Safeway Seeks Lift From New Private Brand
In a BrainTrust Query last week on RetailWire, Carol
Spieckerman, president of newmarketbuilders, wrote about Safeway’s success
introducing private labels through its Better Living Brands Alliance that not
only help build sales and profits at the chain’s stores, but were being distributed
at other chains including Brookshire Borthers, Hy-Vee and Price Chopper.
Safeway announced the rollout of Open Nature, its new brand of 100 percent
natural foods. The line includes 100 products made from natural ingredients
with nothing artificial added. Items in the current lineup include
a variety of fresh and processed meats priced between $3.99 and $5.99. Safeway
plans to add Open Nature products in categories including bread, frozen foods,
ice cream, salad dressing and yogurt.
"Open Nature is a great addition to Safeway’s portfolio of health and
wellness brands joining O Organics and Eating Right. It’s another demonstration
of Safeway’s commitment to providing our customers the best possible experience
when they prepare and eat meals for themselves and their families," said
Joe Ennen, senior vice president of consumer brands at Safeway, in a press
The Open Nature launch follows Safeway’s 2005 introduction of O Organics,
which the grocer claims is the number one organic line (470 items) of food
and beverages in the U.S. today. The company’s Eating Right line was launched
in 2007 and has grown to over 300 low-priced items.
Discussion Questions: How different is Safeway’s private label program from that of other retailers? Does its various private labels give Safeway a competitive advantage?