Safeway Inc. yesterday said it appointed Diane M. Dietz as its new e.v.p. and c.m.o., filling the spot vacated by Brian Cornell, who left the grocer to become c.e.o. of Michael's Stores.

Dietz will oversee Safeway's marketing, merchandising, manufacturing, and distribution functions, and reports directly to Steve Burd, the chairman, president, and c.e.o..

"Diane's broad experience running one of the most valuable brand portfolios in the world, and her demonstrated ability to drive sales at retail are well-suited for her responsibilities at Safeway," said Burd.

Dietz comes to Safeway after a 19-year career with Proctor and Gamble (P&G), where she most recently ran one of the company's largest business units - oral care. Along with having full P&L responsibility for brands including Crest toothpaste, Oral-B toothbrushes, and Scope rinses, Dietz oversaw all aspects of the business including the unit's sales, sourcing, marketing, manufacturing, quality control, supply chain, R&D, market research, and HR functions.

She is widely credited with leading the turnaround of P&G's Oral Care North America unit and rejuvenating the Crest brand, according to Safeway.

Prior to that, Dietz ran a broad range of brand management and marketing functions across the P&G organization.

Safeway said that she is well known in both the consumer packaged goods and retail industries for her ability to drive sales and deliver dramatic improvements across a range of business metrics.

Safeway operates 1,740 stores in the United States and Canada and had annual sales of $42 billion in 2007.