Safeway 2013 Annual Report Download - page 8

Table of Contents

The Health & Wellness portfolio includes the O Organics, Eating Right, Open Nature and Bright Green brands. These offerings address
consumers' specific health needs or preferences. O Organics is an exclusively organic brand . Eating Right offers products created for specific
eating needs such as high protein, gluten free, low calorie and general health maintenance. Open Nature is a line of products that are 100%
natural. Bright Green is an environmentally friendly household product line.
The Premium portfolio includes the Safeway SELECT, Signature Café, Rancher's Reserve, Primo Taglio, waterfront BISTRO and Debi
Lilly offerings. Safeway SELECT is a line of quality products that the Company believes are unique to the category. Waterfront BISTRO is a
seafood brand designed to make preparing a restaurant-quality meal at home easy. Debi Lilly is a line of unique bouquets, candles, vases
and gifts.
In the fourth quarter of 2013, Safeway announced a partnership with celebrity chef Marcella Valladolid, creating a proprietary brand for
Safeway bearing her name. Initially launched with marinated meats, authentic tortillas and snacks, this line will continue to expand as
Safeway looks to offer more products that appeal to Hispanics and all Hispanic food lovers.
In the Core portfolio are the Safeway brands Lucerne, Refreshe, the Snack Artist and Pantry Essentials. The Safeway brand is 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 Snack Artist offers high-quality and great value snacks in a variety of categories such as chips, snacking nuts
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.
During 2012, Safeway completed the roll out of the  personalized pricing and digital marketing program in U.S. markets. This
program allows a customer to download 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 operated the following manufacturing and processing facilities in the United States at year-end 2013:
Milk plants
6
Bakery plants
6
Ice cream plants
2
Soft drink bottling plants
4
Fruit and vegetable processing plants
1
Cake commissary
1
Total
20
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 13 distribution/warehousing centers in the United States, which collectively provide the majority of all products to
Safeway’s retail operating areas. The distribution center in Maryland is operated by a third party.
8