Safeway 2012 Annual Report Download - page 19

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SAFEWAY INC. AND SUBSIDIARIES
7
In the Core portfolio are the Safeway brands, Lucerne, Refreshe, the Snack Artist and Pantry Essentials.
The Safeway brand is now a family of four brands: Safeway Farms, Safeway Kitchens, Safeway Home and
Safeway Care. The Lucerne brand has been producing quality dairy products for over 100 years. The Refreshe
label was re-branded in 2010 to include all 14 private-label beverage brands.The Snack Artist offers high-
quality and great value snacks in a variety of categories such as chips, snacking nuts, cookies and frozen
categories in whimsical, resealable packaging, a unique feature in the category. Pantry Essentials was
launched in 2011 as a value line, offering basic items across several categories, including dairy, meat, canned
vegetables and paper goods, to name just a few.
During 2012, Safeway continued to roll out the just for U™ personalized pricing and digital marketing program
in U.S. markets. This program downloads personalized pricing and digital coupons to the Safeway Club
Card.
Manufacturing and Wholesale The principal function of manufacturing operations is to manufacture and
process private-label merchandise sold in stores operated by Safeway. As measured by sales dollars, 13%
of Safeway’s private-label merchandise is manufactured in Company-owned plants, and the remainder is
purchased from third parties.
Safeway’s Canadian subsidiary has a wholesale operation that distributes both national brands and private-
label products to independent grocery stores and institutional customers.
Safeway operated the following manufacturing and processing facilities at year-end 2012:
U.S. Canada
Milk plants 6 3
Bakery plants 6 2
Ice cream plants 2 2
Cheese and meat packing plants — 1
Soft drink bottling plants 4 —
Fruit and vegetable processing plants 1 3
Cake commissary 1 —
Sandwich commissary — 1
Total 20 12
In addition, the Company operates laboratory facilities for quality assurance and research and development
in certain plants and at its corporate offices.
Distribution Safeway has 17 distribution/warehousing centers (13 in the United States and four in Canada),
which collectively provide the majority of all products to Safeway’s 11 retail operating areas. This includes
one distribution center in British Columbia which is owned and operated by a third party. The distribution
center in Maryland is also operated by a third party.