As retailers assemble the many components of their whole-health programs, they're learning early that distributor and manufacturer partners can be the glue that holds the programs together.
The power of whole health rests in supermarkets' ability to leverage wellness themes across many departments, but that's a complex undertaking for chains unaccustomed to cross-category cooperation, or that lack many pharmacies, nutritionists or dietitians to help market their stores as total good-for-you destinations.
It's not enough for supermarkets simply to sell a bounty of healthful nonfood or grocery items across perishables, pharmacy and health and beauty care. Both the challenge and opportunity of whole health lie in how well chains can identify these products, educate their customers, and position their stores under this marketing umbrella. The goal is to drive incremental business by compelling shoppers to buy the full array of look-good and feel-good products under their roofs, say whole-health retailers.
Within the first year of the industry's focused efforts on whole health, chains partnering with their distributors and manufacturers have taken some of the most notable strides. Marsh Supermarkets, Indianapolis, for instance, ran a week-long diabetic-screening program at its corporate headquarters and promotional giveaways at its pharmacies during Diabetes Month last year. What's novel about the effort, which will likely be repeated this fall, was the giveaway of Estee sugar-free hard candies, along with cents-off coupons for future purchases, and educational pamphlets produced by Estee. The giveaway bag went to every consumer filling a diabetes-related prescription.
The program was conceived by Marc Rosenthal, R.Ph., director of natural food and whole health at Kehe Foods, Romeoville, Ill., a specialty ethnic and natural-food distributor to supermarkets in 12 Midwestern states. "The chain's pharmacists told us consumers really responded well, and so they're considering similar programs for cardiovascular and obesity," said Rosenthal.
At a Jewel Osco prototype in Evanston, Ill., Kehe has helped link the drug and grocery sides of the store with displays of organic grocery products such as soy milk and rice milk near the pharmacy, where lactose-intolerant patients fill their prescriptions. "This approach perks both ends of the store," said Rosenthal, who credits the idea to the chain, and the assortments and educational signage to Kehe.
"The store has an organic-cereal subset within its cereal category, and organic mustards within condiments, for example. Wherever the store displays organic products, handout cards explain their benefits. We made sure offerings included sodium-free and wheat-free lines, and products made for people with allergies, diabetes and high blood pressure," he added.
That Rosenthal is even on board at Kehe marks a new trend in supplier support. Much as Valu Merchandisers, the nonfood subsidiary of Associated Wholesale Grocers, Kansas City, Mo., hired Bob Carlson as director of nutrition centers to help Harps Food Stores and others develop a Natural Solutions format, Kehe hired Rosenthal to consult with retailers and develop programs.
The day may come soon, said Bill Bishop, president of Willard Bishop Consulting, Barrington, Ill., when retailers rightfully ask for that type of support. "Hopefully, they'll get to that point because information and product knowledge are an important component of whole health, and retailers must help consumers figure out the connection between it and their own longevity.
"For example, in-store signage could draw attention to the antioxidant properties of almonds and tomatoes, which currently goes unrecognized, or to the cholesterol-lowering properties of Benecol [the buttery tasting spread from McNeil Laboratories] and help tie that together with nonfood through pharmacists, dietitians and nutritionists."
Bishop serves as consultant on the whole-health initiative being advanced jointly by the Colorado Springs, Colo.-based General Merchandise Distributors Council and the Food Marketing Institute, Washington. Indeed, the recent FMI Convention showcased a 2,000-square-foot Natural Solutions Center conceived by Tree of Life, St. Augustine, Fla., a distributor of specialty and natural products. "We constructed an actual retail environment, showing both an integrated approach as well as store-within-a-store," said Greg Leonard, director of merchandising for Tree of Life.
"In whole health, one size doesn't fit all. Assortments and merchandising must fit the demographics of local neighborhoods. Even within chains, we see such variation of customer interest in whole health that we know only micromarketing will make the right fit," he added.
Roy White, GMDC's vice president of education, is quick to name manufacturers taking the lead in whole-health trade support: Procter & Gamble, SmithKline Beecham Consumer Healthcare, McNeil Consumer Healthcare, Bayer Consumer Care, Nature's Bounty and Whitehall-Robins. "Just as retailers are beginning to create whole-health teams, so are leading suppliers and distributors," said White. "Because whole health is relatively new and encompasses multiple categories, partnering lends an air of comfort, a sense of breaking new ground together in helping retailers position their stores against America's quest for health."
Observed Wally Murray, associate director of industry affairs at Procter & Gamble, Cincinnati, on the whole-health movement: "It is founded on deep-seated consumer needs, and gives the retailer a framework for effectively addressing those needs. Our internal research validates this, and our Healthy Lifestyles marketing program meshes well with this concept."
The Healthy Lifestyles umbrella seems to give P&G a rallying point for its diverse offerings in personal hygiene, nutrition, health and beauty care and household products. Moreover, sources told SN that P&G is staffing its field sales organization with people trained as brand marketers, so they'll be able to work more closely and astutely with retailers to position their stores. "Just as they brought logistical expertise to the trade five years ago, they're bringing marketing expertise to retailers today," said one trade observer.
These initiatives are important in convincing the trade that whole health runs deeper than the current media interest, and will endure as a guiding business strategy in coming years.
"Manufacturers are inundating buyers with research data about whole health to the point of information overload. I don't know if a lot of our retailers are ready to use it or are prepared to move ahead. They either lack the space or haven't yet seen how this will benefit them," said Terry Born, HBC buyer for Fairway Foods, Minneapolis.
He also noted bias in the way data is presented. "What relates to whole health depends on the manufacturer and products. [Much] deals with why we should put an item in, market share and trends, [though] I don't doubt that manufacturers are poised to provide more information and store-level assistance as the concept moves forward."
At W. Lee Flowers, HBC buyer Susan Spring has already reached out for assistance: "We've contacted vendors for information about whole health, and we'd like to have more help from suppliers in stores."
