PHOENIX – Safeway Inc. has plans to expand where it sells its line of organic beverages and foods, Dow Jones Newswires reports. The U.S. grocery store chain revealed last week that it’s in talks with potential partners in Asia and South America to offer its O Organics line.

Recently, Safeway struck a deal with Sysco Corp., a distribution company, to sell the organic line to the foodservice market. “We’re in the process of monetizing that brand,” Chief Executive Steve Burd told analysts and institutional investors at the company’s recent investor day.

Introduced in 2006, the organic products were offered exclusively at Safeway stores in the United States and western Canada. Since then, O Organics has increased to 300 products, such as chicken, milk, juice and entrée items. This year, Safeway predicts O Organic sales will come to $300 million, up from $164 million in 2006.

Overall, U.S. organic foods sales jumped 20.9 percent to reach $16.7 billion in 2006, and could top $20 billion this year, according to the Organic Trade Association.

“We are confident we have a sustainable growth story,” Burd said.