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Safeway announced that it has created something called the Better Living Brands Alliance, which it will use to market its O Organics and Eating Right product lines across all retail channels – including foodservice and global markets – starting later this year.

According to the announcement, "The mission of the Alliance is to provide Health and Wellness food and beverage solutions via two proven Multi-Category Lifestyle Brands: O Organics and Eating Right … The Alliance includes world-class manufacturing, marketing and distribution companies as Brand Licensees. Co-pack and distribution partners have also been signed to provide a robust supply chain network."

KC's View:
To use two words that seem to have made it into a number of stories this morning, this strikes me as a strategy, not a tactic. Which is to say that it is probably a very smart idea.

It also is interesting to watch how Safeway diversifies while maintaining fealty to its core competency. If this marketing effort is successful and these two lines start generating real dollars in stores not owned by Safeway, it will just build on the company’s already extremely successful Blackhawk gift card business, which has Safeway getting a piece of a of sales being made by a lot of stores it does not own, including its competitors'.

My respect for Safeway increases all the time.