EATURNA WINNING CUSTOMERS AT VONS

JULIE GALLAGHER / Additional reporting: Robert Vosburgh

BURBANK, Calif. - Eaturna, a colorful, new fresh-meals provider operating at a Vons Pavilion store here, is exceeding sales expectations with a selection of better-for-you prepared entrees, sandwiches, side dishes and desserts.

Officials of the start-up say the concept is proving in its initial weeks to be a suitable match for the retailer's health-conscious shoppers, and fits well with Safeway's "lifestyle" store format, elements of which can be found adjacent to the eatery. Vons Pavilion is a Safeway banner.

"We're doing better than [Safeway] thought we'd do," said Bob Fell, chairman of Los Angeles-based Eaturna. "We're exceeding their hopes but remember we've only been open for three or four weeks so we can't make an enormous judgment based on that. The people seem to love the food and they compare the nutrition and fat with that of our counterparts."

Safeway didn't return SN's request for comment.

Eaturna's food preparation/assembly area is fronted by a horseshoe-shaped display case right inside the main entrance of the store, topped by bright green, orange and yellow signs urging customers to "Love Food. Love Life." and "Eat What You Want. Taste Fresh Ingredients and Enjoy Natural Foods."

According to a store-level source, a Starbucks coffee kiosk was moved to the other side of the entrance to accommodate the new arrival. Customers entering the store find Eaturna on their right, and Starbucks on their left. Both operate independent cash registers as a convenience.

On the day of SN's weekday visit, three sample stations were active, with tasters offering spoonfuls of Eaturna's organic macaroni and cheese, turkey meatloaf and eggplant parmesan. Interspersed among the stations were uniquely designed display tables with bright signs touting Eaturna's arrival, yet offering products associated with Safeway's new "O" Organic private-label line. The signs and the retailer's pastas, sauces, snacks and crackers created a dual message revealing - to an extent - a symbiotic strategy, whereby Safeway's lifestyle format and "O" Organic line is tied closely with Eaturna's organic and healthful fresh foods, and vice versa.

"The whole line came about because there is a tremendous interest in nutrition and how it affects health and longevity," Fell said.

This Vons Pavilion also operates its own seating area in the center of the store, in front of combined, in-line deli/meals area and a Panda Express Chinese Food counter, one of approximately 45 in operation in Vons and Safeway stores. Here, selections differed from Eaturna's in that there were no health claims made in the food items featured. For that reason, officials say they don't expect much cannibalization by either setup.

Eaturna's products are designed to reduce the number of calories from fat, regularly achieving up to 30%, and sometimes as much as 50% less fat than many traditional counterparts. For instance, Eaturna's eggplant parmesan has 183 calories and 4.5 grams of fat as compared to Whole Foods Market's version, which has 301 calories and 14 grams of fat, according to Eaturna officials. Recipes use organically grown produce wherever possible and hormone-free, antibiotic-free and nitrate-free poultry and meat. Eaturna foods also contain no trans fats, preservatives or additives.

"We went out and explored preparation methods in places like Europe and discovered cooking that uses moisture and a whole host of different healthy ways to prepare foods," Fell said. "We entered into discussions with Steve Burd and Brian Cornell at Safeway and they said the food had to be healthier and better tasting than that of traditional counterparts" in order for this to work.

Steve Burd is Safeway's chairman, president and chief executive officer; Brian Cornell is the retailer's executive vice president and chief marketing officer.

Sixty to 70% of shoppers are treating the meals as takeout and the remainder are using the indoor seating area, Fell said. So far, patrons are mostly snapping up entrees of brisket or turkey meatloaf, and panini sandwiches. The seating area adjacent to the displays accommodates about 15 people. Eaturna-trained Safeway employees staff the operation. Consumer packaging is made of corn oil-based biodegradable materials, in keeping with the better-for-you theme.

The menu is comprised of 80 entrees, appetizers and desserts including Thai sesame crusted chicken, chicken breast strips, tomato and onion tarts, spinach potato cakes, vanilla cheesecake and chocolate walnut torte. In marketing materials, the company is comparing the taste and nutritional content of its dishes to that of Whole Foods, McDonald's and the Cheesecake Factory. Food is delivered to the Vons Pavilion daily from a 10,000-square-foot commissary in Los Angeles.

While business is good, Fell told SN it will be some time before any discussion of expanding Eaturna to other lifestyle stores.

"It's so early in the game and we couldn't be more pleased but one store doesn't make a national footprint," Fell said. "We're formulating the plans; the criteria is to be better-tasting than Whole Foods and healthier for you."

However, Eaturna plans to expand beyond supermarkets. Officials have entered into an agreement with HMSHost Corp. to offer its products in at least one airport terminal in the Los Angeles area; there are also plans to open company-owned stores later this year.