Private Label Magazine News

Safeway to Globally Expand O Organics

Safeway Inc., Pleasanton, CA, recently announced it's
partnerships to sell its "O Organics" private label line in Asia
and South America, according to
A recent deal was also struck with distributing giant Sysco Corp.
to sell the products to the foodservice segment, Safeway said.

The products, introduced in 2006, had been sold exclusively at
Safeway's network of 1,738 stores in the U.S. and western Canada.

Since its launch, O Organics has grown to 300 items, including
milk, chicken, food entrée and juice products. Safeway estimates
O Organic sales are estimated to reach $300 million in 2007, up
from $164 million the prior year. The products are targeted at
adults and kids.

Safeway made a push into the organic foods market to compete with
rising competition Whole Food Markets, Austin, TX, the
nation's largest organic-grocery chain, and privately-held
grocery operators such as Trader Joe's.