Sprouts Farmers Market 2014 Annual Report Download - page 12

selection of entrees, including gourmet burgers, pinwheels, stuffed chicken breasts, pork chops and
roasts. We believe that our customers value the freshness, quality and service level of our meat
department and this generates repeat traffic and purchases.
•Seafood. We offer a wide variety of seafood favorites delivered up to six days a week. We carry
multiple options for baking, sautéing, or grilling and round out our assortment with wild fresh
species while in season.
•Deli. We feature a broad array of fresh deli specialties, including high-quality sliced deli meat,
salads, dips, entrees, side dishes and fresh made to order sandwiches at value prices and an
abundant selection of cheeses from around the world.
•Bakery. Our focus on fresh, high-quality and unique “signature” products is evident in our bakery
department, which is located at the entrance to each store. Sprouts’ bakery offering includes
artisan bread alongside a wide assortment of sandwich breads, rolls, tortillas, pitas, muffins,
cookies and pies as well as sugar free, gluten free and low carbohydrate products. We bake a
large selection of products fresh in-store every day to enhance the overall customer experience.
•Dairy and Dairy Alternatives. Our dairy department features a wide selection of organic, natural
and regionally sourced milk, yogurt (including Greek, Australian, organic, and soy-based), butter
and eggs, as well as a full selection of vegan and vegetarian alternative dairy products.
•Frozen Foods. Our freezer cases feature traditional and ethnic natural and organic entrees and
side dishes, along with frozen vegetables, desserts and specialty items, such as gluten-free
breads and non-dairy ice creams.
•Beer and Wine. We offer a carefully selected assortment of craft beers, microbrews and premium
beers from around the world and an expansive variety of domestic and international wines, many
of which we price at $10 or less. We also stock Kosher, organic, sustainable and biodynamic,
local, exclusive-to-Sprouts and even non-alcoholic wines.
•Natural Health and Body Care. Sprouts offers approximately 2,500 natural, cruelty-free health and
beauty products, old-fashioned remedies and modern body care innovations, including facial care
products and make up, skin, hair, dental, baby care and grooming products, all at value-oriented
prices.
Private Label
We have been expanding the breadth of our Sprouts branded products over the last several years and
have a dedicated product development team focused on continuing this growth. These products uphold our
quality standards, and include no artificial flavors, colors or preservatives. We believe our private label
brand features competitively priced specialty and innovative products, at quality levels that equal or exceed
national brands. We have increased our portfolio of private label items from approximately 800 items at the
end of 2011 to approximately 1,500 as of December 28, 2014. We believe our private label products build
and enhance the Sprouts brand and allow us to distinguish ourselves from our competitors, promoting
customer loyalty. Our private label brands generally provide us with increased margins and our customers
with lower prices compared to branded products.
Sourcing and Distribution
We manage the buying of, and set the standards for, the products we sell, and we source our products
from over 850 vendors and suppliers, both domestically and internationally.
We believe, based on our industry experience, that our strong relationships in the produce business
provide us a competitive advantage and enable us to offer high-quality produce at prices we believe are
significantly below those of conventional food retailers and even further below high-end natural and organic
food retailers. Given the importance of produce to our stores, we source, warehouse and distribute all
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