Simon Mowbray
Development of Safeway's own label offering will continue despite the supermarket chain's uncertain future.
The company said its insistence that it was "business as usual" applied to all areas of its operations and "most certainly" included own label, which accounts for a major chunk of the chain's sales.
Judith Batchelar, head of new product development at Safeway, told The Grocer: "We have to behave like we will still be in business in six months' time.
"If we were a manufacturer in a similar position we would still be talking about the importance of protecting our brands.
"Safeway's The Best range is now worth £100m to us annually so that shows how important it is. We have to look after it as a brand as well as our other own label offerings."
Batchelar's comments, made as Safeway announced a £1m revamp of its own-label Indian range, were welcomed by private-label manufacturers which face an uncertain future if the Safeway name disappears from British retailing.
One told The Grocer: "Our contract with Safeway is the biggest on our books so to lose it would prove a disaster. We are pleased they have openly announced their commitment to own label in the coming months. It at least reassures us as we draw up contingency plans in case we eventually lose that business."
Safeway's plans for its Indian range, which include extending the offering to 110 lines across deli, meal bags, pre-packed ready meals, chilled, breads, snacks and sauces, are certainly good news for manufacturers like S&A Foods, which will handle the chilled offerings part of the new proposition. The range will now include more than 60 ready meals and deli dishes and more than 20 different types of snacks.
Batchelar added: "We have to assume that our own-label brands will live on. We already know what we will be doing over the summer and we are committed to the work which we have already set in motion.
"Going even further forward, we are now looking at what we want to do for the vital Christmas period."
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Development of Safeway's own label offering will continue despite the supermarket chain's uncertain future.
The company said its insistence that it was "business as usual" applied to all areas of its operations and "most certainly" included own label, which accounts for a major chunk of the chain's sales.
Judith Batchelar, head of new product development at Safeway, told The Grocer: "We have to behave like we will still be in business in six months' time.
"If we were a manufacturer in a similar position we would still be talking about the importance of protecting our brands.
"Safeway's The Best range is now worth £100m to us annually so that shows how important it is. We have to look after it as a brand as well as our other own label offerings."
Batchelar's comments, made as Safeway announced a £1m revamp of its own-label Indian range, were welcomed by private-label manufacturers which face an uncertain future if the Safeway name disappears from British retailing.
One told The Grocer: "Our contract with Safeway is the biggest on our books so to lose it would prove a disaster. We are pleased they have openly announced their commitment to own label in the coming months. It at least reassures us as we draw up contingency plans in case we eventually lose that business."
Safeway's plans for its Indian range, which include extending the offering to 110 lines across deli, meal bags, pre-packed ready meals, chilled, breads, snacks and sauces, are certainly good news for manufacturers like S&A Foods, which will handle the chilled offerings part of the new proposition. The range will now include more than 60 ready meals and deli dishes and more than 20 different types of snacks.
Batchelar added: "We have to assume that our own-label brands will live on. We already know what we will be doing over the summer and we are committed to the work which we have already set in motion.
"Going even further forward, we are now looking at what we want to do for the vital Christmas period."
{{MARKETING }}
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