Case Analysis

nono
timer Asked: Mar 15th, 2016

Question Description

Question 1:  Identify the firm’s apparent current mission.  Then briefly review the firm’s current objectives and strategies.  [Please note that you must evaluate the firm’s mission statement.]

Mission Statement:

Mission Statement Evaluation:

Component

1

2

3

4

5

6

7

8

9

Company

Company Objectives:

Company Strategies:

Question 2:  Outline and discuss the firm’s external opportunities and threats, using any analytical model(s) you believe are relevant. 

[You must analyze the General Environment, Industry Environment, and the firm’s strategic group to determine this information.]

Question 3:  Outline and discuss the firm’s internal strengths and weaknesses using any analytical model(s) you believe are relevant. 

[Strengths and weaknesses will include information from the financial analysis.]

Question 4:  Based on your analysis:

a.  Revise the firm’s mission and objectives if necessary. 

b.  Develop and discuss corporate and business strategies that you recommend to achieve the firm’s mission and objectives.

Mission and Objective Revisions:

Alternative Solutions or Strategies:  [Your SWOT Matrix should contain your final selection of strategies; that is, you must integrate the “desired” strategies from the Grand Strategy Matrix.  You will discuss in detail the top three strategies in this section.]

 Strategy 1:  [Identify the strategy and discuss how it will solve the company’s problems or help it reach its goals.]

Strategy 2:  [Identify the strategy and discuss how it will solve the company’s problems or help it reach its goals.]

Strategy3:  [Identify the strategy and discuss how it will solve the company’s problems or help it reach its goals.]

Question 5:  Outline and discuss the specific actions needed for implementation of your chosen strategy.  This should include the following:

a.  Specific strategies and long-term objectives in such areas as marketing, human resources, finance, operations, and information systems as appropriate.

b.  Specify specific annual objectives and the policies for achieving these objectives, in areas such as marketing, human resources, finance, operations, and information systems as appropriate.

c.  Specify the results you can expect, including pro forma financial statements.



Unformatted Attachment Preview

Strategic Management Students, The class case for this semester/term is Whole Foods Market! I have gathered all the information for you (as you would gather for your employer). Please read the following information in preparation for the case analysis quiz: 1. WFM Company Website: a. Company i. Overview ii. About Us iii. Our History iv. Whole Philosophy b. Issues i. Frequently Asked Questions c. Investor Relations i. Annual Report 2007: Chairman’s Letter 2. Yahoo Finance Website: a. Company: Whole Foods Market i. Profile ii. Key Statistics iii. Competitors iv. Industry b. Financials: Whole Foods Market, Safeway, Kroger i. Income Statements ii. Balance Sheets Please note the following: 1. You will have a timed quiz over this information: To Be Announced! You are permitted to bring one page of notes (front & back) for the quiz—SWOT Matrix & Five Forces Diagram. The SWOT Matrix presents the crucial elements of your case analysis, and the Five Forces Diagram provides a snapshot of the industry. 2. The "notes page" that you bring to the quiz must be in a Word document or Excel spreadsheet. Please use Times New Roman (12 pt) font! DO NOT include any handwritten notes on the "notes page". (The "notes page" should not have any erasures. Part of your grade represents organization and preparedness.) I will attach this document to your quiz when you submit it. 3. I will provide the financial ratios; you must be able to interpret the numbers. Please note that I will not provide formulas; you may do so on the "notes page" if you wish. 4. This is a 20-minute quiz with 10 questions (M/C & T/F). Please write your name on the quiz when you receive it. You may write all over the quiz during the testing period; however, DO NOT WRITE ON YOUR NOTES PAGE! 5. Additional information is provided in annual reports and Datamonitor reports, such as industry growth rates. I will discuss the importance of these reports in class. Dr. Dodd-Walker 334.670.3976 Title: Whole Foods Market : Company : About Us URL: http://www.wholefoodsmarket.com/company/facts.html Date: About Us World Headquarters Whole Foods Market, Inc. 550 Bowie Street Austin, TX 78703-4644 512.477.4455 512.477.5566 voicemail 512.482.7000 fax   U.S. National Offices Regional Offices Number of Employees: 54,000 More than 270 locations in North America and the United Kingdom. Distribution Centers: 9 Regional Bakehouses:          South — Harry's Farmers Market Southwest Florida Northern Pacific Southern Pacific Mid-Atlantic North Atlantic Midwest Rocky Mountain Commissaries: 5 Subsidiaries:     Allegro Coffee Company Pigeon Cove, our seafood processing facility Select Fish, our West Coast seafood processing facility Produce Field Inspection Office Common Stock: traded on Nasdaq®, symbol: WFMI   Whole Foods Market Leadership Team Board of Directors Copyright 2000–2003. Whole Foods Market IP, L.P. Sun Aug 17 2008 Title: Whole Foods Market : Company : History URL: http://www.wholefoodsmarket.com/company/history.html Date: Sun Aug 17 2008 Our History Whole Foods Market was founded in Austin, Texas, when four local businesspeople decided the natural foods industry was ready for a supermarket format. Our founders were John Mackey and Renee Lawson Hardy, owners of Safer Way Natural Foods, and Craig Weller and Mark Skiles, owners of Clarksville Natural Grocery. The original Whole Foods Market opened in 1980 with a staff of only 19 people. It was an immediate success. At the time, there were less than half a dozen natural food supermarkets in the United States. We have grown by leaps and bounds since our first store opened. Learn More Much of the growth of our company has been accomplished through mergers and acquisitions. The story of Whole Foods is incomplete without honoring these notable companies in their own right.                  Whole Food Company Wellspring Grocery Bread & Circus Mrs. Gooch's Fresh Fields Bread of Life Amrion Merchant of Vino Allegro Coffee WholePeople.com (ecommerce subsidiary) Nature's Heartland Food For Thought Harry’s Farmers Market Select Fish Fresh & Wild Tiny Trapeze Wild Oats History of Whole Foods Market The Early Years In 1978, twenty-five year old college dropout John Mackey and twenty-one year old Rene Lawson Hardy borrowed $45,000 from family and friends to open the doors of a small natural foods store called SaferWay in Austin, Texas (the name being a spoof of Safeway, which operated stores under their own name in Austin at that time). When the couple got booted out of their apartment for storing food products there, they decided to simply live at the store. Since it was zoned commercial, there was no shower stall. Instead, they bathed in the Hobart dishwasher, which had an attached water hose. Two years later, John and Rene partnered with Craig Weller and Mark Skiles to merge SaferWay with their Clarksville Natural Grocery, resulting in the opening of the original Whole Foods Market on September 20, 1980. At 10,500 square feet and a staff of 19, this store was quite large in comparison to the standard health food store of the time. Less than a year later, on Memorial Day in 1981, the worst flood in 70 years devastated the city of Austin. Caught in the flood waters, the store's inventory was wiped out and most of the equipment was damaged. The losses were approximately $400,000 and Whole Foods Market had no insurance. Customers and neighbors voluntarily joined the staff to repair and clean up the damage. Creditors, vendors and investors all provided breathing room for the store to get back on its feet and it re-opened only 28 days after the flood. Expansion Beginning in 1984, Whole Foods Market began its expansion out of Austin, first to Houston and Dallas and then into New Orleans with the purchase of Whole Food Company in 1988. In 1989, we expanded to the West Coast with a store in Palo Alto, California. While continuing to open new stores from the ground up, we fueled rapid growth by acquiring other natural foods chains throughout the 90's: Wellspring Grocery of North Carolina, Bread & Circus of Massachusetts and Rhode Island, Mrs. Gooch's Natural Foods Markets of Los Angeles, Bread of Life of Northern California, Fresh Fields Markets on the East Coast and in the Midwest, Florida Bread of Life stores, Detroit area Merchant of Vino stores, and Nature's Heartland of Boston. Whole Foods Market started our third decade with additional acquisitions of Food for Thought in Northern California and Harry's Farmers Market stores in Atlanta. In 2001, Whole Foods moved into Manhattan, generating a good deal of interest from the media and financial industries. 2002 saw an expansion into Canada and in 2004, Whole Foods Market entered the United Kingdom with the acquisition of seven Fresh & Wild stores. History of Whole Food Company Whole Food Company (WFC) opened its doors in New Orleans in October 1974. Its mission was to be a grocery store featuring good, wholesome food; not a "health food" store filled with pills and potions. Sales doubled each year for the first four years. By 1978, the store (only 1100 square feet) was doing more than $1 million per year. Success was fueled by a committed staff who were all stockholders in the company. In 1981, WFC opened a larger store on Esplanade Avenue in New Orleans. WFC became the largest outside customer of Texas Health Distributors, the wholesale division of Whole Foods Market. In May of 1988, the Esplanade store became the sixth Whole Foods Market. History of Wellspring Grocery Wellspring Grocery opened its doors in 1981, after three years of planning and preparation. Owners Lex and Anne Alexander led a team of home-grown, energetic workers who set out to change the way the Triangle community of North Carolina (Durham, Raleigh and Chapel Hill) shopped for food. The idea was to offer high quality and great nutrition, and to encourage consumers to be more connected with the food they ate. The first store, located in Durham, was completely "vegetarian." In 1986, it moved to a larger space two blocks up the street, and in response to consumer demand, added fish, poultry and meat. In 1990, a second store opened in Chapel Hill, approximately 10 miles away. Wellspring Grocery joined Whole Foods Market in November of 1991. History of Bread & Circus Anthony and Susan Harnett purchased the first Bread & Circus store in Brookline, Massachusetts in 1975. The first Bread & Circus sold natural foods and wooden toys, hence the unusual name. New stores opened in Cambridge (1979) and Wellesley (1980). In 1983, Bread & Circus challenged itself by expanding into Hadley, Massachusetts, located 100 miles from the Boston home base. In 1988, the company opened a store in Newton, MA. Later that year, it moved its central office to Newton, and established a central Commissary there. The Providence, Rhode Island store opened in 1990, and the original Brookline store moved to Brighton, Massachusetts in 1991. At the time of its acquisition by Whole Foods Market in 1992, Bread & Circus was the largest natural food retailer in the Northeast. History of Mrs. Gooch's Sandy Gooch, a homemaker and former grade school teacher, became interested in natural foods after suffering severe allergic reactions to antibiotics and chemical additives in food. She joined forces with Dan Volland, who operated three health food stores, to open the first Mrs. Gooch's Natural Foods Market in West Los Angeles in January 1977. Within a year, the second market opened in Hermosa Beach. Over the next decade, new markets were launched in Northridge, Sherman Oaks, Glendale, Beverly Hills, and Thousand Oaks. Mrs. Gooch's held its suppliers to rigorous standards: no harmful chemicals or preservatives, no artificial colors or flavorings, and no white flour, refined sugar, alcohol, caffeine or chocolate. With its consumer education programs, the company helped fuel a growing demand for natural foods in southern California. Whole Foods Market acquired Mrs. Gooch's in 1993. History of Fresh Fields Fresh Fields can be considered part of the "second generation" of natural food supermarket companies. Whereas all of the other companies that have become part of the Whole Foods Market family were started in the 1970's and early 1980's, Fresh Fields opened its first store in May of 1991 in Rockville, MD. The first store was very successful which led to the opening of four more stores in 1992. Eight additional stores were opened in 1993 including expansion into the Philadelphia and Chicago markets. By 1993, annual sales had reached $100 million and were over $200 million by 1995. At the time of the merger with Whole Foods Market, Fresh Fields had 22 stores open in four different market areasWashington/ Baltimore, Philadelphia, New York/New Jersey/Connecticut and Chicago. History of Bread of Life In 1980, Julie and Richie Gerber, organic farmers from Maine, moved to Florida and purchased a natural food store in Ft. Lauderdale called the Bread of Life. With 1300 square feet, the store housed natural food products as well as a small juice bar. In 1985, they expanded to a 3,000 square foot building with a full service restaurant and kitchen. In 1989, the Gerbers partnered with Jim Oppenheimer to relocate to a 6800 square foot store two miles away. The new store became popular for its organic foods and live entertainment, "Jazz Goes Natural," featuring Richie Gerber and the Free Radicals. In 1995, the Bread of Life opened a 30,000 square foot store in Plantation, Florida. The merger with Whole Foods Market in 1997 prompted the creation of the Florida region. History of Amrion Amrion was founded in Boulder, Colorado on August 18, 1987 by father and son team Henry and Mark Crossen, originally under the name of Bioenergy Nutrients, Inc. In 1989, the company went public and in 1993, the name was changed to Amrion, Inc. Over the years, Amrion expanded their channels of distribution to include: HealthSmart Vitamins (sales to consumers); Physiologics, (sales to health care professionals); BioDynamax (sales to independent distributors); and Brand Partners (private label for Whole Foods). On September 11, 1997 Amrion merged with Whole Foods Market and in October of 1999 they merged with WholeFoods.com to form a new subsidiary, WholePeople.com After the merger of WholePeople.com and Gaiam, Inc. Amrion was renamed NatureSmart and operated as a separate subsidiary until May 10, 2001 when Whole Foods Market sold all of its interest in NatureSmart to NBTY, Inc. History of Merchant of Vino Merchant of Vino was founded by Ed and Juliette Jonna in 1974. Located in the Detroit area, they established an excellent reputation in wine retailing. Over the years they began to pick up more and more gourmet and natural food items to complement their strong wine business. Produce, meat/seafood, and prepared foods were added as well as nutrition and bodycare. At the time of the merger in December of 1997, Merchant of Vino operated six stores in the Greater Detroit area. History of Allegro Coffee Allegro Coffee Company was founded by brothers Jeff and Roger Cohn. Coming from a family coffee tradition, they realized the growing consumer demand for fresh-roasted, high-quality coffee and, in 1977, opened the Brewing Market-a specialty coffee business in Boulder, Colorado. In just a few years, Brewing Market grew to include two retail stores and a wholesale division. As the wholesale side of the business continued to grow, Jeff and Roger directed the sale of the retail division in 1985 and renamed the wholesale division Allegro Coffee Company. After supplying our stores with specialty and organic coffees, teas and brewing equipment for many years, Allegro joined the Whole Foods Market family in December of 1997. Today, Allegro coffees are widely recognized as the pinnacle of quality in the specialty coffee industry. History of WholePeople.com (e-commerce subsidiary) Whole Foods Market began seriously discussing the on-line sale of our products in 1997, when ecommerce was viewed as an intriguing yet risky venture. While our corporate web site continued to evolve into an information-rich site, research on the viability of opening a new "store" on the site proceeded behind the scenes. Development of our "virtual" store began in the summer of 1998. The site went live in March of 1999 as WholeFoods.com. In October of 1999, WholeFoods.com merged with Amrion to form a new ecommerce subsidiary, WholePeople.com. The new WholePeople.com ecommerce site was launched in March 2000. On June 20, 2000 WholePeople.com and Gaiam, Inc. merged their respective internet properties into a newly formed company named Gaiam.com, Inc. The WholePeople.com web site was replaced by the Gaiam.com web site. History of Nature's Heartland In 1996 Nature's Heartland opened its first store in Bedford, MA with the goal of providing a cost effective way to get natural products to consumers. Three more stores soon followed, all in the greater Boston area. Nature's Heartland, like Fresh Fields, was a "second generation" natural food supermarket company. In fact, both companies share a founder, Leo Kahn, who also had a hand in Purity Supreme grocery stores and the Staples office supply chain. Nature's Heartland's quality standards were quite similar to those in the Whole Foods Market/Bread & Circus stores in the same area — requiring unbleached flour, naturally raised meat and poultry, and featuring as much organically grown produce as possible. Yet with their conventional grocery store background, these products shared the shelves with such goods as film and batteries, school supplies, disposable razors, and stuffed animals. History of Food For Thought Food For Thought began serving the community of Sebastopol in Sonoma County, California in 1989 when the business was purchased by the Shelton families. The Sheltons had a 20 year history of work in the natural foods industry and had a hand in opening some of the first natural foods markets in the country in the early 1970's. Although the first store was only 2,000 square feet and had just eight employees, community support helped the store expand to its current 10,000 square feet. Their expansion continued with the Santa Rosa store opening in 1994 and the Petaluma store opening 1996. Whole Foods Market closed the deal acquiring Food For Thought in February of 2000. History of Harry's Farmers Market Harry's Farmers Market debuted in the Atlanta area in 1987 when founder Harry Blazer opened the first megastore in Alpharetta, Ga. It was a quick success, becoming profitable within the first year. Known for fresh, delicious foods, produce and gourmet products, the company expanded, opening two additional locations in Gwinnett and Cobb, each more than 100,000 square feet. The company went public in 1993 and launched a separate chain, Harry's in a Hurry, a small specialty store that was not a part of the Whole Foods Market acquisition. Whole Foods Market acquired the three Harry's Farmers Market perishable megastores, a distribution center, a commissary kitchen, bakehouse and office facilities in October 2001. These stores join two Atlanta Whole Foods Market Stores in Briarcliff and Sandy Springs and continue to operate under the HFM banner. The addition of Harry's Farmers Market to the Whole Foods Market family is a key component of Whole Food Market's growing presence in the Southern United States. History of Select Fish Select Fish is a processor and distributor of high quality seafood from Alaska and the Pacific Northwest based in Seattle, Washington. Founded in 1987, their mission is to support fisheries that use techniques to ensure the ecological health of the ocean and abundance of marine life. Scott Barton, the president of Select Fish and current Facility Team Leader, was a fisherman by trade for 15 years in Alaska and Seattle before becoming a distributor of his own fish, along with the fish of other fisherman who prided themselves of taking care of their catch by icing it and getting it to market hours after harvest. Scott grew the company and became an advocate of seafood sustainability, and is a governing member of the Marine Stewardship Council board. History of Fresh & Wild UK based Fresh & Wild was founded by Hass Hassan in late 1998. He acquired the long established City Health Store in London and opened the first new Fresh & Wild in Camden Town in February 1999. Another existing health store in fashionable Notting Hill joined the emerging group in April 1999. Rapid growth and new store openings followed at Clapham Junction in October 2000, Soho in December 2000 and Stoke Newington in June 2001. Londoners quickly took to Fresh & Wild's friendly and informative style of natural food retailing and the stores rapidly gained recognition and began winning leading awards. The first store outside of London opened in the Clifton area of Bristol in December of 2003. The seven stores together with central kitchen and warehouse joined Whole Foods Market in January of 2004. History of Tiny Trapeze Confections® Tiny Trapeze Confections was founded by Ayis Antoniou and Suzanne Lombardi, who also founded the award-winning Dancing Deer Baking Company in 1994. Tiny Trapeze began operations in Boston, Massachusetts in 2003. At the time of their merger with Whole Foods Market in December of 2005, Tiny Trapeze had received many accolades for their treats from magazines like such as Food & Wine, Metropolitan Home, Organic Style, Fortune Small Business. Tiny Trapeze Confections is now Whole Foods Market’s own authentic, artisan candy company. Their philosophy is born out of the idea that sweets made from all-natural and organic ingredients can taste great and bring joy to eating in a way where health and pleasure are not at odds. Their goal is to develop and reinterpret candies and confections that rival the classics in taste and presentation while using the highest quality all-natural and organic ingredients. History of Wild Oats© Markets Wild Oats was founded in 1987 by Michael Gilliland and his wife, Elizabeth Cook, with the purchase of the Crystal Market vegetarian natural foods store in Boulder, Colorado. With no experience in the natural foods business, the founders relied on the expertise of their employees and the wealth of natural product knowledge in Boulder to build Crystal Market into a thriving business. In 1991, Wild Oats opened their first supermarket-sized store in Santa Fe, New Mexico. In 1992, Crystal Market was re-named Wild Oats Vegetarian Market, and in the ensuing years the company began opening and acquiring other, small natural foods stores. In 1993 and 1994, Wild Oats was named one of the "500 Fastest-Growing Private Companies in America" by Inc. Magazine. In 1996, it became a public company traded on the NASDAQ Stock Market. The Wild Oats story continued with a period of rapid growth through acquisitions and new store development, which peaked in 1999 with the addition of 47 stores in a single year. Wild Oats operated 109 stores in 23 states and British Columbia, Canada (Capers™ Community Markets) at the time it merged with Whole Foods Market. (Of those, the 35 Henry's Farmers Markets and Sun Harvest stores were acquired by a separate food retailer.) Wild Oats' similar mission, vision and values along with their knowledgeable and talented Team Members made them a welcome and valuable addition to our team. Copyright 2000–2003. Whole Foods Market IP, L.P. Title: Whole Foods Market : Organics - Frequently Asked Questions Date: Sun Aug 17 2008 URL: http://www.wholefoodsmarket.com/issues/organic/faq.html Organics — Frequently Asked Questions Nearly one-third of the U.S. population has recently purchased an organically grown food product, and sales are expected to more than double in the next four years-making organic one of the hottest growth trends in the food industry today. Organic foods set the standard for top quality freshness, texture, flavor and variety. These foods are produced without the standard array of potentially harmful, environmentally long-lasting agricultural chemicals commonly used on conventional food products since the 1950s. Yet organic farming isn't primitive, it's actually farming with our future at heart. Following are some frequently asked questions and answers. How is organic processing better for the environment? Organic farming, by definition, does not use environmentally harmful chemicals that may contaminate rain and groundwater. Organic farming also replenishes and maintains healthy, fertile topsoil with rich biological matter, which does not erode into waterways. Additionally, unusual varieties of crops and livestock are more likely to be raised organically, which helps to keep the gene pool for food products diversified. What are the most popular organic products? According to researchers at The Hartman Group, the most frequently purchased organic products are vegetables (70% of organic buyers have purchased in last three months), followed by fruit (68%) and cereal/grains (61%). New purchasers of organic products usually start by putting produce, dairy items and baby food in their cart. Consumers who buy organic products cite health/nutrition, taste and food safety as the top motivators for their purchase. What is unique about organic produce? The availability of organic produce tends to indicate that a particular fruit or vegetable is at its height of seasonality, according to Edmund Lamacchia, National Vice President of ProcurementPerishables for Whole Foods Market. "With few exceptions, organic growers cannot force ripen produce, so when consumers see those items at the store or market, they know the product is at its culinary peak. A good example is oranges. When organic oranges are available, they have been naturally ripened and will represent an immediate quality difference over conventional oranges that have been forced to ripen." What are good products for consumers to begin trying as organic? Consumers wishing to experiment with organic produce should start with basic commodity items, such as apples, pears, oranges, broccoli, green beans, cucumbers and tomatoes. Because these items are in ample supply from organic farmers, consumers will notice the least price differences versus conventional produce; whereas, exotic or specialty produce will command a higher premium if it is difficult to grow organically. What does "organic" mean? Organic agriculture is an ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity. It is based on minimal use of off-farm inputs and utilizes management practices that restore, maintain and enhance ecological harmony. "Organic" is a labeling term that denotes products produced under the authority of the U.S. Department of Agriculture's Organic Rule. The principal guidelines for organic production are to use materials and practices that enhance the ecological balance of natural systems and that integrate the parts of the farming system into an ecological whole. What are the standards that define "certified organic"? When a grower or processor is "certified organic," a USDA accredited public or private organization has verified that the business meets or exceeds the standards set forth in the USDA Organic Rule. In October 2002, the first U.S. National Organic Standards will be introduced. Margaret Wittenberg, Vice President of Governmental and Public Affairs for Whole Foods Market, played a leading role in the development of the standards. According to Wittenberg, "These standards will help consumers make more informed choices, as they establish the first national guidelines for the production and handling of organically produced products, including labeling requirements for products that are 100 percent organic, organic and made with organic ingredients." Consumers can rest assured that the use of genetically modified organisms (GMOs), sewage sludge and ionizing radiation (irradiation) are strictly prohibited throughout organic food production. More Info: The Organic Rule, Whole Foods Market and You What types of foods are available as organic? Most consumers think of fruits and vegetables when they think of organic products, but there are many other organic foods, including pastas, sauces, frozen juices, frozen meals, cereals, soups, chocolate, cookies, meat, poultry, dairy and even wine. What are the organic standards for raising meat, poultry and dairy? Organic livestock standards prohibit the use of synthetic growth hormones such as rBGH and the routine use of antibiotics. Additionally, all animals must be raised in natural living conditions appropriate for their species. The animals are fed only organic feed, and the processing for all meat, poultry and dairy products must meet organic standards as well. What is the difference between "organic" and "natural"? "Natural" often is misrepresented in product labeling to imply "healthful," but "natural" only means that the product has undergone minimal processing. Unlike products that are certified organic, natural products have no certification or inspection system. Also, "natural" does not necessarily relate to growing methods or the use of preservatives. Are organic foods healthier? Organic foods are not necessarily more nutritious, rather organic food are spared the application of potentially harmful long-lasting insecticides, herbicides, fungicides and fertilizers. Many EPAapproved pesticides were registered long before extensive research linked these chemicals to cancer and other diseases. Now, the EPA considers 60% of all herbicides, 90% of all fungicides, and 30% of all insecticides as potentially cancer-causing. Do organic farmers ever use pesticides? Organic farmers' primary strategy is "prevention." By building healthy soils, healthy plants are better able to resist disease and insects. When pest populations get out of balance, growers will try various options like insect predators, mating disruption, traps and barriers. If these fail, the certifier may grant permission to apply botanical or other non-persistent pesticides from the USDA National List of Approved Substances under restricted conditions. Botanicals are derived from plants and are broken down quickly by oxygen and sunlight. Do organic foods taste better? We think so, and hundreds of gourmet chefs across the country agree. It's common sense—well balanced soils grow strong, healthy plants that taste great. What is the difference between organic and transitional products? Transitional products have been grown under conditions that meet organic growing standards but lack either the required length of time for the land to be free of chemical usage (36 months) or the process for proper certification has not yet been completed. The commitment to switching from conventional farming to organic methods is a difficult one. For example, production is often limited until the soil can rebuild the organic matter needed to compensate for the lack of synthetic fertilizers. While not allowed to label their products as organic, labeling as "transitional" allows consumers to support farmers who are moving toward organic certification. Do organic foods generally cost more than conventional foods? Although many organic products do cost more, the price of organic foods is increasingly competitive as supply and demand continue to rise. Larger retailers, like Whole Foods Market, are emerging with the capacity to buy and sell organic products at higher volumes, which leads to lower prices for organic food products. However, it is important to remember that prices for organic products reflect many of the same costs as conventional items in terms of growing, harvesting, transportation, and storage, but organic products must meet stricter regulations governing all of these steps. Therefore, the process is often more labor and management intensive. Organic farmers have an added cost of compliance with organic certification standards and government programs do not subsidize organic farming. Are all of Whole Foods Market's products organic? No. All foods and beverages carried in Whole Foods Market stores are natural and meet strict quality standards, meaning that they are free of artificial flavors, colors, sweeteners and preservatives; however, they are not all certified organic. Whole Foods Market offers its customers an unprecedented array of choices from conventional to certified organic, and supports farmers and food artisans from around the corner and around the world. The company does have a commitment to featuring organic choices whenever possible, as it believes the growing methods are more sustainable for people and the planet. How large is the organic foods industry? According to the Organic Trade Association, one to two percent of the U.S. food supply is grown using organic methods and is produced by approximately 7,800 certified organic farmers. Organic food sales have rapidly increased by more than 20 percent annually during the past decade, which has resulted in an estimated $9.3 billion industry in 2001. Where can I find more information about organic foods? A number of resources exist for those who want to obtain more information about organic food products, including:    Organic Trade Association: http://www.ota.com Organic Farming Research Association: http://www.ofrf.org USDA's national organic program: http://www.ams.usda.gov/nop/ Last updated on August 01, 2002 Copyright 2000–2003. Whole Foods Market IP, L.P. Title: Whole Foods Market : Organics - Frequently Asked Questions Date: Sun Aug 17 2008 URL: http://www.wholefoodsmarket.com/issues/organic/faq.html Organics — Frequently Asked Questions Nearly one-third of the U.S. population has recently purchased an organically grown food product, and sales are expected to more than double in the next four years-making organic one of the hottest growth trends in the food industry today. Organic foods set the standard for top quality freshness, texture, flavor and variety. These foods are produced without the standard array of potentially harmful, environmentally long-lasting agricultural chemicals commonly used on conventional food products since the 1950s. Yet organic farming isn't primitive, it's actually farming with our future at heart. Following are some frequently asked questions and answers. How is organic processing better for the environment? Organic farming, by definition, does not use environmentally harmful chemicals that may contaminate rain and groundwater. Organic farming also replenishes and maintains healthy, fertile topsoil with rich biological matter, which does not erode into waterways. Additionally, unusual varieties of crops and livestock are more likely to be raised organically, which helps to keep the gene pool for food products diversified. What are the most popular organic products? According to researchers at The Hartman Group, the most frequently purchased organic products are vegetables (70% of organic buyers have purchased in last three months), followed by fruit (68%) and cereal/grains (61%). New purchasers of organic products usually start by putting produce, dairy items and baby food in their cart. Consumers who buy organic products cite health/nutrition, taste and food safety as the top motivators for their purchase. What is unique about organic produce? The availability of organic produce tends to indicate that a particular fruit or vegetable is at its height of seasonality, according to Edmund Lamacchia, National Vice President of ProcurementPerishables for Whole Foods Market. "With few exceptions, organic growers cannot force ripen produce, so when consumers see those items at the store or market, they know the product is at its culinary peak. A good example is oranges. When organic oranges are available, they have been naturally ripened and will represent an immediate quality difference over conventional oranges that have been forced to ripen." What are good products for consumers to begin trying as organic? Consumers wishing to experiment with organic produce should start with basic commodity items, such as apples, pears, oranges, broccoli, green beans, cucumbers and tomatoes. Because these items are in ample supply from organic farmers, consumers will notice the least price differences versus conventional produce; whereas, exotic or specialty produce will command a higher premium if it is difficult to grow organically. What does "organic" mean? Organic agriculture is an ecological production management system that promotes and enhances biodiversity, biological cycles and soil biological activity. It is based on minimal use of off-farm inputs and utilizes management practices that restore, maintain and enhance ecological harmony. "Organic" is a labeling term that denotes products produced under the authority of the U.S. Department of Agriculture's Organic Rule. The principal guidelines for organic production are to use materials and practices that enhance the ecological balance of natural systems and that integrate the parts of the farming system into an ecological whole. What are the standards that define "certified organic"? When a grower or processor is "certified organic," a USDA accredited public or private organization has verified that the business meets or exceeds the standards set forth in the USDA Organic Rule. In October 2002, the first U.S. National Organic Standards will be introduced. Margaret Wittenberg, Vice President of Governmental and Public Affairs for Whole Foods Market, played a leading role in the development of the standards. According to Wittenberg, "These standards will help consumers make more informed choices, as they establish the first national guidelines for the production and handling of organically produced products, including labeling requirements for products that are 100 percent organic, organic and made with organic ingredients." Consumers can rest assured that the use of genetically modified organisms (GMOs), sewage sludge and ionizing radiation (irradiation) are strictly prohibited throughout organic food production. More Info: The Organic Rule, Whole Foods Market and You What types of foods are available as organic? Most consumers think of fruits and vegetables when they think of organic products, but there are many other organic foods, including pastas, sauces, frozen juices, frozen meals, cereals, soups, chocolate, cookies, meat, poultry, dairy and even wine. What are the organic standards for raising meat, poultry and dairy? Organic livestock standards prohibit the use of synthetic growth hormones such as rBGH and the routine use of antibiotics. Additionally, all animals must be raised in natural living conditions appropriate for their species. The animals are fed only organic feed, and the processing for all meat, poultry and dairy products must meet organic standards as well. What is the difference between "organic" and "natural"? "Natural" often is misrepresented in product labeling to imply "healthful," but "natural" only means that the product has undergone minimal processing. Unlike products that are certified organic, natural products have no certification or inspection system. Also, "natural" does not necessarily relate to growing methods or the use of preservatives. Are organic foods healthier? Organic foods are not necessarily more nutritious, rather organic food are spared the application of potentially harmful long-lasting insecticides, herbicides, fungicides and fertilizers. Many EPAapproved pesticides were registered long before extensive research linked these chemicals to cancer and other diseases. Now, the EPA considers 60% of all herbicides, 90% of all fungicides, and 30% of all insecticides as potentially cancer-causing. Do organic farmers ever use pesticides? Organic farmers' primary strategy is "prevention." By building healthy soils, healthy plants are better able to resist disease and insects. When pest populations get out of balance, growers will try various options like insect predators, mating disruption, traps and barriers. If these fail, the certifier may grant permission to apply botanical or other non-persistent pesticides from the USDA National List of Approved Substances under restricted conditions. Botanicals are derived from plants and are broken down quickly by oxygen and sunlight. Do organic foods taste better? We think so, and hundreds of gourmet chefs across the country agree. It's common sense—well balanced soils grow strong, healthy plants that taste great. What is the difference between organic and transitional products? Transitional products have been grown under conditions that meet organic growing standards but lack either the required length of time for the land to be free of chemical usage (36 months) or the process for proper certification has not yet been completed. The commitment to switching from conventional farming to organic methods is a difficult one. For example, production is often limited until the soil can rebuild the organic matter needed to compensate for the lack of synthetic fertilizers. While not allowed to label their products as organic, labeling as "transitional" allows consumers to support farmers who are moving toward organic certification. Do organic foods generally cost more than conventional foods? Although many organic products do cost more, the price of organic foods is increasingly competitive as supply and demand continue to rise. Larger retailers, like Whole Foods Market, are emerging with the capacity to buy and sell organic products at higher volumes, which leads to lower prices for organic food products. However, it is important to remember that prices for organic products reflect many of the same costs as conventional items in terms of growing, harvesting, transportation, and storage, but organic products must meet stricter regulations governing all of these steps. Therefore, the process is often more labor and management intensive. Organic farmers have an added cost of compliance with organic certification standards and government programs do not subsidize organic farming. Are all of Whole Foods Market's products organic? No. All foods and beverages carried in Whole Foods Market stores are natural and meet strict quality standards, meaning that they are free of artificial flavors, colors, sweeteners and preservatives; however, they are not all certified organic. Whole Foods Market offers its customers an unprecedented array of choices from conventional to certified organic, and supports farmers and food artisans from around the corner and around the world. The company does have a commitment to featuring organic choices whenever possible, as it believes the growing methods are more sustainable for people and the planet. How large is the organic foods industry? According to the Organic Trade Association, one to two percent of the U.S. food supply is grown using organic methods and is produced by approximately 7,800 certified organic farmers. Organic food sales have rapidly increased by more than 20 percent annually during the past decade, which has resulted in an estimated $9.3 billion industry in 2001. Where can I find more information about organic foods? A number of resources exist for those who want to obtain more information about organic food products, including:    Organic Trade Association: http://www.ota.com Organic Farming Research Association: http://www.ofrf.org USDA's national organic program: http://www.ams.usda.gov/nop/ Last updated on August 01, 2002 Copyright 2000–2003. Whole Foods Market IP, L.P.
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