Groceries, Golf and Giving
For Safeway, it's a natural fit
By Jim Pasero
If Larree Renda, Safeway’s Executive Vice President, was happy about
Safeway’s commitment to the LPGA before the 2005 season began, she’s
happier now. This year, women’s golf is skyrocketing up, up and
up the American popularity meter.
The headlines keep coming—Annika capturing the first
two majors of the season; high school sensation Paula Creamer jumping
to fourth on the money list before her high school graduation; two amateurs
Morgan Proessel and Brittany Lang making an unprecedented run at the U.S.
Women’s Open in June only to finish second to Birdie Kim’s
dramatic hole out from a greenside bunker on the 72nd hole; the sensational
play of the LPGA’s new stars, Lorena Ochoa, Christie Kerr and Natalie
Gulbis, who this year have stormed the tour’s Top 10, and that’s
before you even mention Michelle Wie.
When Renda is asked whether she feels like pinching herself
because Safeway’s significant investment with the LPGA happens to
coincide with the booming popularity of the LPGA circuit, she handles
it goodnaturedly. “I like to think there was some vision involved,”
says Renda.
Part of Safeway’s vision for the LPGA, according to
Renda, came from Portland’s Tom Maletis, president of the area’s
Tournament Golf Foundation, Inc. (TGFI), and past chairman of the board
of the LPGA’s Tournament Sponsors Association. In 1989 Safeway began
their association with the LPGA as the skins game sponsor of the Portland
event. But, says Renda, it was Tom Maletis who approached us. “He
figured out that a food retailer would be the right sponsor for the event.”
Maletis, along with Jim Etzel, president of SportsOne, TGFI’s
exclusive sales and marketing agency, approached Safeway in ’95
about becoming the title sponsor for the LPGA’s longest running
event. Says Maletis, “We were going into ’96 without a title
sponsor. We had seven name changes to the tournament, and even though
the tournament was healthy, it was a critical year for us.”
Safeway, headquartered in the San Francisco Bay area and
46th on the Fortune 500 list, with 1,800 stores located primarily in Western
Canada and the Western U.S., boasts sales of more than $35 billion, surpassing
neighboring Bay area companies Intel and Wells Fargo.
In 2003, Safeway expanded its involvement with the LPGA,
by becoming the title sponsor to another long standing LPGA event, the
Safeway International in Phoenix. Maletis, once again, was instrumental
in making the connection and is now the general chairman of both tournaments.
From the beginning in 1995, Renda saw the match between the LPGA and Safeway
as a natural fit. “This is a core demographic for us,” she
says.
Safeway saw another natural fit in working with Maletis,
especially in the charity field. The Safeway Foundation gives almost $150
million a year to charities in either cash or food contributions. The
charities that TGFI was working with in Portland, such as the Waverly
Children’s Home and the Boys and Girls Club, made the arrangement
a “perfect match for us,” says Renda, “because we had
the same focus.”
The Safeway Foundation’s four charity areas include
hunger, health services, schools and education. Many of the recipients
of the more than $1.5 million that the Safeway Classic and the Safeway
International give to charities each year rely on the contributions to
keep their doors open. Renda remembers that it was important to Tom Maletis
that the charities that TGFI was supporting didn’t suffer a setback
when Safeway became the title sponsor because those charities were dependent
on that effort.
With the title sponsorship of two prestigious LPGA events,
Safeway is determined to develop their name in golf, says Maletis, the
way Michelob and Buick are associated with golf. “They’ve
taken their sponsorships and added another level,” he says.
One of the additions is an advertisement that Safeway filmed in-store
with Annika Sorenstam. Renda describes the spot: “In our last commercial
we had Annika and her caddie walking through the grocery store playing
off the caddie-golfer relationship. In the produce department they threw
parsley in the air to check the wind. They sized up a loaf of bread as
if it were a putt. It was cute. People loved it.”
The amazing food court at each tournament is another way
Safeway builds their brand with local attendees—the Safeway Food
Pavilion feeds 30,000 people for free. Major Safeway vendors take their
place in the Food Pavilion at Columbia Edgewater Country Club (Kraft-Nabisco,
General Mills, Pepsi, Coke, Anheuser Busch, Frito Lay, and others). Asked
if Safeway squeezes the arms of their major vendors to take part in the
Food Pavilion, Renda responds, “Vendors like to be associated with
an event like this. These vendors have done it for 10 years, and they
wouldn’t keep doing it if we were just twisting their arms.”
For Safeway, the tournament week celebration in Portland
is a national event, not a statewide or regional event, and the food vendors
respond. “We send a generous number of our executives to the tournament,”
says Renda, “and the event serves to strengthen our partnerships
by building relationships that we have with our vendors.”
Safeway may be throwing a national party aired on the Golf
Channel, but the location of Portland for the event is no accident. “Portland
is a key market for us,” says Renda, “and it is important
to us to have good exposure and be seen in a leadership position in the
community, and the Safeway Classic does that for us.” Safeway also
is pleased, according to Renda, to have their two tournaments located
in Phoenix and Portland because “both cities are so strongly community-oriented.”
As for how the Safeway Classic looks to the country when
it’s aired nationally and internationally on the Golf Channel, says
Renda, “The television broadcast has met all our expectations.”
Something else that met all their expectations is Safeway’s
partnership with the LPGA. “The golfers that I know on the LPGA
tour are remarkable women,” says Renda. “Some of them are
raising families. They have a day care center at the course. These players
are real people you can relate to. They are just like all the other women
out there.” Renda might as well add, just like her Safeway customers.
In an era where the consumer is taking a more critical look
at professional athletes and the sometimes excessive hype within and around
professional sports, Safeway’s branding with the LPGA has managed
to give the company the best of both worlds—support for women athletes,
and support for women doing great things on and off the golf course.
Tom Maletis, who has worked with the LPGA for 18 years,
remembers the low point in professional women’s golf. “The
low point was probably 15 years ago when maybe only 30 percent of all
LPGA events were televised. Today, the LPGA as a story line keeps getting
more interesting, with almost every event televised, with better TV slots,
and the numbers are going through the roof.”
To paraphrase the late Hollywood legend Bette Davis—fasten
your seatbelt; you’re in for a wild ride. The next decade is going
to be a wild ride on the LPGA circuit, and whether they’re pinching
themselves, or whether it’s vision, Safeway is delighted to have
its arms firmly wrapped around the adventure.
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