Vallarta Supermarkets, highlighted the operational contrast.
“Our previous solution required many manual steps,” Jimenez said. “With Smartway, everything worked smoothly from the first store.”
Moreover, Smartway’s field-first approach accelerated adoption. Its U.S. team worked directly in stores, trained employees, and aligned the tool with existing routines.
Strong Adoption and Store-Level Engagement
Survey results from Vallarta stores reflect high engagement with the platform. Store teams rated overall adoption at 4.85 out of 5. Communication quality scored 4.7, while installation and setup earned a 4.6 rating.
Employee feedback consistently highlighted simplicity and speed.
“The program is very user-friendly,” one team member noted. “It’s easy to manage and fits naturally into daily routines,” another added.
From a leadership perspective, results validated the rollout strategy.
“The execution and results speak for themselves,” said Steve Netherton, CIO of Vallarta Supermarkets.
Smartway Expands its U.S. Presence
Founded in 2012, Smartway helps retailers turn food waste from a loss center into a performance lever. The company pioneered zero-waste departments in Europe, where near-expiration products are grouped and discounted.
Over time, Smartway developed an integrated AI-powered platform. The solution detects at-risk products and automatically calculates optimal markdown rates.
At the same time, it ensures expired items never reach store shelves. To date, Smartway reports saving more than 420 million products from waste. It has also delivered $175 million in additional profit to retail partners.
With deployments in 12 countries, the Vallarta Supermarkets partnership marks Smartway’s strategic entry into the U.S. market.
Together, the companies reinforce AI-powered food waste reduction as a scalable, results-driven solution for modern grocery retail.