Albertsons 2011 Annual Report Download - page 11

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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:
2011 2010 2009
Retail food:
Nonperishable grocery products
(1)
41% 43% 41%
Perishable grocery products
(2)
22 21 23
General merchandise and health and beauty care products
(3)
556
Pharmacy products 6 6 6
Fuel 2 2 1
Other 1 1 1
77 78 78
Supply chain services:
Product sales to independent retail customers 22 22 21
Services to supply chain customers 1 — 1
23 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,
seasonal 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.
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. 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
7