Safeway to Expand Reach of O Organics

CAROL ANGRISANI

PLEASANTON, Calif. — Safeway’s O Organics juices could turn up in some California school vending machines and even on restaurant menus. That’s because the retailer has partnered with Sysco Food Services to market its O Organics beverages in local food-service establishments. Under the week-old test, the food-service distributor is marketing 25 stockkeeping units of O Organics ready-to-drink teas, juices, Italian sodas and other beverages to all food-service outlets its Fremont, Calif., distribution center handles. This includes high schools, colleges, hospitals, restaurants and military facilities located on the west side of California, from Monterey to Ukiah. Safeway announced the partnership last week at its annual investor conference. A Safeway spokeswoman was unavailable for further comment. “We’re partnering with Safeway to see if and where there's a demand for O Organics in food service,” Jim Ehlers, president and chief executive officer, Sysco Food Services, told SN. Ehlers is confident there will be, saying, “There’s a growing demand for organics in California and natural products, and O Organics is a recognized brand.” The food-service versions of O Organics beverages will be the same as those sold in Safeway’s stores, according to Ehlers. He declined to comment on pricing.

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