Albertsons 2012 Annual Report Download - page 12

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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 Independent business segments:
2012 2011 2010
Retail food:
Nonperishable grocery products (1) 42% 41% 43%
Perishable grocery products (2) 22 22 21
Pharmacy products 6 6 6
General merchandise and health and beauty care products (3) 555
Fuel 122
Other 1 1 1
77 77 78
Independent business:
Product sales to independent retail customers 23 22 22
Services to independent retail customers — 1 —
23 23 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™, which offers unique, premium quality products in highly competitive categories; first tier brands,
including Essential Everyday™, Wild Harvest™, Flavorite™, Richfood™, equaline™, HomeLife™ and several
others, which provide shoppers quality national brand equivalent products at a competitive price; and the value
brand, Shopper’s Value™, 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.
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