1. Whole Foods Market Vendor & Broker Summit
10/17/14

2. We Sell the Highest Quality Natural and Organic Products Available
We Satisfy, Delight and Nourish Our Customers
We Support Team Member Happiness and Excellence
We Create Wealth Through Profits & Growth
We Serve and Support Our Local and Global Communities
We Practice and Advance Environmental Stewardship
We Create Ongoing Win-Win Partnerships with Our Suppliers
We Promote the Health of Our Stakeholders Through Healthy Eating Education
WFM Core Values

3. The information presented in this deck is specifically applicable to Whole Foods Market Northeast, and not applicable to any other WFM regions
Conversely, the approach for any other region of Whole Foods Market will not necessarily apply in WFM NE
Please reach out to Regional Grocery Leadership in any WFM region to understand their policies, processes, & protocols
***Disclaimer***

4. WFM NE Regional Grocery Team
NE Regional Grocery Coordinator Kara Rubin oversees all aspects of the Grocery Program for the NE region, including strategic development of the grocery program, operations, distribution, systems, & merchandising processes. NE Local Forager Elly Truesdell manages the onboarding process & relationships with the numerous local brands of the Northeast Region across all store teams. Elly will be interim Grocery Coordinator when Kara takes maternity leave. NE Regional Grocery Buyers John Lawson is responsible for managing the NE product mix, including new item selection process, category reviews, discos, core lists Sandy Daus is responsible for promotional strategy, planning, and pricing, as well as many special one-off programs in stores NE Regional Grocery Purchasing Assistant Tim Lapietra assists Kara, Sandy, and John with taming & organizing the endless flow of information from our vendor partners NE Regional Associate Coordinators Dan Morrison works with Space Planning tools to maximize use of shelf space for reset planograms, as well as new stores, renovations, & remodels Johan Sanchez & Kelvin Abdulla (with one vacancy remaining to be filled soon) are our operations points - each of them answer specific store questions, drive reset execution, organize layout, tweak merchandising, and engage & support both new item as well as promotion execution at store level
WFM NE Regional Grocery Team

5. 2014 Recap WFM Northeast added 3 stores in 2013: And 2 stores in 2014:
Danbury, CT, in May
Portchester, NY, in October
Brooklyn, NY, in December
And 2 stores in 2014:
Marlboro, NJ, in May
Albany, NY, in June
NE Grocery program grew fastest in all WFM regions, at 14% YOY
NE Grocery increased its share of all WFM Grocery by 50 bp YOY
NE remains 5th ranked WFM Grocery region in overall sales
2014 Recap

6. Recap of Prior Years…& 2015 Prior Years’ Themes
* Newest coolest trendiest items
* Brand building with promo focus
* Strengthening our foundation
* Mission & Innovation
2015 is the year of NEW DIRECTIONS, as we (Sandy & John) have plunged into and continue to acclimate to our respective programs. We hope to quickly establish baseline expectations with you, our vendor/broker/distributor partners, and build out from a well-established core. We are both building on solid programs and hope to work closely with you as we take the Northeast Grocery program in exciting new directions.
Recap of Prior Years…& 2015

7. 2015 Topics for Review New item presentation
Honoring quid pro quo reset agreement
Meetings & Business Reviews
Measuring performance in NE
WFM Standards Review
Innovating together
Promotions
Proper communication pathways
Policies & procedures
What to expect in 2015?
2015 Topics for Review

8. New Item Presentation NE follows a Category Review Calendar
Category Review refers to the order in which WFM Regional Grocery Teams systematically review brands’ performance across their region’s stores
NE will not consider products out of cycle in most cases
Category submissions must follow guidelines in order to be considered:
Final product samples must be submitted
Product Powerpoint slide must be correctly filled out and ed (Brokers’ exception: meetings)—please NO PDF, PPT only
Subject line of MUST include the round # for which product is submitted
A completed PIE should be sent to line up with the initial submission (to John only).
When final selects are circulated, a revised, edited PIE should be sent to Tim (cc: John) with just the selected products.
Submissions must arrive by the due date indicated on the calendar (updated calendar is located on the NE Vendor Information website:
New Item Presentation

9. New Item Presentation Category Submission (cont.):
Free fill should be noted on the Cat Review Vendor PPT; we will also require confirmation when round selects are circulated
First promotions should be submitted for the month after a product launches (e.g. Feb promo for Jan launch)
Any product can be input in VIP—WFM NE only pulls data for authorized SKUs
Any product can be sent to CEN team for space planning imaging—WFM NE only pulls data/images for selected/authorized SKUs
Failure to submit products properly for space planning may result in planogram struggles for those items at the reset
If a UPC is set up incorrectly, this requires a free fill for all planogrammed stores to correct.
New Item Presentation

10. New Item Presentation Delivering samples
Samples can be shipped to the NE office (USPS, Fedex, UPS, etc)
Sorry, we do not confirm receipt of samples—consider using tracking
Samples can also be dropped off at NE office
If dropping off samples, please do not ask Reception TM to put it away immediately
If your product is perishable, frozen or refrigerated, please CLEARLY mark the outside of the box as PERISHABLE or KEEP REFRIGERATED.
Make sure you add enough coolant (ice packs, dry ice, etc) to maintain temp
Dry ice is very painful to the touch—please consider that when packing your samples
Please deliver samples Monday – Thursday, Friday delivery may be refused or discarded
Notes on product samples:
Styrofoam packing peanuts are strongly discouraged
Please always use only sustainable/recyclable packing material, if using popcorn make sure it is biodegradable and does not stick to the product.
Always affix contact info (onto every product sample—name, phone #, address), whether that is broker or producer—if you do not sticker an item, how will we know who to contact if it’s selected??
We request a max of two item samples per product for review
Please do not send the same products repeatedly for the same review
Any submitted product should have a clearly marked code date on the package
Paperwork included in the submission must also be ed.
New Item Presentation

11. New Item Presentation What is WFM Northeast looking for?
Differentiation—how does this product enhance & push forward the category?
Innovation—does this product break new ground? (design, packaging, usage, etc)
Trendsetting—in what way does this product harness current &/or up & coming trends?
Sustainability/Mission—what are the product’s attributes?
Exclusivity—where will the product be available outside of WFM, and when?
Relationship—does the brand have a history of win-win partnership with WFM NE?
Support:
Demo—what is the demo strategy (how many, where, and over what period) for this product?
Promo—has the brand experimented with discounts & price points, & also used Portal to triangulate optimal promo retail? Has the brand budgeted for a targeted promo strategy?
Marketing—does the brand drive traffic to WFM using social media? Does the brand have a cohesive Marketing strategy?
New Item Presentation

12. Product Transition Process
Same item, new distribution
Official WFM NE position is that distribution is up to the brand
That said, all distribution changes must be approved by WFM NE Grocery Team (since we will need to process & troubleshoot them)
Steps:
WFM NE approval
Current distributor signs off
Transition date is set (always Wednesday)
Paperwork submitted atleast 10 business days in advance
Disco and Transition Template
WFM Regional PIE (macro-enabled xlsm)
Both available on the NE Vendor Information website:
Brand, broker, &/or new distributor should plan to monitor stores on first day of transition to ensure the tags have properly flipped
WFM NE reserves the right to require free fill as a cost for processing a distributor transition
Product Transition Process

13. Product Transition Process
Same distribution, new UPC
WFM NE policy requires free fill (to all current planogrammed stores) to process this transition
Free fill component allows for a hard cutoff on the old UPC, thereby avoiding residual scan issues
This creates a win-win for WFM and the brand—less data hangover + reduced customer confusion at the shelf
Steps:
Brand notifies WFM NE Team about 4 weeks in advance of pending change
Transition date is set (always Wednesday)
Brand submits paperwork atleast 10 business days in advance
Free fill authorization
Disco and Transition Template
WFM Regional PIE (macro-enabled xlsm)
Both available on the NE Vendor Information website:
Grocery teams are notified over regular weekly Update & Conference Call
Free fill ships for the Monday before the Wednesday transition
On the Wednesday of the transition, NE will shut down (disco & deauth) the old UPC and teams will follow direction to loss out & donate remaining inventory, and replace with new SKU on the shelf
It is always a best practice for brand &/or broker to monitor stores on first day of transition to ensure the tags have properly flipped and product has been properly replaced
Product Transition Process

14. Product Transition Process
Same UPC, same distributor, with VIN, size or other attribute change
There is no free fill requirement for this transition
Steps:
Brand notifies WFM NE Team about 4 weeks in advance of pending change
Transition date is set (always Wednesday)
Brand submits paperwork atleast 10 business days in advance
Disco and Transition Template
WFM Regional PIE (macro-enabled xlsm)
Both available on the NE Vendor Information website:
Grocery teams are notified over regular weekly Update & Conference Call
Brand, broker, &/or new distributor should plan to monitor stores on first day of transition to ensure the tags have properly flipped
Product Transition Process

15. Product Transition Process
Other Transitions
Swapping out SKUs
Swapouts or “fixing the mix” should be submitted with the relevant round
While a brand should not assume neutrality before sales data is rolled up, a brand should always submit any needed SKU neutral, one-for-one exchanges to maintain blocs
In Cat Review process we will always consider these swaps if the brand performance justifies
Product Transition Process

16. Reset Attendance Policy
Rules for “Quid Pro Quo” Agreement – Distributors, Brands & Brokers
When you miss one reset, you must make it up with two
A callout must take place before the reset period has ended
The callout should be an to WFM NE (To: Johan; CC: John)
WFM NE alone will determine which two resets you’ll be assigned as makeup
If you do not properly call out for a reset, any next upcoming meeting will be cancelled. This will be considered a “strike two”, with third strike initiating next point (below).
When you miss three resets, even if you have properly called out, we will cancel all planned meetings for that Fiscal Year.
When you miss four resets we will pull all promotions for your brands for one month, in addition to the penalty above.
Beyond this point, it becomes necessary to reassess your relationship with WFM NE.
Reset Attendance Policy

17. Reset Attendance Policy
Rules for “Quid Pro Quo” Agreement (continued)
The bottom line is this—WFM NE Team allocates significant time working with Brands & Brokers through ongoing and comprehensive communications. In exchange, we must ask that you & your team honor your commitments to ours. Please show up for scheduled resets. This is the WFM WIN-WIN partnership core value.
WFM NE has always done our best to honor requests for resets at specific stores. Due to the complexity of scheduling dozens of merchandisers across 30 stores, we cannot guarantee to accommodate such requests and the responsibility remains on the brand/broker to ensure staffing for every scheduled reset.
Reset Attendance Policy

18. Business Review Process
Mandatory for all Brand meetings
An up-to-date version of the NE Business Review must be filled out completely (failure to have this document will forfeit the meeting)
We always want to look at new item innovations, however we also require brands to bring homework (Business Review PPT):
Focused, concise and “apples to apples” sales data
Category conclusions and trends
Competitive landscape for the brand and its category
REG and SAL pricing analysis
Be granular when reviewing your brand
If you sell products in multiple segments, break out the sales & data for each segment
Address decline or growth in each of those segments separately (use a separate sales slide for each segment you are reviewing)
Timing is everything! Don’t exceed your allotted meeting time, or we will have cut you off mid-thought (sorry!)
Business Review Process

19. Performance Metrics How can I measure my success in the Northeast?
WFM NE never offers benchmark targets for success, as those metrics are constantly changing
Use the Portal! It’s free! You will lose access if you don’t log in over a month period.
Work with Sandy on a muscular promo calendar
Determine a successful promo retail and drive volume by hitting that repeatedly
Get into the stores & train your Team Member sales force
Meet your customer/fans, and find new ones, by scheduling as many demos as you can manage
Remember also when you are looking at sales data to consider comp store sales vs all store sales—it’s a false positive if your sales are up based on new stores only
WFM NE cannot accept a regional EDLC or EDLP at this time
Performance Metrics

20. Other ways to optimize win-win partnership in WFM NE:
Planogram matrix—this can be requested up to once per month, send a list of UPCs in the proper format (no spaces, dashes, or check digits) in text format (ie, list in an ) to John. He will send back a grid of planogrammed stores by product/SKU.
Vendor portal access—please contact John for setup information. WFM NE, however, does not offer support for Portal issues.
Consider hiring a Broker who understands the WFM NE purchasing process—this is the best way to get your questions answered, your new items presented, and your existing auth’d SKUs promoted.
NE Demo program—for information on either Vendor Staffed Demos or Culinary Live Demos (done by WFM staff for a fee) please contact
Performance Metrics

21. Standards Review Non-GMO Project Verified
We’ve committed to labeling all food products in our US and Canadian stores to indicate whether they contain Genetically Modified Organisms (GMOs) by Many are already labeled and many more will be labeled ahead of this deadline know
Non-GMO Project Verified is the only certification for “no GMO” accepted by WFM (besides organic or biodynamic)
If a package claims no GMOs in any way, and does not label Project verification specifically, please be able to address GMO labeling status
2018 is only three years away, what steps has your brand/company taken toward compliance?
Standards Review

22. Standards Review Other claims
Unverifiable claims (All Natural, Nothing Artificial, etc)
Any claim(s) that cannot be verified by a third party certifier
These should be removed from product packaging
Green claims (biodegradable, ecofriendly, or any other similar callouts)
FTC Green Guide Compliance details can be found at
Gluten Free
All Gluten Free items are required to provide third party certification if selected—preferably before introduction to our stores
You can find details on submitting gluten free claims to our Global Quality Standards Team at the NE Vendor Information website:
Standards Review

23. Standards Review Sustainable/mission-based sourcing
Whole Foods Market strives toward transparency in all of our products.
To that end, we have both internal product standards, as well as recognized external ones.
Consider these attributes, and how/where they are impactful:
Standards Review

24. Standards Review Ecoscale Rating System
In 2011, Whole Food Market rolled out Ecoscale certification for cleaning products
All products sold in our stores must meet basic ingredient transparency requirements, and based on that an Ecoscale rating will be applied to each product (see below)
NE Grocery will be building a regular promotion program around Ecoscale rated items, please indicate the Ecoscale rating of your product on promo submissions
Standards Review

25. Standards Review Quality Standards As defined by WFM:
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
Acceptable Ingredients: products/quality-standards/food-ingredient
Standards Review

26. Innovation Ongoing Request for Proposal Concepts are welcome anytime!
We are open to ideas both within the Grocery Department footprint, as well as outside of it—store exterior, cross-merchandising proposal, café placement, etc.
We are always looking to tie new product launches—or innovative concepts—into new stores
Use the innovation Powerpoint (will be attached on recap) to submit new concepts
We have included questions on the slide to help guide your thoughts, please try to sketch the topline of your concept within the parameters of the PPT. 
If we are interested, we will get back to you—please understand that due to general volume of requests we cannot reply in every instance
Innovation

27. Please ensure your submission form is filled out correctly on the Northeast Submission Form; i.e., correct UPC in correct format, all data entered into the correct column, and either an A or B entered for Promo Period.
Incorrect Data will render Promo Submission Void
Indicate Month in subject
Send one month at a time in your
All promo submissions & queries must be sent to the following alias:
Items must have at least 15% promo discount (OI, MCB, or scan) in order to be considered
If you are submitting a promo for items that are distributed via DSD, all DSD partners must be copied on the promo submission , and each DSD partner must have the discount properly loaded in their Vendor Internet Portal (VIP) promo cost file.
Promo Submissions

28. Deadlines Deadlines are firm!! 2015 calendar is released.
Late submissions will be added as always, however:
Submissions received after the due date will not be confirmed.
There will be no volume projections to the distributor for late submissions
VIP must be loaded properly (no exceptions)
Invoicing must reflect correct discount (no exceptions)
Deadlines

29. New Item Promo Submission
When there is a line extension:
If the new SKU is being cut in during a given month, and the rest of the line is already scheduled to promote during that month, please make sure to submit a separate promo form for the new item(s) with specific instructions (including round # rollout) so we can slot in the new items, line price for the period, and not have missing sale tags for the given line
When there is an entirely new line:
We will not promote the new line until 1 month after the rollout, since not all stores will show the product until resets wrap up at the end of the month.
New Item Promo Submission

30. Discounting & Promotion Tiers
Shelf Special (TPR):
15% minimum discount (required always)
Any promotion submitted at a lesser discount will be rejected.
Scanbacks must meet the 15% threshold as well.
OI, MCB, and scanback can be combined to hit the 15% minimum.
Off Shelf Display:
Minimum 30% discounting required.
Meeting this discount does not guarantee off shelf placement.
OI, MCB, and scanback can be combined to hit the 30% minimum
Regional offshelf cannot be all scanback
Items merchandised in coolers do qualify as off shelf displays
Discounting & Promotion Tiers

31. Promo Cost Effective Dates
All WFM NE Promos must be loaded into VIP 30 days in advance of the buy-in date
Buy-in date (in all cases) is 7 days prior to promo (Wednesday before following Wednesday) start date.
All UNFI discounting is monthlong (Wednesday before promo starts through the last Tuesday of the B cycle in any period)
All other vendor discounting applies one cycle only (Wednesday before promo starts through the last Tuesday of the agreed cycle)
Promo Cost Effective Dates

32. It’s Wednesday…No sale tag in place?
First check to see if the product is scanning at the register
It is scanning at correct sale retail?
Please follow up with the Grocery Team to print a tag
Multiple Team Members have the ability to print tags
Confirm that all shelf locations are tagged
It is not scanning at the correct sale retail?
Please promo alias
Include details including UPC, store, picture (where necessary) and SRP for the promotion
Also, where possible please forward the original with attachment so we can trace any issues on our side
It’s Wednesday…No sale tag in place?

33. Feature Programs Weekenders 3 Day only sales (Friday through Sunday)
Funded by all scanback discounting, which protects supplier from distributor &/or store buy-in
Scanback applies Thursday through Tuesday
Deep & Fully funded discounting to hit BOGO Sale Retails
Sales Flyers, Social Media and heightened team member awareness through s, conference calls & recaps
Feature Programs

34. Feature Programs Contests Will always run monthlong (A&B promo cycles)
Contests require fully funded promotion
The standard prize format for contests requires vendors to offer
$25 gift cards to each Team Member on the winning team
For the 3 winning stores
1 store wins from each of these metrics:
Highest % of subteam sales
Highest % lift over predetermined prior period
Total volume sales
Focus for 2015, is including other subteams and products for proposed contests.
Feature Programs

35. New Store Openings & Store Focus Promotions
Grand Opening Discount
Request a 35% minimum discount for these promotions
The best deals will be accepted for off shelf features
Only accepted promotions will be confirmed
New Store Openings & Store Focus Promotions

36. Themed Promotions Focus on differentiation and mission
Request for proposals will be sent for specific themes
Discounting is expected to be along the lines of any off shelf deal
Product is preordered &/or allocated to all stores as part of the program
Ideas are always welcome for new opportunities (see Innovation slide)!
Themed Promotions

37. Additional Promotion Opportunities
Hydration Station
Engages our customers to sample beverages that we are promoting in our stores.
Supply each store with a free case of product for the promotion
Additional Promotion Opportunities

38. Additional Promotion Opportunities
Grocery Demo Delegates
Grocery Team Members that enjoy educating our customers and team members about the specific differentiators, and have a strong passion for food!
The Demo Delegates take part in active demos during each promo period
To participate in the Grocery Demo Delegate program, we need:
Complementary set of products
Possible incentives for demo team
Marketing materials on the package (IRC coupon, education piece, etc)
Additional Promotion Opportunities

39. Communication Emails eat up a lot of time!
Any that is submitting for a category round must have the Round # in the SUBJECT LINE.
Same goes for promotions—one per promotional cycle, and that cycle should be noted in the SUBJECT LINE as well
Please do not change the subject line in an ongoing thread (aka conversation).
Also, please do not start a new if there is already a thread in progress. This splits the conversation.
UPC format should always be no dashes, no spaces, no check digits
Promo alias should always be used for promo submission as well as promo queries
Communication

40. Policies & Procedures Store/sales floor relationship
Grocery Team Members can be a brand’s most valuable asset
Here are some rules & tips for interacting with WFM NE TMs:
Gift policy
Nothing can be given to a TM that exceeds $25 value
Nothing of any kind can be given to a Team Member as a quid pro quo for brand favoritism
Support
The best way to develop a productive, lasting relationship at the store level is to work with the team on their terms
Be willing to lend a helping hand—pitching in is always appreciated even if it has nothing to do with your brand
Understand the multitudinous tasks required of our TMs daily and respect when they say no by not becoming pushy
It is always appreciated when you assist Team Members with facing shelves, and that’s also a good time to speak with them (working side by side). Also, please respect that Customers’ assistance takes priority—let TMs help Guests first in all cases
Policies & Procedures

41. Policies & Procedures Store/sales floor relationship (cont.)
WFM NE supports our Teams making deals on the sales floor with brands, merchandisers, &/or distributors—with some explicit caveats:
Teams are required to execute the Regional Merch Planner in full before dealing on sales floor space
Teams are never allowed to accept free product from anywhere except the IRMA authorized distributor, and always with a PO (even for a $0 invoice)
Regional Grocery reserves the right to direct the team to move or dismantle a display at any given time, regardless of the agreement. We will always try to work out a solution with the team in these cases.
Teams cannot accept free product for better shelf placement under any circumstances (see Gift Policy)
Policies & Procedures

42. Policies & Procedures Store/sales floor relationship (cont.)
Brands, brokers, & distributors may not, under any circumstances, alter the shelf as it is set in the store without explicit approval. If a store is not following planogram &/or your product has been removed from the set where it is planogrammed, please reach out to Regional Grocery. And include a UPC (as always).
WFM NE has a clean channel / clean floor policy. Any proposals for signage in the channels, display fixtures, or any other peripheral collateral must run NE Regional Grocery first. If approved, we will discuss how it rolls out to teams.
Policies & Procedures