Albertsons 2005 Annual Report Download - page 11

COUNTY MARKET, SHOP ’N SAVE, NEWMARKET, IGA, FOODLAND, JUBILEE, SUPERVALU and
SUPERVALU PHARMACIES. The company registers a substantial number of its trademarks/service marks in
the United States Patent and Trademark Office, including many of its private label product trademarks and
service marks. See “Retail Food Operations—Extreme Value Stores” and “Food Distribution Operations—
Products Supplied” for further information. U.S. trademark and service mark registrations are generally for a
term of 10 years, renewable every 10 years as long as the trademark is used in the regular course of trade. The
company considers certain of its trademarks and service marks to be of material importance to its retail food and
food distribution business and actively defends and enforces such trademarks and service marks.
Competition
The company’s retail food and food distribution businesses are highly competitive. The company believes
that the success of its retail food and food distribution businesses are dependent upon the ability of the
company’s retail food operations, and the retail food stores with whom it is affiliated as a supplier, to compete
successfully with other retail food stores. Principal competition comes from regional and national chains
operating under a variety of formats that devote square footage to selling food (i.e. supercenters, supermarkets,
extreme value stores, membership warehouse clubs, dollar stores, drug stores, convenience stores, various
formats selling prepared foods, and other specialty and discount retailers), as well as from independent food store
operators. The company believes that the principal competitive factors that face its owned stores, as well as the
stores owned by retailers it supplies, include the location and image of the store; the price, quality and variety of
products; and the quality and consistency of service.
The food distribution business competes directly with a number of food wholesalers. The company believes
it competes in this supply chain on the basis of product price, quality and assortment, schedule and reliability of
deliveries, the range and quality of services provided, service fees, and the location of distribution facilities. The
company’s third party logistics business competes nationwide in a highly fragmented market place which
includes a number of large international and domestic companies, as well as with many smaller, more regional
competitors. The company believes that it competes in this business on the basis of warehousing and
transportation logistics expertise, cost, and the ability to offer both asset and non-asset based solutions as well as
to design and manage a customer’s entire supply chain.
Employees
At February 26, 2005, the company had approximately 56,000 employees. Approximately 23,000
employees are covered by collective bargaining agreements. During fiscal 2005, 17 collective bargaining
agreements covering approximately 13,000 employees were re-negotiated. In fiscal 2006, 28 collective
bargaining agreements covering approximately 7,500 employees will expire. The company believes that it has
generally good relations with its employees.
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