2024 Natural Grocers Sustainability Report

PLANET

QUALITY

NUTRITION EDUCATION

COMMUNITY

CREW

ALWAYS AFFORDABLE SM PRICING

PEOPLE

ANIMAL WELFARE

HEALTH

Supplier Strategy

Natural Grocers ® is always looking for innovative natural and organic products, and has a rigorous application process to ensure the supplier and product meet strict criteria. We support local vendors throughout our regions whenever their products meet our standards

and are a fit for our stores. QUALITY ASSURANCE

We employ multiple benchmarks to ensure the quality of the products we sell. We strive to work with reputable suppliers that have shown proof of compliance with established regulatory and industry guidelines. Our Purchasing Department requires a complete supplier and product profile as part of the approval process, and we expect our vendors to comply with industry best practices for food safety. Our dietary supplements suppliers must follow the Food and Drug Administration’s current Good Manufacturing Practices (GMP), supported by quality-assurance testing for the base ingredients and the finished product. We believe these requirements build trust for customers seeking the highest quality supplements available. Many of our suppliers are inspected and certified under the USDA National Organic Program, and through voluntary industry standards and other third-party auditing programs concerning additional ingredients, manufacturing, and handling standards. Farm Visits: Whenever possible, we perform in-person farm and ranch visits to inspect on-farm operations including how animals are raised, fed, cared for, transported, processed, and packaged. Our level of due diligence is extraordinary in the industry and allows the Natural Grocers team to audit supplier operations and educate our Purchasing Department on industry best practices and challenges. These visits also inform our Animal Product Standards, so they are focused on realistic metrics to measure positive on farm practices and foster cooperative supplier relationships that encourage continual improvement.

Product Safety and Quality We work hard to ensure that the food in our stores is handled with care. Once received, our products are maintained and stored in accordance with applicable food safety practices. Our bulk products are pre-packaged and we refrigerate many bulk nuts, seeds, and flours to ensure quality, cleanliness, and freshness. We operate technology for all coolers that streamlines temperature tracking in our stores. Our Crew complete all required food safety certifications and follow company procedures for ensuring product stays fresh and safe for our customers. Any item that falls outside of food-safe guidelines is removed from the sales floor and disposed of appropriately.

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NATURAL GROCERS ® | SUSTAINABILITY REPORT