Whole Foods 2011 Annual Report Download - page 10

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stakeholders, each of which is linked interdependently. By maintaining our core values, regardless of how large we become,
we are able to preserve what has always been special about our Company.
Our core values are:
• Selling the highest quality natural and organic products available;
• Satisfying and delighting our customers;
• Supporting team member happiness and excellence;
• Creating wealth through profits and growth;
• Caring about our communities and our environment;
• Creating ongoing win-win partnerships with our suppliers; and
• Promoting the health of our stakeholders through healthy eating education.
Differentiated Product Offering
We offer a broad and differentiated selection of high-quality natural and organic products with a strong emphasis on
perishable foods. Our product selection includes, but is not limited to: produce, seafood, grocery, meat and poultry, bakery,
prepared foods and catering, specialty (beer, wine and cheese), coffee and tea, nutritional supplements, vitamins, body care,
educational products such as books, floral items, pet products and household products. We estimate our stores carry on
average approximately 21,000 SKUs.
The following is a summary of annual percentage sales by product category:
2011 2010 2009
Non-perishables 33.2% 33.5% 33.8%
Prepared foods and bakery 18.8 18.8 19.1
Other perishables 48.0 47.7 47.1
Total sales 100.0% 100.0% 100.0%
Natural foods can be defined as foods that are minimally processed, largely or completely free of artificial ingredients,
preservatives and other non-naturally occurring chemicals and as near to their whole, natural state as possible. Organic foods
are grown through methods intended to support and enhance the earth’ s natural balance. Under the U.S. Department of
Agriculture’ s (“USDA”) Organic Rule, implemented into federal law in 2002, all products labeled as “organic” in any form
must be certified by a USDA-accredited certifying agency. Furthermore, all retailers, including Whole Foods Market, that
handle, store and sell organic products must implement measures to protect their organic integrity. Generally, organic food
products are produced using:
• agricultural management practices intended to promote and enhance ecosystem health;
• no genetically engineered seeds or crops, sewage sludge, long-lasting pesticides, herbicides or fungicides;
• livestock management practices intended to promote healthy, humanely treated animals by providing organically
grown feed, fresh air and outdoor access while using no antibiotics or growth hormones; and
• food-processing practices intended to protect the integrity of the organic product and disallow irradiation,
genetically modified organisms (“GMOs”) or synthetic preservatives.
Our Quality Standards
We aspire to become an international brand synonymous with not just natural and organic foods, but also with being the
highest quality food retailer in every community in which we are located. We believe our strict quality standards differentiate
our stores from other supermarkets and enable us to attract and maintain a broad base of loyal customers.
• We carefully evaluate each and every product we sell.
• We feature foods that are free of artificial preservatives, colors, flavors, sweeteners and hydrogenated fats.
• We are passionate about great tasting food and the pleasure of sharing it with others.
• We are committed to foods that are fresh, wholesome and safe to eat.
• We seek out and promote organically grown foods.
• We provide food and nutritional products that support health and well-being.
Store Brands
Our nationally driven store brands currently feature approximately 2,600 SKUs led by our primary brand, 365 Everyday
Value®, along with a grouping of “exclusive” and “control brand” products. While some of our store brands yield greater
margins than their national brand alternative, their primary purpose is to help differentiate our product selection and provide