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NEWS WATCH: AWG COMBINING HOMELAND, FALLEY'S FUNCTIONS...SUPPLY CHAIN WOES IMPACT SALES, EARNINGS AT LOBLAW...KROGER, AWG TO PURCHASE FORMER BUEHLER STORES

AWG COMBINING HOMELAND, FALLEY'S FUNCTIONSnd Falley's, two chains owned by wholesaler Associated Wholesale Grocers here, are combining their back-room functions in a move that may result in Falley's Food 4 Less stores taking on the Homeland banner. A spokesman for Homeland, based in Oklahoma City, told SN that efforts to streamline functions such as purchasing and accounting are under way between

AWG COMBINING HOMELAND, FALLEY'S FUNCTIONS

nd Falley's, two chains owned by wholesaler Associated Wholesale Grocers here, are combining their back-room functions in a move that may result in Falley's Food 4 Less stores taking on the Homeland banner. A spokesman for Homeland, based in Oklahoma City, told SN that efforts to streamline functions such as purchasing and accounting are under way between the banners, but declined to comment on published reports that Falley's, based in Topeka, Kan., and operating 25 stores under the Food 4 Less name in Kansas and Missouri, could switch to the Homeland banner. Homeland operates 43 stores in Oklahoma.

SUPPLY CHAIN WOES IMPACT SALES, EARNINGS AT LOBLAW

TORONTO -- Loblaw Cos. here reported sales for its fiscal third quarter increased 6.4% to $7.3 billion, but that taxes, restructuring and supply chain disruptions contributed to flat same-store sales and decreased earnings compared with the same period a year ago. Loblaw reported earnings of $162 million, vs. $217 million a year ago. Earnings per share of 70 cents Canadian were negatively affected by 4 cents in restructuring charges related to a new head office and the relocation of a warehouse; 5 cents related to supply disruptions from implementation of a new technology platform; 10 cents related to tax liabilities; and 2 cents for changes in stock-based compensation.

KROGER, AWG TO PURCHASE FORMER BUEHLER STORES

JASPER, Ind. -- Buehler Foods here has arranged to sell three stores in the Louisville, Ky., area to Associated Wholesale Grocers, and one Louisville store to Kroger, according to papers filed in U.S. Bankruptcy Court. The four stores were among 16 former Winn-Dixie stores acquired by a Buehler affiliate late last year that subsequently led to Buehler's bankruptcy filing, the company said. Kroger, Cincinnati, agreed to purchase the Goss Avenue Buehler store for $2.15 million. AWG, Buehler's Kansas City, Kan.-based supplier, said it would buy the Mount Washington, Ky., store for $2.5 million; the Bardstown, Ky., store for $625,000; and the previously closed Blankenbaker location for $90,000. All of the other Buehler stores in Louisville have closed and will be liquidated, court papers said.

SAFEWAY LAUNCHES WEB SITE FOR PRIVATE-LABEL MEATS

PLEASANTON, Calif. -- Safeway here said last week it is launching RanchersReserve.com, an online food store offering premium beef and specialty foods. The launch of the service is being tied in with holiday gift-giving, with delivery available to all 50 states. The online service, which also features burgers, ahi tuna steak, pork, lamb, jumbo shrimp and lobster tails. Ranchers Reserve is the proprietary line of premium Angus beef sold at Safeway-owned stores.

ALBERTSONS TO PUBLISH HOLIDAY MAGAZINE

BOISE, Idaho -- Albertsons said last week it is publishing a holiday-themed magazine -- called easy -- across its various banners, with proceeds from the sale of each copy earmarked for food banks that are part of America's Second Harvest. The company said it expects the magazine to generate $500,000 for the food bank network, with $1 of the $1.99 cover price for each magazine sold going to the charity. The 48-page magazine -- which contains recipes, holiday decoration and craft tips, celebration ideas and dozens of special offers on holiday items will be available through the end of the year at approximately 1,800 outlets of Albertsons, Acme, Jewel-Osco, Shaw's and Star Markets. A spokeswoman told SN the chain is pleased with the magazine and is considering additional installments.