Albertsons 2015 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
Independent Business, Save-A-Lot and Retail Food segments:
2015 2014 2013
Independent Business:
Nonperishable grocery products(1) $ 5,939 33% $ 6,000 35% $ 6,140 36%
Perishable grocery products(2) 2,099 12 1,951 11 1,935 11
Services to independent retail customers and other 96 1 85 1 91 1
8,134 46% 8,036 47% 8,166 48%
Save-A-Lot:
Nonperishable grocery products(1) $ 2,986 17% $ 2,829 17% $ 2,865 17%
Perishable grocery products(2) 1,627 9 1,399 8 1,330 8
4,613 26% 4,228 25% 4,195 25%
Retail Food:
Nonperishable grocery products(1) $ 2,677 15% $ 2,600 15% $ 2,689 16%
Perishable grocery products(2) 1,574 9 1,463 9 1,428 8
Pharmacy products 510 3 491 3 512 3
Fuel 83 — 67 — 77 —
Other 35 — 28 — 27 —
4,879 27% 4,649 27% 4,733 28%
Corporate:
Transition services revenue $ 194 1% $ 240 1% $ 42 —
Net sales $ 17,820 100% $ 17,153 100% $ 17,136 100%
(1) Includes such items as dry goods, general merchandise, home, health and beauty care, beverages, dairy, frozen foods and
candy
(2) Includes such items as meat, produce, deli and bakery
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 brands Culinary Circle®, Java Delight® and
Stockman & Dakota®, which offer unique, premium quality products in highly competitive categories; organic brand Wild
Harvest®; core brands Essential Everyday®, EQUALINE®, and category-specific brands Arctic Shores Seafood Company®,
Baby Basics®, Carlita®, Farm Stand®, Stone Ridge Creamery® and Super Chill®, 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. Additionally, Save-A-Lot's private label products include Coburn
Farms®, Fairgrounds®, Ginger Evans®, J. Higgs® and Wylwood®.
Trademarks
The Company offers independent retail customers and Save-A-Lot licensees 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 SAVE-A-LOT, CUB FOODS, FESTIVAL FOODS, SENTRY, COUNTY MARKET,
SHOP 'N SAVE, NEWMARKET, FOODLAND, JUBILEE and SUPERVALU. In conjunction with its licensing and franchise
arrangements, the Company maintains wholesale distribution agreements with its licensees and franchisees, primarily under the
Save-A-Lot, Cub Foods, Festival Foods and Sentry banners.
The Company has a trademark license agreement with Albertson's LLC for the use of trademarks, such as ALBERTSONS,
JEWEL-OSCO, SHAW’S, ACME MARKETS, SAV-ON and LUCKY. In conjunction with the NAI Banner Sale, the Company
entered into certain cross-licensing arrangements and assignments for certain tradenames and trademarks associated with the
NAI Banner Sale, which permits each of the Company, Albertson’s LLC and NAI and their affiliates to use tradenames and
trademarks that are owned by the respective parties as is necessary for the operation of their respective businesses. These
tradenames and trademarks include private-label products.