“This was a difficult decision, especially given FreshDirect’s rich history in the New York City area,” said JJ Fleeman, CEO, Ahold Delhaize USA. “However, our strength as a grocery retailer in the U.S. is the true omnichannel experience – a combination of online and in-store – where we have leading brands and market share, strong store density and online presence, and a deep heritage of customer loyalty and relationships. With this decision, we will increase our focus on omnichannel – our biggest growth opportunity.”

There are no changes for FreshDirect customers as a result of the transaction. All customers will continue to be served by their local delivery teams. In addition, there are no changes to DeliveryPass subscriptions or other services.

“We are proud of the positive impact FreshDirect has had in the online grocery space, raising the bar in offering the best in-season selection of locally sourced goods,” added Fleeman. “In the coming weeks, we are committed to supporting a smooth transition for FreshDirect’s valued employees, customers, partners and communities, who have been loyal to the brand over the past 20 years, so that FreshDirect will be well positioned to continue as an integral part of New York’s food culture under Getir’s ownership.”

Headquartered in the Bronx and serving the greater New York tri-state area, FreshDirect has 3,200 employees and a deep-rooted culture of delivering the highest quality, freshest food. Founded in New York City in 2002, FreshDirect was acquired by Ahold Delhaize USA in January 2021.

About Ahold Delhaize USA

Ahold Delhaize USA, a division of Netherlands-based Ahold Delhaize, is the parent company of Ahold Delhaize’s U.S. companies, including its local brands – Food Lion, Giant Food, The GIANT Company, Hannaford, Stop & Shop and FreshDirect, along with Retail Business Services, its U.S. support services company; Peapod Digital Labs, its digital and e-commerce engine; and ADUSA Distribution & Transportation. 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 more than 20 distribution centers across more than 20 states and serving millions of omnichannel customers each week.

Cautionary, forward-looking statement

Statements that are included or incorporated by reference in this press release, other than statements of historical fact, which address activities, events and developments that Ahold Delhaize USA, Inc. expects or anticipates will or may occur in the future, including, without limitation, the completion of the sale of Fresh Direct, the expected effect of the portfolio optimization, strategic options, future strategies and the anticipated benefits of these strategies, are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as  “believe,” “predict,” “strategy,” “may,” “expect,” “anticipate,” “intend,” “will,” “should” or other similar words or phrases. Although such statements are based on current information, actual outcomes and results may differ materially from those projected depending upon a variety of factors, including, but not limited to, changes in the general economy or the markets of Ahold Delhaize USA, Inc., in strategy, in consumer spending, in inflation or currency exchange rates or in legislation or regulation; competitive factors; adverse determination with respect to claims; inability to timely develop, remodel, integrate, open, convert or close stores; and supply or quality control problems with vendors. Additional risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in the most recent Annual Report of Ahold Delhaize NV, parent of Ahold Delhaize USA, Inc., and subsequent press releases issued by Ahold Delhaize NV or Ahold Delhaize USA, Inc., which risk factors are incorporated herein by reference. Except as required by law, Ahold Delhaize USA, Inc. and its parent Ahold Delhaize NV disclaim any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.

Read the full interview below.   

 

What does Juneteenth mean to you and what does the day recognize? 

Juneteenth is the federal holiday in the United States that officially commemorates the end of slavery as an institution in this country. Although Abraham Lincoln initiated the Emancipation Proclamation in 1863, slavery did not end in this country until two years later in 1865. This holiday brings the ability for African Americans and its descendants to remember our past and never forget the struggle of our ancestors and their contributions towards making America what it is today for everyone. 

 

How is FreshDirect honoring Juneteenth? Internally and within the community?
 

This year FreshDirect is honoring Juneteenth by participating in two events. We are partnering with the Museum of Food and Drink (MOFAD) and the Association for a Better New York, one of NYC's leading business organizations, for a daylong celebration that commemorates Juneteenth through art, culture, music, and food. Additionally on Sunday June 20th, FreshDirect is partnering with a nonprofit organization, the Brooklyn Bank, to co-sponsor a Black economic wealth conversation at the historic Kings Theater in Brooklyn, New York. 
  

Juneteenth is an important example for advocating change. How is FreshDirect moving towards a more equitable future with racial equality and inclusion?  

FreshDirect is proud of its role as a progressive brand that constantly looks to push the agenda for racial equity and inclusion forward. FreshDirect is a “majority minority” brand, meaning that the majority of our employees are people of color. That is a tremendous step towards equality.    

This week we held an LGBTQ+ panel discussion featuring employees who shared their stories as people of color, and the challenges they face on a daily basis. The willingness of FreshDirect and its leadership to provide a safe space for individuals to speak freely is an extraordinary triumph, and our panel discussion was well received.  

Additionally, FreshDirect programming and its outreach methods that are led by this office (Public Affairs) are targeted to individuals of all backgrounds, serving as a unifying force for individuals to come together under the spirit of food. 

 

Do you have any other comments to share about Juneteenth?  

While Juneteenth is a day of commemoration and for some a day of celebration, we must not lose sight of the fact that the struggles that people of color face continue to persist in America and beyond. I hope that many of you who are not familiar with Juneteenth take a moment of somber reflection to understand that which binds all of us. What binds all of us together is the common pursuit of fairness, equality, and love for one another that comes from a much higher place. My hope is that you will find the time to contribute towards the betterment of another. Through the struggles of our ancestors – using Juneteenth as the catalyst - we can all work to make the world a much happier, pleasant, and safer place.  

Larry Scott Blackmon leads community and government relations, and serves as FreshDirect’s main driver for Diversity, Equity, and Inclusion initiatives. He also holds an executive certificate from Northwestern University having completed its rigorous Diversity Equity and Inclusion program. 

“I would like to congratulate Dave on his appointment to lead FreshDirect. He brings a wealth of experience to the brand, having recently led Omnichannel Merchandising Support for the Peapod Digital Labs division of Ahold Delhaize USA”, said Frans Muller, CEO Ahold Delhaize. “He is a great choice to continue to drive FreshDirect’s growth as a key pillar of Ahold Delhaize’s omnichannel strategy.”  

Dave Bass, incoming FreshDirect Managing Director said, “FreshDirect is a truly unique brand, working directly with local suppliers, growers and farmers to deliver the freshest and best-tasting products directly to people’s doorsteps. I look forward to working with the team and helping FreshDirect grow its leading customer service and high-quality assortment to customers in the greater New York City area.”   

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 will, continue, growth, strategy, look 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.

“FreshDirect has been an amazing, life-changing, 20-year adventure for me,” said McInerney. “I have been so fortunate to have worked alongside an incredible team of talented, dedicated people who all share the same passion for our mission – to make great fresh food easy to get. Our amazing farmers, ranchers and fishermen have inspired me every day as partners, teachers, and true friends. With the commitment and support of Frans, Farhan, and the entire Ahold Delhaize team, FreshDirect is in excellent hands and well positioned for continued success." 

Siddiqi said, "On behalf of Ahold Delhaize, I want to thank David for his dedication and leadership over the past two decades. As co-founder, David has been instrumental in establishing FreshDirect’s philosophy in bringing the best fresh and high-quality products to people’s doorsteps in the Tri-state area. We will ensure a smooth transition and honor FreshDirect's unique customer-focused and food-centric culture and deep connection with its suppliers. FreshDirect's customers will continue to enjoy the high-quality fresh food, great tasting products and stellar service for which FreshDirect is known.” 

A search will be initiated for a new CEO, who will lead FreshDirect in its next phase of growth as a member of the Ahold Delhaize family of great local brands.  

Ahold Delhaize and Centerbridge Partners announced on November 18, 2020, that they had entered into a definitive agreement to acquire FreshDirect, based in New York City. The sale closed on January 5, 2021. 

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 will, to make, is, now, look forward, next, commitment, well positioned, continue(d), ensure, mission 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, both in stores and online, in the United States, Europe, and Indonesia. Together, these brands employ more than 414,000 associates in 7,137 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. The company’s focus on four growth drivers – drive omnichannel growth, elevate healthy and sustainable, cultivate best talent and strengthen operational excellence – is helping to fulfil its purpose, achieve its vision and prepare its brands and businesses for tomorrow. 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 Fresh Direct 

FreshDirect is a leading online food grocer, delivering directly to customers across the New York, Philadelphia and Washington, D.C. metropolitan areas. 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 and headquartered in the Bronx, NY, FreshDirect was acquired by Ahold Delhaize and Centerbridge Partners in January 2021. 

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.