Byrne resists comparing his company's new format to any of theexisting specialty and gourmet grocery chains, saying that OakvilleGrocery & Marketplace may resemble other stores in somerespects, but it will not be exactly like any of them. TheMarketplace stores will carry "unique products that tie to thelocal community as much as possible," Byrne says, explaining that"In California, we have micro brands being born every day in localcommunities, and we want to create a marketplace that allows theseentrepreneurs to come to us to deliver their products." TheOakville CEO says the Marketplace shopping experience is designedto be "like a treasure hunt, where shoppers can see productsthey've never seen before," including "special culinary treats,staples and one-of-a-kind packaged foods."

Byrne's Northern California-based company already operates threeOakville Grocery Co. stores in addition to the new Marketplaceformat in Cupertino. Whereas the Oakville Grocery Co. locations arehigh-end specialty gourmet food and wine stores of about 2,000 sfto 3,000 sf, the Marketplace stores will be 10,000 sf to 12,000 sf.Byrne explains that the newer, larger format stores take theauthenticity of the original Oakville Grocery Co. and surround itwith micro brands and "value-priced" products. "We think we canopen 25 Marketplaces in the next three to five years withoutleaving California to do it, and maybe without even leavingNorthern California," he says.

Byrne was one of about a dozen San Francisco investors whobought the Oakville Grocery Co. in March 2003 from Napa Valleywinery operator Joseph Phelps with the idea of building a chain ofgourmet food and wine stores. Their Marketplace format is thelatest entry in a growing number of specialty and gourmet groceryretailers in California, where Boise, ID-based Albertsonssupermarkets recently acquired the Carson, CA-based 11-storeBristol Farms chain as its entry into the specialty grocery world.Other specialty chains growing in the state include Austin,TX–based publicly held Whole Foods, which has been reporting recordsales and profits of late; and Monrovia, CA-based Trader Joe's,which is privately held.