EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

EB Identities: Safeway markets 14 top brands in four key areas. Its brands identified as “core”
include Safeway (4,000+ items) and Value RED (100+ economy items); its “expertise” brands
cover Lucerne (quality dairy products 400+ items in 19 categories), The Snack Artist (snack
items), refreshe beverages (40 different varieties from carbonated soft drinks to vitamin-enhanced
water), and Primo Taglio (premium meats and cheeses 100+ items); its “aspirational” brands are
Safeway Select (premium foods 500+ items in 60 categories), Rancher’s Reserve Tender Beef,
and Signature Cafe (deli/foodservice items like sandwiches, soups, side dishes, precooked hot
meats, and meals); and under its “wellness” brands, Eating Right (low-fat/low-carb foods 230+
items), Bright Green home care products (30+ items), O Organic (1,300+ certified organic foods
and beverages), O Organic for Toddler/ Baby/Kids, and Open Nature (100% natural foods 100+
items). Its other brands include waterfront BISTRO (seafood entrees and complementary items
100+ items), mom to mom (baby-care products), and In-Kind natural hair and body care items,
etc. Safeway also sells first-tier store banner brands, besides Safeway, such as, Vons, Pavilions,
Dominick’s, Remarkable ( Randalls/Tom Thumb stores), and Genuardi’s. Its other store brands
cover dairy lines, Lucerne (at Safeway stores) and Jerseymaid (at Vons stores) and bakery items
under the Mrs. Wright’s brand (at Safeway stores), and Great Meal Combos (deli-prepared entrees
and side dishes).
EB skus: 6,800+
Profile: After a pretty bleak 2009, when sales dipped by 7.4%, blamed on the extra week in 2008,
a $ 407 million loss in the Canadian exchange rate, etc., resulting in a $ 1.1 billion loss for the
year, Safeway produced better result in 2010. Its net income showed $589.8 million, while its fuel
sales alone jumped 18.6% to $ 3.2 billion for the year. Safeway also has continued to rollout new
private brands. Tracing back to 2005, the portfolio has grown: first with O Organic foods and
beverages, in 2007, then Eating Right low-fat/low-carb foods in 20 categories, then ‘mom to
mom’ baby care products in May 2008 and Bright Green home care in October 2008, followed by
waterfront BISTRO restaurant quality seafood in January 2009. In 2010, the private brand rollout
did not let up: in July, ‘refreshe’ soft drinks and water (replacing some 40 different brands); in
September, the In-Kind natural hair and body products (30+ products); and in November, The
Snack Artist line of snacks and chips in resealable packages. Rollouts continue in 2011 with the
introduction of Open Nature, a line of more than 100, 100% natural foods, starting with fresh
packaged meats and poultry and more recently extended into breads, yogurt, ice cream, salad
dressings, etc.; While the retailer has switched its core economy identity, Value RED, over to the
new brand, Pantry Essentials, covering different product categories: dairy, meat, canned
vegetables, paper goods, etc. Safeway also continues its marketing consortium, called Better
Living Brands Alliance, charged with marketing O Organics and Eating Right branded products
beyond the Safeway chains into other retail outlets, foodservice accounts, and international
markets. A number of manufacturers have been licensed to use these brands. The history of
Safeway traces back to 1915, when M.B. Skaggs purchased his father's tiny grocery store in
American Falls, ID, and within a dozen years built it into a chain of 357 Skaggs United stores.
About 1926-28 he merged with Sam Selig's Safeway chain of 322 stsores, thus launching the
Safeway retailing phenomenon. UPDATE: Late in 2011, Safeway rolled out a new private brand,
called Safeway Farms, covering freshly packed produce and meat products.
Procurement Contacts: Stephanie Stephan, Group Procurement Manager (tel: 925-944-5000);
David Pullar, VP of Consumer Brands ; Joseph Ennen, Sr. VP of Consumer Brands; Nancy Cota,
VP of Innovation, Consumer Brands; Diane Dietz, Chief Marketing Officer