Kroger 2008 Annual Report Download - page 31

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The Kroger Co. Page 30
NATURAL AND ORGANIC FOODS
Consumer interest in healthier lifestyles and better nutrition has fueled
significant growth in the natural and organic foods industry over the past
several years. In response to this interest, Kroger 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 2,800 SKUs of branded product, Kroger offers over 160
items under our “Naturally Preferred®” corporate brand. Naturally
Preferred® products are made from the finest quality, natural ingredients,
but they are not always organic. Complementing our Naturally Preferred®
brand is the expanded organic product offering sold under our exclusive
Private Selection® brand. Our stores offer more than 290 Private Selection
Organic™ items ranging from everyday staples like milk, ketchup, butter
and eggs to new items like cereal, salads, and snacks. Every Private
Selection Organic™ product contains at least 95% organic ingredients and
is USDA certified, assuring our customers that these products are grown
and processed without preservatives, artificial colors or flavors. We
continue to add new items to this proprietary product line to make organics
accessible and affordable for everyone.