Continued elimination of Safeway-manufactured products

[storewanderer]

Safeway NorCal ran an in-ad coupon for Signature 18 oz. preserves this week at $1.79.

Previously, the Signature Preserves (also the Signature Select ones) were produced by a plant Safeway has in Central California (that plant also produces the excellent Signature Select 24 oz. and 12 oz. Southwest Salsa as well as the pretty good Signature Select Pasta Sauce).

I noticed this time, the Signature Preserves are now being produced by a third party as they run through the remaining Safeway-manufactured product. The Signature Select ones on the shelf all still appeared to be produced by Safeway, though.

I am curious why this is happening or what they are doing. Seeing them cut their in-house manufactured items when there are so few left is an odd move to me. That plant produces items for third parties as well; the salsa is also sold at WinCo (under the label La Fresca or something), Raleys (Raleys brand) and Save Mart (Sunny Select brand).

[pseudo3d]

Safeway NorCal ran an in-ad coupon for Signature 18 oz. preserves this week at $1.79.

Previously, the Signature Preserves (also the Signature Select ones) were produced by a plant Safeway has in Central California (that plant also produces the excellent Signature Select 24 oz. and 12 oz. Southwest Salsa as well as the pretty good Signature Select Pasta Sauce).

I noticed this time, the Signature Preserves are now being produced by a third party as they run through the remaining Safeway-manufactured product. The Signature Select ones on the shelf all still appeared to be produced by Safeway, though.

I am curious why this is happening or what they are doing. Seeing them cut their in-house manufactured items when there are so few left is an odd move to me. That plant produces items for third parties as well; the salsa is also sold at WinCo (under the label La Fresca or something), Raleys (Raleys brand) and Save Mart (Sunny Select brand).

My guess is cost-cutting. After all, Winn-Dixie's plant in Fitzgerald, Georgia produced an entire line of products prior to their bankruptcy (condiments, at least) but switched to exclusively making Chek soda (they sold the plant in 2011 with a five-year contract to keep making Chek soda, which seems to have run its course now). Thanks to General Mills' announcement about recalling flour, we know that Signature brand flour is made by General Mills.