Check out the Deals blog for tips on how to save on groceries. Really, coupon use that is systemized can cut your bill.
Buying whole sale is good, also growing veges where possible. Cooking your own food instead of fast food or frozen meals is also a must.
Your budget sounds normal, depending on the ages of your kids. Teens eat a lot, and if you have expenses for baby formula or baby needs, that brings it up too.
Have you heard about the
All You Grocery Challenge? You have until tomorrow to enter. They want to see if you can feed your family for four weeks on a budget of $25 per person per week. The prize is a $1000 grocery card and a year's supply of Knorr side dishes. And lots of publicity!