Whole Foods 2014 Annual Report Download - page 6

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We offer the broadest selection of high-quality natural and organic products, with a strong emphasis on perishable foods. An
average store carries more than 32,000 SKUs, with some of our larger stores carrying up to 49,000 SKUs. Our product selection
includes, but is not limited to: produce and floral, grocery, meat, seafood, bakery, prepared foods and catering, coffee, tea, beer,
wine, cheese, nutritional supplements, vitamins, body care, and lifestyle products including books, pet products, and household
products. Approximately 30% of our sales, outside of prepared foods and bakery, were organic in fiscal year 2014. The following
is a summary of annual percentage sales by product category for the fiscal years indicated:
2014 2013 2012
Perishables:
Prepared foods and bakery 19.2% 19.0% 18.9%
Other perishables 47.6 47.2 47.0
Total perishables 66.8 66.2 65.9
Non-perishables 33.2 33.8 34.1
Total sales 100.0% 100.0% 100.0%
Exclusive Brands
Our exclusive brands program, which generated approximately $1.8 billion in sales in fiscal year 2014 and currently features
approximately 4,400 SKUs, is a key component of our value platform and essential to our product innovation and differentiation
strategy. In fiscal year 2014, exclusive brands accounted for approximately 13% of total retail sales and 18% of non-perishable
sales. Our 365 Everyday Value® brand accounts for approximately half of our exclusive brand items, and over one-third of our
exclusive brand offerings are certified organic. Other brands include, but are not limited to, Allegro Coffee, Engine 2 Plant-
Strong, and Whole Foods Market. Successful product launches in fiscal year 2014 included our 365 Everyday Value pre-packed
chicken, Whole Paws® pet products, 365 Everyday Value and Whole Foods Market frozen dessert and novelties, and Whole
Catch® wild-caught frozen seafood steaks and fillets. In addition to our exclusive brands, we regularly offer more than 400
temporary exclusives, which are branded products that are unique to Whole Foods Market in terms of flavor, size or other
attributes.
Health Starts Here®
We believe our Health Starts Here program and our positioning as America’s Healthiest Grocery Store™ are key competitive
advantages. Health Starts Here is a mindful approach to healthy eating rooted in four simple principles to build better meals:
Focus on Whole Foods, Eat Plant-Strong™, Choose Healthy Fats, and Consider Nutrient Density. Products in our salad and hot
bars, prepared meals in our self- and full-serve cases, and all prepared foods venues that meet these guidelines carry our “Health
Starts Here” logo. In addition, in fiscal year 2014, several stores piloted our Health Starts Here “Good, Better, Best” rating
system. Created by doctors and registered dietitians based on scientific research as well as guidelines proposed by the USDA,
U.S. Food and Drug Administration (“FDA”), World Health Organization and American Heart Association, this new rating
system was designed to help customers find the most health-promoting foods in our stores.
Responsibly Grown
In October 2014, we introduced our Responsibly Grown “Good, Better, Best” rating system for produce and flowers. Using a
science-based index, Responsibly Grown measures performance on important sustainable farming topics, including pest
management, farm worker welfare, pollinator protection, water conservation and protection, soil health, ecosystems and
biodiversity, waste, air, energy and climate. The new ratings provide greater transparency for our shoppers, allowing them to
make more informed decisions, and recognize growers for responsible practices that go beyond their organic and local efforts.
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. Nearly 500 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.
Commitment to Local
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, 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 2014, approximately 24% of the
produce sold in our stores came from local farms. Through our Local Producer Loan Program we have budgeted up to $25