Albertsons 2009 Annual Report Download - page 12

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brand Culinary Circle
TM
, which offers unique, premium quality products in highly competitive categories; first
tier brands, including Wild Harvest
TM
, Flavorite
TM
, Richfood
TM
, equaline
TM
, HomeLife
TM
and several others,
which provide shoppers quality national brand equivalent products at a competitive price; and the value brand,
Shopper’s Value
TM
, which offers budget conscious consumers a quality alternative to national brands at
substantial savings.
Products
The Company offers a wide variety of nationally advertised brand name and private brand name products,
primarily including grocery (both perishable and nonperishable), general merchandise and health and beauty
care, pharmacy and fuel, which are sold through the Company’s own and licensed retail food stores to
shoppers and through its Supply chain services business to independent retail customers. The Company
believes that it has adequate and alternative sources of supply for most of its purchased products. The
Company’s Net sales include the product sales of the Company’s own stores, product sales to stores licensed
by the Company and product sales of the Company’s Supply chain services business to independent retail
customers.
The following table provides additional detail on the percentage of Net sales for each group of similar
products sold in the Retail food and Supply chain services segments:
2009 2008 2007
Retail food:
Nonperishable grocery products
(1)
41% 40% 39%
Perishable grocery products
(2)
23 23 21
General merchandise and health and beauty care products
(3)
677
Pharmacy products 6 6 6
Fuel 111
Other 111
78 78 75
Supply chain services:
Product sales to independent retail customers 21 21 24
Services to supply chain customers 1 1 1
22 22 25
Net sales 100% 100% 100%
(1) Includes such items as dry goods, beverages, dairy and frozen foods
(2) Includes such items as meat, produce, deli and bakery
(3) Includes such items as household products, over-the-counter medication, candy, beauty care, personal care,
seasonal items and tobacco
Trademarks
The Company offers some independent retail customers the opportunity to franchise a concept or license a
service mark. This program helps these customers compete by providing, as part of the franchise or license
program, a complete business concept, group advertising, private-label products and other benefits. The
Company is the franchisor or licensor of certain service marks such as CUB FOODS, SAVE-A-LOT, SENTRY,
FESTIVAL FOODS, COUNTY MARKET, SHOP ’N SAVE, NEWMARKET, FOODLAND, JUBILEE,
SUPERVALU and SUPERVALU PHARMACIES.
In connection with the Acquisition, the Company entered into a trademark license agreement with Albertson’s
LLC, the purchaser of the non-core supermarket business of Albertsons, under which Albertson’s LLC may
use legacy Albertsons trademarks, such as ALBERTSONS, SAV-ON and LUCKY. Under the trademark license
agreement, Albertson’s LLC is also allowed to enter into sublicense agreements with transferees of Albertson’s
LLC stores, which allows such transferees to use many of the same legacy Albertsons trademarks.
8