Walmart’s Healthier Food Initiative

Joe QuinnWalmart Public Affairs / Govt Relations

Boston March 9, 2015

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“No family should have to choose between food that is healthier for them and food they can afford.”

Making Food Healthier and Healthier Food More Affordable

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Reformulate thousands of packaged foods to reduce sodium and added sugars and eliminate remaining industrially produced trans fats

Save customers $1 billion/year on produce and eliminate the price premium on healthier items

Develop a simple front-of-package icon, making it easier to identify healthier foods

Open between 275 and 300 stores in areas serving urban and rural food deserts by 2016 to increase residents’ access to fresh, healthier foods

Increase charitable support for nutrition education programs

Food & Nutrition Commitments

Food & Nutrition Commitments

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Reduce sodium by 25%, added sugars by 10% and eliminate remaining industrially produced trans fats by the end of 2015

Progress To Date Progress To Date

Data from more than 1200 private & national brand suppliers, across 70+ target categories, on more than 40,000 products/UPCs

Between 2008 and 2013:• Reduced sodium by 13% • Reduced added sugars by more than 10% • 93% of foods are now free of partially

hydrogenated oils (PHOs)

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Sodium – Example of ImpactSodium – Example of Impact

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How are reductions being accomplished?

• Food and beverages are being reformulated

• Category portfolio shifts – new healthier food and beverages choices

• Consumers are making healthier choices and buying classic choices that have been reformulated

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Progress To Date Progress To Date

Saved customers $3.5 billion on fresh produce

Eliminating the price premium on > 500 pairs of foods

5.7% 5.4% 5.1%

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To get the Great For You icon, a product must contain:

•A food group to encourage (e.g., fiber-rich whole grains, lean meats, low-fat milk and dairy products, and fruits and vegetables)

AND

•No more than a certain amount of total fat, trans and saturated fats, sodium and added sugars

To get the Great For You icon, a product must contain:

•A food group to encourage (e.g., fiber-rich whole grains, lean meats, low-fat milk and dairy products, and fruits and vegetables)

AND

•No more than a certain amount of total fat, trans and saturated fats, sodium and added sugars

Front-of-Package Icon: Great For You

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• More than 30% of items, including fresh produce, meats, poultry, seafood, and private-brand packaged foods and beverages now carry the Great For You icon.

• We launched tools to help consumers put Great For You into action.

• In 2013, the Great For You icon was made available for use by national brand companies.

• More than 30% of items, including fresh produce, meats, poultry, seafood, and private-brand packaged foods and beverages now carry the Great For You icon.

• We launched tools to help consumers put Great For You into action.

• In 2013, the Great For You icon was made available for use by national brand companies.

Front-of-Package Icon: Great For You

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Reinforce message using Facebook, Pinterest, Twitter,

& our Blogger Moms

Stronger presence at POS – including cornice signage

Leverage house inventory when possible

incorporation of icon & legend in Tab

Great For You

In-storeIn-

store

SocialSocial

VideosVideos

DotCom & EmailDotCom & Email

• Placement in Walmart Email • Build out content on Great

For You page at .com PrintPrint

SMARTSMART

IntegrationIntegration

Integration into the FY15 Fresh campaigns where

possible

Integrate existing videos onto social platforms & on

dotcom

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Vitality HealthyFoodTM offers more than one million HumanaVitality® members a five percent savings at Walmart on foods that qualify for the Great For You icon.

Humana Partnership To Make Healthier Foods More Affordable

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Progress To Date Progress To Date

Open between 275 and 300 stores in areas serving urban and rural food deserts by 2016 to increase access to fresh, nutritious foods

Opened 224 stores in these

areas, giving residents access to fresh, healthier

food.

Opened 224 stores in these

areas, giving residents access to fresh, healthier

food.

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Increased charitable support for nutrition education programs,resulting in $41 million (national and state) of total giving.

Progress To Date Progress To Date

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Partnership with Let’s Move and PHA

“For years, the conventional wisdom said that healthy products simply didn’t sell—that the demand wasn’t there, that higher profits were found elsewhere, so it just wasn’t worth the investment. Thanks to Walmart and so many other great American businesses, we are proving the conventional wisdom wrong.”- Michelle Obama, First Lady of the United States of America, Feb. 2013

“For years, the conventional wisdom said that healthy products simply didn’t sell—that the demand wasn’t there, that higher profits were found elsewhere, so it just wasn’t worth the investment. Thanks to Walmart and so many other great American businesses, we are proving the conventional wisdom wrong.”- Michelle Obama, First Lady of the United States of America, Feb. 2013

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Leveraging Great For You Recipes DigitallyLeveraging Great For You Recipes Digitally

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Questions / Discussion

Twitter : jeq12

joseph.quinn@wal-mart.com