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A Vancouver Island supermarket icon known for its organic produce and fresh prepared fare was scooped up by Sobeys Inc. yesterday, in a move observers predict will be the first in an aggressive West Coast expansion.

Sobeys, the country's second-largest grocery retailer, moved quickly after it was taken private a month ago by parent Empire Co. Ltd., buying Thrifty Foods of Central Saanich, B.C., for $260-million.

"This gives us a foothold in British Columbia, where we have very little presence today," Bill McEwan, chief executive officer of Sobeys. His comments, in a telephone interview during a store tour in Victoria, indicate the company has bigger ambitions.

"Now that we have a presence in a place where we hadn't been before, it's a natural extension to think we'll continue to grow from here. ... Public or private, we've always indicated over the years that we're willing, motivated and capable of purchasing things that make sense to us. We'll just keep looking."

Part of Empire's decision to take Sobeys private was a plan to gain more flexibility to make acquisitions in Western Canada, where the company wants to boost its presence in an ultracompetitive market.

The Thrifty acquisition is a good start because the chain is a ubiquitous supermarket presence on Vancouver Island, said retail consultant David Gray in Vancouver. It has a loyal following, giving it the distinction of being the largest grocery chain in that market despite stiff competition from Overwaitea, which is owned by Vancouver business magnate Jim Pattison; Loblaw Cos. Ltd.'s Real Canadian Superstore; and Safeway Canada.

It's also a leader in the organic field, which is an area that Sobeys has been bulking up on at its own namesake and at its IGA stores across the country.

"Sobeys has been looking for an acquisition here for quite a while," he said. "I've been anticipating something to happen at some point."

Mr. Gray said he understood that Sobeys had tried unsuccessfully to buy one of the sole remaining IGA franchises outside its ownership, from HY Louie, which owns London Drugs.

Another possible takeover target would have been Overwaitea, which runs Save On Foods stores. Safeway is also a big player in Western Canada although a takeover by Sobeys might be frowned upon by federal anti-combines officials, analysts said.

At Thrifty, organic produce makes up almost 20 per cent of its annual $500-million of annual sales, said Thrifty spokesman Michael Alexander. The 20-store grocer wants to raise that to 32 per cent of overall sales over the next five years, he said. But the company needed a larger operator to provide it with the resources to expand, he said.

Family-owned Thrifty was started in 1977 by Alex Campbell, who hired its first non-family CEO just a few years ago.

Mr. McEwan said the Thrifty acquisition will immediately boost the bottom line of Sobeys and Empire. The deal is to close in their second quarter.

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