1 the natural marketing institute (nmi) cheese/olives/chocolate study #3509-26; september 2007...

1The Natural Marketing Institute (NMI)Cheese/Olives/Chocolate Study #3509-26; September 2007

Specialty & Gourmet Cheese, Specialty Olives,

Organic Chocolate

Prepared By: The Natural Marketing Institute NMI Study # 3509-26

September 2007


Table of Contents

Topic Page

Research Objectives/Methodology 3

Executive Summary 4

Specialty/Gourmet Cheese 15

Specialty Olives 40

Organic Chocolate 47

Demographic and Shopper Profiles 50


Research Objectives/Methodology

Objectives

To assess detailed attitudes and behaviors among Whole Foods Market (WFM) and Wild Oats (WO) Shoppers regarding specialty/gourmet cheese. Secondarily, an overview of specialty olives and organic chocolate is provided. Specifically, the research will address:

Frequency of buying specialty/gourmet cheese; reasons for purchasing and for not purchasing Venues specialty cheese is bought, and why Importance of various considerations in buying specialty/gourmet cheese Awareness/impressions of WFM/WO Cheese Monger Interest in various marketing and merchandising efforts for the cheese department

Methodology Quantitative research among 1010 pre-identified Whole Foods Market shoppers and 190 Wild

Oats Shoppers who have shopped at least 10x/year (total sample of 1,200) Detailed questions about specialty/gourmet cheese purchases at WFM/WO were asked of

shoppers who purchase specialty/gourmet cheese at least monthly WFM sample derived from NMI’s e-Screener Panel (ESP) Online survey methodology; conducted August 2007

Executive Summary


Strategic Implications: 10 Ideas to Grow Specialty Product Sales at WFM/WO

1. Highlight the key purchase drivers of specialty/gourmet cheese at WFM: selection, quality, unique choices. Natural/organic qualities are less of a draw.

2. Reinvent the experience of buying specialty/gourmet cheese, which is of key importance and offers a strong opportunity for competitive differentiation.

3. Align merchandising efforts with shopper interests: smaller “sample sizes,” more local cheeses, smaller cuts, special promoted offerings. This may also draw new S/G cheese buyers to the category.

4. Improve visibility/involvement of Cheese Monger. This is a well-regarded resource which currently is underutilized. S/he also contributes to the experiential component of shopping WFM.

5. Monitor pricing. While not a key consideration, it may have more impact as other stores improve their price/value relationship. Selected lower pricing may also expand the reach/trial of the category.

6. Increase marketing efforts in the department: signage on specific cheeses, more samples, highlight seasonal offerings, tell the story, etc.

7. Promote accompanying products – especially fresh bread, crackers, fruit. Also cross-market specialty/gourmet cheeses with olives.

8. Consider promoting/merchandising gourmet deli options… deli cheese is a frequent purchase and gourmet choices may be attractive to specialty/gourmet oriented shoppers.

9. Increase marketing/merchandising of specialty olives to attract those who only buy “regular” varieties and entice them to trade-up. Create a need/desire for specialty varieties.

10. Educate consumers on the benefits of organic chocolate – they are unaware of the growing process, unaware of the product, and believe organic status of other ingredients (milk, sugar, vanilla…) is more important than the cocoa.


Executive Summary: 1 of 6

WFM Shoppers Are Enthusiastic Purchasers of Specialty/Gourmet Cheese

The vast majority of WFM Shoppers have bought cheese in the past 3 months (89%). Two-thirds buy either basic block varieties or specialty/gourmet.

Fewer buy basic shredded (59%), packaged deli (48%) or sliced deli (42%) varieties.

Overall, specialty/gourmet cheese is purchased about 2 times/month. On average, about $8.20 is spent at each purchase and shoppers buy about ½ lb.

More is spent on specialty/gourmet cheese than any other type of cheese by about 30-50%.

Shoppers define specialty/gourmet cheese as “high quality,” “flavorful,” and “interesting/different."

Great taste is a key component of specialty/gourmet cheese to virtually all WFM Shoppers (99%).

Buying specialty/gourmet cheese is also experiential – most (95%) consider trying new varieties an adventure.



WFM Shoppers Are Loyal to WFM for Specialty/Gourmet Cheese Purchases

WFM is the primary destination for buying specialty/gourmet cheese among WFM Shoppers. Nearly all (95%) have bought at WFM in the past 3 months.

WFM Shoppers buy at other stores significantly less: Trader Joe’s (53%), specialty cheese shops (33%), farmer’s market (33%), Costco (31%) and grocery stores (about 20%) Although lower, opportunities still exist for market share.

The primary reasons for buying specialty/gourmet cheese at WFM is the selection (78%), quality (70%) and unique choices (70%).

The product attributes for which WFM is considered unique are secondarily important: natural (50%), options such as no preservatives or rennet… (49%) and organic (48%).

Reasons for buying at other stores primarily focus on price. Trader Joe’s is shopped because of lower prices, but also because of quality, selection, flavor, unique choices and convenience. The main reason for buying at regular grocery stores and warehouse clubs is price followed by convenience.



What WFM Shoppers buy… WFM Shoppers primarily buy firm (cheddar…), fresh (ricotta, mozzarella…) and semi-firm

(gouda/feta…) cheeses (about two-thirds buy each). Grating cheeses (59%), soft (58%) and blue varieties (50%) are slightly less popular.

Specialty/gourmet cheese is bought most frequently as a snack, for a treat, or to simply try something different. Each of these occasions implies WFM messaging opportunities.

Most WFM Shoppers purchase an accompanying product to go with their cheese –fresh bread (81%), crackers (81%) or fruit (80%) is purchased either regularly or sometimes.

Although purchased less frequently, a notable proportion (about half) of WFM Shoppers at least sometimes buy olives/peppers, nuts, cured meats or wine (where available) to go with their specialty cheese selections.

Price is not a strong consideration… WFM’s prices for specialty/gourmet cheese are considered higher than other stores, but this

does not appear to have a significant negative effect. A solid majority (85%) say the prices are higher, but worth it, and most (71%) say they

would buy cheese they wanted regardless of the price. On average, most WFM Shoppers expect to pay an average of $9.00/lb for specialty/gourmet

cheese at WFM. While most shoppers appear to be somewhat price insensitive, pricing decisions should be

approached with caution. Conversely, 56% have at some point decided against purchasing cheese because of the price and 52% believe that WFM’s cheese is overpriced.



The Cheese Monger: An under-utilized (secret) asset The majority are not aware that WFM has a “Cheese Monger” (89%). Among those who are aware, most have seen him/her and have found

him/her available to assist them. Only one-third are able to readily distinguish the Cheese Monger from other

team members. This does not appear to be a problem, however, as only a minority (28%) feel it is important to speak specifically with the Cheese Monger when they have a question.

The Cheese Monger is extremely well regarded: virtually all find him/her very knowledgeable (97%) and trustworthy (99%).

Most feel the Cheese Monger’s role should be one of “teacher/liaison” with customers, and not a clerk. The Cheese Monger’s responsibilities should include offering suggestions and recommendations, offering tastes of products, and mingling with the customers. Shoppers are less likely to think that finding products, cutting/weighing cheese, ordering merchandise and stocking shelves should be the Cheese Monger’s job.



Customers Are Receptive to Marketing/Educational Efforts & Eager for New Merchandising

• The following are the marketing and merchandising ideas which garner the most interest among WFM Shoppers…

Marketing(very/somewhat interested)

Informational signs displayed with products (97%)

Samples (96%)

Background info on cheeses (where made, manufacturer info…) (84%)

Recipe/serving suggestions (82%)

Staff interaction with customers (81%)

Merchandising(very/somewhat interested)

Smaller “sample sizes” to buy (95%)

Highlighted seasonal offerings (89%)

Smaller cuts of cheese (88%)

More local cheeses (85%)

“Cheese Monger Recommendations” to highlight new varieties (85%)



Olives… About half of WFM Shoppers have bought specialty olives in any location (55%), and almost

four in ten (38%) have purchased them at WFM. The other main places specialty olives are purchased are regular grocery stores (28%) and

Trader Joe’s (15%). Specialty olives are an infrequent purchase – most (65%) buy them just a few times/year. The olive bar is clearly the preferred source for specialty olives (82%). The main reasons specialty olives are purchased at WFM: selection, flavor, quality. The primary

reason for not purchasing: dislike of olives (41%). Secondarily, WFM Shoppers indicate that they don’t buy specialty olives because they just buy “regular” varieties (18%).

There is a correlation between buying specialty/gourmet cheese and specialty olives. Frequent WFM specialty cheese purchasers buy more olives. Also, among those who buy specialty/ gourmet cheese at WFM, 62% purchase olives/peppers as an accompaniment.

Chocolate… Most WFM Shoppers (76%) claim to have bought organic chocolate in the past, although most

report buying very infrequently (52% buy just a few times/year). The main reasons for not buying organic chocolate: never thought about it (46%), unaware

(27%), don’t think it’s necessary (25%). Overall, taste is considered a more important purchase driver over organic certification by more

than a 2:1 margin.


Wild Oats Shoppers Slightly Different than WFM Shoppers in Regard to S/G Cheese

WO Shoppers…. Buy specialty/gourmet cheese less frequently than WFM

Shoppers Are less loyal to WO than WFM Shoppers are to WFM Are more price sensitive …they cite price as a reason for not

buying specialty/gourmet cheese at WO significantly more than WFM Shoppers and are more likely to cite cost as a deterrent for not buying specialty/gourmet cheese

Appear to perceive specialty/gourmet cheese as more “novel” …they are more likely to buy it because of wanting to try something new, upon impulse and for special occasions.

There are some key differences between WFM and WO Shoppers regarding specialty/gourmet cheese buying habits…

Despite these differences, WO Shoppers hold similar attitudes as WFM Shoppers regarding their descriptions of specialty/gourmet cheese, types of cheeses bought and accompanying products, the key purchase drivers, and interest in promotional and marketing efforts.


20%13%

13%

9%9%

35%

EMBRACERS

Typical” WFM Shopper. Holds core values on health, importance of

natural/organic, LOHAS issues and finds

specialty/gourmet products and food

experiences important.

WFM Shopper Segmentation ….

CONSCIONABLES

Embodies the core values and behaviors of the original WFM

Shopper. Strong focus on organics and LOHAS issues. WFM’s

social/environmental consciousness are a driving force.

EXPEDIENTS

Convenience is key. Not drawn to WFM because of its organic orientation, values, or

specific product offerings, but simply because of its proximity.

EPICURIANS

Driven to WFM primarily because of specialty/gourmet

offerings. Not particularly organic or LOHAS-minded.

EXPERIENTIALS

All about the experience. Strives for unique and fun

food experiences. Primarily buy produce and specialty/gourmet items; not particularly organic

oriented.

CORGANICS

Strong organic orientation; shop WFM because they

execute the organic mindset. Believers in the importance

of healthy foods, and concerned about what is in food they eat and how it’s

made.

Segments based on WFM Segmentation Study –12/06


…Few Behavioral Differences; Many Attitudinal Distinctions

EPICURIANS

EMBRACERS

EXPERIENTIALS

Buy more specialty/gourmet overall, but no difference in purchase rates at WFM than other segments

More likely to buy at other stores, including TJ, Costco, regular grocery

Experientials most likely to find cheese buying an “adventure”

CORGANICS

CONSCIONABLES

Are more likely to shop for cheese at WFM because of natural/organic choices and options such as no preservatives, rennet…

More interested in local cheeses and more healthy options

EXPEDIENTS

True to their segment definition, they are most likely to buy at WFM because it’s convenient

There are surprisingly few differences between the segments in buying behaviors regarding specialty/gourmet cheese. Most differences focus on attitudes in the core belief system that defines the segment. As with

other products, target marketing based on these differences is key.

Specialty/Gourmet Cheese

Purchase Behavior and Attitudes


Basic Block and Specialty/Gourmet Most Popular Cheese Choices

(Q.4 - % shopper group indicating types of cheese they have purchased (at any store) in past 3 months or so)

39%

44%

54%53%

66%

42%

48%

66% 66%*

59%

Sliced DeliPre-Pkgd. DeliBasic, Pre-Pkgd.Shredded

Specialty/GourmetBasic, Pre-Pkgd.Block

WO Shoppers

WFM Shoppers

* Significant difference at 95% confidence level

Bought ANY:

WFM: 89%

WO: 84%

Bought ALL Types:

WFM: 16%

WO: 18%

WFM Shoppers buy

more S/G than WO

Shoppers…the only

significant difference in

cheese shopping


19%

23%

29%

29%

42%

43%

47%

62%

65%

67%High quality

Very flavorful

Interesting/different

Artisan

Fresh

Expensive

Can't buy at regular grocery

Can be cut to desired size

Only for special occasions

Hard to find

Specialty/Gourmet Means: Quality, Flavor, Interesting

(Q.12 - % WFM Shoppers indicating what ‘specialty/gourmet’ cheese means to them)

Only difference between WFM and WO Shoppers:

WFM more likely to cite “fresh” (43% vs.

35%)

Positively, only a minority define “specialty/

gourmet” as expensive or only for special

occasions


Specialty/Gourmet Cheese: A Taste Driven Adventure

(Q.15 - % WFM Shoppers indicating they agree completely/somewhat with statements)

“Specialty/gourmet cheese is all about the

great taste”: 99%

(71% agree completely)

“Specialty/gourmet cheese is an experience, and trying

new varieties is an adventure”: 95%

(54% agree completely)

No differences among WO Shoppers


Average # Times Bought/Month

Average Weight (lbs) Bought at Each Purchase

Average Total $ Spent at Each Purchase

Type of Cheese…WFM

ShoppersWO

ShoppersWFM

ShoppersWO

ShoppersWFM

ShoppersWO

Shoppers

Fresh Cut Deli Cheese 2.3 2.4 .62 .70 $5.08 $5.93

Specialty/Gourmet 1.9 2.3 .54 .59 $8.22 $7.70

Basic Pre-Pkgd. Block 1.9 2.0 .77 .80 $5.21 $5.04

Basic Pre-Pkgd. Shredded

1.9 2.3 .71 .83 $4.13 $4.09

Pre-Pkgd. Deli 1.8 2.4* .58 .66 $4.28 $4.51

WFM/WO Shoppers Buy Deli Cheese Most Often, Spend Most on S/G (at any store)

(Q5 - % segment average number times/month buying (Cheese) at any store/Q6 - % segment indicating average weight of (Cheese) bought at each purchase; Q7 - % segment indicating average total cost of (Cheese) for each purchase)

Deli bought most often Block bought in greatest quantity

Spend most on S/G

Opportunity for gourmet deli options?


NOTE: These figures may not align directly with actual sales as consumers tend to over-estimate their purchases by weight and/or $.


12%

33%

27%

31%

22%

21%

16%

23%

95%*

33%

53%

WFM

WO

TJ's

Specialty Cheese Shop

Farmer's Market

Other NFS

Costco

Safeway

Kroger

Albertson's

Mass Merch.

WFM Shoppers Are Loyal Cheese Shoppers; WO Shoppers Less So

(Q.8- % segment indicating they have purchased specialty/gourmet cheese at the following stores in the past 3 months)


52%

32%

28%

31%*

32%*

37%*

45%*

38%*

91%*

33%

51%

WFM Shoppers WO Shoppers

With the WO merger, opportunities exist….


Frequency of buying specialty/gourmet cheese…


Bought S/G cheese in past 3 months 95% 91%

More than once/week 2% 8%

Once/week 9% 5%

2-3X/month 25% 25%

Once/month 29% 19%

3-4X/year 22% 18%

1-2X/year 10% 16%

Average # times/month at WFM/WO 1.6 1.9

Average # times/month any store 1.9 2.3

Most WFM and WO Shoppers Buy S/G Cheese Monthly

(Q8 - % segment indicating frequency of buying specialty/gourmet cheese at (STORE), among those who have bought specialty/gourmet cheese in past 3 months)

54% 44%


0.76

1.16

0.77

0.99

1.76

2.08

1.761.59

1.12

0.82

1.52*

1.74*1.63*

2.32*

1.91*

2.78*

0

1

2

3

WFM WO TJ Specialty shop Other NFS Farmer'sMarket

Costco Mass Merch


WO Shoppers Are Less Loyal; Shop Multiple Other Stores More Frequently for S/G Cheese

(Q8 – average number times/month segment purchases specialty/gourmet cheese at (STORE))

Avg. # times shopped/month



70% 70%

40%34%

16%

65%

58%

49%

30%

60%*57%

78%*

31%

34%

53%

40%

63%

33%*

Wideselection

High quality Uniquechoices

Flavorful Freshness Experience Staffassistance

Convenient Good prices


Key Drivers of Purchasing S/G Cheese at WFM: Selection and Quality

WFM Shoppers are more likely drawn to WFM for selection and flavor

Price is a significantly greater driver for WO Shoppers

(Q.13 - % WFM/WO Shoppers indicating why they buy specialty/gourmet cheese at WFM/WO)


Note: small base size for WO


23%

32%

38%

39%

48%

49%

50%

60%

69%

73%

73%High quality

Flavorful

Wide selection/variety

Know it's fresh

Natural choices

Unique options (no preservatives, rennet…)

Organic choices

Local choices

Different/special

Staff assistance

Recommend pairings

WFM’s Unique Options Are Secondary Purchase Drivers

(Q.16 - % WFM Shoppers/segments stating that the following are “very important” in decision to buy S/G cheese at WFM)

Primary drivers


Secondary drivers

Corganics

Corganics/ Conscionables



Experientials

Segment names in bars represents WFM Segment for whom driver is most important


Primary reasons for buying S/G cheese at other stores… (no differences between WFM & WO Shoppers)

(Q.13 - % WFM/WO Shoppers indicating why they buy specialty/gourmet cheese at (Stores))

Price

Quality

Unique choices

Selection

Flavor

Convenience

Freshness

Unique choices

Wide selection

Quality

Assistance

Flavor

Key Reasons for Buying Cheese Elsewhere: Primarily Cost

TJ’s primary draw is price, but also offers other benefits. Its secondary benefits encroach

on WFM primary drivers

Specialty Cheese Shop

Price

Convenience

Costco/Mass

Price

Convenience

Regular Grocery


48%

32%

16%

15%

21%

30%

Haven't needed it

Regular cheesemeets my needs

Too expensive

Don't think about it

Cheese in dairy caseis more convenient

Don't like it

Most WFM Shoppers Haven’t Recently Bought S/G Cheese (at any store) Because of Lack of Need…

(Q.9 - % WFM Shoppers indicating why they haven’t bought specialty/gourmet cheese at any store in past 3 months)

Only a few are overwhelmed:

Don’t know what to buy: 9%

Selection is overwhelming: 5%

It’s too complicated: 5%

Don’t know how to serve: 5%

WO Shoppers more likely to cite price as a deterrent (30% vs. 51%*)


Can WFM create the need through messaging?


40%

39%

18%

15%

26%

27%

Less expensiveelsewhere

Too expensive atWFM/WO

Haven'twanted/needed it

Easier to buyelsewhere

Regular cheesemeets my needs


…But Cost is Primary Deterrent for Not Buying At WFM

(Q.10 - % WFM Shoppers indicating why they don’t buy specialty/gourmet cheese at WFM (among those not purchasing at all in past 3 months or those purchasing less frequently than once a month))

NET: 56%

Regular grocery stores, Trader Joe’s, & Costco win

on price

Suggest other usage occasions, pairings, etc.


WFM Shoppers Primarily Buying Firm, Fresh and Semi-Firm Varieties; Little Differences Exist

51%

48%

47%

44%

39%

34%

67%

64%

66%

59%

58%

50%

Any Store WFM

(Q. 14 - % WFM Shoppers indicating types S/G of cheese bought at any store/Q.17 - %WFM Shoppers indicating types of S/G cheese bought at WFM)

Firm Cheese(Cheddar, Swiss…)

Fresh Cheese(Mozzarella, Ricotta…)

Semi-Firm Cheese(Gouda, Feta…)

Grating Cheese(Romano, Parmesan…)

Soft Cheese(Brie, Camembert…)

Blue-Veined Cheese (Blue, Stilton, Saga…)



1.66 1.64

1.02

2.58

2.02

1.56 1.55

2.041.79*

2.38*2.63*2.61*

0

1

2

3

4

Snack/appetizer As a treat Want to trysomething

different

In a recipe As an impulsepurchase

Special occasion


WO Shoppers Buy S/G Cheese More Often for “Special” Reasons

(Q18 - mean response among WFM/WO Shoppers for average number times per month they buy S/G cheese for the following reasons)

WO Shoppers buying more frequently for “special” or “impulse” reasons… is specialty/gourmet cheese less “novel” to WFM Shoppers?


Avg. # times bought /month

Note: small base size for WO


Bread, Crackers, Fruit Most Frequently Bought To Accompany S/G Cheese

(Q19- % WFM Shoppers indicating they regularly/sometimes buy the following products at WFM when to go with S/G cheese)

9%

16%

12%

17%

18%

41%

30%

37%

32%

40%

44%

39%

51%

44%

10%

35%

31%

28%Pastes or jellies

Chocolate

Wine

Sliced/cured meats

Nuts

Olives, roastedpeppers…

Fruit

Crackers

Fresh bread

Regularly Sometimes

81%

81%

80%

62%

52%

52%

48%

41%

37%


These pairing ideas provide merchandising suggestions. While fresh bread and crackers are often already located close to or in the

cheese section, other products may need more explicit suggestions.


WFM’s S/G Cheese Prices Are Perceived Higher Vs. Other Stores…

1 2 3 4 5 6 7 8 9 10

(Q22 - % WFM Shoppers indicating how they would rate WFM’s S/G cheese prices compared to other stores on a 10 pt scale)

Avg: 6.9

WFM prices are LOWER

WFM prices are HIGHER

WFM prices are ABOUT THE SAME

Top 2 Box: 40%

Middle Range: 56%



52%56%

85%

71%

The S/G cheese atWFM is overly

priced

I've decided at timesagainst purchasing

S/G cheese at WFMbecause it cost too

much

I'll buy S/G cheeseat WFM if I want it,regardless of the

price

S/G cheese at WFMis expensive, butworth the price

…But Most WFM Shoppers State It’s Worth The Price

(Q.20 - % WFM Shoppers indicating they agree completely/somewhat with statements)



Most Expect To Pay $9/lb for Specialty Cheese at WFM; Age Drives Price Expectations…

(Q.21 - % WFM Shoppers indicating the amount they would expect to pay, per pound, for a piece of S/G cheese at WFM)

$10-14.99/lb 28%

$15-20.00/lb 13%

$5-9.99/lb 46%

Under $5.00/lb 14%

On average, most WFM Shoppers expect to pay about $9.00/lb for specialty/gourmet cheese at WFM

Age makes a difference:

18-29 year olds expect to pay between $5-9.00/lb;

those 30+ expect to pay between $10-14.99/lb



Customers Most Interested in Samples, Informational Signage

(Q35 - % WFM Shoppers indicating they are very/somewhat interested in these offerings to learn more about cheeses offered)

Strongest interest

27%

35%

35%

42%

40%

73%

62%

38%

46%

44%

23%

35%

37%

40%

34%

28%Cooking classes

Information on company website

Classes or tastings

Staff interaction with customers

Recipe/serving suggestions

Background info (where made, mfgr. Info…)

Samples to try

Information on signs displayed with product

Very Somewhat

97%

95%

84%

82%

81%

73%

71%

55%

More interest for women

More interest among 30-39

More interest among Under 50



72%

28%

Most Not Aware of the Cheese Monger, Though Find the Position Valuable

(Q.23-27 - % WFM Shoppers indicating if they are aware of Cheese Monger, whether they have seen CM, whether CM is distinguishable, available to assist, and importance of dealing directly with CM)

The majority have NOT even heard of the

Cheese Monger at WFM

Among those who have heard of Cheese Monger:

65% have seen him/her

34% find him/her distinguishable from others in department

98% say he/she is usually available to assist

71% say it’s very/somewhat important that they speak directly to CM vs. other team member (28% very important)


NOT Heard

Heard

Awareness may be impacted by the term

“Cheese Monger”


Preferred Cheese Monger Responsibilities – More “Ambassador” Than Clerk

91%

86%

74%

60%

56%

68%61%

61%

77%

49%

53%

62%

68%

81%

81%

88%

CurrentlyResponsible

Should BeResponsible

Offer suggestions/recommendations when asked

Offer tastes from cheese case

Mingle with customers

Help customers find products

Cut/weigh cheese for customers

Hold classes/cheese tastings

Order merchandise

Offer suggestions/recommendations when not asked

(Q. 28/29 - % WFM Shoppers indicating what activities they think are currently/should be part of the Cheese Monger’s responsibilities)

Most concur Cheese

Monger is not/should not be responsible

for stocking shelves

Could do more…



Most Approach Cheese Monger for Tastes

(Q.30/31 - % WFM Shoppers indicating if they have ever spoken to the Cheese Monger, and what was discussed)

The majority of WFM Shoppers aware of the Cheese Monger have spoken to him/her (84%)

27%

37%

44%

66%

76%Taste a particular variety of

cheese

Help in locating a product

Wanted piece of cheese cut

Advice about wine/foodpairings

General greeting



Cheese Monger is Considered Very Knowledgeable and Trustworthy

(Q.33/34 - % WFM Shoppers indicating how knowledgeable and trustworthy they consider the Cheese Monger)

20% 14%

76% 85%

Knowlegeable Trustworthy

Very Knowledgeable

Somewhat Knowledgeable

Trust A Lot

Trust A Little

96% 99%


Staffing decisions for this position are critical, given the

knowledge and trust consumers place in the CM


Customers Want Opportunity to Buy Smaller “Sampling” Sizes

20%

34%

42%

45%

48%

46%

67%

41%

43%

40%

43%

28%

34%

40%

37%

31%Pre-packaged offerings (cheese with fruit,

smoked meats, crackers…)

More healthy options

Themed offerings pairing cheese with crackers,fruits, spreads…

"Cheese Monger Recommendations" tohighlight new varities

More local cheeses

Smaller cuts of cheese

Highlighted seasonal offerings

Smaller "sampling sizes" to buy

Very Somewhat

(Q36 - % WFM Shoppers indicating they are very/somewhat interested in these types of cheese products at WFM/WO)

95%

89%

88%

85%

85%

75%

72%

51%

Strongest interest

Women more interested than

men in…smaller cuts, smaller sample sizes

30-39 year olds more interested than

older shoppers in…”Cheese Monger Recommendations,"

themed and seasonal offerings

WO Shoppers more interested than WFM Shoppers in… local

cheeses, themed offerings, highlighted

seasonal offerings

Specialty Olives


WFM Shoppers Buy More Specialty Olives Than WO Shoppers

(Q.37 - % WFM/WO Shoppers indicating where they have purchased specialty olives in past 6 months or so)


WFM Shoppers

WO Shoppers

Buy specialty olives 55%* 46%

Natural Food Store (Net) 43%* 32%

Whole Foods Market 38%* 14%

Wild Oats 2% 22%*

Trader Joe’s 15% 12%

Traditional Grocery Store (Net) 28% 21%

Warehouse Store/Club (Net) 8% 11%

Other (specialty cheese shop/farmers market/mass merch)

8% 10%

Don’t buy specialty olives 45% 54%*


Frequent Purchase of Specialty/Gourmet Cheese Correlates with Purchase of Specialty Olives

(Q.37 - % WFM Shopper groups indicating they have bought specialty olives in past 6 months)

55%

68%

73%

WFMShoppers

Who Buy S/GCheese

Monthly+

WFMShoppers

Who Buy S/GCheese

All WFMShoppers


41%

18%

13%

9%

3%

14%

16%

Don't buy/don't likeolives

Don't buy specialtyolives, just regular

Haven'twanted/needed them


Too expensive atWFM

Easier to buyelsewhere

Like better elsewhere

WFM Shoppers Don’t Buy Specialty Olives Primarily Because They Don’t Like Olives

(Q.38 - % WFM Shoppers indicating why they haven’t bought specialty/gourmet olives from WFM in past 6 months)

WO Shoppers are less averse to olives, they just buy more regular varieties (26%)

There may be less of an opportunity to expand olive purchases as many shoppers simply do

not like olives. Encouraging the 18% who only buy regular olives to “upgrade” should be the

primary focus.


Olive Buying is an Infrequent Occurrence

(Q.39 - % WFM Shoppers indicating how often they buy S/G olives at WFM)

1-4 times/year

65%

1-3 times/month

31%

Once a week or more

4%

Most WFM Shoppers who buy specialty/gourmet olives purchase only a few times each year



Olive Bar Jar Pre-Packaged Can

WFM Shopper

82% 29% 18% 6%

WO Shopper+

72% 51%* 37%* 22%*

Most Prefer Specialty Olives From Olive Bar

(Q40 % segment indicating type of specialty olives generally purchased at WFM/WO)

WFM Shoppers primarily make Olive Bar purchases; WO Shoppers buy from other places as well

+ Caution – small base size (<50)



Most Buy Specialty Olives at WFM Because of Selection, Flavor, Quality

(Q.41 - % WFM Shoppers indicating the reasons they buy specialty olives at WFM)

22%

37%

38%

55%

64%

69%

70%Selection/variety

Flavorful

High quality

Fresh

Natural/organicchoices

Different/special

Traditional curingmethods

WFM and WO Shoppers hold similar opinions except

more WFM perceive freshness (55% vs. 33%)

Focusing on these qualities may facilitate the “upgrade” from

regular to specialty upgrades

Organic Chocolate


Frequency of buying specialty/gourmet cheese…

WFM Shoppers

Have bought organic chocolate

78%

Once a week or more 5%

1-3 x/month 21%

1-4 x/year 34%

Only tried once or twice 18%

Never purchased organic chocolate

22%

Majority Claim to Have Purchased Organic Chocolate, Though Most Do So Very Infrequently

(Q.43 - % WFM Shoppers indicating familiarity with process of growing cacao/Q.44 – frequency of buying organic chocolate/Q.45 – reasons for not buying organic chocolate)

Majority are unfamiliar with

growing process of cocoa…

Very – 7%

Somewhat – 32%

Not too – 35%

Not at all – 26%

Familiarize and show benefits of

organic

52%

Reasons for NOT buying:

Never thought about it – 46%

Wasn’t aware of it – 27%

Don’t believe it’s necessary – 25%



It’s All About the Taste

(Q.46 - % WFM Shoppers indicating the following are very important when considering purchase of chocolate)

22%23%

34%

45%

82%

24%

31%

Taste % Cocoa Other organic

ingredients (milk, sugar,

vanilla…)

Organically grown cacao

Price Fair Trade Certification

Environmentally friendly

packaging

Taste is more than twice as important

as organic


Organic status of other ingredients is more important than cocoa…opportunity

to educate consumer?

Demographic and Shopper Profiles


Produce, Meat/Poultry Most Important to Have USDA Organic Seal; Cheese and Chocolate Lower

(Q.42 - % WFM Shoppers indicating it is very/somewhat important that the following products are certified with the USDA organic seal)

17%21%

38%

54%55% 25%

30%28%

34%34%

24%29%

38%

24%

CottonChocolateCoffeeCheeseGrainsMeat/PoultryProduce

Somewhat important

Very Important

All are less important to those 65+

Cotton is more important to women


84%78%

72% 72%

52% 51%

42%


Frequency of Shopping at WFM/WO

(Q.2 - % segment indicating frequency of shopping at WFM/WO (sample defined as 10+x/year)

Positive relationship between more frequent shopping and more frequent cheese buying at WFM:

Buy S/G Cheese > Monthly: Shop WFM 2.8x/month*

Buy S/G Cheese< Monthly: Shop WFM 2.1x/month


Weekly4%

Monthly14%

Bi-monthly61%

>Once/week10%

<Monthly12%

<Monthly17%

>Once/week6%

Bi-monthly59%

Monthly15%

Weekly4%

Avg times/mo: 2.5

Avg times/mo: 2.0


Avg. score for importance of shopping WFM/WO… (out of 20)

WFM Shoppers

WO Shoppers

Natural/organic foods 7.3 8.2*

Specialty/gourmet foods 5.7 5.1

Convenient location 4.2 4.6

Environmental/social consciousness

4.1 4.0

Unique experience 3.6 3.9

Good value 3.0 4.3*

Natural/Organic Foods Clear Driver for Shopping at WFM and WO

(Q3 - segment indicating average number points (out of 20) given to each statement as an important reason for shopping WFM)


Demographic/Shopper Profile of WFM and WO S/G Cheese Shoppers

(Q.D1-D10)

Demographic Profile:Male: 46% Female: 54%Average Age: 44.8HH income: $94.1KMarried: 53%Single: 23%Children in HH: 28%College grad+: 48%Employed/Retired: 73%/11%White: 82%Black: 3%Hispanic: 9%Asian: 4%

Shopper Profile:Avg # times shop/mo: 2.8Avg. monthly grocery bill (all):$489.40Avg. monthly grocery bill (WFM):

$173.30*% WFM $/total grocery bill: 35%

Demographic Profile:Male: 44% Female: 56%Average Age: 41.0HH income: $86.4KMarried: 47%Single: 28%Children in HH: 43%*College grad+: 53%Employed/Retired: 74%/10%White: 77%Black: 2%Hispanic: 10%Asian: 5%

Shopper Profile:Avg # times shop/mo: 2.1Avg. monthly grocery bill (all):$478.00Avg. monthly grocery bill (WFM):

$152.40 % WFM $/total grocery bill: 32%

WFM S/G Cheese Shoppers WO S/G Cheese Shoppers


The Natural Marketing InstituteThe Natural Marketing Institute272 Ruth Road

Harleysville, PA 19438

Steve French, Managing Partner

phone: 215-513-7300, ext 214fax: 215-513-1713

[email protected]

www.NMIsolutions.com

1 the natural marketing institute (nmi) cheese/olives/chocolate study #3509-26; september 2007...

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