Careers in health and natural foods retailing: rapidly growing $9 billion industry

CAREERS IN

HEALTH AND NATURAL FOODS RETAILING

Institute Research Number 171 ISBN 1-58511-171-6

CAREERS IN

HEALTH AND NATURAL FOODS RETAILING

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RAPIDLY GROWING $9 BILLION INDUSTRY From Stock Clerk to Owner/Manager, Your Work Will Be Devoted to Providing Positive Well-Being to Your Grateful Customers “YOU ARE WHAT YOU EAT” IS THE CURRENT THINKING AMONG SCIENTISTS, THE

medical community, governments worldwide and consumers alike. And, given the rate at which research is unveiled showing a link between diet on the one hand and disease risk and prevention on the other, it seems all but certain that this will be the mantra for the health-conscious for a long time to come – perhaps until some time in the distant future when all of our nutritional needs are met via intravenous injection or a mega-supplement. (This scenario seems unlikely, since humans derive so much pleasure from eating and dining.) In the meantime, there are natural foods retailers to meet the demands of those who believe that eating certain foods can promote health, ward off disease, treat existing ailments and/or save the planet. Health and environmental concerns are fueling a vast and growing market for health foods and related products, such as non-toxic household cleaners, cosmetics and toiletries containing botanicals, organic produce, homeopathic remedies and vitamins, minerals, amino acids, herbs and other nutritional supplements. People who work in health foods retailing are a special group, as are the people who patronize the shops. This report tells you what characterizes this group, as well as what kind of education and training you’ll need to enter and succeed in this field, the benefits and drawbacks to a career in health foods retailing, what a typical day on the job entails and how you can prepare. You’ll also learn from interviews with people who are currently employed in health foods retailing, and what they love and don’t love about it.

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EXPLORING THIS CAREER YOU CAN START EXPLORING AND PREPARING FOR THIS CAREER BY WORKING IN A

health foods store or at a juice bar while you are still in high school. As a matter of fact, over one-third of people working in grocery stores of all types are 16 to 24 years old. That’s because most of the positions are entry-level. Thirty percent of all grocery store workers are cashiers. Stock clerk and counter worker (at a juice bar, for example, or an in-store deli or bakery) are other common entry-level jobs. A job like this will give you the opportunity to learn about this business and talk to other people who’ve been doing it longer than you have. It also makes you a better candidate for future jobs in health foods, perhaps even at a higher level such as assistant manager. Even if you think you’d like to own your own store, working at someone else’s at first will teach you what you need to know before venturing out. If you can’t get a job at a health foods retailer, working in a mainstream grocery store will expose you to the retail grocery business, although you won’t have access to the same types of products or experience the same kind of working environment. Another option would be to volunteer at a food cooperative in your area. You can learn about the kinds of products health foods stores carry by visiting some in your area or going online and browsing a virtual store. (Just type “health foods” into your favorite search engine and you’ll get an abundance of hits.) Health foods retailers have to know why they sell what they sell, so start learning about the issues surrounding this industry. What makes a product organic? What are the benefits of organic farming? Are they mainly environmental or mainly health-related, or both?

What Are Nutraceuticals? Nutraceuticals, also called functional foods, are the hottest trend in health foods. The term nutraceutical, a compound of the words “nutrition” and “pharmaceutical,” was coined by Stephen L. DeFelice, M.D., an endocrinologist and clinical pharmacologist. Nutraceuticals are foods or food components that provide medical or health benefits, including the prevention and/or treatment of disease. These products may range from herbs and dietary supplements and entire diets (such as macrobiotic) to genetically engineered and processed foods. By reading magazines like Prevention, you can stay up-to-date on the latest research about which foods and ingredients are associated with reduced risk of which diseases. 4

There’s a parallel trend in natural cosmetics and toiletries, which most health foods stores also stock. These products are (somewhat jokingly) called “cosmeceuticals” and contain botanical ingredients with inherent cleansing, moisturizing and other properties. Women’s magazines often feature articles on these products as well as advertisements for them. If you’re really interested in healthy foods, this little research project should be a pleasure rather than a chore! Discuss with your family shopping at health foods stores, if they don’t already. Become familiar with the types of products purveyed; use them and evaluate them. The more you know the more valuable you’ll ultimately be to customers and, consequently, the business that employs you. These facts are typical of the kind of information you will become expert on: The seitan in the vacuum pack is delicious in a stir-fry dish, but the one in a can smells like dog food This crystal deodorant is more effective than that one The free-range chicken comes from a cooperative in Utah that employs the disabled. Juice-bar entrepreneurs can explore their talents with a small investment in equipment and supplies. Mix up your own recipes in a blender, pour them into pitchers, put the pitchers in an ice chest, make up some menu signs and a price list, along with some plastic cups and a folding table, and visit the local park during a Little League game. It’s sort of the advanced version of the lemonade stand. Be creative; give each juice and smoothie variety a catchy name and indicate what’s good about it. You can get inspiration from existing juice products. Jamba Juice, for example, is formulated to fuel mind and body for outdoor health and fitness activities. Its ingredients include soy protein for muscle and tissue building and maintenance, Siberian ginseng for energy, sodium and magnesium to replace electrolytes lost during a workout, vitamin C as an antioxidant to combat free radicals.

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HISTORY OF THIS CAREER THE HEALTH-PROMOTING PROPERTIES OF FOODS HAVE BEEN APPRECIATED FOR

thousands of years. Traditional Chinese medicine recognized what we call functional foods as early as 1000 BC, and they have been used to maintain and improve health and quality of life in Asia ever since. Hippocrates, the ancient Greek physician who is considered the father of modern medicine, famously stated, “Let food be thy medicine and medicine thy food.” Hippocratic medicine held that diseases had natural causes and consequently could be examined and perhaps cured in accordance with the workings of nature. Hippocratic practitioners emphasized the role of diet in the prevention and treatment of all manner of ailments. Early in the 19th century, American minister and avid vegetarian Sylvester Graham publicly touted the health benefits of whole grain, high fiber flours. He had other peculiar notions on health (he advocated hard mattresses, open windows and cold showers) and some people considered him a crackpot. (He invented the cracker that bears his name.) But his views caught the attention of a couple of cereal makers and brothers Will Keith and John Harvey Kellogg, who ended up promoting and furthering Graham’s ideas. W.K. Kellogg invented corn flakes, the first ready-to-eat breakfast cereal, and advertised it as a health food. John Kellogg operated the Battle Creek Sanitarium, an elaborate health spa that was parodied in the book and movie The Road to Wellville. Before World War II, the principal nutritional problems in the United States were related to scarcity of food and lack of a variety of foods. As scientific advances caught up with popular interest in health and nutrition, the health properties of foods were increasingly promoted. Researchers identified essential nutrients and optimum intake. Food fortification is a public-health issue that arose with the commercialization of food preparation. Fortification is intended in part to compensate for nutritional value lost during the mass production of modern processed foods (for instance, pasteurization destroys vitamin C). The government-mandated fortification of foods with vitamins B and D and the mineral iron has all but eliminated conditions like beriberi, rickets and anemia in this country. With the mass processing of the food supply also came concerns about additives, artificial or carcinogenic ingredients and the use of fertilizers and pesticides in farming, creating a demand for pure foods 6

grown and processed without chemicals. Increased environmental concerns made people want crops nurtured through sustainable agriculture. When, in 1989, news surfaced that alar, a chemical used in apple growing, can cause cancer, demand for organic foods skyrocketed. The health foods store business started to develop in the 1960s and 1970s, but it still really wasn’t much of an industry. As recently as 1980, health foods stores and their patrons were considered a fringe element, and there were only a few pioneering brands on the shelves: Hain, Arrowhead Mills, El Molino, La Familia. Staples such as rolled oats and whole-wheat flour were among the few types of food sold. The bins and bins of bulk foods so prevalent in today’s store were not a big category yet. Few Americans could use the word “tofu” in a sentence. Health foods processing was in its infancy and people joked that the packaging the food came in tasted better than the food itself. And if someone decided to open a big health foods supermarket like Wild Oats or Whole Foods, which are so popular and successful today, they’d go broke in no time.

New Laws Recognize Benefits of Nutritional Foods Scientific evidence linking diet to the prevention of disease continued to accumulate, and the US Food and Drug Administration was finally persuaded to acknowledge this phenomenon. The Nutrition Labeling and Education Act (NLEA), which was signed into law in 1990 and went into effect in May 1994, allowed health claims to be made on food labels for the first time. Claims may be made that certain substances, such as calcium, fiber, fruits and vegetables, the B vitamin, folic acid and soy, may reduce the risk of osteoporosis, cancer, coronary heart disease, birth defects and other conditions.

The Dietary Supplement Health and Education Act (DSHEA) of 1994 was another boon to the health foods industry, as it allows marketers of dietary supplements to make so-called structure-function claims linking the use of their products to, for instance, proper prostate function or a healthy gastrointestinal tract. Today, health and natural foods are a $9 billion-plus market. While sales of these products still represent a small fraction of the overall grocery business in the United States, the industry has traveled light-years in just one generation.

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WHERE YOU WILL WORK HEALTH FOODS STORES AND JUICE BARS WON’T PROSPER JUST ANYWHERE, BECAUSE

the health foods customer isn’t just anybody. Healthy and natural foods are a small specialized niche in the mammoth $450+ billion supermarket industry. Therefore, prospective proprietors need to check out the demographic profile of the population in the area where they want to set up shop. That includes income, education and age. Natural products are usually more expensive than the corresponding mainstream products. This is partly because most natural foods manufacturers are small (although very successful ones are gobbled up in acquisitions by large corporations almost every day). Small manufacturers don’t have the economies of scale enjoyed by, say, a Kellogg’s or a Johnson & Johnson, to price their items at low, competitive rates. Also, organic farming prohibits the use of pesticides, so there’s more damage to crops that are grown organically. This means more waste, which drives prices up. This affects not just organic fruits and vegetables, but other items like canned soups that contain organic produce and personal care items (for example, cotton swabs made with organic cotton). The bottom line is that the typical health foods consumer has a lot of discretionary income, so the population of the area housing the successful health foods store will reflect that. The health foods consumer is well educated, having studied the benefits of a good diet, so the location should have a high proportion of college graduates. The prevailing attitude of the region also matters. This isn’t as easy to gauge as income or education, but it’s every bit as important. People in the area should be progressive and open to new ideas, as well as health-conscious. A Midwestern city whose failing economy has long relied on the cattle industry isn’t going to look favorably on your bulk-bins of pricey texturized vegetable protein and other meat-substitute products. The size of the metropolitan area affects the number of prospective customers, too. Stores in cities with at least 150,000 are the most successful. A smaller area, even one with favorable demographics, can’t support more than a handful of food stores of any kind.

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Juice bars have more flexibility about location, since they can be set up in locations that already exist and have a steady, proven flow of customer traffic. Also, juice bars are more acceptable to the general public. Users of natural, health, vegetarian and organic products are sometimes stereotyped as granola-eating, ultra-liberal, self-righteous, hippies. But the same association does not affect the image of the smoothie, which everyone can enjoy regardless of personal philosophy. Freestanding juice and smoothie bars are popping up in all kinds of venues unrelated to health foods. Not just health foods stores, coffee houses, and yogurt shops, but beauty salons, baseball stadiums, tanning salons, and fitness clubs.

THE WORK YOU WILL DO THE RESPONSIBILITIES OF PEOPLE WHO WORK IN HEALTH FOODS RETAILING ARE

similar to those employed in small mainstream grocery stores, but often with a different emphasis because of the nature of the product lines carried and the principles espoused by the retailer. Many of the tasks may be carried out by people who have special skills or experience; others are taken care of by entry-level workers; and all of them may fall on the shoulders of the entrepreneur who has recently opened up shop.

Entry Level Jobs The most common entry-level positions include cashier (or checker) and stock clerk. Most items in most stores feature UPC codes that are passed across a computer scanner that then records the price in the cash register. Small stores may have more old-fashioned versions of cash registers, though; and items purchased in bulk may have to be inputted manually. Cashiers also receive payment for the purchase, make change and bag the groceries. Stock clerks keep track of inventory, place items on shelves and put price tags or write prices on products. Other beginning jobs include salad bar stocker, kitchen prep worker for stores that provide fresh prepared foods and office clerk.

Managing the Product Mix Purchasing managers and buyers examine sales patterns in their stores to decide which products their customers are buying and make purchases accordingly. They select 9

suppliers and distributors and maintain relationships with them and other vendors. They may maintain a bulletin board or suggestion box where shoppers can request products the store doesn’t carry. There is very little overlap between brands carried in a health foods store and that carried in a mainstream supermarket. Companies are much smaller and products have more specialized features (vegetarian soup made with organic vegetables and sea salt and packaged in a lead-free can). Purchasing managers and buyers should keep a company’s manufacturing practices and policies in mind when putting together a product line, because health foods shoppers demand integrity of the manufacturers of the products they buy. There may be different buyers/managers for different parts of the store, such as health and beauty care, housewares, books and greeting cards or produce. The produce manager is expected to maintain relationships with growers and farmers. Produce managers have to be careful to store highly perishable items properly and must be very sensitive to seasonality. While many varieties of fruits and vegetables are available all year round, they’re not always the best quality during certain seasons. Moreover, organic produce tends to be seasonal. Produce managers have to decide whether to carry non-organic items for the sake of variety; it depends on the store’s vision and mission. Produce managers in particular tend to be strict about selling only organics and sustainable agriculture. Whether to offer private label products is another decision that product managers have to make. Private label products, also known as store brands, are manufactured off-site by major national manufacturers that use excess capacity to produce store brands, by regional manufacturers that supply specific markets and by small, independent manufacturers that produce only store brands. Stores contract with these manufacturers to supply product that is then sold as the store’s own brand. New York City-based Gourmet Garage is one small chain of natural foods stores that carries an extensive line under the own label, from olive oil to coffee to chips to mozzarella balls to pasta sauces. Once considered generic and of lesser quality, today store brands are as high-quality as other branded products. Private label is a useful tool for communicating the retailer’s singular commitment to a healthy lifestyle.

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Marketing the Store

Traditional advertising is best used by large stores with budgets designated for newspaper space or local television spots. Advertising is expensive and may not reach enough of a small store’s prospective customers to be worthwhile. In-house advertising, on the other hand, is comparatively inexpensive and can be as simple as a newsletter or circular mailed to customers at home or available to shoppers at the store. The literature can describe store specials and events, and feature articles on health or fitness. In-store sampling programs and product demonstrations also create a lively environment that makes shopping a fun and pleasant experience, maximizing the chances that shoppers will return. Creating clever, themed storefront window displays can also bring customers in, if only out of curiosity. One of the most popular windows in the history of Everything Natural (Clarks Summit, Pennsylvania) portrayed a weary-looking female mannequin bent over an old ironing board, holding an antique iron with an old clothes wringer also in sight. She was surrounded by Seventh Generation cleaning products. The banner read “Times Have Changed.” Other promotional programs include couponing and frequent-shopper programs. Free publicity is also a popular method of attracting attention to one’s store. To get it, retailers contact members of the news media – the food critic for the local paper, or a radio program with a segment on local small businesses – and offer them a story idea with an “angle.” Ideas might include: a shop that uses edible flowers to flavor its smoothies, or the first-ever natural food cooperative in a particular region. The best marketing and promotional strategies show off the retailer as a visible, valuable and participating member of the community. This means sponsoring or participating in tasting fairs (especially useful for persuading the uninitiated that health foods don’t taste like cardboard), lectures, food drives, cholesterol screenings, school soccer teams or fundraising events.

Customer Service

Health foods retailers need to distinguish themselves with high levels of personal customer service. Knowledgeable staff must be on hand to answer questions, offer advice and one-on-one counseling and make recommendations. Customers sometimes expect additional services like phone or online ordering and free home delivery.

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To assist customers who aren’t sure what they’re looking for, or may be shy about discussing personal health issues, stores are beginning to install computer databases that provide nutrition and wellness information. Lots of stores also post comprehensive health information on their Web sites.

Duties and Issues for Managers and Executives Managers and store owners may have a variety of additional tasks such as establishing store policy, interviewing and hiring employees, handling customer complaints and keeping track of income and expenses.

They attend trade events, as many as several a year, to make professional connections, network with suppliers and manufacturers, view new products, learn about consumer and industry trends and socialize with other retailers. Conferences almost always host educational seminars on industry happenings, improving profitability, retaining and training employees and serving customers. Consumer trends can and should have a significant impact on the products a natural foods retailer carries. When the high-protein, low-carbohydrate diets were so popular, juice bar operators responded with a variety of nutrient-appropriate smoothies. Depending on the size of the store, its mission and its budget, a retailer may decide to outsource some of its functions. Small stores may have other companies perform functions like payroll and accounting; medium sized stores might outsource sushi and floral services; larger stores may install franchises within their stores. Indeed, Whole Foods locates Jamba Juice and Gaiam kiosks inside its natural products supermarkets. This provides an even greater breadth of products and services, but may be too expensive and risky for a smaller retailer. Federal inspections and local and national regulations are a concern for all businesses involving food handling and preparation. Inspections by the Food and Drug Administration are not announced in advance, so the specter of a surprise visit can haunt the most conscientious retailer. There’s really nothing to worry about as long as the owner knows thoroughly and complies with the applicable version of the Code of Federal Regulations and a couple of other statues. Another regulatory labyrinth is faced by retailers who import or export products. Overseas manufacturers often operate in a very different retail environment, so communication can be difficult. You have to be psychic to know whether a particular foreign product will appeal to your customers. There is a minefield of regulatory labeling, shipping and customs 12

difficulties and disparities. But it may be worth it, because one of the reasons shoppers go to health foods retailers is to find exotic products they can’t find in an ordinary supermarket.

Owning and Operating a Juice Bar Among the overriding concerns of juice bar owners and operators:

How often to test-market new products, what the new formulations should consist of, the criteria for determining a new product’s success or failure Meeting the needs of the clientele If the juice bar is located in a mall where a lot of families shop, the retailer will want to include sweet and fruity smoothies for kids, neon-colored ones for teens, energizing beverages for athletic types, low-calorie and fiber-rich drinks for weight-conscious new moms. Customer education Nutrition information is easily disseminated via leaflets placed on the counter. Equipment needs Is it worth buying the trendy new granite machine that shows the colorful beverage mixes swirling around in a very appetizing manner, or has this fad come and gone? How to finance equipment purchases Is it best in the long run to lease, contract, or buy straight out? Food safety Salmonella poisoning has been linked to unpasteurized orange juice. Sanitary precautions What other fare to offer besides drinks What type of cup to use? Paper is environmentally friendly; Styrofoam keeps drinks cold and soups hot; branded reusable mugs solve both problems, and are a promotional tool, but they’re expensive. When you purchase a franchise, many decisions are already made for you by the franchisor. But you’ll still face daily situations that require management skills and common business sense. 13

HEALTH FOODS RETAILERS TELL YOU ABOUT THEIR CAREERS I’m a Marketing Assistant with Ozark Cooperative Warehouse, Located in Fayetteville, Arkansas and Also a College Student “Ozark’s mission is to

improve the quality of people’s lives and the environment by being the best distributor of organic and natural foods and healthful products in the markets we serve. That market is made up primarily of a dozen Southern states. We also publish a free monthly newsletter featuring new products and sale items. I got into this field mainly because I was studying dietetics and nutrition at the University of Arkansas. I’ve taken an interest in natural and organic foods since I started studying this field, and have learned about it mostly on my own. I found an ad in the newspaper that Ozark Cooperative Warehouse was looking for a part-time person with a knowledge of natural foods, so I decided to apply because I thought the job related to my major. I’m a senior now, but I have one more year of school and I’m not sure what direction I would like to go when I graduate next May. I thought this position would help me determine if I wanted to pursue an internship in dietetics to become a Registered Dietitian (RD), or if I would rather work on the retail side of the nutrition industry. So far, I’m leaning toward the retail side. I enjoy the retail aspect of the field of nutrition. The farther along I got in school, the more disappointed I became that I had chosen a major that required me to complete an internship before becoming an RD. My current retail job allows me to use the knowledge I have gained in school without completing an internship or working in a hospital. My responsibilities in my current position include maintaining spreadsheets of weekly deals, completing monthly paperwork, data entry for monthly specials, order taking, preparing and 14

mailing monthly publications, and other special projects that are given to me. I really appreciate the flexibility of the position I am in. The hours are perfect for a college student. Working part time allows for a very flexible schedule. The computer system that Ozark uses is my least favorite thing about my job. It’s not difficult to use, but it takes awhile to familiarize yourself with it. My advice for high school students would be to explore every option that is available. As I mentioned, I wasn’t interested in doing an internship and going into clinical dietetics. But in this position, I’m able to use my knowledge of food and nutrition in a relaxed, enjoyable atmosphere. Also, read and learn about things that interest you outside of school. The normal curriculum in dietetics does not cover much on natural and organic foods; it’s something I learned about on my own time, and now I’m very happy that I did. There were times when I wanted to change my major just to graduate sooner, but that was because I had no idea I could get into a field such as retail with a major in dietetics!”

I’m the Owner of Tigris Organic Foods “I chose to jump into this business with no

prior experience. I had worked 21 years in the electronics and software industry, and I wanted to do something different.

I grew up eating cereal for breakfast, and I’ve kept the habit as an adult. Most breakfast cereals I’ve encountered are too sweet, too gimmicky, and too processed. Whole grains, moderate sweetening from honey or fruit, and nuts fit the bill for me. I finally became so frustrated that I started digging through our household collection of cookbooks and I found a recipe for granola. I wasn’t a big fan of granola at the time; most hadn’t really grabbed me with flavor or texture. My first attempt was mediocre, at best. But I kept experimenting. I suppose the thought

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of going back to the commercial, processed cereals was a big motivator. Eventually, I adjusted the recipe until I had a nice texture and flavor. It was just sweet enough to please me, had a firm texture that held together in bite-sized clumps, and it was easy to make. I continued experimenting and found that I could add flavorings, nuts, and fruit. It was a very flexible recipe, and the results were very satisfying. For a couple of years, I was happy to make another batch of granola every two weeks, just for myself. Then, for reasons that escape me, I got the goofy idea of giving some of my oddball granola combinations to friends, and everyone kept telling me how great it was. That was 1999. Soon after, I started researching the food industry. I knew I wanted it to be organic. All of our products are organic, and we strive to use only organic ingredients, down to the smallest spice. We take the trouble to use organic ingredients because it benefits everyone. You receive the purest, healthiest foods possible. The organic farmers benefit from a growing market for their harvests. The world benefits from the cleaner air and water that goes with sustainable, organic agriculture. Today, as owner of the company, I am responsible for everything! My business is still in the development phase; in particular, I’m working to bring several varieties of organic granola to the market. I’m arranging to have the granola made for me, using recipes I developed. It will also be packaged for me, using my designs for the packaging. Then I will have the product shipped to a warehouse here in Fort Collins, Colorado. That’s when the real work begins. The first task is to sell the granola. My business is wholesale, not retail, so I will use direct mail and customer visits to build a base of clients. As I acquire clients, I’ll ship the granola to them. From time to time, I’ll have to schedule new manufacturing runs to replenish the warehouse. So the business involves selling, order processing, shipping, inventory management, and scheduling.

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In addition, because the products are organic, I must collect the certification documents from the suppliers, bakers, and packagers, in order to maintain my own organic certification. At some point, I’ll be working with the staff in health food stores. To start with, I would be talking to a buyer, trying to sell my granola. The buyer is the person who decides which products will be carried in the store and makes all the purchases. Once a buyer has decided to purchase my granola, then I would be working with the receiving or stocking staff when my products are delivered. Some stores require each manufacturer or distributor to monitor the store shelves and keep them stocked. Other stores have their own stockers and check inventory themselves. I’m really enjoying the enormous variety of tasks that are part of this work. For a while I was spending a lot of time in the kitchen, fine-tuning the recipes and trying new flavor combinations. Then I had to learn what it meant to run a business, how to keep the books, track orders and sales, and many other jobs. Before I started my own business, I never understood marketing, and I thought I could never be any good at it. Now, because I understand and love my products, the marketing seems easy. I really want to tell people about how good my granola is, and how organic food benefits them and the environment. Now, marketing is fun! So far I haven’t really found anything I dislike about this industry, or the wholesale business. There have been some frustrations, such as the 11 months it has taken me to get this far. I was really hoping to be selling products five months ago. But there have been rational reasons for every delay, and I have learned something new at every step. First, ask yourself what you really want. Then talk to people already in the business. Most business owners love to tell stories about how they started. They will probably describe to you all about how their business works. And if you like what you hear, show your enthusiasm for their work, and ask for a job, your chances of being hired are much greater.

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Also try to understand more about the business than just your job. If you pay attention, and ask questions, you will learn how the entire business operates. That will give you many more opportunities for a better job with more responsibility and higher pay. It could also give you the confidence to start your own business. For me, this has already proven to be the most rewarding career move I could imagine.”

I’m Information Systems Manager for a Natural Foods Market “I got a job as a cashier

with this company after I graduated from college. I thought it would be temporary! But I’ve worked in several different departments since then: bulk foods, produce, accounting. We carry organic products and stock cruelty-free personal care items. We are the largest retailer of natural foods in Richmond, Virginia. Currently, I’m responsible for maintaining and repairing our check out and computer network systems, as well as being involved in database management and marketing for our customer database.

With our 1st Natural Customer Program, shoppers earn points with every purchase, which add up to a 10% discount for the rest of the year. Customers can also sign up for our auto e-mail program where we send out our calendar of events, deli menu, recipes, and information on specials and sales. This program is something like a frequent flyer program for grocery shopping, designed to reward loyal shoppers. Unlike most ‘valued customer programs,’ our customers pick the items to be discounted by selecting their favorite department. Once they have earned 650 points for the year, we give customers an automatic 10% discount at checkout on all the items they buy in that department for the rest of the year. Another benefit of the program is that cardholders are no longer required to present ID when writing a check at the registers. They also get instant in-store savings available only to cardholders.

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I love the people I work with. They are definitely not your typical corporate workers, or even like most mainstream grocery store employees. They have unique viewpoints and interests that make this a fun place to be. One thing I don’t like as much is that because we are small, we often have to do things the ‘inexpensive way,’ which can mean a less efficient solution. If you think you might be interested in a career in health foods retailing, you should learn as much as possible about natural foods, governmental policies concerning organic and genetically modified foods, and dietary supplements. There are lots of great books on the subject, and these are valuable areas of knowledge which you can offer to a natural foods employer. Also, computer and network skills are always great to have.”

I’m President of The Organic Corner Store Located in Ontario, Canada “My training

began right after college when I was recruited by a retail chain. I was actually doing marketing research for a client, and became interested in the field, particularly the justifications for providing chemical-free food products. We pledge to provide consumers with the best organic products that the world has to offer at an affordable price. We specialize in non-perishable organically certified food products: Pasta in 21 shapes and flavors Rice, which we vacuum seal to bring customers that fresh-picked taste Canned beans and tomatoes: whole, diced, and strained, all with no salt or sugar added Tomato/pasta sauce that’s the pride and joy of Italy, in six delicious vegetable flavors Extra virgin olive oil with a low acidity level so it’ll be gentle on your digestive system Seed oils: canola, soy, safflower, and sunflower, all extra virgin and unrefined to keep all the natural vitamins Flavored wine vinegars 19

100% pure barley beverages Organic Italian biscotti and Italian torrone (nougat candy bars).

All of our products carry a money-back guarantee. Each of the producers and manufacturing facilities engaged in the processing and packaging of our food products must meet the following requirements: All ingredients used in the production of our finished product must originate from farms recognized by the International Federation of Organic Agriculture Movement (IFOAM). After harvesting, the products are tested to ensure the total absence of chemical residues. All grain and cereals must be dried using direct heat. All raw materials are stored in refrigerated silos. Each factory must follow the IFOAM standards and be available for quality control inspection. Processing is carried out exclusively with the use of high-tech machinery used only for organic products.

As president, I look after the sourcing of products, purchasing, marketing and distribution of our product line. Participating in a growing field like this is very exciting, and I especially enjoy providing new and exciting products to the consumer. However, it’s a very high-pressure job; and it’s frustrating to deal with corporate buyers who fail to have an objective approach, and are usually influenced by friendships. It’s very important to acquire as much experience as you can in both retailing and wholesaling. This will allow you to be able to understand what the responsibilities are of people that you will be dealing with. I recommend that you get a college education in a field that will allow you to better understand the marketplace.”

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PERSONAL QUALIFICATIONS YOU WILL NEED THE MAIN QUALIFICATIONS NEEDED by PEOPLE IN THIS BUSINESS ARE A PASSIONATE

interest in health-promoting foods and some basic sales ability and business sense.

Dealing with customers requires patience, tact and good humor. You’ll be expected to maintain a neat, clean appearance, particularly if you’ll be handling produce, refilling crocks on a salad bar or preparing smoothies or sandwiches. Neither operating a cash register nor stocking groceries is particularly intellectually engaging. But since one of these is likely to be your first job, you should be able to perform monotonous tasks accurately under pressure. Cashiers should have good hand-eye coordination and manual dexterity; stock clerks should be in good shape because they do a lot of lifting, stooping, squatting and climbing. Butchers, bakers, cooks and other skilled workers must have more extensive knowledge of food preparation processes and techniques; but this exemplifies information that can be acquired rather than an innate trait that aspiring health foods store employees should possess. You should also have a thorough understanding of the products carried and what makes them “healthy.” Managers should have leadership qualities, problem-solving and decision-making skills, and the ability to perform well under pressure. People who want to operate their own stores or juice bars should have the qualities needed by all entrepreneurs and small business owners: single-mindedness, stamina, unflagging belief in oneself, creativity, objectivity, persistence, superior customer-service skills and passion.

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ATTRACTIVE FEATURES TO THIS CAREER HEALTH FOODS STORE WORKERS ARE DIFFERENT FROM OTHER GROCERY STORE

employees. Because of the nature of what they sell, they’re advocates for the wellness of the people who live in the community where the store is located. They often have interests tangentially related to natural foods, like environmentalism or grass-roots political activism or animal rights, so they’re characteristically attuned to the needs of others and are solid team players. This makes for a lively and affable working environment. Customers are a special breed, too. They tend to have the same characteristics as the workers. Plus, they appreciate having an alternative to mainstream supermarkets. They’re the type who like to support locally owned establishments instead of patronizing chain stores and are fiercely loyal to their favorite health foods retailers. On the whole, they’re a pleasure to serve. The same goes for employers themselves. Health foods retailers are likely to operate according to philosophies that encourage the personal and professional growth of employees. Employee benefits are likely to be progressive and to take employees’ true needs and desires into consideration, as opposed to other businesses that offer standard benefits to everyone. For instance, an employer might cover alternative medicine therapies as part of the health plan, or have employees spend some paid time volunteering in the community. It’s gratifying to contribute to people’s well being with high-quality and nutritious foods and beverages. This is rewarding work for people who enjoy working with others, particularly when you help educate people about the latest research about vitamins, recommend a product or suggest changes that could help them improve their lifestyle habits. You can feel good about your job when you work at a health foods store. Entrepreneurs and small business owners also enjoy tremendous variety in their work, as they often have to wear many hats (chef, accountant, counter clerk, produce buyer, etc.) until they can afford to hire staff. Stocking shelves isn’t as tedious if they’re your shelves.

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UNATTRACTIVE FEATURES THE FOOD RETAILING BUSINESS IS INTENSELY COMPETITIVE, SO STORES AND JUICE BARS

have to stay open long hours to get the business. That means you might have to be working when other people have time off, including evenings, weekends and even holidays, especially those that revolve around food: Easter, Passover, Independence Day, Thanksgiving (stores are often open in the morning of Thanksgiving Day), Christmas Eve (although probably not Christmas Day) and New Year’s Eve.

On the other hand, this can be a boon if you’re a student and need to keep your schedule flexible. Busy times and holiday rushes can be stressful. There’s always the chance that your store will face an angry crowd when you run out of seitan on Thanksgiving Day because Vegetarian Times featured a recipe for seitan “turkey” that month. Running one’s own business is always tiring and stressful, and achieving success usually takes longer than anticipated. There are all kinds of arduous tasks business owners have to attend to, like paying taxes and dealing with city and county regulations regarding food handling.

EDUCATION AND TRAINING YOU WILL NEED CLERKS ARE GENERALLY TRAINED ON THE JOB BY ANOTHER EMPLOYEE OR PERHAPS A

manager or the owner. On-the-job training includes instruction in using the store’s equipment, as well as policies, procedures and guiding philosophy.

For instance, the philosophy of Heartland Health foods in Stockton, California is “to treat our customers with the utmost courtesy.” The company promises, “We will work hand-in-hand with the customer to help aid in their well-being. We work from the heart.” Garden Cove Produce (Huntsville, Alabama) has composed an extensive mission statement featuring Cornerstones (“to give dignity and worth to every individual” is one); Objectives (such as: “Openness, honesty, and consistency in all employee relations are the common objectives in our operation”); Commitments (“To provide 100% pure juices and juice beverages that do not contain refined sugars”); and Unifying Principles (“We are committed to the growth of the company and, as a result, help the people of this country rediscover good food and, through it, good health and personal growth”). 23

And at Naturally Yours of Jasper, Texas, the motto is “We are here to help you, not rob you. Our prices are low, our service is fast.” There is usually an employee orientation program, especially in larger stores. Orientation is a way to ensure that new employees understand what’s expected of them, to introduce them to staff and welcome them to the organization, and to make sure they know how to provide feedback and who to ask for help. Another source of education is the employee manual, which is customized for each individual store. It might include this kind of information: Food handling, storage, and maintenance Federal and state regulations and health codes Industry certification What to do with expired products Hygienic procedures Preparation methods Equipment cleaning Smoothie and salad bar recipes The health foods industry is extremely competitive and turnover is expensive, so even smaller retailers are finding that ongoing employee education and training are smart investments. Moreover, knowledgeable employees are the key to customer loyalty, particularly since new findings are released daily regarding the relationship between diet and health. Thus, if a customer tells you she’s worried about her declining eyesight, you can steer her toward the produce department, since you know that spinach and kale are good sources of the carotenoid known as lutein, and you also know that lutein can actually prevent blindness. And you can tell the customer who wants to know why you don’t stock his favorite Chinese herb that the batch was recalled because it contained aristolochic acids, toxins associated with kidney failure. Employers may subscribe to scientific and trade publications for the staff’s entertainment and enlightenment; they might pay for the staff to take classes and attend conferences; and many proprietors invite doctors, chiropractors, iridologists, nutritionists, naturopaths, herbologists and other experts to give talks to staffers.

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Many manufacturers of health foods also provide educational materials to retailers and their staff: training videos, in-store presentations, and product literature. Renew Life, for one, a maker of dietary supplements, allows retail staff members to buy products at sharply discounted prices so they can experience the benefits first-hand. Then they’re confident about recommending the product to customers. Similarly, Borlind of Germany, a manufacturer of natural personal care products has brought in an aesthetician trainer from Germany to conduct seminars and retains a former trainer for a department store cosmetics line to train employees on sales skills and ascertaining customer needs. Borlind also sponsors a three-day intensive seminar covering everything from skin care basics and selling skills to product formulation. The better informed salespeople are, the better able they are to sell products, so educational efforts also benefit the product manufacturers. Makers of dietary supplements are required by law to provide “third-party literature” to accompany their products when making health claims. These materials contain findings from independent sources to substantiate the relationship between using their products and health benefits. Store staff can be expected to study these documents and familiarize themselves with the supporting research. The work of more skilled positions, like butcher or baker, can be learned on the job or through a trade school or industry association. In Great Britain, the National Association of Health Stores (NAHS) operates training courses leading to the NAHS Certificate in Retailing and the Diploma in Health Foods Retailing. And the Certified Natural Products Advisor (CNPA) Educational Program of the Canadian Health Foods Association is a program that lets you study at home at your own pace. Designed and written by the Canadian College of Naturopathic Medicine, the course should take between six months to one year to complete. The curriculum is science-based and covers organic chemistry, biochemistry, the cell, body fluids, the cardiovascular system, the respiratory system, the gastrointestinal system, neuroanatomy, macro- an micro-nutrients, botanical medicine, and more. Upon graduation, the graduate and the store in which they work may use the CNPA designation.

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Cornell University Food Marketing Program Technical

institutes, junior colleges, and community colleges also offer programs in food marketing, food management, and grocery store management. The Food Marketing Institute and the Cornell University Food Industry Management Distance Education Program have announced an alliance to provide practical training for supermarket store managers and employees whose work schedules prevent them from attending regularly scheduled courses. Comprised of 28 food industry-specific courses, the Cornell Supermarket Series addresses topics such as food safety, supermarket operations, customer service and technology. All of the courses are self-paced and provide for independent study as well as individual attention from the Cornell staff. Continuing education can also be pursued at industry events. For example, retailer operators of juice and smoothie bars convene in February of every year at Southwest Traders Product Fair, the only trade show specific to the juice and smoothie industry. Titles of the seminars held at a recent show included Building a Better Business, The Changing Food Handling Laws, Maximizing the Potential of Your Soft Serve Equipment and The Low-Carb Diet Trend. The National Nutritional Foods Association (NNFA), offers various educational programs. National and regional conferences, seminars and training materials are designed to teach skills and improve efficiencies at all management levels. The programs provide access to information on trends and product development driving the natural products industry, as well as insight into special environmental and social issues. Furthermore, offered in conjunction with NNFA’s annual MarketPlace Convention and Trade Show is a comprehensive schedule of panel discussions, featured speakers, practical hands-on workshops, and professional enrichment sessions. Although there are no formal educational requirements for a career in this field, employers in all industries increasingly prefer to hire college graduates, especially for management and management-trainee positions. Relevant studies in college would include business administration and nutrition; but there’s a place for people of all educational backgrounds in this business, as long as they have an interest in healthy food. That is, English literature is a great background for somebody who wants to work in advertising or public relations; if you like math, you could get hired as a store’s bookkeeper; an understanding of biology or chemistry might contribute to your understanding of organic farming and the ways in which we truly are what we eat. 26

WHAT YOU WILL EARN ENTRY-LEVEL PAY IN GROCERY STORES IS LOW. YOU CAN EXPECT TO EARN MINIMUM

wage or slightly more until you become a manager or proprietor or take another, more skilled position.

That’s not as bad as it sounds, because entry-level workers are usually young and often in school, and the jobs are usually part time, so it’s not like you’ll be trying to raise a family on $300 a week (the average earnings among grocery store workers in non-supervisory positions). The following chart illustrates approximate hourly wages of grocery store employees in various positions, based on statistics from the US Department of Labor:

Hand packers and packagers $7.00 Cashiers $7.25 Salespersons, retail $7.75 Combined food preparation and service workers $7.75 Stock clerks, sales floor $8.00 Food preparation workers $8.25 Bakers, bread and pastry $9.25 Butchers and meat cutters $12.00 First line supervisors and manager/supervisors-sales and related occupations $15.00 General managers $25.00

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These earnings are significantly lower than comparable positions in other industries, although wages are higher in places where there is competition for employees. Cost of living in the town or city where the store is located may also affect salaries. In addition, department managers (like deli or floral) may receive a bonus based on sales performance. There are also benefits for full-time employees that might include paid vacations, sick leave, health and life insurance, discounts on purchases, tuition reimbursement and paid travel and admission to trade conferences. Some stores have profit sharing or stock option plans that can translate into a nice chunk of change. Entrepreneurs should count on making little or no money at the beginning. Usually, they’ll use venture capital, loans or personal savings to build the business and pay themselves a small salary, just enough to live on, until the business begins to turn a profit. However, those who buy an existing juice bar franchise supported by solid marketing and a good product could earn as much as $75,000 in the first year alone. Of course, that’s offset by the cost of the franchise itself. A new store can cost $100,000 to $150,000, including equipment, license fees, signage and inventory.

OUTLOOK FOR THIS CAREER HEALTH FOODS RETAILING IS AN INDUSTRY THAT IS EXPECTED TO CONTINUE TO SHOW

enormous growth into the foreseeable future. There are numerous factors at work here; many of them have to do with the demands, desires and preferences of the American consumer. Over the past 15 years, the typical American diet has been increasingly implicated in the development of chronic health conditions and life-threatening diseases. The US Surgeon General reports that out of the nation’s top 10 killers, five are frequently the result of poor nutritional habits: coronary heart disease, some types of cancer, stroke, non-insulin-dependent diabetes and atherosclerosis. In addition, obesity has been linked to increased risk for diabetes, high blood pressure, stroke, coronary heart disease, some types of cancer and gallbladder disease. The presence of certain beneficial nutrients in the diet has been attributed to the prevention of such afflictions as coronary heart disease, certain types of cancer, and osteoporosis.

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The National Cancer Institute’s Division of Cancer Prevention and Control asserts that one can reduce cancer and heart disease risk with a diet that’s low in fat and rich in fruits and vegetables. The vast majority of Americans recognize the relationship between diet and health (75% or more, according to polls). A lot has been written over the last 20 years describing the so-called graying of America. The oldest members of the large baby-boomer demographic group are in their mid-50s, and people of all generations are living longer. Therefore, the median age in this country is rising. Health concerns tend to increase with age, and baby boomers as a generation have always been open to somewhat out of the mainstream ideas like organics and alternative medicine. Health foods stores are offering a wider array of goods and services to stay competitive. Expanded offerings (floral departments, takeout food, catering services, bakeries, salad bars, cafes) require additional employees on staff. Juice and smoothie bars are also diversifying, offering healthy snacks, breads, soups, sandwiches and wraps and energy bars. Juice and smoothie bars are expanding into coffee house, bagel shops, delis, tanning salons, health clubs and other outlets. Insurance companies are increasingly paying for alternative medicine treatments, and consumers are increasingly using them (even when they’re not covered). Herbal remedies, dietary supplements and homeopathic preparations are types of alternative therapies and are among the products carried by health foods stores. There will be more food stores of all types simply because the population is growing. Although more and more people feel comfortable shopping online, health foods stores aren’t expected to be among the retail casualties of the Internet revolution. Shoppers may buy packaged items like herbs online instead of in a brick-and-mortar store, but the true benefits of shopping for health foods must be experienced in person. Health foods shoppers want to smell the fresh flowers, touch the organic produce and enjoy the superior levels of customer service that distinguishes health foods store from traditional grocery outlets. These trends bode well for the future of health foods retailing. 29

GETTING STARTED TRY TO GET A JOB AT A HEALTH FOODS STORE. THIS IS THE BEST WAY TO LEARN ABOUT

the business and you’ll be a more attractive prospect when you’re ready to pursue a full-time career if you already have experience. Make sure your employer knows you’re interested in making this your life’s work. At the job interview, ask the people questioning you how they got started, what their particular areas of interest and their passions are, tell them how you became interested in healthy foods. Tell them about the products you use and like, about the relevant books you’ve found interesting. Ask them what they think about some hot topic, like mandatory labeling of genetically modified foods or whether whole foods have better health-promoting properties than dietary supplements. Show that you’re one of those special people who belongs in this field. During the interview and on the job, be enthusiastic, ask questions and learn as much as you can about natural foods retailing. You want your employers to know you consider this job a step in your career path, not just something to do until something better comes along. Read consumer health-oriented magazines like Prevention and Vegetarian Times. These will keep you up to date on the latest findings in the field of nutrition. Reading trade publications will educate you about the commercial and regulatory side of things. The quickest, easiest, and safest way to get into the juice bar business is to open up a franchise of an existing enterprise. This can require a substantial cash outlay, so you’re probably not in a position to do this right now. But you can learn more about franchising and all it entails. One of the companies that offers franchising opportunities is Electric Juice Café. Fill out their form to receive information at www.electricjuice.com /franchising2.htm. Another way to go into business right away, but with far less cash outlay, is a smoothie cart or kiosk, which can be easily transported from one location to another. Be sure to check on the regulations governing street vending in your municipality before you make any investment of time or money in this endeavor. While health foods retailing may not be a way to get rich quick, it’s an extremely satisfying and promising career. This business attracts a fine group of people – intelligent, educated, involved, engaging, passionate, compassionate and committed. If you think you’d like to spend your professional life surrounded by people like this, consider a career in health foods retailing. 30

ASSOCIATIONS AND ORGANIZATIONS n

Canadian Health Foods Association http://www.chfa.ca/menu.html

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Co-operative Development Board (United Kingdom)

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Food Distributors International http://www.fdi.org

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Food Marketing Institute http://www.fmi.org/

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Grocery Manufacturers of America http://www.gmabrands.org/

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Health Foods Manufacturers’ Association (United Kingdom)

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National Association of Health Stores (United Kingdom)

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National Nutritional Foods Association http://www.nnfa.org/

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National Nutritional Foods Association Northwest Region http://www.nnfa-northwest.com

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United Food and Commercial Workers International Union

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Veggie Business Connection (United Kingdom)

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PERIODICALS n

Cooperative Grocer http://www.cooperativegrocer.com/

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Health Retailer

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Juiced! Magazine http://www.juicedmag.com/

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Natural Foods Merchandiser http://www.nfm-online.com

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Natural Products Industry Insider http://www.naturalproductsinsider.com/morenews.html

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Natural Products News

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Nutrition Business Journal

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Nutrition Science News

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Progressive Grocer

COPYRIGHT 2005 Institute For Career Reserach CHICAGO CAREERS INTERNET DATABASE www.careers-internet.org

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