Following the introduction of 200 new products, which contributed to a 15% increase in sales last year, Albertsons’ O Organics range has grown into a $1bn private brand.
Expanded since the acquisition of Safeway
This is a major milestone for the brand which stretches across most food categories at Albertsons. Following the acquisition of Safeway in 2015, which originally created it in 2005, the brand was introduced across the broad range of banners within the retailer’s portfolio. Safeway had consistently been an industry leader in this space; its private brand capabilities was one of the attractions of the business for Albertsons.
500 new products to be added in 2018
The O Organics range currently consists of over 1,000 products, and following a significant increase in sales last year, the retailer plans to introduce 500 additional items in 2018. Albertsons manufactures many of the products, including yogurt, salsa, ice cream, milk, pasta sauce and sandwich bread. The high growth which the brand is achieving is in line with industry trends and reflects the success of other private brands in the market including Kroger’s Simple Truth Organic and Publix Greenwise Organic.
Albertsons’ billion-dollar brands
As a $1bn dollar brand it joins an exclusive club at Albertsons. Signature Select, its premium offer, Signature Café and Lucerne are also billion-dollar brands. The private brand portfolio, which consists of more than 10,000 products, generates sales of more than $11bn annually for Albertsons. This is an essential element of its growth plans; the priority focus is within the non-Safeway banners where penetration lags the Safeway banners.
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Stewart Samuel, Program Director, IGD Canada: based in Canada, Stewart heads up all of IGD's research and coverage on Albertsons. He is also responsible for shaping IGD's research program across North America. Contact Stewart at [email protected] for further insight on the region's markets, channels and retailers. Follow Stewart on Twitter: @Stewart_IGD
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