Albertsons 2016 Annual Report Download - page 10

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8
Products
The Company offers a wide variety of nationally advertised brand name and private-label products, including grocery (both
perishable and nonperishable), general merchandise and home, health and beauty care, and pharmacy, which are sold through
Company-operated and licensed Retail and Save-A-Lot stores to shoppers and through its Wholesale segment to independent
retail customers. The Company believes that it has adequate and alternative sources of supply for most of its purchased
products. The Company’s Net sales primarily include the product sales of the Company’s own retail stores, wholesale product
sales to stores licensed by the Company and product sales of the Company’s Wholesale segment to independent retail
customers.
The following table provides additional detail on the amounts and percentages of Net sales for each group of similar products
sold in the Wholesale, Save-A-Lot and Retail segments, and service agreement revenue discussed in "—Transition Services
Agreements" in Corporate:
2016
(52 weeks) 2015
(53 weeks) 2014
(52 weeks)
Wholesale:
Nonperishable grocery products(1) $ 5,753 33% $ 5,939 33% $ 6,000 35%
Perishable grocery products(2) 2,025 12 2,099 12 1,951 11
Services to independent retail customers and other 157 1 160 1 151 1
7,935 45% 8,198 46% 8,102 47%
Save-A-Lot:
Nonperishable grocery products(1) $ 2,956 17% $ 2,989 17% $ 2,823 17%
Perishable grocery products(2) 1,597 9 1,587 9 1,373 8
Services to licensees and other 70 65 59
4,623 26% 4,641 26% 4,255 25%
Retail:
Nonperishable grocery products(1) $ 2,607 15% $ 2,677 15% $ 2,600 15%
Perishable grocery products(2) 1,549 9 1,574 9 1,463 9
Pharmacy products 511 3 510 3 491 3
Fuel 67 — 83 — 67 —
Other 35 — 40 — 34 —
4,769 27% 4,884 27% 4,655 27%
Corporate:
Transition services revenue $ 202 1% $ 194 1% $ 240 1%
Net sales $ 17,529 100% $ 17,917 100% $ 17,252 100%
(1) Includes such items as dry goods, dairy, frozen foods, beverages, general merchandise, home, health and beauty care 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 most
areas of the Company’s stores. Private-label products include: the premium brands Culinary Circle® and Stockman & Dakota®,
which offer unique, premium quality products in highly competitive categories; Wild Harvest®, which is free from over 100
undesirable ingredients; core brands Essential Everyday®, EQUALINE®, and category-specific brands Arctic Shores Seafood
Company®, Baby Basics®, Farm Stand®, Stone Ridge Creamery® and Super Chill®, which provide shoppers quality national
brand equivalent products at a competitive price; and the value brand Shoppers 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®, Wylwood®, Tio Santi™, and Save-A-Lot's newest private
label brand, America's Choice®.