• Ad Age , Thursday, August 7, 2008 10:30 AM

Safeway is rolling its organic house brand, O Organics, and better-for-you brand, Eating Right, into competitive grocery-chains nationwide this fall. The brands will benefit from "fully integrated" marketing support, according to James White, who serves as both president of Safeway's Lucerne Foods division and as its senior vp-consumer brands.

Both lines will be positioned as lifestyle brands. O Organics, which consists of about 300 items in more than 30 categories, specifically targets new mothers looking for cleaner, healthier food. White says both lines represent a "great-tasting, highest-quality, more-affordable option [than established organic brands], which allows for the mainstreaming of market."

O Organics rung up an impressive $150 million in first-year receipts in 2005, well past the critical $100 million benchmark for new products. Eating Right products, engineered to provide specific health benefits such as high fiber content, is expected to bring in about $200 million in Safeway sales this year.

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