Alex Miller, president/CEO of Daymon Worldwide, told the companys employees this morning that Supervalu has decided to terminate its relationship with the private label giant, effective May 15.
The announcement comes just a week after Safeway made a similar announcement to its suppliers, effective May 28.
Daymon insiders say while the timing of the two announcements is unfortunate, there appears to be no connection between the two decisions. Safeway continues to put the emphasis on its more service-oriented Lifestyle stores, while Supervalu is focusing on its Save-AS-Lot limited assortment store business.
In his comments to employees, Miller emphasized that Daymon remains proud of the private brand portfolio work that it did for Safeway for five years and Supervalu for six years, and that it will continue to operate off-site satellite offices near both companys headquarters. Insiders tell MNB that it is possible that Daymon could continue to work with suppliers that are in the private brand business, and in fact could continue to see its products on Safeway and Supervalu shelves.
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