Albertsons 2012 Annual Report Download - page 15

(3) Michael Moore was appointed Executive Vice President, Chief Marketing Officer in January 2012. Prior to
joining the Company, Mr. Moore served in a number of roles at Procter & Gamble from 1987 to 2011, most
recently as its Director of Customer Business Development from 2007 to 2011.
(4) Keith E. Kravcik was appointed to Group Vice President, Controller and Corporate Officer effective April
2011. Prior to joining the Company Mr. Kravcik was Corporate Vice President and Controller for
McDonald’s USA, LLC from 2004-2010.
(5) Wayne R. Shurts was appointed Executive Vice President and Chief Information Officer in November 2010.
Prior to joining the Company, Mr. Shurts was the Global Chief Information Officer for Cadbury plc from
2008 to 2010 and the Senior Vice President of Cadbury Schweppes Americas from 2006 to 2008.
The term of office of each executive officer is from one annual meeting of the Board of Directors until the next
annual meeting of Board of Directors or until a successor is elected. There are no arrangements or understandings
between any executive officer of the Company and any other person pursuant to which any executive officer was
selected as an officer of the Company. There are no family relationships between or among any of the executive
officers of the Company.
Each of the executive officers of the Company has been in the employ of the Company or its subsidiaries for
more than five consecutive years, except for Craig R. Herkert, Leon Bergmann, Michael Moore, Keith E.
Kravcik, and Wayne R. Shurts.
ITEM 1A. RISK FACTORS
Various risks and uncertainties may affect the Company’s business. Any of the risks described below or
elsewhere in this Annual Report on Form 10-K or the Company’s other SEC filings may have a material impact
on the Company’s business, financial condition or results of operations.
Competition in the Retail food and Independent business segments
The grocery business is intensely competitive. The Company’s Retail food segment faces competition for
customers, employees, store sites and products from traditional grocery retailers, including regional and national
chains and independent food store operators, and non-traditional retailers, such as supercenters, membership
warehouse clubs, specialty supermarkets, drug stores, discount stores, dollar stores, convenience stores and
restaurants. The Company’s ability to differentiate itself from its competitors and create an attractive value
proposition for its customers is dependent upon a combination of price, quality, assortment, brand perception,
store location, in-store marketing and merchandising and promotional strategies. The grocery industry is also
characterized by relatively small gross margins, and the nature and extent to which the Company’s competitors
implement various pricing and promotional activities in response to increasing competition and the Company’s
response to these competitive actions, can adversely affect profitability.
The Company’s Independent business segment is primarily wholesale distribution, which competes with
traditional grocery wholesalers on the basis of price, quality, assortment, schedule and reliability of deliveries,
service fees and distribution facility locations. The profitability of the Independent business segment is
dependent upon sufficient volume to support the Company’s operating infrastructure, and the loss of customers
to a competing wholesaler, closure or vertical integration may negatively impact the Company’s sales and gross
margin.
Execution of initiatives
The Company is positioned in the retail food industry as the only traditional food retailer with multiple formats
and ownership models that can be used to address differing customer needs across the United States.
Management believes that this diversity of go-to-market options differentiates the Company and is part of its
vision of becoming “America’s Neighborhood Grocer” and the Company’s “8 Plays to Win” strategy. The “8
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