Over the years, Whole Foods has dabbled with chocolate fountains, and imported sea salts and truffle oil but it is now looking to shift back to its granola roots.
"There have been these two dominant values driving our products over the years," Whole Foods CEO John Mackey told the Associated Press in an interview. "One is food as health and the other one is food as indulgence. Those have battled, you might say, for the soul of Whole Foods."
Among the changes the retailer plans to roll out in 2010:
- The product mix is expected to evolve with health becoming the dominant theme. The changes won't be made overnight and the mix will still include some indulgent items;
- A heavier emphasis will be placed on healthy eating and education. Teams of employees, classes, books, DVDs and supper clubs will be added to support the positioning;
- Whole Foods claims it will soon become the first chain to provide nutrient-density labeling, indicating the amount of nutrients per volume of an item;
- Eventually, Whole Foods will also carry store-brand products for special diets and back nutrition research, which it will provide to consumers.
The article points out that Whole Foods, co-founded by Mr. Mackey in 1980, was launched solely around healthy food choices but the mix changed as a growing number of gourmet food aficionados flocked to the chain. The downturn has crimped sales of indulgent items across industries and Whole Foods has increased its store brands and promoted lower-priced options in response.
At the same time, young Americans are both interested in health issues and concerned about obesity and rising health care costs. Through Whole Foods, Mr. Mackey is aiming to position healthy eating as a large part of the solution.
"All the arguments about health care is about who is going to pay for it," Mr. Mackey told the AP. "There is not any funding or strategy about how to make America healthier. I think Whole Foods is going to take that challenge up."
Bill Bishop, at Willard Bishop Consulting, likes the move. Demand for pricey, indulgent foods isn't expected to return any time soon and while many chains carry organic food, none "owns" the health market. Establishing itself as the health expert could even strengthen relations with foodies, who have increased their focus on local and organic foods.
"The biggest risk is not hitting this one hard enough," Mr. Bishop said.
Discussion Questions: What are the pros and cons of Whole Food's shift to focus more on healthy foods and healthy eating? What guidelines should drive any transition? Should other grocers make similar moves?