Mircea Moga, Brand President Mega Image: “Mega Image is very excited that it now has a Romanian sister-company under the umbrella of Ahold Delhaize. The combination between our two brands will complement and expand Ahold Delhaize’s existing Romanian footprint and allow us to better serve the consumers in Romania. We are excited about the opportunities this partnership brings, through our combined cultures, expertise, and resources. This alignment will allow us to serve our customers more efficiently, support our teams in their professional growth, and foster sustainable business practices within our communities."
 

About the transaction

Profi is a leading traditional grocery retailer in Romania, operating around 1,700 supermarkets and convenience stores. It is known for its strong assortment and value for customers. In the twelve months ending June 2024, the company generated €2.7 billion in net sales. The combination will complement and expand Ahold Delhaize’s existing Romanian footprint to better serve customers in both urban and rural areas. The strong format fit and complementary customer propositions between the Profi and Mega Image brands will drive synergies.

Ahold Delhaize expects Profi to add around €3 billion in net sales to its financial results in 2025. Profi is expected to have a neutral impact on Ahold Delhaize’s 2025 diluted underlying earnings per share. Additional details on the impact to Ahold Delhaize’s financial results will be provided on February 12^th as part of its 2025 outlook.

The intention to acquire Profi was announced on 30 October 2023 and recently approved by the Romanian Competition Council (RCC), subject to post-closing obligations regarding the relationships with suppliers in the Romanian retail market as well as the divestment of 87 stores, as further detailed by the RCC in its related announcement.

BofA Securities and Goldman Sachs acted as financial advisors to Ahold Delhaize; CMS Cameron McKenna Nabarro Olswang and GNP Guia Naghi & Partners acted as legal advisors.

Strategic Rationale 

Profi is a leading traditional grocery retailer in Romania, operating 1,654 stores in the country. It is known for its strong assortment and value for customers. In the twelve months ending June 2023, the company generated €2.5 billion in sales. 

The acquisition will more than double the size of Ahold Delhaize’s existing Romanian business, which operates under the Mega Image brand and has 969 stores, predominantly in urban areas. The combination will complement and expand Ahold Delhaize’s existing Romanian footprint to better serve both urban and rural areas. The strong format fit and complementary customer propositions between the Profi and Mega Image brands, will allow them to better serve the Romanian consumer, driving both sales growth and profitability. 

Transaction details 

• Ahold Delhaize expects to generate significant revenue growth and synergies from the transaction. These expected synergies will directly benefit the Romanian customers, through the improved ability for the company to reinvest in the customer value proposition, digitalization, ESG and the Employer Value Proposition. 
• Ahold Delhaize will pay an Enterprise Value of approximately €1.3 billion, corresponding to lease-adjusted Enterprise Value of €1.8 billion (post IFRS 16).  
• The combination with Profi is expected to be sales growth and EBIT margin accretive (post synergies, and integration) to Ahold Delhaize Europe and EPS accretive to Ahold Delhaize, all in the first year after closing. 
• The acquisition consideration will be 100% debt funded, with the transaction expected to close in 2024 following the satisfaction of customary closing conditions, including regulatory clearance.  

Frans Muller, Ahold Delhaize’s Chief Executive Officer, said: “I am very excited to welcome Profi into the Ahold Delhaize family. We have followed the company’s trajectory for a while now and admire what the Profi team has been able to achieve. I strongly believe that Profi has an exciting growth pathway ahead, and look forward to partnering with the team to further solidify our presence in Central and Southern Europe.” 

Wouter Kolk, Chief Executive Officer of Ahold Delhaize Europe & Indonesia, said: “I’d like to extend a very warm welcome to the full Profi team, we are very pleased to include them in our family. This step forwards fortifies our position in Central and Southern Europe, it also underscores our trust in the potential of the region. Both Mega Image and Profi have been serving Romanian customers successfully in the past decades, which translated into increased loyalty and growth. By joining our family, the combination will benefit from our European best practices in the fields of digitalization, sourcing, extended local assortment, infrastructure and sustainability. I am excited for the journey ahead.” 

Next Steps

The transaction is subject to conditions including merger clearance under applicable competition laws and regulations. Closing is expected for 2024.

The transaction will have no meaningful impact on ongoing capital allocation and capital return policies, nor limit balance sheet capacity to pursue further acquisition opportunities.  

More details will be provided during the Q3 2023 Ahold Delhaize analyst conference call. 

BofA Securities and Goldman Sachs acted as financial advisors to Ahold Delhaize; CMS and GNP Guia Naghi & Partners acted as legal advisors. 

Founded in Carlisle, Pennsylvania 

The GIANT Company was founded in Carlisle, Pennsylvania, where it remains headquartered today. It serves millions of customers across Pennsylvania, Maryland, Virginia, and West Virginia both in traditional stores and online – as well as New Jersey online only. The GIANT Company also plays a crucial role in providing essential services to communities, ensuring that customers have access to groceries and essential items when they need them the most. Community engagement remains at the heart of The GIANT Company's values, from supporting local food banks, educational initiatives, and health and wellness programs.  
 

Pioneer in eco-friendly measures and putting people first 

Ahold Delhaize also recognizes The GIANT Company's dedication to innovation and sustainability. Our brand has been a pioneer in implementing eco-friendly measures, such as energy-efficient lighting, reducing food waste, and supporting local farmers through its Local program, which highlights locally sourced products. 

Ahold Delhaize also appreciates The GIANT Company's commitment to diversity and inclusion. It has made significant strides in fostering an inclusive workplace, embracing diverse talent, and supporting equality – better reflecting the diverse communities our brand serves. 

100th anniversary celebrations 

To recognize this huge milestone, The GIANT Company has been celebrating with a variety of initiatives!  

The company’s more than 35,000 team members will be celebrated throughout the anniversary season, with special team member-only discounts, events, in-store celebrations, a limited-edition t-shirt, and be highlighted for their contributions to The GIANT Company through various storytelling opportunities. Last week, leaders from across the organization participated in special celebration visits, visiting every store and e-commerce facility to say thank you to team members and delivering special gifts.   

Thanking customers

Throughout September, the company thanked customers with four weeks of special sales and promotions. With items from across the aisles including everyday favorites and pantry essentials, the special prices will underscore the company’s longstanding commitment to value.  

The GIANT Company will continue celebrating in October with in-store samplings and surprise giveaways like anniversary gift bags containing coupons, product samples, recipes, and bonus CHOICE Rewards® points. 

Donations connected to purpose

Throughout summer and leading up to The GIANT Company's anniversary, philanthropy was a cornerstone of its anniversary celebration. Several financial and product donations were made, and associates participated in various volunteer activities. All donations will support the company’s purpose of connecting families for a better future by taking actionable steps to eliminate hunger, change children’s lives, heal the planet, promote wellbeing and foster a culture of inclusion and belonging. Beneficiaries include food banks, children’s hospitals, and local youth organizations. 

Ahold Delhaize recognizes and commends the dedication of The GIANT Company's team members who have played a vital role in this incredible journey, working tirelessly to provide top-notch service and high-quality products to their communities. 

Intensifying the cooperation will enable Cycloon to scale up faster. This will optimize the synergy between the two organizations and enable bol.com and Cycloon to realize more impact in making delivery more sustainable and social. Cycloon will continue to exist as an independent brand, with its own executive board. Besides bol.com's parcels, Cycloon will also continue to deliver mail and parcels for other customers.

More information about bol.com’s and Cycloon’s strategic partnership is available here.

When announcing the partnership in December 2021, both organizations stated that bol.com wanted to help Cycloon in its mission to substantially accelerate green and social delivery. In 2022, the transaction for bol.com's majority stake in Cycloon was completed. This created a future-proof position with strong growth opportunities in a competitive market. For bol.com, the partnership ensures that a higher proportion of parcels can be delivered by bicycle and that the online retail platform can offer customers the best service in delivery. In September 2022, Cycloon delivered the first bol.com parcel. 

Optimal synergy 
Cycloon, with its nationwide network of bicycle couriers and mail deliverers, delivers mail and parcels throughout the Netherlands for thousands of customers. Delivery by cargo bike is emission-free and keeps residential areas safe. Cycloon also employs hundreds of people with a (former) distance to the labor market. 

It was initially planned that bol.com would acquire the remaining shares in Cycloon in 2026. The parties now have decided that they want to transfer all shares in Cycloon to bol.com in the short term. Intensifying the cooperation will enable Cycloon to scale up faster. This will optimize the synergy between the two organizations and enable bol.com and Cycloon to realize more impact in making delivery more sustainable and social. Cycloon will continue to exist as an independent brand, with its own executive board. Besides bol.com's parcels, Cycloon will also continue to deliver mail and parcels for other customers. 

Key role for Cycloon 
The current CEO of Cycloon, Marieke Snoek, has decided to hand over her position as CEO. She will take up another role in the executive board. The COO, Nick Vreeswijk, will hand over his activities to a new operations director. Within Cycloon, he will remain active in an important position in operations for the last mile of bicycle couriers. Marieke Snoek: "This is the logical next step for Cycloon. We started Cycloon because delivery can be done differently: more sustainable and more social. I am confident that with bol.com we will continue our social and sustainable mission and we will expand our social impact even further." 

Vincent Weijers, COO of bol.com: "Moving towards a sustainable and socially responsible last mile is crucial for the future of e-commerce and we are working closely with all our carriers to achieve this. In this, we are continuously looking at how we can further reduce our CO2 emissions. And intensifying our cooperation with Cycloon plays an important role in this." 

Conditions and process 
The transaction is subject to customary conditions, including approval from the Dutch Consumer & Market Authority. The transaction is expected to be closed by the end of July 2023, provided all conditions are met. 

Delhaize has been one of Belgium’s favourite retail brands for over 155 years: 4 out of 5 Belgian consumers shop at Delhaize. Delhaize is the leader for fresh, healthy, quality food with an emphasis on sustainability. The company has a large network of 764 locations in Belgium and is a pioneer in terms of digitalisation, in particular with its SuperPlus digital customer loyalty program.   

Currently there are already 636 independent affiliated Delhaize stores under the AD Delhaize, Proxy Delhaize and Shop & Go brand names. With the proposed change, all Delhaize stores will be brought in line under one model, which in turn will stimulate investment in a sustainable future for Delhaize. Thanks to their strong local presence and flexible business hours, affiliated stores can quickly and successfully adapt to ever-evolving consumer needs and the market in general. The adapted model also presents local entrepreneurs with a unique opportunity to join Delhaize and develop the brand’s future, together with our experienced, skilled supermarket employees.  

Delhaize continues to build on its strong, unique position on the Belgian retail market  

Delhaize has a strong, unique position on the Belgian retail market and its intention is to continue developing it. Delhaize will continue to invest in centrally in areas such as logistics, sourcing and marketing to provide optimum services to its network of stores.   

Wouter Kolk, CEO Ahold Delhaize Europe & Indonesia: “Ahold Delhaize supports the intention to transform to one operating model announced today by the Delhaize management team. Delhaize plays an important role within our family of brands in Europe and the intention communicated today is aimed at strengthening Delhaize. By having the 128 local stores operated by local entrepreneurs in the future, they will have a better opportunity to respond to local conditions.”  

This announcement does not apply to the locations in the Grand-Duchy of Luxembourg. 

Delhaize's press release can be found here.  

Cautionary notice 

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as intention, transform, strengthen, will, future, opportunity, continues, aimed or other similar words or expressions are typically used to identify forward-looking statements. 

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law. 

The vast majority of current (63) stores will remain part of Jan Linders’ new franchise organization and be converted into Albert Heijn franchise supermarkets. Employees working at these stores will continue to work there. Some supermarkets of Jan Linders will not be joining the new franchise organization. In addition, Jan Linders will be acquiring ten supermarkets from Albert Heijn in the south of the Netherlands. Employees working at these stores will also continue to work there, with Jan Linders becoming their employer.

The distribution center (DC) of Jan Linders in Nieuw Bergen will be acquired by Albert Heijn, while preserving the function of DC. All DC employees will keep their jobs, thus ensuring employment in this region. Jan Linders’ headquarters will continue to exist in a new and compact setup as Service Office of the franchise organization.

According to Ferry Moolenschot, CEO at Jan Linders, the step is a daring, yet sensible one given the current circumstances of extensive digitisation and rapidly changing customer expectations, which require major structural investments and a high rate of innovation to remain competitive. Sustainably healthy business operations will therefore come under pressure in the long run. After careful consideration of various scenarios, Jan Linders has found a way to maintain sustainable entrepreneurship through its agreement with Albert Heijn.

Ferry Moolenschot, “I understand the decision brings a significant amount of change for our colleagues, customers, and business relations alike. Particularly for employees of the Service Office, where jobs will disappear. For them, together with the works council, a generous social plan will be drafted, and they will be guided from job to job. For those supermarkets that will not be joining the new franchise organization a future-proof new owner is sought, with a commitment to job security being paramount. In joining hands with Albert Heijn, we will be working together with a strong and innovative player with which we can continue to build and grow. Our customers will benefit from the very best Jan Linders has to offer, the familiar faces in our supermarkets and soon also all the good things this market leader brings to the table. We are glad that we can reinforce our family business with ten wonderful stores where great teams work. I confidently look forward to a successful cooperation”, Moolenschot said.

Marit van Egmond, CEO at Albert Heijn, “I am grateful to the Linders family for the trust they have placed in us, and I very much look forward to working together. For us, this step means a strengthening of our store base in the south of the Netherlands, which makes me very happy. I am also delighted with the acquisition of the distribution center in Nieuw Bergen that will move over to Albert Heijn, while retaining the current team. I know Jan Linders as a service-oriented supermarket that always goes the extra mile for customers. That drive, combined with the passion for delicious foods and drinks means we are a perfect match. As for those stores that will be transferred to Jan Linders’ franchise organization, we will ensure a smooth guidance of our colleagues. Nothing will change as far as our customers are concerned, with familiar Albert Heijn stores and familiar Albert Heijn-faces.”

Co-owner and Unit Manager Fresh Food at Jan Linders, Ruth Linders, “Of course it hurts to see Jan Linders disappearing after almost 60 years as an independent supermarket formula. However, the intention from generation to generation has been to have sustainable and future-oriented business. This has never changed, and we are convinced that by joining forces with Albert Heijn, we will successfully continue our organisation. We have spent a lot of time and effort getting to know each other well. As a result, we are taking this step with full confidence.”

Jonas Linders, co-owner and Strategy and Business Development Manager at Jan Linders Supermarkten, adds, “At Jan Linders, it is no secret that we have been exploring options to secure a healthy future for our company. For us as a family, it is paramount that we want to continue doing business in this industry and that we want to take our employees along on this journey. This way, that can be done. We are investing deliberately in a new chapter for the family business.”

Personal attention

In its new setup, Jan Linders will continue to focus on the company's customer-oriented service while holding on to its regional roots.

Ferry Moolenschot emphasises how employees have mattered to the organisation, “Jan Linders was able to flourish in 60 years thanks to the unrelenting efforts and dedication of our colleagues. And for that, the Linders family and I are very grateful. Their input allows us to make this decision under financially solid circumstances. Cooperation with Albert Heijn will ensure room for our employees to do what Jan Linders does best, dedicating personal attention to customers. Our employees and customers will all benefit.”

Conditions and process

Today, all Jan Linders employees were informed about the intended cooperation. The same goes for employees working at Albert Heijn stores that will be transferred to the new franchise organisation Jan Linders. Jan Linders will leave the purchasing organization Superunie, being very grateful to Superunie. Jan Linders has respected the interests of Superunie throughout the process and has fully safeguarded the confidential nature of the procurement conditions known to it.

The cooperation agreements are subject to the advice of both works councils and approval of the Authority for Consumers and Markets (ACM) for those supermarkets that will be transferred from Albert Heijn to Jan Linders. The aim is to have converted all stores involved by the end of 2023.

Ahold Delhaize is committed to accelerating its investments in building scalable digital advertising capabilities so its brands can build deeper digital customer relationships, online and offline. AD Retail Media will harness Ahold Delhaize USA brands’ market presence and close customer connections to help consumer packaged goods (CPG) partners meaningfully engage a significant East Coast omnichannel customer base.  

“Retail media is already a sizable percentage of total advertising spend – with forecasts showing it will continue to grow significantly,” said JJ Fleeman, Brand President, Peapod Digital Labs. “By bringing AD Retail Media in-house, we will create a connected go-to-market offering for CPGs, grounded in new capabilities, simplicity and value generation. As the space continues to grow, we’re proud to invest in retail media to continue to propel our companies – and our CPG partners – forward.”  

Together, the brands of Ahold Delhaize USA operate more than 2,000 stores, process more than 23 million transactions per week, have nearly 24 million active loyalty card users and total more than $51 billion in annual sales.  

AD Retail Media will expand to an in-house digital media agency and grow its retail media team, in order to accelerate the development of innovative digital advertising opportunities for B2B partners to create more tailored and relevant customer experiences. 

For more information, please refer to Peapod Digital Lab’s press release. 

Ahold Delhaize is committed to accelerating its investments in building scalable digital advertising capabilities so its brands can build deeper digital customer relationships, online and offline. Ahold Delhaize’s investment in Adhese underpins this commitment to provide shoppers with seamless, highly tailored and relevant customer experiences and promotions. 

Wouter Kolk, CEO Ahold Delhaize Europe & Indonesia commented on the announcement by saying: “Customers expect us to make shopping easier and improve their customer experience, for example by providing digital and in-store services and promotions. The partnership with Adhese allows us to develop and accelerate digital advertising solutions for B2B partners that can scale with our brands and generate insights to help us strengthen our omnichannel offering.” 

Ahold Delhaize’s local Dutch brand Albert Heijn takes the lead in the partnership with Adhese through AH Media Services. Ultimately this partnership will serve more brands in Europe, including for example Delhaize in Belgium, in support of ecosystems to connect shopping experiences that offer customers more convenience, value and relevance. 

Marit van Egmond, CEO of Albert Heijn said: "Through our own AH Media Services self-service platform we already provide advertising positions in Albert Heijn, Etos and Gall & Gall’s digital media like AH.nl and our apps. The stake in Adhese will accelerate further development of these attractive digital advertising opportunities. We are proud as a food tech company to be at the center of developing this innovative digital service for a further roll out to Ahold Delhaize’s other local brands in Europe.“ 

Tim Sturtewagen, CPO Adhese added: "With Ahold Delhaize and Albert Heijn as new partners, we get the opportunity to accelerate the realization of our innovative roadmap. Adtech is developing rapidly, and it is important for us to be able to stay at the forefront of technology to deliver powerful capabilities for advertisers and publishers. We now have partners on board that fully share this belief and that give us the space to build on this story with others as well. So, for both existing and new customers, this partnership is fantastic news." 

Cycloon and bol.com want to make delivery both sustainable and more social, and by working together, these two companies are accelerating this ambition. As the delivery of parcels with cargo bikes is emission-free and helps keep residential areas safe, Cycloon's bicycle couriers make the difference in this as they deliver parcels throughout the Netherlands. Cycloon employs hundreds of people with a (former) distance from the labor market – and within the last twenty years, Cycloon has grown into the largest sustainable and social bicycle network in the world. 

Cycloon-red and bol.com-blue  Cycloon operates in more than sixty cities in the Netherlands and that number will continue to grow. The partnership between Cycloon and bol.com is visually reinforced by the fact that both brands are visible on some of the cargo bikes. The logos of these are white, and the recognizable Cycloon red and bol.com blue provide great recognition in the streetscape. At the same time, Cycloon has also developed a completely new corporate identity and will continue to exist as an independent brand on, for example, cargo bikes, clothing and other expressions.  

Watch the video here 

About Cycloon 
Cycloon is the leader in green and social delivery. Cycloon's mission is to set the delivery market in motion, so that it becomes greener and more social. Based on this mission, Cycloon took the initiative in 2016 to set up a national bicycle courier network and now delivers to more than 60 cities. Thus, a nationwide parcel service with about 950 bicycle couriers became a reality. In addition, Cycloon employs 650 mail deliverers with a (former) distance from the labor market. For more information: www.cycloon.eu   

Stop & Shop’s New York City stores will also have a renewed focus on value, offering more sale bins and special values on relevant products. Stop & Shop is also the first retailer in New York City’s five boroughs to offer Flashfood, which gives customers access to fresh produce, meat, dairy, bakery and other items nearing their best-by date at discounts up to 50% off. The mobile app not only helps regular shoppers save over $500 a year on their grocery bills, it furthers Stop & Shop’s commitment to reduce food waste by 50% by 2030. Flashfood launched at the Bay Plaza store on June 10 and will expand to other New York stores later this year. 

The company is also making a significant investment in the community outside its stores with a $1 million pledge to fight food insecurity across the boroughs this year. A decades’ long partner of Food Bank for New York City, Stop & Shop will once again be sponsoring the food bank’s Mobile Pantry – an eight-week-long distribution of fresh produce and pantry staples that will kick off on June 24. It is also expanding the Stop & Shop School Food Pantry Program in the boroughs. The program was established to help limit barriers impacting students’ ability to succeed in the classroom by making sure that they have consistent access to food. By year-end, Stop & Shop will support more than 30 in-school pantries across NYC. 

“We’re proud to make such a significant investment in New York City, and we’re excited to show customers that we can be the one-stop shop for everything they need and that we’re delivering great value, particularly in this current economic environment,” said Gordon Reid, Brand President of Stop & Shop.  

Diverse neighborhoods 

At the center of Stop & Shop’s enhancements to its NYC stores is a significantly expanded assortment from around the globe to better meet the needs of the diverse neighbors it serves. The Bay Plaza store in the Bronx, for example, will feature a new ‘Global Market’ with authentic products from 14 different regions tailored to its neighbors and for those looking for unique products for globally inspired cooking. The Global Market will include a wide array of West Indian & Caribbean products, including items specific to Puerto Rico, the Dominican Republic, and Jamaica, plus Halal meat, dairy, and grocery items. As part of the Maspeth, Queens, remodel, Stop & Shop will expand its Chinese and South American offerings, and Sheepshead Bay customers will enjoy more Eastern European and Kosher foods. Additionally, stores will also offer hundreds of items locally made in the New York Metro area including West African fonio chips from NYC-based Yolélé and Mike’s Amazing® vegetable oils and mayonnaise.  

Stop & Shop began operating in New York City more than two decades ago and currently operates 25 stores in the Bronx, Brooklyn, Queens, and Staten Island – and home delivery in all five boroughs. Stop & Shop employs more than 3,300 associates in the city. Overall, it operates over 400 stores throughout Connecticut, Massachusetts, New Jersey, New York and Rhode Island. 

Bol.com has been an e-commerce platform since 2011 and now has nearly 49,000 Dutch and Belgian entrepreneurs selling their items via bol.com. A growing number of these entrepreneurs purchase logistics services from the company, such as 'Logistics via bol.com', in which bol.com takes care of the entire logistics process – from inventory storage and shipping to customer requests – for the sales partners. This development makes the expansion of the fulfillment center necessary. " In 2017, we put our own bol.com fulfillment center in Waalwijk into operation. The new expansion of this, allows us to continue to provide a good service at increasing volumes, both to customers and to sales partners who sell through bol.com," says Vincent Weijers, Director of Logistics (Chief Operating Officer/COO) at bol.com. "A larger floor space increases storage capacity for sales partners who have outsourced their logistics to us. For our customers, this means that they can count on bol.com's service for a larger part of the assortment, such as delivery on Sundays and in the evening, or delivery within a few hours after ordering."  

Green energy use 

In addition to more space, the expansion of the fulfillment center offers much innovation. It was built to the highest BREEAM certification (Outstanding), a method for assessing sustainability of building projects. The fulfillment center runs on 100% green energy, generated by the solar roof with 13,000 solar panels on the new section and the wind turbines next to the building. A huge shuttle system brings the many hundreds of transport bins with stock items to the right order picker at the right time. The energy released by the braking of the transport bins is also stored and reused.  

Smart Packaging

In order to be able to pack as many customer orders as possible, bol.com is implementing 14 new packing machines in the expansion of its fulfillment center. This includes five multi-pack machines for orders which consist of multiple articles and nine mono-pack machines for orders of one article. With these new packing machines bol.com can pack almost 10,000 orders per hour. They scan the dimensions of one or more articles and fold a cardboard box around them as precisely as possible. In this way, the air in the boxes is limited, less cardboard is needed and more packages can be carried in a truck. The multi-packing machine, which bol.com has been using since last year, is the first machine in the world that can pack multiple items of various sizes in one customized box. What is special is that this machine is suitable for almost the entire bol.com assortment of 41 million articles.

Reducing CO2 emissions

The innovations in the new building will help bol.com to further reduce its CO2 emissions per package. Since early 2022, bol.com has been climate neutral according to the Climate Neutral Certification standard. Together with the international consultancy Climate Neutral Group, bol.com mapped the CO2 emissions of its business processes - from the moment that articles arrive at bol.com in a fulfillment center to the delivery to the customer's door, and everything in between - and set reduction targets according to the rules and guidelines of the Paris Agreement. The emissions that remain are offset by bol.com. For its nearly 49,000 sales partners, bol.com also compensates for operational CO2 emissions.

240,000 m² of floor space

With the commissioning of the expansion, the bol.com fulfillment center now has a floor area of 100,000 m2, which is comparable to 15 soccer fields. Including the floors, the total floor area of the fulfillment center is almost 240,000 m². The expansion was designed by architects and engineering firm DENC and realized by Bouwbedrijf van de Ven from Veghel. Responsible for the mechanization and machinery include SSI Schäfer and CMC Machinery. CEVA Logistics, as a specialized fulfillment party, takes care of the staff and the daily operations at the bol.com fulfillment center.

Zaandam, the Netherlands, May 2, 2022 – Ahold Delhaize announces today that bol.com, its online retailer in the Benelux, and delivery expert Cycloon completed the transaction for a strategic partnership in which bol.com has become a majority shareholder of Cycloon. The Dutch Authority for Consumers and Markets has approved this transaction. Bol.com and Cycloon can now work towards the first joint delivery of a bol.com package, which is expected to happen in the second half of this year. The parties wish to jointly accelerate Cycloon’s growth and share the ambition to make delivery more sustainable and social. The current management team of Cycloon will be continued, and the existing shareholders of Cycloon will remain involved as such.  

The partnership with bol.com enables Cycloon to substantially accelerate its mission of green and social delivery, creating a future-proof position with strong growth opportunities in a competitive market. For bol.com and its sales partners, the majority stake will ensure a larger proportion of packages can be delivered by bicycle, and it enables the online retail platform to offer customers an even better delivery service.  

Green and social 

Management and shareholders remain fully committed to Cycloon’s social culture and sustainable mission to grow the organization and create new jobs. With its nationwide network of bicycle couriers and mail deliverers, Cycloon delivers mail and packages to thousands of customers throughout the Netherlands. As a result, the company is already saving 1,600 tons of CO2 annually. 600 people with a (former) distance to the labor market are employed at the company. Cycloon will continue to deliver mail and packages for current and new customers, next to delivering packages for bol.com. This concerns both packages from bol.com itself as well as packages from sales partners who store their products at the distribution centers of bol.com.  

As part of the terms of the transaction, bol.com will acquire the remaining shares in four years’ time, subject to approval of the relevant competition authority. The parties intend to continue operating Cycloon as an independent brand. 

Cautionary notice  

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as strategic, aim, now, work towards, expected, wish, ambition, will, continued, remain, accelerate, mission, future-proof, position, opportunities, ensure, enables, committed, intend or other similar words or expressions are typically used to identify forward-looking statements. 

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law. 

“Ship2Me by GIANT is a natural extension of our current grocery delivery options,” said John Ruane, senior vice president, omnichannel merchandising, The GIANT Company. “By offering access to complementary products not traditionally found in store, we are adding endless aisle shopping options for today’s busy families, all with the convenience of being delivered right to your door.” 

Ship2Me complements the online grocery services offered through GIANT Direct and MARTIN’S Direct. In addition to ordering staple grocery and household products for pickup or delivery via GIANT Direct or MARTIN’S Direct, Ship2Me gives more choices in categories including health and beauty, home décor, and other household items. Instead of picking up Ship2Me items at the store or having them delivered at a scheduled date and time, these items ship directly to customers from Ship2Me sellers. 

All Ship2Me items have the option of free standard shipping, which takes between four and nine days. Ship2Me sellers may offer other shipping options such as Express or Next Day Delivery for an additional fee, but shipping options and fees vary by seller and product. Return shipping is always free. There is no minimum order required for Ship2Me. 

In addition, customers can place orders for both GIANT Direct and Ship2Me for one seamless checkout experience. A customer’s Ship2Me order will be listed separately from the pickup or delivery grocery order. Once an order is placed, customers will receive email confirmation and a future email with tracking information once the order ships. 

CHOICE Rewards customers can also earn loyalty points on Ship2Me item purchases, which can be redeemed for gas savings, dollars of purchases, free items and more. 

For more details on Ship2Me by GIANT click here and Ship2Me by MARTIN’S click here.  

Green and social

With its national network of bicycle couriers and postal delivery staff, Cycloon sends mail and packages to thousands of customers throughout the Netherlands. The company already saves 1600 tons of CO2 annually and currently employs 600 people with a physical, mental or psychological distance to the labor market who receive additional guidance from a job coach. Management and shareholders remain fully committed to Cycloon's social culture and sustainable mission to grow the organization and create new jobs. Cycloon looks forward to continuing the delivery of mail and packages for current and new customers, as well as delivering packages for bol.com, after the completion of the transaction. This will include packages from bol.com itself as well as packages from sales partners who store their items in the distribution centers of bol.com.

Marieke Snoek, Managing Director Cycloon: "The partnership with bol.com gives us the opportunity to make an impact on a much larger scale. We will continue to invest in our people, network and partners and this will enable us to improve and further expand the services we provide to our current and new customers. In doing so, we discussed at length the principles we stand for and continue to stand for as organizations."

Accelerate sustainable and flexible delivery

Bol.com has ambitious sustainability goals and the collaboration with Cycloon contributes substantially to this. Vincent Weijers, Director of Logistics & Operations (COO) at bol.com: "We are huge believers in Cycloon’s sustainable and social mission. At the same time, it is an unique opportunity for bol.com and its sales partners to accelerate the sustainability of our growing parcel delivery business and expand our delivery capacity. Next to that, we can further improve the convenience and service for our customers with flexible and smart delivery. Moving towards a sustainable and socially responsible last mile is crucial for the future of e-commerce and we will continue to work with all our delivery partners to make this happen. With a majority stake in Cycloon, we are taking another step towards our stated ambition of reducing our direct footprint to 0 grams of CO2 emissions per package by 2025."

Wouter Kolk, CEO Ahold Delhaize Europe & Indonesia, said, “I am proud of the strategic partnership we have accomplished together. It gives both organizations the opportunity to grow in a sustainable way. Investing in and improving the so-called 'last mile' of the delivery of online orders, and making it more sustainable, sits high on the agenda within our strategy. Working with Cycloon can contribute to having bol.com customers shop however, whenever and wherever they would like."

Terms and process

The transaction is subject to customary conditions, including approval from the relevant authorities, coordination with trade unions and advice from the works council. The transaction is expected to close in the first half of 2022, provided all conditions are met. Four years after the transaction, bol.com will acquire the remaining shares. Cycloon will then also continue to exist as an independent brand.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such strategic, will, intend, ambition, continue(d)/(ing), remain(s), expect(ed), 2022, subject to, future-proof, opportunities, ensures, committed, mission, looks forward, impact, to improve, further, ambitious, goals, moving towards, future, step towards, by, 2025, would, conditions or other similar words or expressions are typically used to identify forward-looking statements. Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

In celebration of the grand opening, the company held a ribbon-cutting ceremony with remarks from Congresswoman Mary Gay Scanlon, Philadelphia Mayor Jim Kenney, The GIANT Company President Nicholas Bertram, and Ahold Delhaize USA Supply Chain President Chris Lewis.   

“Today is the culmination of more than two years of collaboration between our team, Ahold Delhaize USA Supply Chain, and our partners at Swisslog and AutoStore resulting in a state-of-the-art facility that will propel our GIANT Direct offering across greater Philadelphia and for the first time, southern New Jersey. Our new GIANT Direct EFC represents the future of grocery and the future of The GIANT Company, as we are one step closer to realizing our full omnichannel aspirations,” said Bertram. 

“The opening of this facility is an exciting step forward as we continue to collaborate to evolve the supply chain network for the future,” said Lewis. “Solutions like micro-fulfilment centers will be an important part of the self-distributed network, positioned to serve customers whenever, wherever, however they want to shop.”    
Since the beginning of this week, the facility also provides GIANT Direct delivery to several New Jersey towns for the first time. . The company plans to introduce GIANT Direct to additional communities in southern New Jersey over the next several months.   

Implementing innovative technology  

As part of The GIANT Company’s commitment to optimizing and growing GIANT Direct for delivery orders and in-store pickup, The GIANT Company is the first Ahold Delhaize USA company to implement this new EFC technology which streamlines order fulfillment by using the latest in robotics, machine learning, and vertical integration. The GIANT Company worked with Ahold Delhaize USA company Peapod Digital Labs, Swisslog, and AutoStore on the project.   

Within the GIANT Direct EFC, two space-saving, 3D grids contain totes filled with fresh and non-perishable groceries. When a customer places a GIANT Direct order, team members work alongside a team of robots that quickly gather the items for bagging. After bagging, GIANT team members place orders into temperature-controlled totes and on to trucks for delivery to customers.   
  
The GIANT Direct EFC offers a selection of product that mirrors a traditional GIANT store’s offerings. The facility will stock more than 22,000 products, enabling The GIANT Company to meet increasing customer demand with greater capacity, faster order fulfillment, and room to grow home grocery delivery. The center is expected to fulfill up to approximately 15,000 home delivery orders per week. 

At Ahold Delhaize’s virtual Investor Day held this week, Selma Postma, Chief Digital Officer Ahold Delhaize Europe & Indonesia, also shared information about The Network Tool (TNT) that was used to help set up the GIANT Direct EFC. TNT is a best in-class network optimization engine that leverages predictive analytics and a wide range of data inputs to give network expansion recommendations that allow brands to maximize the reach and capacity of their e-commerce networks while minimizing operating costs and capital required. The TNT tool was used to determine the ideal location, capacity and coverage of the EFC and has allowed The GIANT Company to optimize capital investments and reduce operating costs. 

The GIANT Company will continue to grow 

The new facility builds on The GIANT Company’s strong presence in Philadelphia, which has grown from one store in 2018 to 10 by the end of 2023. In addition to three GIANT Heirloom Markets and its new Philadelphia flagship Riverwalk store, The GIANT Company will open three new stores by the end of the year.   

The GIANT Company introduced the GIANT Direct brand in February 2019 when it debuted its first e-commerce hub in the city of Lancaster, Pennsylvania. Today, the company has more than 150 pickup locations and customers across 90% of the company’s footprint have access to online grocery ordering and delivery services.  

With Mijn Albert Heijn Premium, customers increase their personal benefits in an effortless way. For €12 per year, as a Premium member, they can save up to more than a hundred euros. The subscription includes 10% discount on all organic products, double savings stamps, and My AH Miles, ten instead of five personal Bonus Box offers per week and a 10% discount on the Albert Heijn Delivery bundle.  

Marit van Egmond, CEO of Albert Heijn said: "The Bonus card has been around for over twenty years and has been embraced by millions of customers. With the Albert Heijn app, our Bonus program grew into a place where you can find inspiration, make shopping lists, order online and participate in our savings programs. Now we are taking another innovative step in the digitalization of our customer program. With this new subscription, we want to pamper customers even more. Whether you do your shopping in the store or order online, with My Albert Heijn Premium you get access to even more benefits and convenience." 

With Mijn Albert Heijn Premium, Albert Heijn is further fleshing out its cooperation with the other Ahold Delhaize brands in the Netherlands. Within the subscription, customers receive discounts on the Club Gall & Gall VIP membership and the Select membership from bol.com. 

Albert Heijn introduced the Bonus card in 1998 and the Albert Heijn app in 2009. Both are now part of a complete digital customer program that includes personal offers, personalized cooking inspiration, delivery bundles and savings. 

Watch the video below to learn more!

“The opening of the Manchester facility is an important milestone in the transformation of the supply chain serving Ahold Delhaize USA’s local brands,” said Chris Lewis, President of ADUSA Supply Chain. “With the addition of Manchester, we have added more than 2 million square feet of distribution capacity to our network in less than two months. Not only is Manchester an important part of rapid network expansion, it’s also well equipped with technology solutions that will boost efficiency and ultimately result in the faster delivery of fresher products for consumers no matter how they choose to shop.”    

Technology at the site was implemented by Retail Business Services. It includes a transportation management solution and warehouse management solution –  Manhattan Active^® Warehouse Management – provided by Manhattan Associates. These systems will drive greater accuracy across transportation and labor management, boosting efficiency at the site and minimizing miles traveled. The facility also leverages end-to-end forecasting and replenishment technology from RELEX Solutions, which enables greater precision in order accuracy resulting in better in-stocks, fresher products and reduced food waste.

Manchester is also the first facility in the network to showcase the new ADUSA Supply Chain brand. Founded on the principle of being TRUSTED TO ALWAYS DELIVER, the ADUSA Supply Chain brand is anchored in dedication to service to local brands, their customers and local communities.

“We’re excited to officially be part of the Manchester community,” said Zach Napolitano, Campus Lead for ADUSA Distribution Manchester. “Ahold Delhaize USA companies have been serving the Manchester community for many years, and we look forward to being a good neighbor and supporting this community for many years to come.”

The facility will employ more than 500 people locally when fully operational. Associates at the site will be employees of ADUSA Distribution, ADUSA Transportation, FHI – a third-party labor management provider – as well as Lily and NFI, dedicated transportation providers for the site.

About ADUSA Supply Chain

ADUSA Supply Chain is a family of supply chain companies that together support one of the largest supply chains on the East Coast, serving the omnichannel grocery brands of Ahold Delhaize USA – Food Lion, Giant Food, The GIANT Company, Hannaford and Stop & Shop – through a self-distribution model for the future. The ADUSA Supply Chain infrastructure enables each unique brand to deliver an unparalleled experience to its customers, no matter how, when or where they choose to shop. For more information, visit www.adusasc.com.

 “Over the past year, all Ahold Delhaize USA companies have seen a tremendous increase in online sales growth, and we believe this growth is here to stay,” said JJ Fleeman, president of Peapod Digital Labs and Chief E-commerce Officer. “As we think about shifting consumer expectations and the future of omnichannel shopping, we must continue to build and evolve our already strong infrastructure to optimize pick-up and delivery. We’re excited to kick off this pilot with The GIANT Company and Swisslog as we continue to build out e-commerce fulfillment capabilities, which we believe will be key in supporting continued omnichannel growth.”

The EFC is planned for the Philadelphia market to help meet customer demand in Center City and South Philadelphia. This location is expected to fulfill approximately 15,000 online orders per week for delivery to customers’ homes. 

“This pilot is an exciting milestone in The GIANT Company’s omnichannel evolution as we work to transform the online grocery experience for our customers,” said Nicholas Bertram, president, The GIANT Company. “As we continue to see incredible demand for GIANT Direct across the Philadelphia region, working with Swisslog to incorporate state-of-the-art technology like AutoStore will not only bolster our overall e-commerce platform for future growth but also significantly increase our operating capacity, allowing us to deliver a faster, best-in-class experience to more customers each week.”

The hive shuttle system technology for the new EFC will include the AutoStore storage and retrieval system, empowered by Swisslog’s SynQ software and pick stations, as well as Peapod Digital Labs’ proprietary manual picking capabilities. Applying the advantages of the Autostore grid storage density and goods-to-person productivity gains in tandem with Peapod Digital Labs’ picking system will create a flexible solution ideal for streamlining grocery ecommerce order fulfillment.

Ahold Delhaize USA companies will continue other micro-fulfillment tests, such as the multi-shuttle pilot with Stop & Shop and TakeOff Technologies in the Hartford, Conn., market. Additional micro-fulfillment pilots will be announced in the coming months. 

Once built, the new EFC will add to Ahold Delhaize USA companies’ growing supply chain. As of March 1, the supply chain will include 18 self-managed traditional distribution centers, 28 EFCs and over 1,100 click and collect locations. By 2023, this network will increase to more than 27 self-managed distribution centers with additional EFC and click and collect growth as part of the overall transformation of the omnichannel supply chain. 

“As we continue to transform the supply chain for the future, we’re doing so with the lens of creating a truly omnichannel supply chain, there for customers whenever, wherever, however they want to shop,” said Chris Lewis, EVP, Supply Chain for Retail Business Services, Ahold Delhaize USA’s services company. “By 2023, Ahold Delhaize USA companies will be serviced by one of the largest supply chains and private fleets on the East Coast. Continuing to explore ways to maximize the total infrastructure is critical as we create an omnichannel supply chain of the future.”

“Swisslog is excited to work with Peapod Digital Labs and The GIANT Company to leverage automation technology and expand their e-grocery fulfillment capacity to maintain the expectations of their consumers,” said Mitch Hayes, Vice President of E-commerce and Retail, Swisslog, Americas. “For the pilot, we’ve combined AutoStore with our Swisslog SynQ software platform, which has grown to have a very robust set of standard features geared specifically to e-grocery fulfillment. We couldn’t be more pleased to partner with Peapod Digital Labs and The GIANT Company, both of which are leading the way in e-grocery fulfillment.”

“Projects like this will change retail forever, and it's an honor to know our proven micro-fulfillment technology is providing Peapod Digital Labs and The GIANT Company with the flexibility to build the infrastructure needed based on space and throughput rates of varying customer demand and order flow. We are very pleased that Peapod Digital Labs and The GIANT Company chose AutoStore systems, empowered by Swisslog, to deliver the future of e-grocery,” said Karl Johan Lier, CEO of AutoStore.

###

About Ahold Delhaize USA

Ahold Delhaize USA, a division of Netherlands-based Ahold Delhaize, is the parent company for Ahold Delhaize's U.S. companies, including its local brands, Food Lion, Giant Food, The GIANT Company, Hannaford and Stop & Shop, Retail Business Services, a U.S. support services company providing services to the brands, and Peapod Digital Labs, its digital and eCommerce engine. When considered together, the local brands of Ahold Delhaize USA comprise the largest grocery retail group on the East Coast and the fourth largest grocery retail group in the nation, operating more than 2,000 stores and distribution centers across more than 20 states and serving millions of customers each week through a wide variety of store formats with thousands of food and non-food items.

About The GIANT Company

The GIANT Company believes that no matter where or how, when meals happen, families connect, and when families connect meaningfully, good happens. Guided by its brand platform, For Today’s Table™, the omni-channel retailer proudly serves millions of neighbors across Pennsylvania, Maryland, Virginia and West Virginia. A Great Place to Work™ certified company with more than 35,000 talented team members supporting nearly 190 stores, 132 pharmacies, 107 fuel stations, and over 150 online pickup hubs and grocery delivery service in hundreds of zip codes, The GIANT Company is changing the customer experience and connecting families for a better future. Founded in 1923 in Carlisle, Pa., The GIANT Company family of brands includes GIANT, MARTIN'S, GIANT Heirloom Market, GIANT Direct and MARTIN’S Direct. The GIANT Company is a company of Ahold Delhaize USA. For more information, visit the GIANT

1 or MARTIN’S websites. 

About Swisslog

Swisslog delivers data-driven & robotic solutions for your logistics automation alongside reliable, modular service concepts. Collaborating with forward-thinking companies, we are committed to setting new standards in warehouse automation to provide future-proof products and solutions. As part of the KUKA Group, our customers trust the competence of our passionate employees – more than 14,000 people working across the globe.

About AutoStore 

AutoStore, founded in 1996, is a robot technology company that invented and continues to pioneer Cube Storage Automation - the densest and one of the fastest order-fulfillment solutions in existence. The company’s focus is to marry software and hardware with human abilities to create the future of warehousing. AutoStore is global with more than 550 systems in 30 countries over a wide range of industries. All sales are distributed, designed, installed and serviced by a network of qualified system integrators we call partners. The company’s headquarters is in Nedre Vats (Norway), and with offices in Oslo (Norway), in the U.S., U.K., Austria, Spain, Poland, Germany, Japan, South Korea and France.

DEEN reaches an agreement with Albert Heijn, Vomar Voordeelmarkt and DekaMarkt on the intention to sell all 80 DEEN Supermarket stores to these three parties. The intention is that of the 80 stores, 39 stores will get the Albert Heijn formula, 22 stores the Vomar Voordeelmarkt formula and 19 stores the DekaMarkt formula. The parties involved share their North Holland roots with DEEN and have a long track record.

To remain at the forefront of the rapidly changing and competitive food retail market will require significant effort in the coming years, according to DEEN’s management board. Looking to the future, the supermarket chain would have to invest considerably in the mechanization of logistics and e-commerce. The scale of the required investments has led the family, in close consultation with the management board, to decide to make another strategic choice and sell the company.

Social Plan and job retention

What exactly the acquisition will mean for DEEN’s associates, will be announced as soon as the social plan has been agreed with the trade unions and the work councils. All store employees will keep their job. If activities are discontinued by the buying parties, re-employment possibilities for the employees involved will be pursued. In line with the Deen family’s tradition, proper agreements with and arrangements for employees are key to this.

Logical step
According to CEO Leendert van Eck, who has been leading the company since 2016, the acquisition is a difficult but logical step. ‘We have built a fine company and thanks to the hard work of our employees and our loyal customer base, we can look back on wonderful years. To be future-proof, significant financial efforts are required, but the family has made a different choice,’ says van Eck.

He continues: ‘Together with the family we have conducted a careful orientation, over a longer period of time, concerning the future of DEEN. The most important criteria were continuity for the employees, keeping its value for customers, a careful transition process that is necessary in the event of an acquisition and securing the interests of Superunie, the purchasing organization of which we have been a loyal member for decades. With Albert Heijn, DekaMarkt and Vomar, all three of them parties with strong North Holland roots, DEEN will be in good hands.’

Marit van Egmond, CEO at Albert Heijn: ‘Together with the Deen family and the CEO of DEEN Supermarkets we have extensively and carefully explored the options. We are happy that together with them, Vomar and DekaMarkt, we have achieved this result today. For Albert Heijn, it is a unique addition to our store base in North Holland and an important strategic step. DEEN is a traditional Dutch family business, committed with heart and soul to their employees and customers. The expertise, the experience in the stores, and their strong commitment to the community, are a great fit with everything we also stand for. Together with DEEN’s employees, we look to the future with confidence.’

Aart van Haren, CEO, on behalf of Vomar Voordeelmarkt: ‘This acquisition provides Vomar Voordeelmarkt with a unique opportunity to strengthen its position in the existing market area. The entrepreneurship and drive with which the DEEN stores have been developed into successful supermarkets is impressive and Vomar Voordeelmarkt has every confidence to continue this path in the future. In the past period, all parties involved have worked together intensively and successfully to achieve this result. For this, we are very grateful to the Deen family, DEEN’s management, Albert Heijn and DekaMarkt.’

Albert Voogd, CEO, on behalf of DekaMarkt: We respect the decision by the Deen family and the way in which they ensure that this fine company that they have built, ends up well. The DEEN and DekaMarkt stores have much in common, such as the strong focus on fresh products. Also, the way in which we put the relation with our customers and associates central to what we do is similar. The ties between our family businesses go back a long way and we have the same North Holland common sense. We are delighted that we are able to further strengthen our DekaMarkt formula with the beautiful DEEN stores and are proud to welcome their employees onboard.

Conditions and process
The transactions are subject to the customary conditions, including approval of the Authority for Consumers and Markets (ACM), alignment with the trade unions and advice of the work councils involved. DEEN, Albert Heijn, Vomar Voordeelmarkt and DekaMarkt aim to obtain all the required approvals as soon as possible. It is expected that the transactions will be completed in the second half of 2021, provided that all conditions are met.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as intends, intention, will, to ensure, remain, subject to, conditions, expected, will be, reaches, changing, coming years, look(ing) to the future, would, will mean, as soon as (possible), if, discontinued, pursued, future-proof, orientation, continuity, securing, strategic, step, committed, provides, strengthen, position, existing, drive, confidence, continue, ends up, aim, second half of 2021, provided or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”), including any of its subsidiaries amongst others Albert Heijn, to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s and/or any of its subsidiaries management and assumptions based on information currently available to such management. Forward-looking statements speak only as of the date they are made and neither the Company nor its subsidiaries do assume any obligation to update such statements, except as required by law.

Cautionary Notice 

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as acquires, remains, unchanged, will, retain, continue, definitively, reach, further, propel, looking forward, marks, beginning, ensuring, grow(th), maintaining, looks forward or other similar words or expressions are typically used to identify forward-looking statements. 

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.   

About Ahold Delhaize 
Ahold Delhaize is one of the world’s largest food retail groups and a leader in both supermarkets and e-Commerce. Its family of great, local brands serves 54 million customers each week in Europe, the United States, and Indonesia. Together, these brands employ more than 380,000 associates in 6,967 grocery and specialty stores and include the top online retailer in the Benelux and the leading online grocers in the Benelux and the United States. Ahold Delhaize brands are at the forefront of sustainable retailing, sourcing responsibly, supporting local communities and helping customers make healthier choices. Headquartered in Zaandam, the Netherlands, Ahold Delhaize is listed on the Euronext Amsterdam and Brussels stock exchanges (ticker: AD) and its American Depositary Receipts are traded on the over-the-counter market in the U.S. and quoted on the OTCQX International marketplace (ticker: ADRNY). For more information, please visit www.aholddelhaize.com.  
 
About FreshDirect  
FreshDirect is a leading online fresh food grocer, delivering directly to customers throughout seven states, including the New York City and Philadelphia metropolitan areas, and the District of Columbia. FreshDirect is committed to sourcing the freshest and best-tasting meat, fish, produce, and specialty items through direct relationships with suppliers, growers, and farmers. Launched in 2002, FreshDirect is a privately held company headquartered in The Bronx, NY. Principal long-term investors in FreshDirect include Brightwood Capital Advisors, Maverick Capital and W Capital Partners. For more information, visit www.freshdirect.com.  
 
About Centerbridge Partners  
Centerbridge Partners, L.P. is a private investment management firm employing a flexible approach across investment disciplines—from private equity to credit and related strategies, and real estate—in an effort to find the most attractive opportunities for our investors and business partners. The Firm was founded in 2005 and as of June 30, 2020 has approximately $26 billion in capital under management with offices in New York and London. Centerbridge is dedicated to partnering with world-class management teams across targeted industry sectors and geographies to help companies achieve their operating and financial objectives. For more information, please visit www.centerbridge.com.

New York City and Zaandam, the Netherlands - November 18th, 2020 - Ahold Delhaize and Centerbridge Partners today announce they have entered into a definitive agreement to acquire FreshDirect, an online grocer based in New York City. Ahold Delhaize will acquire the majority share, funded by cash on hand, and Centerbridge Partners will be a minority equity investor with a 20% stake. After the deal closes, FreshDirect will retain its brand name, report to a seven-person board, and continue to independently operate out of its facility in New York City. Financial terms of the deal were not disclosed. The transaction is expected to close in the first quarter of 2021, following the satisfaction of customary closing conditions, including regulatory clearance.

Frans Muller, Ahold Delhaize’s Chief Executive Officer, said, “FreshDirect is a leading local brand in the fast-growing online grocery sector in the New York City metro area, one of the most important ecommerce food markets in the United States.  With its unparalleled quality of fresh food, exceptional brand recognition, and dedicated people, it has generated remarkable customer loyalty. This acquisition further propels our omni-channel evolution. It is a great addition and fit for our portfolio of leading local brands. The deal allows us to reach additional customers in the New York trade area and therefore will add incremental sales to the business. It further enables us to address customers’ growing preference for convenient ways to shop. Finally, we are excited to have Centerbridge alongside of us in this venture and believe our combined focus, expertise, and scale will help us maximize the success of FreshDirect going forward.”

FreshDirect is a leader in the US online grocery sector, with more than 20 years of local market and customer experience. As the name implies, the company focuses on fresh food, which represents more than 60% of its sales. It differentiates itself with direct and exclusive relationships with local farmers coupled with unique meal solution capabilities. The company’s efficient supply chain enables faster and more direct delivery of fresh food than most other conventional grocery services, providing a further enhanced freshness experience to customers. FreshDirect also brings with it a highly scalable and state-of-the-art fulfillment center, located in the Bronx, New York City. Finally, its ecommerce platform enables customer ordering, from picking through packing, to last mile delivery, including the ability to provide same day and rush delivery.

David McInerney, FreshDirect’s Chief Executive Officer, said, “We are strong believers that the future of grocery retail involves getting customers the best quality food, exactly when they want it, with the best customer service. We have built FreshDirect into a reliable and recognizable business to serve this purpose. This transaction marks an important milestone in the continued growth of FreshDirect. I believe Ahold Delhaize’s global scale, focus on strong, leading local brands, and ability to utilize cost-of-goods synergies, will allow FreshDirect to achieve its full potential.”

Adam Burinescu, Senior Managing Director at Centerbridge, said, “We are excited to partner with Ahold Delhaize, a leading player in global food retail and believe this is an outstanding combination. As a partner, we believe that Centerbridge brings deep experience in the interplay between logistics facilities and e-commerce fulfillment that can assist FreshDirect in reaching its next level of growth.”

BofA Securities, Inc. is acting as financial advisor and Kirkland & Ellis LLP is acting as legal advisor to Ahold Delhaize. Goldman Sachs & Co. LLC is acting as financial advisor and Latham & Watkins LLP is acting as legal advisor to FreshDirect. Fried Frank is acting as legal advisor to Centerbridge.

Cautionary Notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as definitive, will, leading, fast-growing, view, next step, further, enables, reach, expect(ed), continue(d), evolve, plan, remain, shift, believe, focus, going forward, capabilities, enhanced, experience, ability, believers, future, expansive, growth, achieve, full potential, next stage, after, 2021, following, conditions or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

The U.S. Federal Trade Commission has granted Food Lion early termination of the waiting period under the Hart-Scott-Rodino Antitrust Improvement Act of 1976 which satisfies one of the conditions of closing the transaction of the purchase of these stores in North Carolina, South Carolina, and Georgia.

The 62 stores will be converted to Food Lion stores, as part of the brand's continued expansion in the southeast of the U.S., and Food Lion expects to hire more than 4,650 associates to serve customers at the stores.

This asset deal with Southeastern Grocers, which was announced on June 3, 2020, also includes the acquisition of an additional distribution center in Mauldin, S.C. Both acquisitions are currently expected to be completed during the first half of 2021, subject to customary closing conditions.

Financial terms of the deal were not disclosed and Group financial guidance remains unchanged.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as to, will, continued, expect(s)/(ed) to, first half of 2021, subject to, conditions or remains, or other similar words or expressions are typically used to identify forward-looking statements.
 
Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

Margaret Versteden, Director Platforms at bol.com, said, “We have been working hard for years to strengthen our service and offering in Flanders. Now we want to take the next step – to no longer just serve Flanders, but almost all of Belgium. We have chosen to do this through an app because research shows that more and more people make their purchases using a mobile device. With our expertise, bol.com is an attractive platform for retailers to acquire customers throughout Belgium and the Netherlands. At the moment, more than half of our offering is sold directly by partners to consumers.” 

As it does in Flanders and the Netherlands, bol.com also hopes to work with a large number of local partners in French-speaking Belgium and has already rolled out collection points in the region. Bol.com orders can not only be delivered to customers’ homes but also picked up at other locations, for example, in 300 Delhaize supermarkets, 58 of which are in French-speaking Belgium. 

“Both companies have put forth an incredible amount of effort to work through unanticipated challenges that have arisen, and we regret that we’re not able to move forward. King Kullen has a strong legacy on the island, and we wish them continued success,” said Gordon Reid, President of Stop & Shop. “Stop & Shop remains committed to the Long Island community, to serving our customers in the market well, and to investing in our associates and our stores in Nassau and Suffolk Counties.”

Brian Cullen, Co-President of King Kullen, stated, “We look forward to continuing to focus on what we do best — serving our great customers across Long Island and supporting our hard-working store associates. We are enthusiastic about the future and well-positioned to serve Nassau and Suffolk Counties for many years to come. In short, we are here for the long term.”

About Stop & Shop

A neighborhood grocer for more than 100 years, today’s Stop & Shop is refreshed, reenergized and inspired, delivering new conveniences for customers. Committed to helping its communities enjoy better food and better lives, Stop & Shop has a longstanding history of giving back to the neighborhoods it serves with a focus on fighting hunger and pediatric cancer research and care. The Stop & Shop Supermarket Company LLC is an Ahold Delhaize USA Company and employs nearly 60,000 associates and operates over 400 stores throughout Massachusetts, Connecticut, Rhode Island, New York and New Jersey. To learn more about Stop & Shop, visit stopandshop.com.  

About King Kullen

Headquartered in Bethpage, New York, King Kullen is recognized by the Smithsonian Institution as America’s first supermarket. Founded in 1930 by Michael J. Cullen, King Kullen is a family-owned and unionized business operating 29 supermarkets and five Wild by Nature stores on Long Island. Throughout its history, King Kullen has been deeply involved and active in the Long Island community, supporting or sponsoring countless charitable and philanthropic causes. More information on King Kullen is available by visiting www.KingKullen.com.

Food Lion, based in Salisbury, N.C., operates more than 1,000 stores in 10 Southeastern and Mid-Atlantic states and employs more than 77,000 associates. As part of the asset deal Food Lion expects to hire more than 4,650 associates to serve customers at the 62 acquired stores.

This asset deal with Southeastern Grocers also includes the acquisition of an additional distribution center in Mauldin, S.C. Both acquisitions are currently expected to close in the first half of 2021, subject to customary closing conditions. Financial terms of the deal were not disclosed and Group financial guidance remains unchanged.

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words such as agreed to, continued, expected, by, first half of 2021, subject to, guidance, remains or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

The new locations will provide optimal facility locations near the local brands of Ahold Delhaize USA and their customers, enabling local product expansion, increased product freshness and speed of delivery. The two warehouses will also create about 200 new jobs each and infuse additional economic benefits to local economies as a result of this growth.

“We are thrilled to partner with Ahold Delhaize USA to design, build and operate these strategically-located retail distribution fulfillment centers over an initial term of the next 20 years. With state-of-the-art automation, these two facilities will deliver a combined 59,000 pallet positions to support the local brands of Ahold Delhaize USA in the Northeast and Mid-Atlantic regions,” said Fred Boehler, President and Chief Executive Officer of Americold.

In addition, the new facilities enable Ahold Delhaize USA to innovate in new frozen storage warehouse design, including transforming facilities to enhance automation and leverage technology advancements, such as an integrated transportation management system and end-to-end forecasting and replenishment technology, designed to support the omnichannel experience and multi-channel growth.

“Today’s announcement continues to reinforce how Ahold Delhaize USA is transforming our infrastructure to support the next generation of grocery retail,” added Lewis. “Through this expansion, we will continue to modernize our supply chain distribution, transportation and procurement through a fully-integrated, self-distribution model that will be managed by our companies directly and locally. This will result in efficiencies and, most importantly, product availability and freshness for customers of our local brands – now and in the future – whenever, wherever and however they choose to shop.”

Today, Ahold Delhaize USA companies’ distribution networks include 16 traditional and eCommerce distribution centers that service the local brands of Ahold Delhaize USA, including Food Lion, Giant Food, The Giant Company, Hannaford and Stop & Shop. The network will grow to 23 facilities by 2023. This enhanced distribution network will provide coverage for Ahold Delhaize USA’s local brands from Maine to Georgia.

Considered together, the companies of Ahold Delhaize USA comprise the largest grocery retail group on the East Coast and the fourth largest group in the nation, with nearly 2,000 retail stores and more than 6 million annualized online grocery orders. Additionally, the companies of Ahold Delhaize USA operate some of the most extensive supply chain operations on the East Coast, including more than 1,000 trucks that travel more than 120 million miles annually and deliver 1.1 billion cases to local brands' stores.

About Ahold Delhaize USA
Ahold Delhaize USA, a division of Zaandam-based Ahold Delhaize, is the parent company for Ahold Delhaize's U.S. companies, including its local brands, Food Lion, Giant Food, The GIANT Company, Hannaford and Stop & Shop, as well as Retail Business Services, a U.S. support services company providing services to the brands, and Peapod Digital Labs, its eCommerce engine. When considered together, the local brands of Ahold Delhaize USA comprise the largest grocery retail group on the East Coast and the fourth largest grocery retail group in the nation, operating more than 2,000 stores and distribution centers across 23 states and serving millions of customers each week through a wide variety of store formats with thousands of food and non-food items.

Customers will soon find an Albert Heijn ‘to go’ shop at selected BP retail sites nationwide where they can buy tasty, fresh food and drinks for on the road. The partnership brings together the long-standing expertise and experience of both BP and Albert Heijn to provide a unique convenience range that is fully tailored to drivers’ needs and the specific site location. BP’s existing shop offer will be expanded with the new range later this year, focused on its network of company-owned retail stations.

Expansion of the partnership follows a successful pilot phase, launched in 2016, with Albert Heijn ‘to go’ shops at eight BP retail sites. Customers will be able to choose from a wide range of freshly prepared food and drinks, including barista-quality coffee, sandwiches, salads, croissants and snacks, as well as fresh fruit and vegetable juices. Customers will still be able to buy their trusted car care products, such as Castrol engine oil and windscreen washer fluid.

Marit van Egmond, CEO Albert Heijn, said: “This cooperation with BP seamlessly fits with our growth strategy. We want to be there for our customers anywhere and everywhere. Around the corner, on the road and via ah.nl. Customers need tailor-made solutions, especially when it comes to food and drinks. Their choices may change from moment to moment. With our 130 years of experience we want to make tasty and varied food accessible to everyone and everywhere in the Netherlands and Flanders. In our supermarkets, but also on the road, for example in hospitals, at train stations, colleges and thus petrol stations.”

Ruben Beens, CEO BP Nederland, said: “With Albert Heijn ‘to go’ at our retail sites, we’re meeting a growing demand for convenience, offering a wide, innovative and high-quality range of food and drinks for on the road. Together with our BP Ultimate premium fuels, we offer motorists everything they need at easily accessible locations across the country, with extensive opening hours. The partnership with Albert Heijn underpins the delivery of our strategy to grow our convenience offer globally.“

Effective Feb. 18, 2020, service for Midwest customers placing online grocery delivery orders in Illinois, Wisconsin and Indiana will be discontinued. As a result of this decision, the following facilities will close: a distribution center and food preparation facility in Lake Zurich, Ill., distribution facilities in Chicago, Ill., Milwaukee, Wis., and Indianapolis, Ind., and a pick-up point in Palatine, Ill.

“This was a difficult decision given Peapod’s rich history in the Midwest,” said Kevin Holt, CEO, Ahold Delhaize USA. “We know changes such as these are never easy for consumers and communities. We appreciate the loyalty of associates and customers in the Midwest sales business over the past three decades. We have been and will continue to leverage the learnings from our 30-year legacy of online grocery to enable each of the brands to grow its omnichannel business on the East Coast.”  

The announcement is expected to affect approximately 500 associates in the greater Chicago, Indianapolis and Milwaukee markets. Associates affected by this announcement will be eligible to apply for other roles within Ahold Delhaize USA companies. Eligible associates will be offered severance and transition support services. 

“As we’ve previously shared, to continue our strong track record of sales growth and market share gains, we are accelerating our growth and expanding the leadership positions of our businesses in our East Coast markets,” added Holt. “This move will enable us to fully focus on markets where we have strong store density, leading market share, and a longstanding heritage of customer loyalty.”

Related to the closure, Ahold Delhaize expects no significant impact to reported operating profits or free cash flow. In addition, this announcement does not impact Ahold Delhaize USA’s commitment to its previously stated 30 percent eCommerce growth in 2020.

With over 450 associates located in Chicago and in offices with Ahold Delhaize USA’s East Coast brands, Peapod Digital Labs will remain focused on enabling Ahold Delhaize USA’s local brands to deliver leading omnichannel experiences for their customers and will deploy a new proprietary eCommerce platform for the local brands of Ahold Delhaize USA, which was built in the Chicago office.

“Chicago will remain the headquarters for our Peapod Digital Labs team, and we will continue to draw from the valuable pool of digital and eCommerce talent in the market,” said JJ Fleeman, President, Peapod Digital Labs and Chief eCommerce Officer. “Through Peapod Digital Labs, we will continue to build upon Peapod’s technology legacy. Peapod began here, and we will remain here, in the heart of Chicago. We look forward to honoring and leveraging Peapod’s longstanding legacy of expertise in online grocery and fully focusing our team’s energy and talent on supporting the growth of each of the East Coast brands.”

The first online grocer in the U.S., Peapod was acquired by Ahold USA in 2000. Peapod’s grocery delivery technology and innovation is the basis and inspiration for technologies, which are now leveraged by the East Coast Brands of Ahold Delhaize USA. Peapod technologies that will continue to be used for eCommerce and omnichannel growth through Peapod Digital Labs include: order routing technology for same-day and next-day delivery, a back-end order selection application to support the U.S. brands’ nearly 700 click-and-collect locations, and new loyalty programs with the ability to integrate in-store and online shopping.

Considered together, the companies of Ahold Delhaize USA comprise the largest grocery retail group on the East Coast and the fourth largest group in the nation, with nearly 2,000 retail stores and more than 6 million annualized online grocery orders. 

The $480 million capital outlay will cover a three-year transition period, which will support the acquisition of three distribution facilities by Ahold Delhaize USA from C&S Wholesale Grocers and leases on two additional facilities. In addition, it includes investment in two new fully automated Ahold Delhaize USA frozen facilities to be constructed in the Northeast and Mid-Atlantic of the U.S.

The new self-distribution U.S. supply chain will enable the U.S. businesses to reduce costs, improve speed to shelf, enhance relationships with vendors, and improve product availability and freshness for customers.

“Today’s announcement is another example of how Ahold Delhaize USA is transforming our infrastructure to support the next generation of grocery retail,” said Kevin Holt, Chief Executive Officer, Ahold Delhaize USA and Ahold Delhaize Management Board Member. “Through this initiative, we will modernize our supply chain distribution, transportation and procurement through a fully-integrated, self-distribution model, that will be managed by our companies directly and locally. This will result in efficiencies and most importantly product availability and freshness for customers of our local brands, now and in the future, whenever, wherever however they choose to shop.” 

Excluding the transition expenses, the impact on Ahold Delhaize USA underlying operating income will be neutral in 2020 and 2021 and favorable in 2022 by $60 million. The ongoing annual benefit on underlying operating income will be more than $100 million. During the first three years, there will be transition expenses of $160 million, impacting underlying operating income ($50 million in 2020; $50 million in 2021; $60 million in 2022).

Our previous group level annual free cash flow target of €1.8 billion through 2021 expressly excluded M&A and other such transactions. Therefore, free cash flow will be impacted by an incremental $410 million (€369 million) in capital expenditures from 2020-2022. The total investment also includes an additional $70 million (€63 million) in lease commitments. 

This investment will not materially impact 2019 results and there is no change to the outlook that was provided on November 6, 2019. We reiterate plans to spend approximately 3% of sales on capital expenditures on top of the amount to be spent on this transaction over the next few years. Below are our expectations on the financial impact to results at the US segment and group level through 2023.

We note that beginning in the Q4 2019 earnings release, reported results will include the full impacts from the supply chain transformation. Our underlying operating profit, which is an alternative performance measure, will include the ongoing effects of the supply chain transformation. We will also provide a supplementary disclosure of transition expenses related to the supply chain transformation for informational purposes. Transition expenses include legal/consulting, IT transition, procurement and replenishment transition costs as well as facility start-up costs.

Please join us for an audiocast at 16:00 CET on Wednesday, December 11, 2019, where Frans Muller, Jeff Carr, and Kevin Holt will review the transaction. The audiocast will be available here:

Audiocast 

Cautionary notice

This communication includes forward-looking statements. All statements other than statements of historical facts may be forward-looking statements. Words and expressions such as to invest, to create, expect to see, to be, will, will be, outlook, to be spent, expectations or other similar words or expressions are typically used to identify forward-looking statements.

Forward-looking statements are subject to risks, uncertainties and other factors that are difficult to predict and that may cause actual results of Koninklijke Ahold Delhaize N.V. (the “Company”) to differ materially from future results expressed or implied by such forward-looking statements. Such factors include, but are not limited to, the risk factors set forth in the Company’s public filings and other disclosures. Forward-looking statements reflect the current views of the Company’s management and assumptions based on information currently available to the Company’s management. Forward-looking statements speak only as of the date they are made and the Company does not assume any obligation to update such statements, except as required by law.

The new HSC is in line with Ahold Delhaize’s ambition to grow our omnichannel offering. It provides more capacity, better distribution and room to grow home delivery in other regions, which is important for serving the increasing number of customers who want to order online. This growth is partly the result of Albert Heijn’s efforts to make it easier to order online, for example through the nationwide rollout of its delivery subscription option, and a lower minimum order amount in the middle of the week.  

The facility, which is large enough to hold the entire Albert Heijn assortment under one roof, has been completely renovated and provided with enough power that it will eventually be able to use only electric cars for delivery. The brand already delivers groceries by electric delivery car and bicycle to some customers in Amsterdam and aims to switch completely to electric transport in this area in the coming years. 

New customers in French-speaking Belgium will soon be able to choose from millions of items at bol.com for fast and convenient delivery. Huub Vermeulen, Managing Director of bol.com, said, “In 2010, we officially launched bol.com in Dutch-speaking Belgium. Since September 2014, we have been able to serve our Belgian customers even better thanks to the cooperation with local merchants in Belgium. We would now also like to share the expertise that we have built over the past 20 years with entrepreneurs from the French-speaking part of the country, so that together we can offer a good local alternative. This contributes to our common goal: to be where the customer goes and make life as easy as possible for them.” 

The expansion of bol.com in Belgium fits in with Ahold Delhaize’s ambition to accelerate growth in the country by offering customers here an even better shopping experience, both online and offline. Ahold Delhaize is also active in Belgium with Delhaize and Albert Heijn; bol.com customers can currently choose to pick up their packages at the Delhaize and Albert Heijn stores in Dutch-speaking Belgium.

“Families should be able to provide their children with products they feel confident in,” said Juan De Paoli, SVP of Private Brands for Retail Business Services. “No one believes this more than the local grocery retail brands we support that have elected to carry this new line. In fact, Nature’s Promise Kids is a result of conversations with our grocery retail partners about what they are hearing from their customers. It is an answer to the demand from today’s families for products free from unwanted ingredients at an unsurpassed value.” 

The product line is designed for children ages four and up and is an extension of the free-from line, Nature’s Promise, which includes many organic options. Nature’s Promise Kids features products that are nutritionally equivalent or better than similar traditional products, and are free from synthetic colors, artificial flavors, artificial preservatives, sweeteners, MSG and high fructose corn syrup. This is in line with Retail Business Services commitment to remove these from all own brands by 2025. 

Nature’s Promise Kids products will also contain no more than 500 mg of added sodium per serving, no more than 40% of calories from added sugar and no more than 10% of calories from saturated fat (except for nut, meat, poultry and dairy products) and one or more vitamins and / or minerals at 10% daily value or higher (if relevant to product category). 

Bol.com, the largest online retailer in the Benelux, is opening pick-up points in Delhaize stores across the Antwerp province. Customers can have their orders from bol.com delivered to a Delhaize location of their choice at no extra cost, with delivery time the same as for home delivery.

The new service is especially convenient for customers who want to pick up their bol.com orders and grocery shop during the same trip. Delhaize and bol.com will test the service during the summer and then roll it out to the rest of Flanders.

The collaboration between Delhaize and bol.com is the latest example of how Ahold Delhaize’s local brands in Belgium are increasing efforts to further improve their omnichannel offer and accelerate growth.

Delhaize has expansion plans that include opening around 100 new supermarkets in the next three to four years and a strengthened online proposition. Additionally, Albert Heijn Belgium will continue its expansion by opening 30 to 50 supermarkets in Flanders in the next few years.

This month bol.com will open a branch office in Antwerp to better serve Belgian retailers who sell products on the brand’s platform and create more opportunities to collaborate with local partners.