Kroger 2007 Annual Report Download - page 32

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NATURAL AND ORGANIC FOODS
The natural and organic foods industry continues to experience explosive
growth as more consumers focus on healthier lifestyles and better nutrition.
Our customers can find a variety of natural and organic products
throughout our stores, from our produce and meat departments to our
grocery and HBC aisles. Additionally, Kroger caters to the natural and
organic customer in varying department formats based on a particular
store’s size and customer segmentation:
“Nature’s Markets” are located in most Kroger-bannered stores, as well
as in Fry’s and Dillons;
Nutrition Centers are located in Fred Meyer stores;
Ralphs, King Soopers, Smith’s, QFC, and City Market use a variety of
formats, including both segregated and integrated sets.
Our stores typically offer 3,000 SKUs of all-natural and organic foods,
vitamins, energy bars, sports drinks, and herbs. The offering varies based
on square footage dedicated to Natural Foods, which can expand to over
1,400 square feet in some stores.
In addition to over 2,500 SKUs of
branded product, Kroger offers over
270 items under our “Naturally
Preferred® corporate brand. Naturally
Preferred® products are made from the
finest quality, natural ingredients, but
they are not always organic. Comple-
menting our Naturally Preferred® brand
is the expanded organic product offering sold under our exclusive Private
Selection® brand. See the “Corporate Brands” section of this Fact Book for
more information.
The Kroger Co. Page 32