WEBVTT - Whole Foods CEO Talks Future of Food Shopping

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<v Speaker 1>Bloomberg Audio Studios, Podcasts, radio News, and.

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<v Speaker 2>We're here with Jason Biekle.

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<v Speaker 3>Jason, so good to have you here with us.

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<v Speaker 4>Of course, head of Whole Foods, talk to us about

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<v Speaker 4>the panel that you participated in. It's all about the

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<v Speaker 4>future of food retail.

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<v Speaker 1>Yeah, I had a great opportunity yesterday to participate in

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<v Speaker 1>a panel with some other industry leaders talking about where

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<v Speaker 1>food is going.

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<v Speaker 3>And for me, one of the most important areas for

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<v Speaker 3>us to.

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<v Speaker 1>Think about is how do we protect our food systems

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<v Speaker 1>into the future and making sure that our future generations

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<v Speaker 1>can enjoy the products that we know and love today.

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<v Speaker 3>And as Whole Foods market, you know, sounds kind of dire. Wow,

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<v Speaker 3>what do we need to protect? Are you're talking to

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<v Speaker 3>supply or quality or both? Yeah?

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<v Speaker 4>Both.

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<v Speaker 3>You know.

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<v Speaker 1>One of the things that we're currently in a situation

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<v Speaker 1>of is the nutrient density in our soil today is

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<v Speaker 1>not in a state to sustain itself for future generations.

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<v Speaker 1>So the products that we know and love are at

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<v Speaker 1>risk of not being available for future generations. And so

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<v Speaker 1>for us this Whole Foods market, one of the things

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<v Speaker 1>that's been very important since our very first store that

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<v Speaker 1>we opened in nineteen eighty is helping support the environment

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<v Speaker 1>and areas like regenitive agriculture, which is something really passionate

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<v Speaker 1>about today. Going back to our very roots, we led

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<v Speaker 1>the industry and organics, and what we want to do

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<v Speaker 1>is continue to make sure there's awareness for our consumers

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<v Speaker 1>that we have to protect our resources, to ensure that

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<v Speaker 1>our food systems are protected for future generations.

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<v Speaker 4>Did you know Jason was a farmer at the age

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<v Speaker 4>of seven, I believe doing gardens.

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<v Speaker 3>We started gardening, yeah, when I was seven, because then

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<v Speaker 3>you know a lot about a culture of generated vagapolchure.

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<v Speaker 5>You also know that trying to do that when a

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<v Speaker 5>national scale is hard, right, very difficult.

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<v Speaker 3>A lot more local, don't you, not necessarily just local.

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<v Speaker 1>But a big part of this is making sure that

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<v Speaker 1>we're doing the work to protect our soil and ensure

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<v Speaker 1>that it can support.

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<v Speaker 3>Regenitive into the future.

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<v Speaker 1>And one of the other things that I think is,

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<v Speaker 1>you know, really challenging for customers is understanding the difference

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<v Speaker 1>of various clients friendly agricultural practices.

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<v Speaker 5>How are you doing that? Are you working with your suppliers,

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<v Speaker 5>you're working with the farmers, or are you going in

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<v Speaker 5>directly and doing this yourself.

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<v Speaker 3>Yeah.

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<v Speaker 1>So the reality is it takes an entire network of

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<v Speaker 1>stakeholders in this space to help support this work. First

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<v Speaker 1>and foremosts we're working with our suppliers who are working

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<v Speaker 1>with their farmers to help support this work as we

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<v Speaker 1>let organics since our very first score. This is something

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<v Speaker 1>that's really part of our DNA being able to work

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<v Speaker 1>upstream and supporting processes that can help take these practices

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<v Speaker 1>into fruition.

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<v Speaker 4>It's interesting like organics, they're starting to mark things right

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<v Speaker 4>that I think regenerative farming. They're starting to let consumers

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<v Speaker 4>know that when they buy something that that's the way.

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<v Speaker 4>One of the things we have to ask you is

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<v Speaker 4>how is the consumer doing and what is once again

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<v Speaker 4>the consumer of whole foods.

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<v Speaker 1>Yeah, so, I think the consumer right now is wanting

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<v Speaker 1>a balance of quality and value, and that's something that

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<v Speaker 1>we've been really focused on as Fool Food's market. One

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<v Speaker 1>of the things that we're really proud of is the

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<v Speaker 1>work we've done testing in our price points so we

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<v Speaker 1>can be accessible to all customers. Since being part of Amazon,

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<v Speaker 1>this has been a key initiative for us to help

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<v Speaker 1>improve our price points. Recently, we've done a lot of

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<v Speaker 1>work and helping also amp up the number of promotions

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<v Speaker 1>that we're doing.

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<v Speaker 3>We know customers right now are looking for value, so

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<v Speaker 3>we've increased our number of promotions.

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<v Speaker 1>We made investments in areas like our opening price point

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<v Speaker 1>and like our three sixty five items, so customers have

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<v Speaker 1>a great opportunity for value and quality at the same time.

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<v Speaker 5>We talk about the private label, the three sixty five,

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<v Speaker 5>that's been a big initiative and bringing kind of that

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<v Speaker 5>average price point down in the source.

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<v Speaker 3>Yeah.

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<v Speaker 1>Absolutely, so for us, this has been a key way

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<v Speaker 1>to connect with customers. We've continued to expand the number

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<v Speaker 1>of items across all different parts of our store and

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<v Speaker 1>also providing choice. So we have three sixty five where

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<v Speaker 1>you can have a conventional product as well as three

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<v Speaker 1>sixty five organic, so giving customers choice and options along

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<v Speaker 1>the way.

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<v Speaker 2>How much has three sixty five grown as a business

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<v Speaker 2>and how does that relate back to demand that that's

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<v Speaker 2>where you know, you guys great offerings, lots of different offerings.

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<v Speaker 2>But I'm curiously about the three sixty fiber and it's

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<v Speaker 2>been around now for a while.

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<v Speaker 1>Yeah, it's absolutely and for so many customers it's one

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<v Speaker 1>of the key reasons they come to Whole Foods Market.

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<v Speaker 3>It's a great price point, great quality.

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<v Speaker 4>How much has I grown though as a business.

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<v Speaker 3>Yeah, we don't share publicly the a lot. It has

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<v Speaker 3>grown a lot. And what's great is it's grown not

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<v Speaker 3>just in store.

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<v Speaker 1>It's available for delivery, it's available for pickup, and just

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<v Speaker 1>last year, we've made it available on Amazon comm to

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<v Speaker 1>have these items shipped directly to your home. So anyone

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<v Speaker 1>in the United States right now can actually order a

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<v Speaker 1>three sixty five from products from Amazon dot Com.

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<v Speaker 3>I want to talk about the format of the stores.

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<v Speaker 5>You obviously have a lot of traditional supermarket type size stores,

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<v Speaker 5>but you're also been experimenting with smaller format stores, particularly

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<v Speaker 5>in urban areas like New York City. Is the cost

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<v Speaker 5>benefit of those smaller stores is that commensurate with what

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<v Speaker 5>you would get for a larger source, say out in

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<v Speaker 5>the suburbs.

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<v Speaker 3>Yeah.

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<v Speaker 1>So we'll be opening our very first full Foods Market

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<v Speaker 1>daily shop store later this year in Manhattan, and we're

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<v Speaker 1>really excited about this because it provides a win win

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<v Speaker 1>for both the customer.

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<v Speaker 3>As well as Whole Food's Market.

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<v Speaker 1>Ultimately, we're at a point right now where some markets

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<v Speaker 1>are so saturated.

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<v Speaker 3>It's very difficult to put an entire four store. This

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<v Speaker 3>doesn't support it.

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<v Speaker 1>It doesn't support it, and so ultimately customers are looking

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<v Speaker 1>to still shop at Whole Foods, but it may not

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<v Speaker 1>be convenient to go, you know, ten or fifteen blocks

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<v Speaker 1>away if you're in Manhattan, per se.

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<v Speaker 3>But if we can.

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<v Speaker 1>Drop some of these smaller format stores, it'll help support

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<v Speaker 1>a fill in shop for our customers. And so if

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<v Speaker 1>you're looking for some quick grabbing go items or just

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<v Speaker 1>need a few items, we'll be.

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<v Speaker 3>Able to pop in one of these stores. If you

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<v Speaker 3>want to do a full shop, you could as well.

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<v Speaker 1>At the same time, you can go to one of

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<v Speaker 1>our flagship locations as well, like Columbus Circle and get

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<v Speaker 1>the full shopping ex Well.

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<v Speaker 3>That's what I'm curious.

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<v Speaker 5>So for folks who go to those small format if

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<v Speaker 5>you're used to going to the big format stores, you

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<v Speaker 5>go into the small one and you see it's less

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<v Speaker 5>selection here. How do you sort of thread that needle

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<v Speaker 5>and make sure that the perception of what that customer

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<v Speaker 5>has seen in that small format store is just an

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<v Speaker 5>extension of the broader brand and not something on of

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<v Speaker 5>itself all together.

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<v Speaker 1>Well, the most important part is we still carry all

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<v Speaker 1>the different categories you're going to find at Hopewood's Market.

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<v Speaker 1>There's just going to be less of the selection and

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<v Speaker 1>so instead of having thirty different olive oils to choose

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<v Speaker 1>from or different items, it'll be a curated selection.

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<v Speaker 3>So customers can still get all the.

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<v Speaker 1>Basics needs that they have and at the same time

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<v Speaker 1>they can get in get out quick and they having

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<v Speaker 1>a lot of grab and go options I think are

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<v Speaker 1>going to be great for customers who are looking either

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<v Speaker 1>for fill in trips or they just need to have

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<v Speaker 1>an item on the go to eat right now.

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<v Speaker 4>One last question we'd be remiss what to not ask

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<v Speaker 4>what it's like.

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<v Speaker 3>To be part of Amazon.

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<v Speaker 4>Do you meet with Andy Jasse, the CEO of Amazon,

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<v Speaker 4>on a regular basis?

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<v Speaker 1>I personally don't meet with them one and one on

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<v Speaker 1>a regular basis. We did have lunch recently, but we

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<v Speaker 1>do meet as a team on a pretty regular basis

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<v Speaker 1>with Amazon leadership to look over business results and future plans.

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<v Speaker 3>And it's been great to be part of Amazon.

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<v Speaker 1>One of the things that we're really part of is

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<v Speaker 1>being part of Amazon's worldwide grocery team. Our aim is

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<v Speaker 1>to have the very best grocery business across the world.

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<v Speaker 1>And so what's great for us is we're able to

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<v Speaker 1>leverage some of the very best of Amazon and some

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<v Speaker 1>of the technology, and we as Whole Foods, can help

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<v Speaker 1>provide opportunities for how we can help Amazon in the

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<v Speaker 1>areas like perishables and helping support Amazon Fresh and so

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<v Speaker 1>there's a lot of great ways for us to work

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<v Speaker 1>together and it's just been outstanding.

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<v Speaker 3>Jason, thank you so much for your time today. We've

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<v Speaker 3>been really appreciate it. Thanks for having me