Whole Foods 2013 Annual Report Download - page 12

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Exclusive Brands
Our exclusive brands are a key component of our differentiation strategy. In fiscal year 2013, our exclusive brands accounted
for approximately 16% of our non-perishable sales and approximately 12% of our total retail sales, up slightly from 15% and
11%, respectively, in fiscal year 2012. Our 365 and 365 Organic Everyday Day Value® brands account for approximately half
of our exclusive brand items. Additional brands include the “Whole” family of brands (e.g., Whole Foods Market, Whole Catch,
Whole Fields, Whole Pantry, Whole Living, Whole Paws, etc.), Allegro Coffee, Engine 2, Wellshire Farms, and Nature’s
Rancher, among others.
Value Programs
We remain committed to the highest quality standards and to providing a clear range of choices in every category, both of which
we believe are important in driving our sales growth over the long term. In addition to offering our 365 Everyday Value brands,
we have competitively matched prices on thousands of known value items, extended value choices to our perishables departments,
promoted our regional and national one-day sales, and focused on improving customer awareness about the value we offer in
our stores. We also have The Whole Deal, our printed value guide, available in all our stores in the U.S. and Canada, as well as
online. The value guide features supplier-sponsored and Whole Foods Market store brand coupons, budget-conscious recipes,
money-saving shopping and cooking tips, and Sure Deals that highlight everyday value pricing on high-quality products our
customers love.
Health Starts Here®
We are offering an increasing selection of products in our stores meeting the Health Starts Here nutritional and ingredient
standards. Health Starts Here is a mindful approach to healthy eating rooted in four simple principles to build better meals –
Whole Food, Plant-Strong™, Healthy Fats, and Nutrient Dense. Products such as frozen items, breads and prepared foods that
meet these guidelines carry our “Health Starts Here” logo. In addition, our stores feature signage on the Aggregate Nutrient
Density Index (“ANDI®”), a proprietary scoring system that ranks foods based on nutrient density (vitamins, minerals,
antioxidants and phytochemicals) per calorie.
Whole Trade® Guarantee
Products with the Whole Trade Guarantee label are sourced from developing countries and meet our high quality standards,
provide more money to producers, ensure better wages and working conditions for workers, and utilize sound environmental
practices. Approximately 400 products in our stores carry our Whole Trade Guarantee seal, and demand for these products
continues to grow. Whole Foods Market donates 1% of sales of these products to Whole Planet Foundation® to help alleviate
world poverty.
Locally Grown
We are committed to buying from local producers whose products meet our high quality standards, particularly those who are
dedicated to environmentally friendly, sustainable agriculture. For some stores, “local” is defined as within a certain mile radius,
and for others, it means within the metro area, state, or tri-state area. Buying local allows us to offer our shoppers the freshest,
most flavorful pick of seasonal products; it bolsters local economies by keeping money in the pockets of community growers;
and it contributes to responsible land development and the preservation of viable green spaces. Whole Foods Market currently
purchases produce from more than 2,000 different farms through various suppliers, and in fiscal year 2013, approximately 25%
of the produce sold in our stores came from local farms. In fiscal year 2007, we established a budget of up to $10 million to
promote local production through our Local Producer Loan Program, and in fiscal year 2013, we increased our budget to $25
million. As of September 29, 2013, we had disbursed approximately $10 million in loans to 147 local producers company-wide.
Animal Welfare
Whole Foods Market is dedicated to promoting animal welfare on farms and ranches. We encourage innovative animal production
practices that improve the lives of animals raised for meat and poultry in our stores. We also have strong standards for food
safety at processing. Work on our “animal compassionate” standards started in 2003, and development of an additional tiered
standards program transitioned to the Global Animal Partnership foundation in 2008. Global Animal Partnership’s 5-Step™
Animal Welfare Rating system standards have been developed for cattle, pigs, chickens and turkeys. The 5-Step program launched
in 2011 and is currently reflected in meat departments in all of our stores in the U.S. and Canada.
Seafood Sustainability
We continue to collaborate with the Marine Stewardship Council (“MSC”) to offer as much MSC-certified seafood as possible.
For wild-caught seafood, we label our products with color-coded seafood sustainability ratings developed by partnering
organizations Blue Ocean Institute and Monterey Bay Aquarium. Ratings are based on key criteria for sustainable fisheries using
science-based, transparent ranking methods. Since April 2012, we have not sold any wild-caught seafood from “red-rated”
fisheries. For farmed seafood, our standards continue to be the highest in the industry. The “Responsibly Farmed” logo in our