Whole Foods Offers 'Value Tours' and Coupons

Jill Wendholt Silva

Sep. 10, 2008 (McClatchy-Tribune Regional News delivered by Newstex) -- Whole Foods built its reputation by helping its customers steer clear of "cheap" foods loaded with empty calories, hydrogenated fats and high-fructose corn syrup.

But somewhere along the way the country's largest organic and natural foods supermarket chain also managed to earn the nickname "Whole Paycheck."

Now as the average supermarket shopper becomes increasingly focused on trimming the grocery bill, the company is trying to counter its pricey reputation with the "Whole Deal," a campaign to change the company's image through in-store "value tours" and money-saving coupons.

"Most people come into our stores and are simply overwhelmed by the magnitude of choices. It takes time to see how to save money," says Rebecca Miller, marketing director for the Whole Foods store at 7401 W. 91st St.

Sure, the store continues to stock a 16.9-ounce Laudemia certified organic, estate-bottled Tuscan extra-virgin olive oil for $34.99, but it also offers the same size bottle of its private label 365 Everyday Value organic extra-virgin olive oil for $4.99.

"There is an impression out there that Whole Foods has to be an expensive shopping experience," says Ben Friedland, marketing coordinator for the Rocky Mountain region. "We offer different products for people seeking different results."

The more glamorous, super-premium products -- fine cheeses and fresh seafood flown in daily -- are bought by only a small percentage of customers.

"They've figured out healthy, gourmet and indulgent, but in these economic times we're in, shoppers are going, 'Whoa! I need to save money,' " says Phil Lempert, a food marketing expert and editor of SupermarketGuru.com. "Now it's moving away from the Whole Paycheck label and really moving out in front of the trend."

Value tours are available to the public on a monthly basis or by appointment. During a recent tour, Miller spent two hours highlighting the thrifty choices available in her store. One of her favorite stops: the bulk-bin aisle.

"There isn't anything cheaper than beans and grains," she says. Less packaging means a savings of $1 to $2 a pound.

Along the way, Miller points out 365 Everyday Value brand items, a line of 2,000 natural and organic foods ranging from organic beef jerky to boxed mac and cheese with no artificial ingredients.

To find the deals on their own, consumers can pick up a quarterly newsletter either online or in the store. Each newsletter contains a meal planner, recipes, coupons and a list of sale items. Budget-conscious shoppers are encouraged to share their money-saving tips at wholefoodsmarket.com/socialmedia/wholedeal.

But it's the coupons that may seem most at odds with the store's upscale image.

"It's not a shift in strategy for us in terms of becoming a discount retailer," Friedland says. The coupon booklets are helping "to shed light on what we already have of value in our stores."

Molly Lefmann of Gardner in Johnson County considers herself budget-conscious. To prepare for her monthly shopping trips at Whole Foods, she scouts for bargains on the store's Web site (www.whole foodsmarket.com) and picks up coupon booklets as she walks into the store.

On a recent shopping trip Lefmann had several coupons tucked into her purse, including one for her family's favorite gluten-free cereal bars by EnviroKids.

"I can't buy everything here," she says, "but there are certain foods that only Whole Foods carries."

While shopping at her Gardner grocery store, Lefmann says, she recently overheard another customer asking the manager about gluten-free products.

"He didn't even know what 'gluten-free' meant," says Lefmann, who is foster mom to a 4-year-old son who has severe food allergies.

Although Friedland says the new emphasis on value isn't aimed at the store's core customers, Brian Wansink isn't convinced Whole Foods can coax value-driven consumers into the store.

"The preferred strategy would be to get purchasers who have written the store off to come in and give it a try, but you can't do it with in-store promotions. There should be outreach," says Wansink, a professor of consumer behavior and nutritional science and the author of Marketing Nutrition: Soy, Functional Foods, Biotechnology and Obesity (2005, University of Illinois) and Mindless Eating: Why We Eat More Than We Think (2006, Bantam).

But traditional coupon distribution is expensive so it makes sense for Whole Foods to encourage their higher income, Internet savvy customers to print them off the store's Web site, Lempert says.

The only downside is the potential for abuse: Allowing customers to print their own coupons means it can be more difficult to limit the number a customer might try to use.

"The purpose of coupons is really to get people to try new products and rediscover old products," he says.

Meanwhile, shoppers can't miss the coupons at the Whole Foods store at 91st and Metcalf. Miller is flagging value by taping coupons directly to the products on her store shelves.

"It's like taping dollar bills to the products," Lempert says.

And it's a smart strategy in a time when shoppers of all income levels are more willing to take advantage of a good deal. Take discount retailers and dollar stores, for example. The parking lots are filled with an equal mix of luxury sedans and old clunkers.

"The need to save money is cutting across all classes and all education levels," Lempert says.

Despite attempts to woo new customers to Whole Foods, the company remains committed to its core mission: providing natural and organic foods at a fair price.

"Bottom line of the value tour is that real food -- nutrient dense food -- is the best value because it has more nutrition," Miller says.

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Thrifty shopping strategies

Want to save money on groceries? Grab your pots and pans.

"You have to be willing to put the labor in to enjoy the savings," says Rebecca Miller, marketing director at the Whole Foods store on 91st and Metcalf. "Ten pounds of potatoes for $10 is a great deal, but not if they grow green eyes and you throw half of them away. You have to be willing to make lots of potato soup, and freeze some of it."

--Plan a weekly menu: Develop a shopping list based on sale items, promotions and what's in season and stick to it.

--Scale down portion sizes: Most Americans eat larger portions than necessary. Serve shish kebabs on shorter skewers, buy half the meat, then alternate with fresh fruit and vegetables.

--Eat more meatless meals: Beans and grains are highly nutritious and very economical. When you do eat meat, use a marinade to flavor less-tender cuts. Other economical meat extenders: Choose chicken thighs instead of breasts, add sausage to soups and sauces and buy a freezer so you can stock up on sale items.

--Be willing to make recipe substitutions: If a recipe calls for zucchini but summer squash is on sale, change your game plan.

--Plan for leftovers: When you have time to cook, make a double recipe and keep some for later in the week.

--Buy more frozen foods: IQF (individually quick frozen) packets of fish are economical because you thaw only what you need and are less expensive than seafood flown in daily.

--Look for private label foods: Stores offer their own high-quality brands, usually at considerable cost saving.

--Buy in bulk, but avoid waste: 12 percent of the food Americans buy winds up spoiled or in the garbage.

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Apples to apples

The Star did a price comparison on five grocery staples at Whole Foods, Hen House and Hy-Vee, all stores that offer an array of natural and organic items. Whenever possible we compared the same organic brands, or Whole Foods' 365 Everyday Value brand to an organic brand.

We also checked prices at Price Chopper, although sale prices for these items were not used in our comparison because they are often used as "loss leaders" -- extremely low-priced, special-purchase items used to lure customers into the store on a particular day.

--Organic Fat-Free Milk ( 1/2 gallon):

Lowest price: Whole Foods (Horizons), $3.29

Hy-Vee (Horizons), $3.98

Price Chopper (Stremick's Heritage), $3.99

Hen House (Horizons), $4.29

--Red Delicious apples (conventionally grown, 1 pound):

Lowest price: Hy-Vee $1.98

Hen House, $1.99

Whole Foods, $1.99

Price Chopper, $2.29

--Organic creamy-style peanut butter (16 ounces):

Lowest price: Price Chopper (Clearly Organic), $2.99

Whole Foods (365), $3.49

Hy-Vee (Organic Full Circle), $4.19

Hen House (Arrowhead Mills), $5.19

--Organic boneless, skinless chicken breast (1 pound):

Lowest price: Whole Foods, $7.99

Hen House, $9.99

Hy-Vee (available by special order)

Price Chopper (not available)

--Frozen broccoli (16 ounces):

Lowest price: Hen House (Best Choice), $1.33

Price Chopper (Bird's Eye), $1.79

Hy-Vee (Bird's Eye), $1.89

Whole Foods (365), $1.99

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Clip and save

Who uses coupons?

--Coupons are used more often by the middle-class consumer than by upper income or poor consumers.

--The average coupon is worth 92 cents. Combined with frequent shopper cards and sales circulars, savvy consumers can save up to 40 percent on their grocery bill.

--People who don't use coupons also tend to forgo the "doggie bag" when dining out.

--People who do use coupons are more prone to stockpiling. They also tend to have a second refrigerator or freezer and a larger pantry.

--Until Wal-Mart (NYSE:WMT) and other large retailers began stocking natural and organic foods, coupons for these specialty products were difficult to find. Now many of the small, start-up companies have been bought by larger corporations that can afford to distribute coupons.

Sources: Phil Lempert and Brian Wansink

To reach Jill Wendholt Silva, food editor, call 816-234-4395 or send e-mail to jsilva@kcstar.com. -- Jill Wendholt Silva, The Star

Newstex ID: KRTB-0102-27982349