Safeway's private label goes public

Safeway (NYSE: SWY) is out to prove that the term "private label" is up for a revised, new and improved, economy edition. The chain yesterday announced that it had reached agreements to market its "O" organics and "Eating Right" store brand products at Albertson's, ShopRite and Exito supermarkets both domestically and internationally. In addition, it already sells the Eating Right brand in stores belonging to Big Y Supermarkets, Price Chopper and Hy-Vee Inc.

With private-label sales up 9.1% between 2007 and 2008, more and more regional and low-budget grocery stores are looking to get into the game. Of course, it's expensive to develop a private label (paradoxically); and many chains don't have the resources, or the time, to go it alone.