PNW REGION US

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1 US PNW WHOLE BODY 2013 PROGRAMS OVERVIEW Thank you for taking the time to review our 2013 Promotional Program Overview. Our Whole Body department expects all of our vendors to participate in support programs for their products at Whole Foods Markets. This document will give you a quick top line synopsis of our programs and the ways you can support your products in our stores. Additional opportunities may be available from time to time both at the regional and at the store level. Before starting your annual planning please review the instructions tab on your 2013 promotional workbook. It has been updated substantially this year to make completion of the package easier than ever. MONTHLY PROMOTIONAL CYCLES - We will continue to have 12 monthly promotional cycles. Each promo cycle has an A and B period. Promotions may run in A or B or for the full duration of A & B. Most promotions in the Whole Body department run for both the A&B periods. In both of the A and B period we run one instore flyer. Note availability of the flyer spots is reserved for PIC partners and those vendors putting forward the very best values each month as determined by the regional Whole Body Buyer. Please use the item specific form you received to put forward your 2013 promotional discounts. These should be submitted as soon as possible so they can be reviewed and finalized not later than October 31 st PLEASE FILL OUT PROMOTIONS FOR THE ENTIRE YEAR. NEW! EARLY BIRD SPECIAL SALES! In the coming year the Whole Body Department will be implementing EARLY BIRD SPECIAL Department sales! Twice each year our Supplement and Bodycare sub departments will take part in an Early Bird Sale. The sale will occur from store opening to noon in all stores and all products in the respective sub department (either Bodycare or Supplements) will be featured at 20% off our regular retails. Early Bird Sales will be marketing with custom signage in all stores as well as actively promoted using social media such as Twitter and Facebook. All partners who wish to participate in our 2013 promotional programs will need to support our Early Bird Sales driving campaigns as you support is needed to allow these sales driving events to be successful. To participate simply complete the promotional grid in the applicable months (noted below) a discount totaling 20% (beyond any OGD) for all items that are part of the applicable Early Bird category sale (i.e. all supplements or all bodycare). 1 P a g e

2 Please note that if you don t provide discounts to support these sales events then participation in our other core promotional/education programs such as Partners in Change, 4 Day Sales, Regional Training, Health Fairs and in store programs will be restricted. Please reach out to your Whole Body Buyer with any questions about this exciting new sales driving opportunity! PARTNERS IN CHANGE (PIC) EVENTS This is our signature off shelf/endcap program in Wholebody. Space is limited to 4 Partners In Change per month (2 in November and 2 in December) and will fill quickly for PIC Partners will be selected by reviewing those offering the best value to our guests and greatest sales opportunities. While there is no cost for the end cap exposure and added marketing materials there are some parameters to the program. To participate in this program you must partner with a local non-profit organization (NPO) and donate a $ amount per unit or % of your monthly sales on the PIC program items towards the non-profit most vendors choose 5% but that is a guideline only. You must have the NPO provide to us their logo, a signed marketing release form, some short point form text about who they are and their mission, and any images they have of their membership in action. Please note that in certain months (e.g March Whole Planet Foundation) WFM works regionally with various NPO s and asks all PIC vendors that month to support that cause. Each vendor must provide their company or product logos and a few images of the products to be featured during the PIC promotion and provide us with a signed marketing release for these materials. Additionally 2 demos in each store during the PIC promotion are required as is participation in one of our two monthly instore flyers. We ask for the discounts that will enable us to put forward best in market retail pricing for the duration of the PIC Event. Average lift in this program is 200+% and up as compared to the previous 4 weeks of sales in our stores. Each PIC is supported with a custom sign package that calls out the non-profit donation being made by our vendor partners. Please Note the specific deadlines for PIC collateral to be submitted. It is noted on the deadlines tab of your 2013 workbook as well as in the separate document outlining the PIC program that was included in the same you received this document. Please review to ensure you have all materials submitted on time. 2 P a g e

3 GREAT BUY (EDV) PROGRAM This program brings the regular retail on our shelves down to a special Great Buy retail 365 days of the year. It is a wonderful way to invest co-op $ to drive sales on key items in our stores while creating exceptional value to our customers. The cost to our vendors is simply an investment in a cost reduction that we can in turn pass on to consumers and offer incredible value all year round. Products are flagged as a Great Buy every day of the year. If a Great Buy item is part of an off shelf promotion it will also have special Great Buy signage on the off shelf display. 4 DAY SALE Items that will be considered for the program need to be top selling not only for you but for us in their category. There is no limit to the # of items you can submit however your regional buyer will review and select those of greatest interest. A weekly promotional program that runs from Thursday through Sunday each week. The goal is to create outstanding value and excitement for our customers by presenting them with unparalled value (min 30% retail discount) - and to encourage sales further by offering the value for only a limited time. There will continue to be line drives with 40% or greater retail discounts but there will now also be more opportunity to feature a specific category of products within a line. In general when promoting these smaller focused categories our goal will be move towards a more aggressive BOGO retail both to ensure there is retail excitement and to drive sales on the smaller grouping of products. 3 P a g e

4 Costs for participation are simply discounts on your products that will allow us to pass on the extra value to our guests during the 4 Day Sale. Discounts can be off invoice, scanback, or a combination thereof. Our WB Teams are expected to merchandise off shelf for the 4 Day sales. Please use the 4 Day Sale planning forms provided to put forward your 4 Day Sale proposals. PRODUCT DEMONSTRATIONS Each of our stores maintains a demo program and they are a wonderful way to both to interact with and to get your product in front of our guests. At this time 2 demos per month for PIC promotions are expected at all stores but additional demos may be booked throughout the year to support your products. I would suggest it would be a good idea to tie your promotional discount periods to the same schedule as your demos to maximize the sales impact of your program. Currently all demos are booked at the individual store level. Please review the contacts tab on the 2013 promotional planning document for the current store level contacts. REGIONAL TRAINING SERIES In 2011 we introduced a Regional Education Series that gave our vendors the opportunity meet in a training focused environment with key Team members from each US store present. We provide the space for the training and will schedule staff to attend the trainings as they would a shift in our stores. We feel this method of training is more effective and efficient than most breakfast, lunch, or dinner trainings as the focus is on education first. The program has been received favourably by both Team members and our trade partners. To enable us to schedule staff to attend these trainings we need to recoup their labour costs. The 2013 cost for a 1 hour training slot with our Team Members is $20 per team member (max 2 team members per store) As we did last year we ask that you review our category review calendar and look to align your trainings on specific categories in the month that we are resetting those categories. Trainings will occur January through October. No regional trainings are held November and December. You may note your desire for specific training dates on the 2013 Training request forms that are part of your promotional workbook. Please fill out the US Training Schedule where your brand is a category leader, you may request multiple training dates to increase your probability for selection to train our team members. Deadline to submit training request is Oct 31 st Confirmation of 2013 spots will occur by December 15 th 2012 so please plan now. 4 P a g e

5 CATEGORY REVIEW /NEW ITEM PROCESS / PLANOGRAMS Whole Foods Market stores in US follow the Whole Foods Market Category Review Calendar to make decisions around discontinued and new items and allow planograms to be created in our stores to ensure we have the best mix on the shelves in all stores. Please DO not add any new items to the item specific 2013 promotional grid provided to you. Instead please review the category calendar with respect to timelines for new items submissions. We request that you submit paperwork and live samples for consideration in conjunction with the timelines noted in the review calendar. Our new item sheet contains columns similar to the 2013 promotional grid for indicating discounts. If a product is approved through the category review process the promotional discount information will be carried over into the promotional grid for the year and will be included on the relevant monthly promotions. Products approved will be submitted to the Planogram team for inclusion into the Category Planogram. Free fill will be ordered regionally on all newly approved products with first fill into each store at the beginning of the month the new Planogram is set to be implemented. Free fill levels will be at the levels laid out in the 2013 WFM Global Free Fill policy which is included in the forms sent with this document it is also a separate tab on our NPAF (new item form). If your company is planning significant product launches with a high degree of consumer marketing in the general marketplace and also put forward a support proposal for WFM to partner in the launch (first to market, exclusive period, etc) new items may be considered outside of the category review timelines. We ask our vendors and brokers for planogram reset support in each of the 10 months of the year we conduct category resets. If you have a significant footprint in a category or are a sales leader in a category you can expect our call for assistance in the coming year! We appreciate the help and know that you also understand the good category management will help grow our mutual sales. A Calendar of store specific reset dates and requested vendor support will be published this fall co coincide with the Round 1 Category review resets occurring in January Please note to assist our planogramming team in verifying all measurements and creating an image of the new item for our planograms one unit of each new item must be sent to: Whole Foods Market Attn: Louie Reina - Space Planning Team 550 Bowie St. Austin, TX If the items are large (over 2 by 2 ) or refrigerated or frozen, sending just the packaging is acceptable. If the product comes in a box and only contains a UPC on the box and not on the product itself, an empty box is acceptable. Thank you all for your ongoing support of the PNW Whole Body Department. We feel really fortunate to work with such a wonderful vendor family here in the PNW. Questions? Concerns? Please do not hesitate to call or me kaze.williams@wholefoods.com 5 P a g e