Kroger 2013 Annual Report Download - page 79

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A-6
brand” (Kroger, Ralphs, King Soopers, etc.), which represents the majority of the Company’s private label
items, is designed to satisfy customers with quality products. Before Kroger will carry a banner brand product
we must be satisfied that the product quality meets our customers’ expectations in taste and efficacy, and we
guarantee it. Kroger Value is the value brand, designed to deliver good quality at a very affordable price. In
addition, the Company continues to grow its other brands, including Simple Truth and Simple Truth Organic.
Both Simple Truth and Simple Truth Organic are free from 101 artificial preservatives and ingredients that
customers have told us they do not want in their food, and the Simple Truth Organic products are USDA
certified organic.
Approximately 40% of the corporate brand units sold are produced in the Company’s manufacturing
plants; the remaining corporate brand items are produced to the Company’s strict specifications by outside
manufacturers. The Company performs a “make or buy” analysis on corporate brand products and decisions are
based upon a comparison of market-based transfer prices versus open market purchases. As of February 1, 2014,
the Company operated 38 manufacturing plants. These plants consisted of 18 dairies, nine deli or bakery plants,
five grocery product plants, two beverage plants, two meat plants and two cheese plants.
SE A S O N A L I T Y
The majority of our revenues are generally not seasonal in nature. However, revenues tend to be higher
during the major holidays throughout the year.
EX E C U T I V E O F F I C E R S O F T H E R E G I S T R A N T
The disclosure regarding executive officers is set forth in Item 10 of Part III of this Form 10-K under the
heading “Executive Officers of the Company,” and is incorporated herein by reference.
CO M P E T I T I V E E N V I R O N M E N T
For the disclosure related to the Company’s competitive environment, see Item 1A under the heading
“Competitive Environment.”