Safeway 2008 Annual Report Download - page 27

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SAFEWAY INC. AND SUBSIDIARIES
initiatives for Eating Right was the launch of Eating Right Kids in collaboration with Warner Brothers, featuring the
Looney Toons characters. The Eating Right Kids line includes, among other products: bread, vegetable and fruit snacks,
kids fruit juices and vitamin water, cereal and lunch boxes.
In May 2008, “mom to mom”, a baby care brand was launched. The brand offers 70 items to care for baby’s needs
including diapers, wipes, infant formula and toiletries.
Bright Green, a home care brand, launched in October 2008. With over 20 items across a variety of home care categories
such as laundry, lighting, home cleaning and paper goods, Bright Green enables consumers to practice a greener lifestyle
without sacrificing on quality. In January 2009, waterfront BISTRO, restaurant quality seafood, was launched. The brand
features a line of prepared seafood entrees.
Priority Total Pet Care, a line of pet foods and pet care products, and Basic Red, value-priced paper goods, were
introduced in 2006. Other Safeway brands include the Lucerne line of dairy products & the Primo Taglio line of deli meats
and cheeses.
Manufacturing and Wholesale The principal function of manufacturing operations is to purchase, manufacture and
process private-label merchandise sold in stores operated by Safeway. As measured by sales dollars, approximately 21%
of Safeway’s private-label merchandise is manufactured in Company-owned plants, and the remainder is purchased from
third 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 2008:
U.S. Canada
Milk plants 63
Bakery plants 62
Ice cream plants 22
Cheese and meat packing plants – 2
Soft drink bottling plants 4–
Fruit and vegetable processing plants 1 3
Cake commissary 1–
Total 20 12
In addition, the Company operates laboratory facilities for quality assurance and research and development in certain
plants and at its corporate offices.
Distribution 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’s 12 retail operating areas. The Company’s distribution centers
in Maryland and British Columbia are operated by third parties.
7