Kroger 2014 Annual Report Download - page 71

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A-6
Meyer®, King Soopers®, etc.), which represents the majority of our private label items, is designed to satisfy
customers with quality products. Before we will carry a “banner brand” product we must be satisfied that
the product quality meets our customers’ expectations in taste and efficacy, and we guarantee it. P$$T…®,
Check This Out… and Heritage Farm™ are the three value brands, designed to deliver good quality at a very
affordable price. In addition, we continue to grow our other brands, including Simple Truth® and Simple
Truth Organic®. Both Simple Truth and Simple Truth Organic are Free From 101 artificial preservatives and
ingredients that customers have told us they do not want in their food, and the Simple Truth Organic products
are USDA certified organic.
Approximately 40% of the corporate brand units sold in our supermarkets are produced in our
manufacturing plants; the remaining corporate brand items are produced to our strict specifications by
outside manufacturers. We perform a “make or buy” analysis on corporate brand products and decisions are
based upon a comparison of market-based transfer prices versus open market purchases. As of January 31,
2015, we operated 37 manufacturing plants. These plants consisted of 17 dairies, nine deli or bakery plants,
five grocery product plants, two beverage plants, two meat plants and two cheese plants.
SE A S O N A L I T Y
The majority of our revenues are generally not seasonal in nature. However, revenues tend to be higher
during the major holidays throughout the year.
EX E C U T I V E O F F I C E R S O F T H E R E G I S T R A N T
The disclosure regarding executive officers is set forth in Item 10 of Part III of the Company’s Annual
Report on Form 10-K for fiscal year 2014 under the heading “Executive Officers of the Company,” and is
incorporated herein by reference.
CO M P E T I T I V E E N V I R O N M E N T
For the disclosure related to our competitive environment, see Item 1A of the Company’s Annual Report
on Form 10-K for fiscal year 2014 under the heading “Competitive Environment.”