EXCLUSIVEBRANDSOURCING RETAILER/WHOLESALER ...

Wild Harvest (premium organic and natural foods), Stockman & Dakota (hand-cared premium
USDA Choice Angus beef), and Java Delight (premium coffee). Its first tier brands include:
Flavorite, Richfood, equaline, plus its franchised or licensed trademarks: Cub Foods, Save-A-Lot,
Sentry, Festive Foods, Jubilee, Foodland, New Market, Shop ‘n Save, County Market, Supervalu,
Albertsons, Sav-on, and Lucky. Finally, its tier-priced range covers more than 100 product
categories under the Essential Everyday brand.
EB skus: 20,000+ (E)
Profile: Blame it on the country’s bad economic environment and on tough competition,
Supervalu’s performance since 2009 has steadily declined from a total sales volume of $44.6
billion; while its bottom line profits have been weak or negative. Fiscal 2012’s net income dipped
to a loss of $1 billion from 2011’s loss of $1.5 billion. Bearing “substantial indebtedness,” (some
$6 billion plus pension fund obligations) the company has increasingly turned to private label
development. In June 2011, Supervalu introduced its Essential Everyday price brand. This
represented a transition from its other brands, such as Flavorite, Richfoods, and Homelife, and one
year later added another 1,500 new items, bring that range to 2,700 products. Since 2009, other
new brands have debuted: Culinary Circle, Wild Harvest, Stockman & Dakota, Happy Tails and
NutriPlan brands in pet food and supplies, etc. Multiple brands in Save-A-Lot also have been
consolidated under the Save-A-Lot banner identity. In February 2012, Supervalu reportedly
completed its layoff of some 800 people in its operation.
UPDATE: In January 2013, Supervalu dramatically transformed its entire operation, agreeing to
the $3.3 billion sale of five of its regional chains--Albertsons, Acme, Jewel-Osco, Shaw’s and
Star Market stores plus related Osco and Sav-on in-store pharmacies to an investors group, AB
Acquisition LLC, affiliated with Cerberus Capital Management L.P. (In 2006, Cerberus acquired
some 650 Albertsons stores from Supervalu and continued to pay a license fee for use of that
trademark. The takeover of another 877 stores in this new deal will reunited the Albertsons stores
under Supervalu control, with Cerberus’ Albertson stores. Speculation is that the investors will
keep the Albertsons chain, but sell off the other acquired chains.) Cerberus also agreed to follow
up with the purchase of 30% of Supervalu’s outstanding common stock. Continuing primarily as a
food wholesaler, Supervalu, after this sale, will be positioned as a wholesaler with about $17
billion in revenues, which include its retail business: Save-A-Lot owned and licensed discount
store business and four remaining regional chains: Cub, Farm Fresh, Shoppers, Shop ‘n Save and
Hornbacher’s.
Procurement Contacts: Sam Mayberry, VP, Private Brands; Bob Olson, Director Sourcing Our
Own Brands; Ryan Briggs, Director Product Development, Private Brands; Keith Winters,
Sourcing Manager, Our Own Brands; Sanford Bemel, Brand Manager Our Own Brands; Jon
Hussey, International Div., Import Food Manager (tel: 253-593-3198 in Tacoma, WA); David
McDaniel, Save-A-Lot Ltd., VP, Grocery Procurement (tel: 314-592-9100 in Earth City, MO)
SYSCO CORP.
1390 Enclave Parkway, Houston, TX 77077-2099 USA
Tel: (281) 584-1390