06: Sales
Natural Grocery
When it comes to selling in the natural grocery channel, two names stand out above the rest: Whole Foods Market and Sprouts Farmers Market. These retailers are the giants of the natural grocery space, known for their focus on organic, natural, and specialty foods. For emerging CPG brands, getting on the shelves of these stores can be a significant milestone, but it’s also a challenge that requires careful planning, preparation, and execution.
Why Whole Foods and Sprouts Matter
Whole Foods and Sprouts are brand powerhouses that set trends in the natural and organic food industry. Their shelves are where health-conscious consumers go to discover the latest and greatest in food innovation, and getting your product listed in these stores can dramatically boost your brand’s credibility and sales.
- Whole Foods Market
- Overview: Whole Foods is the gold standard in natural grocery. With over 500 stores across North America and the UK, it’s a go-to destination for organic, non-GMO, and health-conscious products.
- Customer Base: Whole Foods attracts a highly educated, affluent customer base that is willing to pay a premium for high-quality products.
- Product Standards: Whole Foods has strict product standards. They do not allow artificial preservatives, colors, flavors, sweeteners, and hydrogenated fats. They also have a list of unacceptable ingredients for food that brands must adhere to.
- Market Presence: Being stocked in Whole Foods is often seen as a badge of honor for natural brands. It signals to consumers that your product meets the highest standards of quality and sustainability.
- Sprouts Farmers Market
- Overview: Sprouts is a rapidly growing natural grocery chain with over 370 stores in 23 states across the U.S. Known for its farmer’s market atmosphere, Sprouts focuses on fresh, natural, and organic products.
- Customer Base: Sprouts caters to health-conscious consumers who are looking for affordable natural and organic options. Their customer base tends to be more price-sensitive than Whole Foods shoppers.
- Product Selection: Sprouts offers a mix of well-known natural brands and emerging products. They have a strong focus on fresh produce, bulk foods, and health supplements.
- Market Presence: Sprouts is known for supporting smaller, emerging brands and offers a great platform for new products to gain traction in the natural grocery space.
Getting Your Product into Whole Foods
Securing a spot on Whole Foods shelves isn’t easy, but it’s achievable with the right approach. Here’s what you need to know:
- Understand Whole Foods’ Standards:
- Whole Foods has a rigorous approval process. Your product must meet their strict quality standards, including ingredient restrictions and sustainability practices. Be sure to thoroughly review these standards before applying.
- Local vs. Global Distribution:
- Whole Foods operates both locally and globally. Many brands start by getting their products into a few local stores before expanding to more regions. Focus on building a strong relationship with the local forager (the buyer responsible for local products) to increase your chances of getting approved. UNFI is the Whole Foods National Distributor, but they work with a variety of regional distributors as well.
- Prepare a Compelling Pitch:
- Your pitch should emphasize what makes your product unique and how it aligns with Whole Foods’ values. Highlight any certifications (organic, non-GMO, etc.), sustainable practices, and the story behind your brand. Make sure to back up your pitch with data on consumer demand, market trends, and your product’s performance in other retail channels.
- Samples and Follow-Up:
- Once you’ve submitted your pitch, be ready to send samples and follow up. Persistence is key, but remember to be respectful of the buyer’s time.
Getting Your Product into Sprouts
Sprouts Farmers Market is another excellent entry point for natural brands. Here’s how to approach this retailer:
- Know the Sprouts Shopper:
- Sprouts customers are health-conscious but also price-sensitive. Emphasize the value proposition of your product—whether it’s affordability, unique health benefits, or superior quality.
- Engage with the Category Manager:
- Unlike Whole Foods, where local foragers play a significant role, Sprouts category managers handle product decisions. Make sure your pitch is targeted to the right category manager, with a focus on how your product fits into the existing assortment and meets customer needs.
- Leverage Market Data:
- Sprouts appreciates data-driven pitches. Use sales data from other retailers, market research, and consumer testimonials to build a compelling case for why your product should be on their shelves.
- Promotional Support:
- Sprouts often looks for brands that are willing to invest in promotions to drive trial and repeat purchases. Be prepared to discuss how you’ll support your product with in-store demos, discounts, and marketing campaigns.
Final Thoughts
Breaking into Whole Foods and Sprouts is a significant achievement for any CPG brand. These retailers are leaders in the natural grocery space, and being on their shelves can dramatically boost your brand’s visibility and credibility. However, success in these stores requires more than just a great product—it requires a strategic approach, careful planning, and a willingness to invest in your brand’s growth.
By understanding the unique demands of each retailer, preparing a compelling pitch, and supporting your product with effective promotions, you can increase your chances of securing a spot on their shelves and building a strong presence in the natural grocery channel.