Albertsons 2010 Annual Report Download - page 13

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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:
2010 2009 2008
Retail food:
Nonperishable grocery products
(1)
43% 41% 40%
Perishable grocery products
(2)
21 23 23
General merchandise and health and beauty care products
(3)
567
Pharmacy products 6 6 6
Fuel 211
Other 111
78 78 78
Supply chain services:
Product sales to independent retail customers 22 21 21
Services to supply chain customers — 1 1
22 22 22
Net sales 100% 100% 100%
(1) Includes such items as dry goods, beverages, dairy, frozen foods and candy
(2) Includes such items as meat, produce, deli and bakery
(3) Includes such items as household products, over-the-counter medication, beauty care, personal care, sea-
sonal items and tobacco
Private-Label Products
The Company’s private-label products are produced to the Company’s specification by many suppliers and
compete in many areas of the Company’s stores. Private-label products include: the premium 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.
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.
7