AISLE STYLE: SAFEWAY'S FRESH NEW DIRECTION...REACHING OUT...ACROSS THE SEA

ROBERT VOSBURGH / MINA WILLIAMS / WHITNEY BECKETT / CAROL ANGRISANI

Safeway's Fresh Direction

It's one thing for a two-store independent to change marketing strategies, but entirely something else for a national chain the size of Safeway. Nevertheless, the nation's No. 5 retailer is making health and wellness a cornerstone of its new "lifestyle" stores and "Ingredients for Life" initiatives.

"Safeway is trying the hardest to brand itself, to build differentiation through quality, better image and better product," said Jason Whitmer, an analyst with FTN Midwest Research, Cleveland.

Among the highlights of the Ingredients program is a new line of private-label organic products that has already started arriving in stores. "O" Organics cover many staple products, such as pasta, peanut butter and coffee, according to Safeway's spokeswoman Teena Massingill.

"We're going to expand 'O' to many products -- pasta sauces, cereal, soups," she said. "They'll be offered at an everyday value price, but the product quality will match or exceed the national brand equivalent."

Industry observers note that the increasing number of organic private-label products available from conventional supermarkets may help take the sting out of consumer price sensitivities, and open a whole new door for the category. Supervalu's new Sunflower Market stores, announced last month, will follow a similar track by emphasizing "value-priced organics."

At Safeway, the "O" line is part of a much broader vision that includes development of nutritional icons for all its store-brand packaging, and an expansion of its line of Eating Right frozen entrees and meals. Analysts agree the plan's success will depend on just how deep the changes go. They are expecting the chain to shape up and exercise its new image -- not just show off a cosmetic facelift.

"The challenge is it's really expensive, not only to do the remodels but then to launch these grand re-openings, in terms of labor and demos and sharp pricing in those first months," Whitmer said.

Analysts believe any conventional operator who can highlight healthful shopping might have a chance at taking share of stomach back from Wal-Mart Stores, the nation's No. 1 retailer.

"While Wal-Mart is doing a pretty decent job ramping up its own health and wellness or fresh initiatives, consumer perception is generally lagging," he said. "In theory, though, it could be a chink in the armor that supermarkets can exploit."

ROBERT VOSBURGH

Reaching Out

Mike Olsen's Food Emporium is taking its healthful image to the streets. The single-unit independent recently paired with an area natural food consultant to participate in the American Diabetes Association Expo in Seattle.

During the one-day event, Food Emporium associates, along with the specialist's staff, took part in a center stage show and staffed one of the 150 expo booths. While most of the exhibits focused on health care items and pharmaceuticals, the booth Food Emporium managed focused on food. Organic and sugar-free organic merchandise was given away along with a coupon sheet. The retailer had two of the four positions on the "Yummy-Money" discount flier, each offering $5 off any organic food purchase of $20 or more.

"Since we have an organic section, we like to be a part of the shows [our consultant] does," said Valarie Aulerich, Food Emporium's organic and natural food manager. "He is doing shows all over town, and it's a nice partnership for us to have."

The consultant, Dennis Weaver of Change Your Food, Change Your Life, routinely coaches consumers through retail store tours and stages events about the benefits of organics. He has presented to employee groups, as well as hospitals and health clubs.

"We got involved in the ADA event through Dennis, who gives tours of our store," Aulerich said.

Over the years, Food Emporium has given away gift certificates, merchandise and shopping bags at events. "It helps to get the name out," Aulerich said. "But by participating in an event, we not only get the name out, we bring customers into the store. We thought the coupons would be a good angle for us and let people know what we offer."

Food Emporium boutiques its natural offerings in a three-aisle section with a wide variety of products, ranging from health and beauty care, to dry grocery, refrigerated and frozens. Organics are also found in secondary positions, in the store's produce, meat and wine departments.

MINA WILLIAMS (FNS)

Across the Sea

The English countryside has just moved a little closer to London. Since Daylesford Organic Cafe opened here in September, Londoners need travel only as far as Sloane Square -- one of London's tonier shopping districts -- for country-fresh organic food. Daylesford Organic Cafe occupies the 600-square-foot basement in the new flagship store for menswear retailer Bamford & Sons at 31 Sloane Square. The interior blends modern with traditional: The rustic wood of a cafeteria-style table contrasts with the six oversized pictures, each of an organic morsel centered on a bright white canvas.

Unlike much ultra-healthy fare, Daylesford Organic's food is distinctly substantive: For breakfast, there are Danish pastries for £2, or $3.50 U.S., and boiled organic eggs and toast for £4, or $7. Lunch offerings -- driven by seasonal availability and subject to constant change -- include Tian of Portland crab for £10, or $18, and organic beef carpaccio with beetroot for £11, or $19.

Visitors arriving after lunch hours can enjoy the richer side of healthy eating, like an organic chocolate brownie with creme fraiche and seasonal fruit for £4, or $7, or a cheese platter for £8, or $14. The firm's cheddar, made with milk from Daylesford's cows and churned in Daylesford's creamery, just won the British Organic Cheese Award.

It also carries select retail items. Jars of jams, chutneys and marmalades sell for £3 to £6, or $5 to $10; salad dressings start at £5, or $9; and pastas go for £2.75, or $5. The company, however, does not wholesale its products.

Like the men's clothing line sold on the three floors above it, Daylesford Organic Cafe is Carole Lady Bamford's brainchild. She founded Daylesford Organic 26 years ago, when she turned the family's two country estates into organic farms, selling everything from game to yoga clothing.

She was clearly a trailblazer: Only since the mid-1990s has the English government supported organic farming; this year, organic farmers started receiving higher subsidies.

Daylesford Organic, which "is striving for a renaissance of the English kitchen garden," also sells its products online and, since May, the company has had a counter at the food hall at Selfridges, another department store operator.

WHITNEY BECKETT

Hannaford's Helping Hand

Special-needs shoppers with restricted diets can be grateful that big supermarkets are able to respond quickly to their needs and make navigating the food minefield a little safer. Those suffering from celiac disease, diabetes or food allergies are getting more help than ever before with shopping guides, store tours and special sections devoted to acceptable foods.

Scarborough, Maine-based Hannaford Bros. is the latest retailer to introduce a program dedicated to special-needs customers. The 145-store retailer this month announced an initiative that identifies gluten-free and dairy-free products. The program includes expanding the overall selection of foods, identifying the location of products in the stores with special signs, providing in-store brochures listing products, and posting the list on Hannaford's Web site. There, the reader finds background information on the condition, as well as problematic foods and ingredients. Links to a printable list of products, and to a special request form for harder-to-find products are included on the page.

A printable guide on the Web site is an alphabetical listing of categories, and the brand-name products available under each. The preface cautions that, while the retailer has verified the ingredient status of each of the named products, consumers ought still to read each label. The list will be updated as necessary, said spokeswoman Caren Epstein.

"The largest assortment of these foods will be found in Hannaford stores with Nature's Place departments, she said, referring to the chain's natural/organic sections. All stores but the smallest will carry some variety of gluten-free and dairy-free foods. Programs for additional chronic health conditions may be added in the future, she said.

Hannaford built the program by first reaching out to support groups, and then spoke with nutritionists and medical professionals. The retailer also spoke directly with customers.

"Their recommendations helped shape this program," Epstein said.

Industry observers say these types of programs are ideal for mainstream supermarkets, since they don't necessarily require exotic, specialty products. Most of the foods are common and already widely stocked. The difference is investing the time and money to organize special sections or install special aisle signage.

The company also launched a plan to rate every product it sells -- branded and private label -- assigning zero to three stars based on the percentage of healthful ingredients. Ratings will be placed below, on the shelf stickers.

ROBERT VOSBURGH

Guiding Lites

Traditional retailers are giving their health and wellness programs a boost by hiring registered dietitians to develop chainwide initiatives and communicate directly with consumers.

Among them: Big Y Foods, Springfield, Mass., just appointed Carrie Taylor, who is spearheading a new nutrition effort called "Living Well, Eating Smart."

Penn Traffic Co., Syracuse, N.Y., has brought in Ali VanGorden, who coordinates the chain's new "Fresh Ideas" health and wellness education program at its Bi-Lo Foods, Quality Markets, Riverside Markets and P&C Foods banners.

"Registered dietitians are becoming a major presence in supermarkets," said VanGorden, noting that big chains like Wal-Mart Stores and Whole Foods Market have added credence to the trend.

Taylor and VanGorden have similarly important responsibilities, which include running special sections on the chains' Web sites and writing columns that run in store circulars. Both women also develop free in-store newsletters that contain recipes, tips and advice; both are preparing something on healthy Super Bowl snacking. Editorial is reinforced in-store with permanent endcap displays that feature brands highlighted in the stories.

Shoppers have been quick to reach out to Taylor and VanGorden, both of whom are available to answer questions via e-mail or regular mail.

Taylor receives both general and disease-specific questions, such as, "Can I freeze tofu?" and, "What foods can both my husband and I eat if one of us has diabetes?"

In the several months she has been on the job, VanGorden has yet to receive the same question twice. Topics range from which foods are appropriate for someone who has had gastric-bypass surgery to which brands are gluten-free and available in stores.

CAROL ANGRISANI

World's Fair

Quality products and smart distribution have helped make Fair Trade one of the most accessible programs related to health and wellness. Oakland, Calif.-based TransFair USA, the non-profit certification organization for U.S. distribution, estimates 40,000 retail locations are offering some sort of certified product. Conventional retailers especially like these items because they are readily accessible and provide a world-class edge.

The ever-growing list of available products is eagerly sought out by established alternative venues as well. One of them, Puget Consumer's Co-op in Seattle, took full advantage of the program by hosting Tastes of Fair Trade at its Fremont, Wash., store during Fair Trade Month in October. Sips of coffee and tea and samples of bananas and chocolate were just a few of the items offered to consumers in a festive outdoor format. The store's bakery even took part by whipping up cupcakes made with fair trade chocolate.

"By inviting consumers to experience fairly traded products first-hand, we're hoping they will stop to think about where these products came from, who produced them and how they were compensated for their efforts; and with what methods they were grown and produced," said Paul Schmidt, the co-op's director of merchandising. "Tastes of Fair Trade is intended to give PCC shoppers an opportunity to experience fairly traded products while learning what the concept of fair trade means."

PCC helped shoppers literally put a face on fair trade by hosting Eddie Jimenez, a representative of a coffee cooperative in Chiapas, Mexico. Speaking through an interpreter, Jimenez told customers about his co-op member families and the quality of their crops. Ironically, Jimenez is finding out just how fair the program is. Upon returning home, he found the entire region in shambles from Hurricane Stan. During a one-day effort, Tony's Coffee, Cafe Lladro and PCC collected a cash donation of $10,000 for Jimenez to distribute to families.

And while products were the focus of the event, education was the umbrella, covering everything that goes into bringing these imported products to the United States. Tabletop displays showcased general information on fair trade and its significance. Others taught consumers what to look for in stores, and spotlighted the TransFair's "Fair Trade Certified" label as well as an international label that is part of the "Hand In Hand -- Ecology and Fair Trade" program.

MINA WILLIAMS (FNS)