News America Marketing Announces Ten-Year Agreement with Safeway
Deal Brings SmartSource Network to Record High of More Than
34,000 Stores
New York, NY (August 26, 2004) – News America Marketing, a division of News Corporation (NYSE: NWSA), today announced that it has signed a ten-year agreement with Safeway Inc. (NYSE: SWY), one of the largest food and drug retailers in North America. Under terms of the agreement, News America Marketing will be the exclusive third-party provider of advertising and promotional campaigns at Safeway through its SmartSource® portfolio of in-store marketing programs. The SmartSource Floortalk® program will be implemented immediately, with the balance of the portfolio arriving in January of 2005.
The collaboration adds more than 1,500 stores to News America Marketing’s network, bringing the number of food, drug, and mass retailers using SmartSource In-Store programs to more than 34,500 for the first time in the company’s history.
“It is extremely gratifying to sign such a long term agreement with one of North America’s premier retailers,” said Marty Garofalo, EVP, Trade, News America Marketing. “Our collaboration with Safeway is a testament to the unparalleled service that News America delivers to its retailer and packaged goods manufacturer clients and reinforces our reputation as the industry’s premier full-service, in-store marketing provider.”
Safeway is the 4th largest grocery retailer in the U.S, according to the Directory of Grocery and Convenience Store’s 2003 rankings. It operates under the names Vons, Pavilions, Carrs, Dominick’s, Randalls, Tom Thumb and Genuardi’s as well as Safeway. With its stores throughout western, southwestern, Rocky Mountain, mid-western and mid-Atlantic states, the new alliance significantly reinforces an already formidable presence for News America Marketing across the entire western half of the country as well as the Baltimore/Washington DC region. Specifically, Safeway’s dominance throughout the West brings News America’s All Commodities Volume (ACV) coverage in key programs such as SmartSource Coupon Machine®, SmartSource Carts® and SmartSource Floortalk® to more than 70% in specific markets including Denver, Chicago and Los Angeles.
“Having News America programs on Safeway’s shelves for the next ten years underscores the diligence and relationship-building skills of our organization, and the value that News America Marketing brings to the retail community and ultimately, to the shopping experience,” said Jesse Aversano, EVP, Marketing, News America Marketing. “We look forward to collaborating with Safeway to extend our full range of products throughout their stores, while continuing to deliver the highest level of service, value and information to the Safeway shopper.”
Safeway Inc. is one of the largest food and drug retailers in North America. As of March 27th, 2004, the company operated 1808 stores in the Western, Southwestern, Rocky Mountain and Mid Atlantic regions of the United States and in Western Canada. Safeway also holds a 49% interest in Casa Ley, S.A. de C.V., a food and general merchandise retailer in Western Mexico.
News America Marketing, a division of The News Corporation Limited, is the leading single-source provider of consumer advertising and promotional services. The company’s product portfolio, marketed under the SmartSource brand name, consists of the first branded free-standing insert, known as SmartSource Magazine®, various in-store advertising and promotional products, merchandising services, database marketing tools and online promotions. These products and services allow marketers to deliver a brand message to over 200 million consumers each month via a network of 1,161 newspapers and 34,500 supermarket, drug and mass merchandisers locations across the country, including Albertson’s, Kroger, Winn Dixie, CVS, Eckerd and Rite Aid.
News America Marketing’s diverse portfolio of consumer-marketing programs includes:
IN-STORE MEDIA
SmartSource® At-Shelf Sampling SmartSource Price PopSM
SmartSource Shelftake OneSM SmartSource® Bonus Box
SmartSource Price PopSM Banner SmartSource ShelfvisionSM
SmartSource CartsSM SmartSource Freezer Price PopSM
SmartSource Showcase® SmartSource Coupon Machine®
SmartSource Freezer ExtraSM SmartSource Showcase® Extra
SmartSource Floortalk® SmartSource Price Pop® Guaranteed
Merchandising Services
HOME-DELIVERED MEDIA
SmartSource Magazine®
SmartSource Custom PublishingSM
SmartSource Price Feature Plus®
INTERACTIVE MEDIA
SmartSource Direct® Relationship Marketing & Technologies
SmartSource Online Savings NetworkSM
News America Marketing—International provides consumer-marketing services in Canada, Australia and New Zealand, in addition to a network of advertising and promotion partners in Asia, Europe, Latin America and the Pacific Rim.
The News Corporation Limited (NYSE: NWS, NWS.A; ASX: NCP, NCPDP) had total assets as of June 30, 2004 of approximately U.S. $51 billion and total annual revenues of approximately U.S. $21 billion. News Corporation is a diversified international media and entertainment company with operations in eight industry segments: filmed entertainment; television; cable network programming; direct broadcast satellite television; magazines and inserts; newspapers; book publishing; and other. The activities of News Corporation are conducted principally in the United States, Continental Europe, the United Kingdom, Australia, Asia and the Pacific Basin.
Contact: News America Marketing
Laura Richards
212.782.8145
lrichards@newsamerica.com
Rubenstein Associates Public Relations
Robin Wagge
212.843.8006
rwagge@rubenstein.com
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