Safeway Forms Health & Wellness Food Brand Alliance

Safeway, Inc. said yesterday it has formed the Better Living Brands Alliance to market its private label O Organics and Eating Right brands beyond its own stores into all retail channels in the United States beginning this year. Safeway added the expansion of its O Organics and Eating Right businesses will also encompass the foodservice channel and international markets.

The objective of the alliance is to offer health-and-wellness food and beverage solutions through two multi-category lifestyle brands, Safeway said. The grocer said even in the brands' current limited distribution, O Organics is the No. 1 organic food brand in the United States; and Eating Right is one of the fastest-growing health-and-wellness food brands.

The alliance includes manufacturing, marketing, and distribution companies as brand licensees; as well as co-pack and distribution partners to provide a strong supply chain network. Additional support comes from EMAK Worldwide, Inc., which handles consumer communications; and Crossmark, Inc., which oversees communications to retailers, Safeway said.

Safeway subsidiary Lucerne Foods, Inc., which markets to external customers, manages the licensing of both brands and is a member of the Better Living Brands Alliance.

Safeway spokesman Brian Dowling told Progressive Grocer that the company has not yet identified the other partners in the alliance, which he said was formed "recently," but declined to say when.

Pleasanton, Calif.-based Safeway operates 1,740 stores in the United States and Canada.
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