Natural Grocers

Analyst Day

March 12, 2015

1

Agenda

2

Event: Location: NGVC Host:

Thursday, March 12th

10:00 AM to 10:15 AM Introduction Home Office Ashley MacLeod

10:15 AM to 10:30 AM Nutritional Health Coach Overview Home Office Jonathan Clinthorne, PhD

10:30 AM to 11:00 AM Marketing Update Home Office Trey Hall

11:00 AM to 12:00 PM Q&A with Executives Home Office Members of Executive team

12:00 PM to 12:30 PM Bus to Colfax & Washington Store

12:30 PM to 1:30 PM Paleo Brunch Colfax & Washington Store Karen Falbo, Jonathan Clinthorne, PhD

1:30 PM to 2:30 PM Store tour and “Market Days” Colfax & Washington Store Karen Falbo, Trey Hall

2:30 PM to 3:00 PM Bus to Distribution Center

3:00 PM to 4:00 PM Distribution Center tour Distribution Center Shawn Jordan, Sharon Wilson

Linda Galambos, Sharon Lewis

4:00 PM to 4:30 PM Bus to Home Office

Transportation will be provided to Colfax & Washington Store, Distribution Center and back to the Home Office

Introductions

3

NGVC Host: Title:

Members of Executive team:

Kemper Isely Co-President

Zephyr Isely Co-President

Heather Isely Executive Vice President

Liz Isely Executive Vice President

Sandra Buffa CFO

Ashley MacLeod Director of Finance and Investor Relations

Jonathan Clinthorne, PhD Senior Nutrition Education Specialist

Karen Falbo Director of Nutrition Education

Linda Galambos Bulk Production Manager

Shawn Jordan Director of Business Operations

Sharon Lewis New Store Training Manager

Sharon Wilson Distribution Center Manager

Trey Hall Vice President of Marketing, CMO

Presentation material will be posted on our website at http://investors.naturalgrocers.com

Agenda

4

An Overview of the

NHC Position

Karen Falbo, CN

Director of

Nutrition Ed

Lani Jacobs-Banner, BS

Web-District Supervisor

NHC

Beth Dokolasa, RD

Manager of Nutrition

Ed

Jon Clinthorne, PhD

Senior Nut. Ed

Specialist

Trevor Bennion, MS ACSM

Nut. Ed Specialist

5

• One of our founding principals is our

commitment to offering free nutrition education

• Therefore, all of our stores have a full-time

Nutritional Health Coach (NHC) position

• This is one of the unique aspects of Natural Grocers that

sets us apart from our competition

Nutritional Health Coach

6

• They are the store’s nutrition expert

NHCs must be covered by professional liability insurance

What is the NHC Position?

• NHCs are required to have a degree/certification

in nutrition or a related field• Examples: Dietetics, masters in biochemistry, masters

in nutrition, masters of nutritional therapy from a

college or university accredited by a regional and/or

national accrediting agency

• We have many RDs, CNs, CNTs, DCs, a MD, and several

NDs on staff

7

Hiring New NHCs

• Education credentials are confirmed

• Applicants are screened to ensure that they have

adequate knowledge of nutrition, supplements, and

a nutritional philosophy inline with our own

• Candidates must pass final interview with store

manager

8

NHC Training

• Beth Dokolasa coordinates NHC

training for the NED

• 10 NHC group training cycles

scheduled per year

• We have developed an extensive 6

week nutrition education program that

is mandatory all NHCs

• Ensures all of the NHCs have a

consistent message about

nutrition

9

NHC Duties

• NHCs work on the floor in the vitamin aisle

performing vitamin aisle duties

• During this time they are supervised by the vitamin manager

• Provide excellent customer service by being a supplement

expert

10

NHC Duties

We have created

over 250 documents

for our NHCs to use

to help with the

individual coaching

sessions

• NHCs dedicate time to conducting free individual

coaching sessions

• This gives the NHC an opportunity to discuss individual

health goals and make personalized recommendations

11

NHC Duties

• In 2014 NHCs reached approximately 21,000

people through coaching sessions

• Most common topics: Weight loss, food choices,

digestive health and supplement program review

NHCs are asked to

refer people to an

in-store class or

event if they want to

learn more about

topics

12

NHC Duties

• NHCs also dedicate their time to conducting free

customer nutrition education classes and/or cooking

demonstration classes

• NHCs are expected to teach at least 4 classes each month

• Three classes per month must be taught in the store and one

class may be conducted as community-outreach.

13

NHC Duties

• “Office” time is essential for the NHCs to be able to

adequately prepare for classes and coaching sessions

• Complete continued education

• Seek outreach opportunities

• Promote the NHC in-store customer classes, cooking

demonstration classes, and other store events and

services

� Prepare to host employee

trainings

14

NHC Classes

• We currently offer 13 seminar style classes

• We have created 10 cooking demonstrations for

stores with demonstration kitchens

• Topics range from gluten-free baking to how to create

healthy chocolate

• Over 15,000 people attended our in-store classes and

cooking demonstrations in 2014

15

• In addition to supporting our commitment to Nutrition Education NHCs support store sales• Bring new customers into the store and introduce the community

to the NGVC difference

• Support new stores with Grand Opening events

• Represent a nutrition and supplement expert in the store

• Build the Guest Speaker Program

• Reach out to local chefs, healthcare practitioners, and other qualified community members to offer seminars and cooking demonstrations

• Offer a number of in-store classes and host health fairs

NHCs are an Asset to Stores

16

Summary of NHC Position

• NHCs provide excellent customer service in the vitamin aisle

• NHCs conduct coaching sessions, teach classes and perform outreach and host health fairs

• NHCs also host the stores monthly meeting• Educate the store staff about a nutrition topic the content of

the month’s Health Hotline

• The NHC job is incredibly unique• NHCs are required to have a solid understanding of biology

• They must be inspiring public speakers

• Follow legal guidelines when talking about nutrition and health

Accelerating Momentum Begins With

A FOCUSED BRAND

17

Trey Hall, Vice President of Marketing, CMO

A Focused Brand Development Roadmap

Agenda

18

1. Consumer Identification – Identify consumers and how they are segmented.

2. Messaging – Identify the most motivating messages to our current/future

customers and messages that most differentiate us. What’s our brand statement?

How do we approach the brand’s 60th anniversary?

3. Enhancing New Store Marketing/revisiting focus stores and markets with strong

PR/social media blitz, traditional DM, on-going market buzz and Focused Internal

and External Teams.

1. Branding Enhancement – consistent, modern, differentiating – starting with the

website and eventually impacting all consumer touch points including store

merchandising and CRM. Build PR and social presence.

2. Create Brand Guidelines Book – in order to create focused brand messaging

(keeping between the lines) write, produce brand book for internal and external

vendor use. One voice, one brand.

Build The Brand Foundation

Update The Brand Face

Marketing Plan of Action

Institute Strategic Initiatives

1. Website Scrape and Build– Simple, interactive, differentiating with real utility and

purpose. Early April Launch

2. Loyalty Program – Designed to leverage shopper data to increase sales. Utilizing

key experts: cloud based software and world class customer data handling from

NCR. Deep experience and passion running loyalty programs from Reach

Influence. Strong coupon content and CPG relationships from Inmar and Mambo

Sprouts. April Test

3. Store Environment Enhancement – build stronger emotional experience within 4

walls. Tell stories about what we do differently. 1st Store May

4. In-Store Real Estate Revenue Creation – Take under utilized real estate within 4

walls to build revenue – demonstration kitchens & community rooms.

5. Marketing Plan Testing - understand the best vehicles to reach our customers,

deliver our message and drive traffic.

19

A Focused Brand Development Roadmap

Initiate Strategic Initiatives

20

The Brand FaceSome Examples

The Brand Face

21

22

23

24

25

Build PR And Social Presence

NGVC must aggressively use a PR and Social media campaign (tied to our

consumer directed messaging) to build overall awareness about Natural

Grocers while:

• Telling the Natural Grocers story and history

• Educating consumers about what Natural Grocers is and the products it offers

• Teaching consumers about the health benefits of natural, organic food and vitamins

• Speaking directly with consumers through Natural Grocers social media channels

• Using third-party spokespersons, including moms and parents, wellness experts, people

with dietary considerations, Natural Grocers employees, etc. to share their Natural

Grocers experiences

NGVC must find itself in national health and nutrition publications 1-2 times

per month. We must reach local and regional outlets with our story and

deliver content to influential nutrition, wellness and lifestyle bloggers with

large followings.

The Brand Face

26

27

Tucson Has Had Significantly More Launch Buzz Than

Previous Launches – Reno vs. Tucson Example

The Brand Face

Natural Grocers

Reno Store Opening Media Coverage

Opening: October 26, 2014

28

Tucson Has Had Significantly More Launch Buzz Than

Previous Launches – Reno vs. Tucson Example

The Brand Face

Date Outlet Outlet Type

1/9/15 Arizona Daily Star Newspaper

1/9/15 Arizona Daily Star Social Media

1/9/15 Inside Tucson Business Newspaper

1/9/15 #NaturalProducts Blog

1/9/15 TucsonTopia Blog

1/9/15 CNN Money Online

1/9/15 Chain Store Age Online

1/9/15 ProTucson Social Media

1/9/15 Inside Tucson Business Social Media

1/9/15 Family Cryo Bank Social Media

1/9/15 Inside Tucson Business Social Media

1/9/15 Eden Nuganics Social Media

1/9/15 Paul Rosado Social Media

1/10/15 Supermarket News Today Online

1/12/15 Arizona Public Media Broadcast

1/14/15 KGTH-FM Broadcast

1/14/15 Perishable News Online

1/19/15 Circle of Food Blog

1/20/15 Local Food Concepts Social Media

1/20/15 The Wheatgrass Girl Social Media

1/20/15 KVOI-AM "Wake Up Tucson" Broadcast

1/16/15 3 Story Magazine Magazine

1/21/15 Arizona Families Blog

1/22/15 KGUN-TV (ABC affiliate) Broadcast

1/22/15 Arizona Public Media Broadcast

1/22/15 Got2B Gluten Free Social Media

1/23/15 Inside Tucson Business Newspaper

2/12/15 Gourmet News Newspaper

Natural Grocers

Tucson Store Opening Media Coverage

Opening: January 20, 2015

29

Brand Guidelines Cover

The Brand Face

30

Brand Book Table Of Contents

The Brand Face

31

Brand Book “Reason For Being”

The Brand Face

32

Brand Book “Reason For Being”

The Brand Face

33

Strategic InitiativesSome Examples

Strategic Initiatives

34

Strategic Initiatives

Website Homepage – Desk Top

35

Website Product Navigation – Desk Top

Strategic Initiatives

36

Website Store Navigation – Desk Top

Strategic Initiatives

37

Website Navigation – Smart Phone

Strategic Initiatives

38

Loyalty Program

Strategic Initiatives

39

Loyalty Program

Strategic Initiatives

Q&A with Executives

40

Kemper Isely, Co-President

Heather Isely, Executive Vice President