SAFEWAY SET TO BULK UP NEW HEALTHY PRIVATE LABEL

MARYELLEN LO BOSCO

PLEASANTON, Calif. -- Safeway here plans to expand Healthy Advantage, its new private-label line.

The line, a sub-brand of the chain's Select brand, currently includes ice cream, frozen waffles, hot cereal cups and dry cereals, according to Debra Lambert, company spokeswoman. It is being marketed in attractive, green packaging that also carries the Select logo.

Lambert declined to elaborate on expansion plans, saying only, "We are proud of the line and believe it is a step in the right direction in developing our private label and premium private label into the healthy food line."

Safeway will expand Healthy Advantage on a product-by-product basis, targeting better-for-you selections made by national-brand manufacturers, said Jonathan Ziegler, a security analyst in the San Francisco office of Salomon Bros., New York.

Already, Healthy Advantage animal crackers are in the process of being shipped to several Safeway divisions, according to Ron Rash, vice president for private brands at Health Valley Co., Irwindale, Calif., which is producing the animal crackers.

Ziegler noted cereal bars also carry the new label.

Glencourt Inc., Walnut Creek, Calif., a wholly owned subsidiary of Safeway, showcased some Healthy Advantage selections at the recent Private Label Manufacturers Association's annual show. Glencourt manufactures private-label products for other retailers as well as Safeway.

Safeway currently has 15 sub-branded premium private-label lines (including Healthy Advantage) in food and nonfood, according to Gary Giblen, managing director for Smith Barney, New York. Others are under development.

Giblen is uncertain about what, if any, distinction will be made between Enlighten and Healthy Advantage.