Whole Foods is promoting 'little luxuries' as the next big food trend

By Charles Passy

It's a way of indulging without overindulging, says Whole Foods CEO Jason Buechel

At Whole Foods, small is the new big thing.

The supermarket chain, acquired by Amazon (AMZN) in 2017, sees "little luxuries" - meaning treat-style foods packaged in treat-size portions - as a key emerging trend. Or so said Whole Foods Chief Executive Jason Buechel during a Monday keynote talk at the Specialty Food Association's annual Summer Fancy Food Show, held at New York City's Javits Center.

Buechel said the trend is perfect for people who are "still trying to enjoy something" but don't necessarily want to overindulge.

A case in point? Buechel cited Petit Pot, a French company that offers organic puddings in small glass containers. A four-ounce serving of the vanilla or chocolate pudding - that's all each container holds - has 210 calories. "They're so, so good," Buechel said of the product.

The trend also likely speaks to those who are on the increasingly popular injectable drugs being utilized for weight loss, such as Novo Nordisk's (NVO) Ozempic and Wegovy, and Eli Lilly's (LLY) Mounjaro and Zepbound.

At the same time, the trend cited by Buechel is also about letting consumers indulge without having to break the bank. So "little luxury" items can also include small portions of typically pricey fare. In a report, Whole Foods cited its own brand of caviar as one such option.

That could be a way of signaling to consumers across the spectrum that Whole Foods, a company once derided for its "Whole Paycheck" pricing, can fit within their budgets.

But Whole Foods is also thinking small in an entirely different way - namely, the footprints of its stores.

Buechel said the grocery chain is moving forward with its previously announced plan to roll out its version of a convenience store - what it's dubbing Whole Foods Market Daily Shop. The first store is planned for New York City - specifically, on the Upper East Side of Manhattan.

Daily Shop stores will be between 7,000 and 14,000 square feet, according to the company, and will offer grab-and-go items and weekly essentials. Buechel said the stores will be well-suited to urban markets, where customers seek such convenience.

-Charles Passy

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06-29-24 1206ET

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