Walmart’s Healthier Food Initiative Joe Quinn Walmart Public Affairs / Govt Relations Boston March 9, 2015

2 “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

3  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

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

5 Sodium – Example of Impact

6 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

7 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%

8 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

9 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

10 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- store Social Videos DotCom & Placement in Walmart Build out content on Great For You page at.com Print SMART Integration Integration into the FY15 Fresh campaigns where possible Integrate existing videos onto social platforms & on dotcom

11 Vitality HealthyFood TM 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

12 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.

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

15 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 “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

16 Leveraging Great For You Recipes Digitally

17 Questions / Discussion Twitter : jeq12