As I said, it includes everything we bought at Costco. Can't recall exactly what was in last month's grab bag of Costco purchases. To satisfy my curiosity, I may track receipts over the next month or two to learn our average spending on food and household supplies like vitamins, TP and laundry detergent.
We eat healthy foods that wouldn't generally be classified as gourmet. (I never understood the attraction of truffles - my taste buds always ask me, "Why exactly are you eating perfume???")
DH & I mostly stick to a whole food, plant based diet with few added oils and fats. Lots of good quality produce, whole grains, beans, nuts and seeds. We drink almost no alcohol - maybe a couple of drinks a month. That said, we we do have a kegerator in the garage for impromptu and planned parties along with a well stocked liquor cabinet and wine rack.
Ours is an expensive household to run. Despite having no mortgage, car note or other loans, we spend a lot every year. It all adds up: property taxes, insurance, utilities, home repairs, vehicle expenses, food, household supplies, a fair number of parties, a few streaming services and other entertainment, several RV trips and at least one airplane/hotel travel vacation per year, plus charitable donations, generous gifts to our children and grands, etc.
Food is probably among the smallest offenders.
We could ratchet back our spending considerably, but there's been no need. We end each year in the black between our SS & business income (we still work part-time), and still have the energy and good health to enjoy all the above. The day will surely come when we lose interest in throwing big parties, RVing and other travel, but we're not there yet.