Safeway 2005 Annual Report Download - page 26

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SAFEWAY INC. AND SUBSIDIARIES
6
parties.
Safeway's Canadian subsidiary has a wholesale operation that distributes both national brands and private label products to
independent grocery stores and institutional customers.
Safeway operated the following manufacturing and processing facilities at year-end 2005:
U.S. Canada
Milk plants 63
Bread baking plants 52
Ice cream plants 22
Cheese and meat packaging plants - 2
Soft drink bottling plants 4-
Fruit and vegetable processing plants 1 3
Other food processing plants 2-
Pet food plant 1-
Total 21 12
In addition, the Company operates laboratory facilities for quality assurance and research and development in certain of its
plants and at its corporate offices.
Distribution Each of Safeway's 12 retail operating areas is served by a regional distribution center consisting of one or more
facilities. Safeway has 17 distribution/warehousing centers (13 in the United States and four in Canada), which collectively
provide the majority of all products to Safeway stores. The Company’s distribution centers in Maryland, Alberta and British
Columbia are operated by third parties.
Capital Expenditure Program A key component of the Company's long-term growth strategy is its capital expenditure
program. The Company's capital expenditure program funds, among other things, new stores, remodels, manufacturing
plants, distribution facilities and information technology advances. Over the last several years, Safeway management has
continued to strengthen its program to select and approve new capital investments.