How to Succeed Selling in Whole Foods

By: 

Good Now Foods

Whole Foods has long been recognized as a key player in the natural food retail market. With its focus on organic, high-quality products, it has become a tastemaker and entry point for many food and beverage brands. While there are now various routes to market, succeeding in Whole Foods can significantly impact your brand’s growth. However, getting onto Whole Foods shelves is no easy feat. With their evolving requirements and a highly competitive landscape, it’s essential to have a solid strategy. This guide will help you understand what it takes to successfully get into and grow within Whole Foods.

Whole Foods Market Overview

Over the past few years, Whole Foods has undergone significant changes, especially since its acquisition by Amazon. The retailer has consolidated its regional structure, now operating six regions instead of the previous 11. Additionally, category reviews and product approvals have shifted to a more centralized global decision-making process. The regional foragers, who used to have more independence in bringing in local products, now work closely with global category merchants in Austin, TX, to recommend products for each category.

This shift means that brands must adapt their strategies, focusing not just on local markets but also understanding the demands and expectations of Whole Foods’ global team. Whole Foods remains a major tastemaker in the industry, but its path to market has evolved. By learning these changes and how to navigate them, your brand can position itself for success.

Key Steps to Getting into Whole Foods

  1. Know the Category Review Process: Whole Foods operates on a category review calendar for each product type. Understanding when your category review takes place is crucial. Submission deadlines for each category vary, so knowing these timelines will help you prepare.
  2. Engage with Foragers Early: Start outreach 3-4 months before the category review deadline. Whole Foods’ foragers are now responsible for scouting innovative and emerging brands, regardless of geography. They act as a bridge to the global category merchants, providing essential feedback on your product and its readiness for the market. Building a relationship with your regional forager is key; they can champion your product during the review process and offer guidance on necessary adjustments.
  3. Prepare Your Submission: Whole Foods’ submission process is meticulous. Brands must complete an Excel form detailing product information, pricing, margins, promotional plans, and certifications, such as non-GMO or regenerative organic certification (ROC). Common pitfalls include incorrect pricing, product codes, or incomplete information. Make sure your submission is accurate and reflects your product’s unique value.

New Whole Foods Supplier Portal

What Whole Foods is Looking For

Whole Foods has always been known for setting high standards, but their criteria have evolved in recent years. Here are a few key attributes Whole Foods looks for in new products:

  1. Regenerative Organic Certification (ROC): Whole Foods is particularly interested in ROC products. Brands with this certification stand a better chance of getting noticed and even getting reviewed outside of the regular category review cycle.
  2. Non-GMO Verification: While not a strict requirement, products that carry the Non-GMO Project verification tend to align with Whole Foods’ market positioning. Brands claiming “non-GMO” without proper certification may face roadblocks during the review process.
  3. Innovation and Differentiation: Whole Foods actively seeks out unique products that bring something new to the table. Whether it’s innovative ingredients, a unique production process, or novel packaging, showcasing what sets your product apart is key.
  4. Strong Margins: Whole Foods is very margin-driven. Grocery products typically need to have at least a 40% margin to be considered, with some categories requiring even more. It’s also vital to note that Whole Foods expects products to have a consistent promotional plan, and brands should factor in the cost of these promotions when setting prices.

Strategies for Success Once on Shelves

Getting your product on Whole Foods’ shelves is only the beginning. The real challenge lies in maintaining your presence and growing within their stores. Here are strategies to help you succeed post-launch:

  1. Focus on Velocity: Whole Foods measures success by units sold per store per week. This velocity metric is crucial for brands looking to expand within the retailer. To improve your velocity, consider running promotions, in-store demos, and engaging marketing campaigns.
  2. Regular Promotions: Whole Foods requires a minimum of 15% off for promotional events, but brands see a significant boost in sales when promotions exceed 19%. Be prepared to run quarterly promotions to keep your product moving and maintain visibility. Also keep in mind that you’ll need to fund an additional 10% on top of your promotion for Prime members.
  3. Engage Store Employees: Store employees are key advocates for your brand. When delivering products, include some extra units as samples specifically for the staff. Building rapport with store employees increases the likelihood that they will recommend your product to shoppers.
  4. Seasonal Programs: Don’t overlook Whole Foods’ seasonal programs. These programs offer a separate pathway to get your product onto shelves, often with dedicated displays. Products tailored for seasons (e.g., pumpkin-flavored items in the fall) can leverage these programs to create buzz and drive sales.

Monitoring Performance and Expanding

Once in Whole Foods, closely monitor your product’s performance using their vendor reporting portal, which provides data on your sales velocity. In addition to Whole Foods’ tools, consider third-party solutions like SPINS or Nielsen’s Visor platform for broader market insights.

For brands looking to expand to other Whole Foods regions, it’s important to analyze the product sets in those regions. Look at the products that are already on the shelves and identify how your product can fill a gap or offer innovation. During outreach to category merchants, highlight your performance metrics and explain how your product aligns with the needs of that specific region.

Additional Tips for Staying Relevant in Whole Foods

  • Leverage Technology: Use apps and AI tools like GroFlo.io to offer digital coupons to customers during in-store demos. This not only provides an immediate incentive but also captures customer data for future marketing.
  • Seasonal and Local Marketing: Whole Foods has marketing opportunities for local brands and products tailored to specific seasons. Inquire about these programs to further boost your product’s visibility.

Succeeding in Whole Foods requires a strategic approach, thorough preparation, and a clear understanding of their evolving requirements. By focusing on building relationships, creating innovative and margin-friendly products, and actively managing in-store promotions and velocity, your brand can stand out in this competitive marketplace.

If you’re looking for expert guidance in navigating the complexities of selling in Whole Foods, consider partnering with Good Now Foods. They’re a sales agency supporting emerging food and beverage founders and Whole Foods is one of their key accounts. With their extensive experience working with Whole Foods, they offer tailored support for from initial submissions to expanding across regions.

To learn more about Good Now Foods, click the button below to request an introduction.

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