Speaker 1: Bloomberg Audio Studios, Podcasts, radio News, and.
Speaker 2: We're here with Jason Biekle.
Speaker 3: Jason, so good to have you here with us.
Speaker 4: Of course, head of Whole Foods, talk to us about
Speaker 4: the panel that you participated in. It's all about the
Speaker 4: future of food retail.
Speaker 1: Yeah, I had a great opportunity yesterday to participate in
Speaker 1: a panel with some other industry leaders talking about where
Speaker 1: food is going.
Speaker 3: And for me, one of the most important areas for
Speaker 3: us to.
Speaker 1: Think about is how do we protect our food systems
Speaker 1: into the future and making sure that our future generations
Speaker 1: can enjoy the products that we know and love today.
Speaker 3: And as Whole Foods market, you know, sounds kind of dire. Wow,
Speaker 3: what do we need to protect? Are you're talking to
Speaker 3: supply or quality or both? Yeah?
Speaker 4: Both.
Speaker 3: You know.
Speaker 1: One of the things that we're currently in a situation
Speaker 1: of is the nutrient density in our soil today is
Speaker 1: not in a state to sustain itself for future generations.
Speaker 1: So the products that we know and love are at
Speaker 1: risk of not being available for future generations. And so
Speaker 1: for us this Whole Foods market, one of the things
Speaker 1: that's been very important since our very first store that
Speaker 1: we opened in nineteen eighty is helping support the environment
Speaker 1: and areas like regenitive agriculture, which is something really passionate
Speaker 1: about today. Going back to our very roots, we led
Speaker 1: the industry and organics, and what we want to do
Speaker 1: is continue to make sure there's awareness for our consumers
Speaker 1: that we have to protect our resources, to ensure that
Speaker 1: our food systems are protected for future generations.
Speaker 4: Did you know Jason was a farmer at the age
Speaker 4: of seven, I believe doing gardens.
Speaker 3: We started gardening, yeah, when I was seven, because then
Speaker 3: you know a lot about a culture of generated vagapolchure.
Speaker 5: You also know that trying to do that when a
Speaker 5: national scale is hard, right, very difficult.
Speaker 3: A lot more local, don't you, not necessarily just local.
Speaker 1: But a big part of this is making sure that
Speaker 1: we're doing the work to protect our soil and ensure
Speaker 1: that it can support.
Speaker 3: Regenitive into the future.
Speaker 1: And one of the other things that I think is,
Speaker 1: you know, really challenging for customers is understanding the difference
Speaker 1: of various clients friendly agricultural practices.
Speaker 5: How are you doing that? Are you working with your suppliers,
Speaker 5: you're working with the farmers, or are you going in
Speaker 5: directly and doing this yourself.
Speaker 3: Yeah.
Speaker 1: So the reality is it takes an entire network of
Speaker 1: stakeholders in this space to help support this work. First
Speaker 1: and foremosts we're working with our suppliers who are working
Speaker 1: with their farmers to help support this work as we
Speaker 1: let organics since our very first score. This is something
Speaker 1: that's really part of our DNA being able to work
Speaker 1: upstream and supporting processes that can help take these practices
Speaker 1: into fruition.
Speaker 4: It's interesting like organics, they're starting to mark things right
Speaker 4: that I think regenerative farming. They're starting to let consumers
Speaker 4: know that when they buy something that that's the way.
Speaker 4: One of the things we have to ask you is
Speaker 4: how is the consumer doing and what is once again
Speaker 4: the consumer of whole foods.
Speaker 1: Yeah, so, I think the consumer right now is wanting
Speaker 1: a balance of quality and value, and that's something that
Speaker 1: we've been really focused on as Fool Food's market. One
Speaker 1: of the things that we're really proud of is the
Speaker 1: work we've done testing in our price points so we
Speaker 1: can be accessible to all customers. Since being part of Amazon,
Speaker 1: this has been a key initiative for us to help
Speaker 1: improve our price points. Recently, we've done a lot of
Speaker 1: work and helping also amp up the number of promotions
Speaker 1: that we're doing.
Speaker 3: We know customers right now are looking for value, so
Speaker 3: we've increased our number of promotions.
Speaker 1: We made investments in areas like our opening price point
Speaker 1: and like our three sixty five items, so customers have
Speaker 1: a great opportunity for value and quality at the same time.
Speaker 5: We talk about the private label, the three sixty five,
Speaker 5: that's been a big initiative and bringing kind of that
Speaker 5: average price point down in the source.
Speaker 3: Yeah.
Speaker 1: Absolutely, so for us, this has been a key way
Speaker 1: to connect with customers. We've continued to expand the number
Speaker 1: of items across all different parts of our store and
Speaker 1: also providing choice. So we have three sixty five where
Speaker 1: you can have a conventional product as well as three
Speaker 1: sixty five organic, so giving customers choice and options along
Speaker 1: the way.
Speaker 2: How much has three sixty five grown as a business
Speaker 2: and how does that relate back to demand that that's
Speaker 2: where you know, you guys great offerings, lots of different offerings.
Speaker 2: But I'm curiously about the three sixty fiber and it's
Speaker 2: been around now for a while.
Speaker 1: Yeah, it's absolutely and for so many customers it's one
Speaker 1: of the key reasons they come to Whole Foods Market.
Speaker 3: It's a great price point, great quality.
Speaker 4: How much has I grown though as a business.
Speaker 3: Yeah, we don't share publicly the a lot. It has
Speaker 3: grown a lot. And what's great is it's grown not
Speaker 3: just in store.
Speaker 1: It's available for delivery, it's available for pickup, and just
Speaker 1: last year, we've made it available on Amazon comm to
Speaker 1: have these items shipped directly to your home. So anyone
Speaker 1: in the United States right now can actually order a
Speaker 1: three sixty five from products from Amazon dot Com.
Speaker 3: I want to talk about the format of the stores.
Speaker 5: You obviously have a lot of traditional supermarket type size stores,
Speaker 5: but you're also been experimenting with smaller format stores, particularly
Speaker 5: in urban areas like New York City. Is the cost
Speaker 5: benefit of those smaller stores is that commensurate with what
Speaker 5: you would get for a larger source, say out in
Speaker 5: the suburbs.
Speaker 3: Yeah.
Speaker 1: So we'll be opening our very first full Foods Market
Speaker 1: daily shop store later this year in Manhattan, and we're
Speaker 1: really excited about this because it provides a win win
Speaker 1: for both the customer.
Speaker 3: As well as Whole Food's Market.
Speaker 1: Ultimately, we're at a point right now where some markets
Speaker 1: are so saturated.
Speaker 3: It's very difficult to put an entire four store. This
Speaker 3: doesn't support it.
Speaker 1: It doesn't support it, and so ultimately customers are looking
Speaker 1: to still shop at Whole Foods, but it may not
Speaker 1: be convenient to go, you know, ten or fifteen blocks
Speaker 1: away if you're in Manhattan, per se.
Speaker 3: But if we can.
Speaker 1: Drop some of these smaller format stores, it'll help support
Speaker 1: a fill in shop for our customers. And so if
Speaker 1: you're looking for some quick grabbing go items or just
Speaker 1: need a few items, we'll be.
Speaker 3: Able to pop in one of these stores. If you
Speaker 3: want to do a full shop, you could as well.
Speaker 1: At the same time, you can go to one of
Speaker 1: our flagship locations as well, like Columbus Circle and get
Speaker 1: the full shopping ex Well.
Speaker 3: That's what I'm curious.
Speaker 5: So for folks who go to those small format if
Speaker 5: you're used to going to the big format stores, you
Speaker 5: go into the small one and you see it's less
Speaker 5: selection here. How do you sort of thread that needle
Speaker 5: and make sure that the perception of what that customer
Speaker 5: has seen in that small format store is just an
Speaker 5: extension of the broader brand and not something on of
Speaker 5: itself all together.
Speaker 1: Well, the most important part is we still carry all
Speaker 1: the different categories you're going to find at Hopewood's Market.
Speaker 1: There's just going to be less of the selection and
Speaker 1: so instead of having thirty different olive oils to choose
Speaker 1: from or different items, it'll be a curated selection.
Speaker 3: So customers can still get all the.
Speaker 1: Basics needs that they have and at the same time
Speaker 1: they can get in get out quick and they having
Speaker 1: a lot of grab and go options I think are
Speaker 1: going to be great for customers who are looking either
Speaker 1: for fill in trips or they just need to have
Speaker 1: an item on the go to eat right now.
Speaker 4: One last question we'd be remiss what to not ask
Speaker 4: what it's like.
Speaker 3: To be part of Amazon.
Speaker 4: Do you meet with Andy Jasse, the CEO of Amazon,
Speaker 4: on a regular basis?
Speaker 1: I personally don't meet with them one and one on
Speaker 1: a regular basis. We did have lunch recently, but we
Speaker 1: do meet as a team on a pretty regular basis
Speaker 1: with Amazon leadership to look over business results and future plans.
Speaker 3: And it's been great to be part of Amazon.
Speaker 1: One of the things that we're really part of is
Speaker 1: being part of Amazon's worldwide grocery team. Our aim is
Speaker 1: to have the very best grocery business across the world.
Speaker 1: And so what's great for us is we're able to
Speaker 1: leverage some of the very best of Amazon and some
Speaker 1: of the technology, and we as Whole Foods, can help
Speaker 1: provide opportunities for how we can help Amazon in the
Speaker 1: areas like perishables and helping support Amazon Fresh and so
Speaker 1: there's a lot of great ways for us to work
Speaker 1: together and it's just been outstanding.
Speaker 3: Jason, thank you so much for your time today. We've
Speaker 3: been really appreciate it. Thanks for having me