January 20, 2025 – Ahold Delhaize is proud to announce that the Top Employer Institute (TEI) has recognized both the company and the majority of its great local brands as Top Employers in 2025. This certification recognizes organizations that are dedicated to cultivating great places to work through excellent Human Resources policies and people practices. 

The Top Employer certification highlights Ahold Delhaize’s progress in its Thriving People strategic priority, part of its broader Growing Together strategy, which drives the company’s aspiration to be the leading (#1 or #2) employer of choice in each market. TEI has assessed our brands’ policies and unique practices, which may differ from one another. The recognition celebrates efforts to foster a caring, purpose-driven environment where the brands’ employees are valued, inspired, and empowered to grow and collaborate.  

In 2025, Ahold Delhaize Group and all of its U.S. brands – including ADUSA – achieved the Top Employer certification, alongside several European brands such as Mega Image (Romania), Maxi (Serbia), Alfa Beta (Greece), and Albert (Czechia). The assessment, based on TEI’s HR Best Practices Survey, evaluates organizations based on several areas, including people strategy, work environment, talent acquisition, learning, diversity, equity & inclusion, and well-being. 

“We are a people business. Receiving this certification is positive confirmation that our HR strategy is driving meaningful progress across all these areas,” says Natalia Wallenberg, CHRO of Ahold Delhaize. “It's testament to the  efforts of teams in the local brands and Ahold Delhaize Group, recognizing initiatives that prioritize connection with our purpose, collaboration and well-being, while supporting our brands’ communities. “It also proves that Ahold Delhaize is staying true to its promise: to create a supportive workplace that encourages growth and teamwork, where everyone feels heard, valued, and finds purpose in serving our communities.”  

Jamie’s role is multifaceted and involves close collaboration with Giant Food’s affinity groups and Business Resource Groups (BRGs) to steer programming and initiatives. Jamie works with all functional leads and their teams on how they can integrate diversity, equity and inclusion into the Giant Food business to foster a culture where these values are seen as guiding principles.  

How does Giant Food prioritize sourcing products from diverse-owned suppliers?

“At Giant Food, we work with our vendor partners and our Supplier Diversity team at Peapod Digital Labs, our support business for Ahold Delhaize USA brands, to connect to diverse suppliers with our category team to see where there may be opportunities to bring them into the store. Some examples of certified diverse suppliers that we have on Giant Food shelves include Tea Drops, Mocktail Club, Michele’s Granola, who are all certified women-owned businesses. 

However, our focus on supporting diverse-owned businesses isn’t just supporting businesses with products. We also support diverse-owned businesses that provide services for our business functions, such as Brand Pride, a women-owned certified business (previously certified LGBT-owned business) that provided t-shirts for Giant Food’s Pride Parade last year and Emtrain, a certified woman-owned business that has provided online learning content for Giant Food associates.”  
 

How does Giant Food foster meaningful, long-term relationships with diverse suppliers? 

“We introduced shelf label tags in December 2020 in all 164 of our Giant Food stores. In 2024, we are still going strong with providing shelf tags all year round. These shelf tags help customers identify the creators of certain products, and we are committed to building trust with our vendors and supporting minority-owned businesses that align with our brand values.  

We want to make sure that we are guiding our diverse supplier partners towards programs within store for more visibility of their business and products. During cultural heritage months we take this as an opportunity to highlight our diverse supplies. For example, our THRIVE People of Color BRG worked with our merchandising team to create an endcap with Black-owned businesses for Black History Month which just took place in February. For Women’s History Month (taking place now) we have a “certified women-owned” tab on the Giant Food website.”  
 
Can you share success stories or examples of how partnering with diverse suppliers has enhanced Giant Food’s product offerings, customer engagement, and overall competitiveness?  

“Today’s customers are more conscious than ever before when it comes to shopping. They prefer products that promote healthy habits, support certified diverse brands, and contribute to sustainability efforts. In 2023, we offered our customers a selection of 1,665 products from 194 certified suppliers, and we are proud to have been the first traditional grocery store to roll out shelf label tags in the U.S. Having supplier diversity in our stores has also helped customers discover new brands that they may not have previously been aware of.”  

How does supplier diversity contribute to economic opportunity for underrepresented groups within the food retail industry?  

“Certified minority-owned diverse suppliers are businesses with at least 51% minority ownership, certified by one of our certifying bodies. Having supplier diversity helps in multiple ways – it brings more offerings to our customers, supports small businesses, and reaches new customers who support these businesses. By supporting these businesses, we help them grow and create new jobs and opportunities. 

As we continue to see success with diverse suppliers through our supplier diversity program, we are able to invest more into supporting and growing our program.”
 

What role do we as associates/customers play in contributing to supplier diversity?  

“It is important for us to understand what supplier diversity is and what it isn’t. Through our shelf tag program, we spotlight minority-owned businesses, giving them a platform to thrive. Many customers actively seek to support these businesses, much like they do with local farmers or retailers. As ambassadors of our supplier diversity program, it's our role to guide customers and showcase the program's benefits. The more we talk about it, the more support we provide to certified minority-owned businesses.” 

"Giant is proud to be the first grocery retailer on the east coast to launch a partnership with Loop, a global leader in eliminating waste, and offer our customers a program that allows them to shop for products while helping our environment,” said Diane Couchman, Vice President Category Management, Non-Perishables at Giant Food. “We look forward to expanding our Loop item offerings and launching in more Giant locations in the near future.”  

An assortment of products in reusable Loop containers from well-known brands including Kraft-Heinz and Nature’s Path will be found in branded displays at participating Giant stores. When finished with a product, the empty packaging is returned to a Loop Return Point at any of the participating stores. From there, the containers are sent to Loop to be sanitized, then returned to the CPG suppliers to be refilled and returned to the store for future purchase. Customers are charged a small packaging deposit at checkout, and a full refund is given once the container is returned. 

To maintain advanced sanitization standards for all reusable containers, Loop consults with Ecolab Inc. — a global leader in cleaning and hygiene solutions — to identify proper equipment and design on-site cleaning procedures. 

The launch event – held at the Cathedral Commons Giant Food store in Washtington D.C. – was attended by the following people: Tom Szaky, Founder and CEO of TerraCycle and Loop; Mary Cheh, Washington, D.C. Councilmember of Ward 3; Stacy Cobb, Head of Strategic Planning at The Kraft Heinz Company; and Daniel Wiggington, Director of Direct Store Delivery at Giant Food. They are pictured together cutting the ribbon at the end of the launch event.  

For more information on Loop, visit www.exploreloop.com.  

“We believe transparency brings both accountability and change, and we recognize the important role we play as a local retailer and essential service in our communities,” said Ira Kress, President of Giant Food. “We’re committed to publishing our work and progress as we strive to continue to improve every day and serve as a positive presence and leader for our associates, customers and partners across each of the communities we are privileged to serve.” 

Within the report are details of Giant’s initiatives in serving its customers, associates and communities throughout 2021. Highlights from the report include: 

Better Neighbor 

• 4,600,288 pounds of food donated to communities through Giant’s Feeding America food bank partners 
• $1.25 million donated to the USO of Metropolitan Washington-Baltimore through a combined effort of Giant and its customers to support local service members and their families 
• $2.29 million raised through the Annual Pediatric Cancer Fundraising Program benefitting The Children’s Cancer Foundation and Johns Hopkins Oncology Department 
• $300,000 donated to local organizations working to eliminate race, ethnic, gender, health and economic disparities 
• $2 million pledged through the Giant Family Foundation to communities facing severe economic and health inequalities 
• 900 participants impacted by the growth of the Produce Rx Nutrition Incentive Program, in partnership with DC Greens to provide healthy fruits and veggies 
• 3.9 million plastic bags saved from landfills and 102,400 meals provided to local nonprofits through the Giant Bags4Cause fundraising program 

Better Place to Shop 

• Over 1,100 classes, store tours and community events offered by the Giant Healthy Living team 
• Over 38,000 individuals reached through nutrition education efforts 
• Over 1 million vaccines administered, including COVID-19 vaccines and boosters to community members at 152 Giant Pharmacy locations as well as through mobile vaccine clinics 
• Continued to spotlight 218 diverse suppliers offering over 3,100 products to Giant customers 
• Grew local vendor partnerships to over 200, partnered with more than 50 local farms, to offer over 800 local products and growing 
• Launched a local aisle online at giantfood.com featuring a collection of local offerings including over 70 unique online exclusive items 
• Launched online SNAP benefits allowing customers to pay for grocery delivery or pickup orders with an EBT card 

Better Place to Work 

• Named one of The Washington Post’s Top Places to Work 2021 
• Earned 100% on the Human Rights Campaign’s Corporate Equality Index for the third consecutive year for efforts in LGBTQ+ workplace equality 
• Offered associate engagement in Business Resource Groups including Pride, THRIVE, Giant Veterans, Women’s Inclusive Network, Corporate Council and Young Professionals 
• $130,000 in scholarships and grants awarded to 40 associates 
• #HealthyAtWork program offered to associates led by over 160 Healthy Living Ambassadors 
• Celebrated top performing leadership members and associates through 73 Presidential Awards for Top Values in motion winners, two Top Women in Grocery award recipients and 11 Women of Influencer winners 

For more information, view the full Better Neighbor Report here.  

Our Ahold Delhaize U.S. brands have been recognized as a Best Place to Work for LGBTQ+ Equality. And our brands earned perfect scores on the Human Rights Campaign Foundation’s 2022 Corporate Equality Index (CEI), a benchmarking survey and report measuring corporate policies and practices related to LGBTQ+ workplace equality. We believe in a workplace that reflects our values, where all associates are respected, and where they can show their full talent – no matter how they identify themselves, who they love or how they like to dress. We’re proud of all our colleagues.   

In honor of Pride Month this June, we got to learn how our great local U.S. brands are celebrating and advocating this time of year. First up is Giant Food...

The Giant Food team is excited to be a part of what is expected to be one of the largest Pride parades to ever take place in the U.S. capital, Washington DC. They’ve been waiting three years for this day – and the parade is set to be bigger and better than ever this year! Giant Food donated $15,000 to the Capital Pride Alliance to be a sponsor and participate. The brand will have a Vintage Giant truck and a Giant Deliver’s truck and van in the parade, along with around 100 associates handing out water, cooling towels and limited-edition Pride Oreo packaging, and will provide a board of positive messages for the community to sign and fill out.

The brand’s Pride Business Resource Group (BRG) has also planned fun initiatives as part of Pride Month. During June, store associates can wear their Pride shirts to show support for the LGBTQ+ community. And the BRG will hold a contest in the stores where field specialists judge the best Pride merchandising, showcasing LGBT-owned and Pride-packaged products.  Additionally, the Pride BRG and THRIVE People of Color BRG will be celebrating Pride and Juneteenth by playing trivia to learn and understand the origins of these events and their history on June 16^th with associates.

To further support the LGBTQ+ community, Giant Food will match a $12,500 Procter & Gamble (P&G) donation to the “Can’t Cancel Pride 2022 – Proud AND Together” fundraiser, for a total donation of $25,000. Celebrating visibility and inclusivity, this event, put on by iHeartRadio and P&G, will look back on “The Year in Pride,” with performances and appearances from the most influential voices in the LGBTQ+ community and the biggest names in culture and entertainment. It will stream on iHeartRadio’s TikTok, YouTube, Facebook pages, iHeartRadio’s PrideRadio.com and Revry on June 14.

Stay tuned to see how some of our other brands celebrate!

Ahold Delhaize and our great local brands are committed to diversity, equity and inclusion with ongoing efforts to create a world free of bias, stereotypes, and discrimination. It is a topic that is part of the Ahold Delhaize DNA and comes to life in our values of courage, integrity, and care.  

Hannaford 
Hannaford supports young people living with a neurodiverse diagnosis by encouraging independent living and job readiness skills. In order to provide a real-life experience in grocery shopping, Hannaford Supermarkets donated grocery shelving and a checkout station, complete with conveyor belt and bagging area to the Maine Behavioral Healthcare’s Glickman Lauder Center of Excellence in Autism and Developmental Disorders (GLCOE).  

The dedicated grocery training area is a 28,000 square foot innovative facility that opened in August 2021. In addition to outpatient treatment for all ages, the center includes a life-skills room with a grocery shopping station as well as special chairs for practice with getting haircuts, dental care and health care. 

“These are more than just nice activities – if a person is unable to do these things it can result in serious problems, such as feeling overwhelmed in the grocery checkout line, a dentist’s chair, or in a doctor’s office.  We are thrilled to have this resource to provide practice in these key life experiences,” said Dr. Matthew Siegel, vice president of medical affairs for autism and developmental disorders 

“Going to the grocery store is being part of the community, so we are proud to partner with the Glickman Lauder Center (GLCOE) in helping neurodiverse members of our community develop new skills related to the shopping experience,” said Eric Blom, Hannaford spokesman. “We are so thankful for the work being done at the Center every day to help people with autism and developmental disorders lead full, rich lives.” 

Hannaford also supports associate initiatives such as Chris Heel's annual autism fundraiser. Chris started a 5K walk to benefit the Autism Society of Maine (ASM) when he was high school student. What started off as a senior year project has now turned into an annual event on Mount Desert Island. Since Chris started his "senior project", he has raised over $30,000 to help support nonprofits including the ASM. 
 

Stop & Shop  
Stop & Shop honored Autism Awareness Month and promoted acceptance for the condition that occurs in one out of every 44 children in the U.S. SVP Human Resources, Maria Silvestri, wrote a personal message to associates, sharing some of her experience as a grandmother of a neurodiverse child who is living with an Autism Spectrum Diagnosis, and invited associates to virtual events during the month, presented by the United Nations and the NIH (National Institute of Mental Health), and the OARC (Office of Autism Research Coordination), to increase their own awareness, acceptance and inclusion. 
 

Mega Image 
The Urban Garden project, developed by CONIL Before & After-school Center for children living with autism, is supported by Mega Image through their “Project of Today for Tomorrow” 2021 program. On April 5, children living with a disability had the opportunity to plant flowers, vegetables and fruits in an urban garden with the help of teachers and Mega Image representatives. The objective is to support and promote healthy eating for children, and to also provide learning and recreative activities in a therapeutic way. 

As Diversity Month is recognized during May in Europe, Mega Image will also raise awareness of diversity and inclusion via its strong involvement in a number of initiatives. This includes helping displaced Ukrainian people integrate into life in Romania by welcoming them into Mega Image’s community and providing employment opportunities in its warehouses, headquarters or 900+ stores. Moreover, associates are offered the opportunity to support social causes, through Mega Image’s internal volunteering program, 12 Acts of kindness. 

Mega Image will also continue its online series of events, Community Talks, with a new edition focused on “Pandemic vs War: The impact of social context on women”. Ileana Alexandru, HR VP; representatives of She is Mom digital platform; and a psychologist will discuss the topic. Furthermore, Mega Image will support the Lead Network community by joining its “Breaking the Biases” event, where Ileana Alexandru, HR VP, will join as a guest speaker. 

The Giant Company  
As part of Diversity Month in the U.S. The GIANT Company honored Autism acceptance by focusing on their commitment to building a culture of acceptance and inclusion. This month and every month, The GIANT Company strives to break down all physical, intellectual, and sensory barriers so that all people, including individuals with autism, can reach their fullest potential, regardless of their unique strengths and challenges. 

Throughout April, team members were encouraged to wear Autism Acceptance pins provided by The GIANT Company to foster inclusion and were also encouraged to wear blue on World Autism Awareness Day. Stories and experiences of team members with autism were also shared throughout the month and vendor partner Popcorn for the People was recognized for its efforts to create meaningful employment for individuals with Autism and other spectrum diagnoses. The GIANT Company’s DE&I Team and BARRIER FREE Business Resource Group also hosted a virtual event for team members called “From Awareness to Acceptance” to build a better understanding and embrace everyone's differences. 

Additionally, The GIANT Company also supported community events with the shared vision of celebrating diversity, building equity and promoting inclusion, including the local YWCA Race Against Racism and 21-Day Racial Equity and Social Justice Challenge, Race for Resources for Autism Cares Foundation of Bucks County, Pennsylvania, the Kinney Walk/Run for Autism, and an Autism Awareness Luncheon in Philadelphia.   

Giant Food 
Giant Food recognizes and celebrates neurodiversity in various ways, and it is committed to breaking down barriers to allow all people to succeed. Below are just some examples on how Giant Food is committed to this. 

Giant Food stores partner with their local schools to provide “on-the-job” experience with the assistance of a job coach to students with disabilities. Students are hired and paid for several hours each week learning general tasks that help them build customer service and teamwork skills that are useful for any future career of their choice. Through these programs Giant Food has hired many associates with disabilities, creating a better diverse and inclusive company culture.  

For many years, Giant Food has been a sponsor of the Quality Trust for Individuals with Disabilities. This is an independent, non-profit advocacy organization focused on improving the lives of children and adults with disabilities and their families in the District of Columbia and beyond. In 2021, Giant Food sponsored the Quality Trust “Back Together Luncheon,” an opportunity for their staff, supporters, and stakeholders and specifically the people with developmental disabilities they support; who have said they are experiencing depression as they have had to isolate for over a year and a half and want to be with people. 

During Autism Acceptance month throughout April, Giant Food associates also showed their support and acceptance of the Autism community by wearing red while working in stores, distribution centers, delivery centers and the office.

Delhaize Serbia  
Honoring Diversity Month, Delhaize Serbia is spotlighting its collaboration with the Creative and Educational Center (CEC), an organization focused on the inclusion of persons living with a mental or intellectual disability through a range of programs, initiatives and partnerships. These initiatives allow people living with a neurodiverse diagnosis to improve their quality of life, provide preparation for an independent life, social inclusion, future employment, as well as raising awareness to the general population and breaking prejudice.  

One of the most successful initiatives between CEC and Delhaize Serbia is its work-ready program. Participants of the program learn about store processes and gain experience across the stores in Belgrade, three times a week for one hour. This program has been successful not just for enhancing inclusion, but for also building awareness and a better understanding of neurodiverse diagnoses among associates and customers. This year, the program will be renewed for a 10th time and soon a new group of participants will take part in the program across Delhaize Serbia stores. 

At Ahold Delhaize, the inclusion of people with disabilities is a priority. More importantly, it is vital be fully reflective of all communities. Therefore, many of our local brands have and are continuously working on several partnerships and initiatives while creating opportunities to support all associates and customers within local communities. Below are just some examples of how our brands are working towards achieving an inclusive workplace for all:  

Delhaize Serbia 

For Delhaize Serbia, the inclusion of people with disabilities is not only a strategic priority in its Diversity & Inclusion agenda, but it’s also their aspiration to be fully reflective of their marketplace. To achieve an inclusive workplace, it’s more than employment, it’s also about everyday activities. This year, Delhaize Serbia achieved the following in being a better inclusive workplace:  

• Its commerce team extended cooperation with two diverse suppliers: Novitas, a local supplier of fruits and vegetables and Gardenika, a seller dried fruit rolls. Both companies' majority of employees are people with disabilities.  
• The quality and product safety team took initiative to assure that all their e-trainings for associates are fully accessible, including narration and subtitles.  

Delhaize Serbia’s journey doesn’t end here, it is continuously working towards a better and inclusive workplace for people with disabilities.  

Giant Food 

Giant Food has several partnerships and initiatives throughout the year to support associates and customers with disabilities. Below are some of Giant Food’s initiatives which they’re continuously working to expand:  

• Giant Food stores partner with their local schools to provide “on-the-job” experience with an assistance of a job coach, to students with disabilities. Students will be hired and paid for several hours each week learning general tasks that help them build customer service and teamworking skills that are useful for any future career of their choice. Through these programs Giant Food has hired many associates with disabilities, creating a better diverse and inclusive company culture.  
• Giant Food’s WIN (Women’s Inclusion Network) increased awareness during Autism Acceptance Month by hosting an EMPOWER Hour featuring expert speaker, Jane Lynn Britton where she discussed balancing work and family life for Autism Families during the pandemic. This brought an increased awareness about the Autism community and showcased the importance of empathizing with associates and customers. In addition, Giant Food associates showed their support and acceptance of the Autism community by wearing red while in working in stores. 
• Giant Food has been a sponsor of Quality Trust for Individuals with Disabilities for many years. This is an independent, non-profit advocacy organization focused on improving the lives of children and adults with disabilities and their families in the District of Columbia and beyond. They work with people and their family members to solve problems, identify opportunities for learning and contribution, Quality Trust looks for creative ways to minimize differences and make the most of each person’s abilities.  
• The Giant Pharmacy partners with the Arc of Prince George’s County in Maryland to provide COVID-19 vaccinations to community members with developmental/intellectual disabilities. Many of the community members that go to the Arc of Prince George’s County cannot get to a Giant Pharmacy and are more comfortable at the Arc so the Giant Pharmacy has setup a base there where people can come and get their COVID-19 vaccination. Giant Pharmacists will even go out to the car of the people that visit to give them the shot if they are unable to enter the building. Giant Food now looks forward to partnering with the Arc of Prince George’s County going forward. Giant will hold flu vaccinations and other pharmaceutical events there to support people with disabilities. 

Food Lion 

Food Lion supports disability awareness by providing job opportunities and a sense of belonging to associates living with a disability. William Kidwell joined Food Lion a little more than two years ago as a cashier, through the Center for Independent Living, which provides employment assistance for individuals with disabilities. William became a triple amputee following a motorcycle accident in 1995 and he spent four months in the hospital. William shares why he feels he belongs at Food Lion.  

“I’m part of the team. They count on me. When we need more people to work, I’m asked like everyone else. I run lane #7, the express lane. Customers know I’m going to be there. We focus on what I can do and that means a lot to me.”  

“I feel accepted by everyone at my store. One example of acceptance is that even though I run the express lane, some customers with a basket full of groceries just want to check out with me. They know me and I know them. They want that personal experience. Managers jump into help so we can just keep the lane moving. It’s great to feel that connection and support.”  

“At our store we love Shop & Earn. It feels great for me to teach customers about it. We show them how to use it on their phones and I can see their smiles when they see those savings. I love to help people like that.” 

“I love my job and it began with Food Lion giving me a chance. Lots of other people would have looked at me and focused on what I couldn’t do because of my disabilities. Food Lion believed in me and told me I could do it. Leaders told me I’d be good out front. That gave me the confidence I needed to show everyone what I could do. We really have a good team. I love it, I do. 

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As previously announced, FreshDirect will retain its brand name and continue to independently operate out of its facility in New York City. 

Frans Muller, Ahold Delhaize’s Chief Executive Officer, said, “We are very pleased that we can now definitively welcome FreshDirect to our family of great local brands. This leading local online brand with a large and loyal following will help us reach additional customers in the New York trade area and further propel our omni-channel evolution. We are looking forward to working with our new FreshDirect colleagues.” 

David McInerney, FreshDirect’s Chief Executive Officer, said, "Today marks the beginning of an exciting new era for FreshDirect. Ahold Delhaize will build on FreshDirect’s success, ensuring the continued growth of our company, while creating synergy and maintaining the uniqueness of the brand. I am thankful to our loyal and devoted customers, many of whom have been with us since the beginning, and very proud of and grateful for the FreshDirect team, which has worked tirelessly over the years to make our company a leader in the field. The entire FreshDirect team looks forward to working together with our new colleagues.”

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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.

Giant Food, UFCW Locals 27 and 400 (collectively the “Union Locals”) and the Pension Benefit Guaranty Corporation (“PBGC”) have reached an agreement on Giant Food’s funding obligations with respect to two multi-employer pension plans: the Food Employers Labor Relations Association and United Food and Commercial Workers Pension Fund (“FELRA”) and the Mid-Atlantic UFCW and Participating Employers Pension Fund (“MAP”). As a result of this agreement, the PBGC has approved the combining of MAP into FELRA (the “Combined Plan”) and has agreed to provide financial assistance to the Combined Plan following its insolvency, which is currently projected to occur in 2022. The agreement is intended to resolve all of Giant Food’s existing liabilities with respect to the FELRA and MAP Plans and improves the security of pension benefits for associates as well as reduces financial risk for Giant Food. Giant Food will invest approximately $800 million (~€650 million) into pension benefits for associates as part of this agreement. The pension-related investments announced by Ahold Delhaize during the course of 2020 - including those of National, 1500, and today’s announcement - have greatly reduced Ahold Delhaize’s financial exposure to the multi-employer pension plans of its U.S. brands, Giant Food and Stop & Shop, and were achieved without impacting the 2020 financial outlook due to the strong financial performance in the year-to-date, through Q3 2020 at Ahold Delhaize.

This agreement will not impact Ahold Delhaize’s previously issued financial guidance for 2020 and is also not expected to have a material impact on Ahold Delhaize’s free cash flows or underlying financial results beyond 2020. Further, this statement should not be interpreted as an update to any component of the previously issued 2020 outlook, announced in the Q3 2020 earnings release. 

The agreement consists of the following components:

• Following the combination of FELRA and MAP, the PBGC will provide financial assistance to the Combined Plan to fund benefit payments up to the level guaranteed by the PBGC. Giant Food will pay the withdrawal liability to the Combined Plan in monthly installments, commencing in February 2021 for the next 25 years.
• Giant Food will create a new single employer plan to cover benefits accrued by Giant Food associates under the Combined Plan that exceed the PBGC’s guarantee level following the Combined Plan’s insolvency (“excess benefits”).
• Giant Food will create a new multi-employer plan with Safeway to provide excess benefits for certain other participants in the Combined Plan for whom Giant Food previously assumed responsibility. Giant Food intends to exercise its option to withdraw from this plan, which is currently estimated to be approximately $10 million (€8 million) in total, at some point during the next few years.

Each of the above plans is a frozen plan, meaning that no further benefits will be accrued. With this agreement, Giant Food has significantly de-risked its pension exposure and has improved the security of pension benefits for plan participants. The above plans, in essence, remain defined benefit plans, as referred to in the ‘How we manage risk’ section of the 2019 Ahold Delhaize Annual Report for related risk factors for pension and other post-employment benefits. 

As part of establishing these plans, Giant Food will record an approximately $800 million (~€650 million) pension-related liability, with a corresponding reduction in the Ahold Delhaize FELRA and MAP multi-employer plan off-balance sheet liabilities. This pension-related liability will be recorded as a non-cash, pre-tax charge to pension expense, which will impact Q4 2020 IFRS results. This charge will be excluded from underlying results and will therefore not impact the previously issued underlying operating results outlook for 2020. On an after-tax basis, the charge amounts to approximately $554 million (~€450 million). 

Giant Food will also make contributions to a new variable annuity pension plan (“VAP”) for future service benefits for Giant Food associates who are represented by UFCW Locals 27 and 400. The VAP as well as the above plans are designed to protect benefit accrual of participants, with a significantly reduced risk of plan underfunding and improved visibility on annual contributions.

Overall, the total ongoing annual contributions to settle the Combined Plan and for the newly created plans are not expected to impact Ahold Delhaize’s underlying financial results going forward. The total impact to underlying net income does not differ materially to the impact from contribution amounts that have been in place for the previous plans, which totaled $37 million (€33 million) in 2019.

Ahold Delhaize’s full year 2020 free cash flow outlook, as well as future free cash flows beyond 2020, are not expected to be materially impacted by these agreements.  

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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.

“We want shoppers to be able to trust that when they purchase any seafood product from Giant, that it is coming from a verified source,” said Ira Kress, President of Giant Food. “Participating in the ODP represents our assurance to total transparency and being able to offer products that are in line with our commitment to sustainable sourcing throughout every department of the store.”  

Giant Food is also a partner of the Gulf of Maine Research Institute (GMRI), which ensures that all seafood that enters stores is vetted against the specific criteria in Giant’s sustainable seafood policy. This announcement marks the latest sustainability commitment for Giant, a long-time industry leader in responsible and environmentally conscious operations. 

“Knowing where your seafood comes from is a critical element of any effort to buy sustainable seafood. By joining the ODP, Giant Food is pulling back the curtain and being transparent about the original sources of the seafood sold in stores.” – Kyle Foley, sustainable seafood senior program manager at GMRI. 

Through Giant’s Bags 4 My Cause program, which was launched to support local nonprofit organizations while working to reduce single-use paper and plastic waste in the environment, $15,000 was donated through shopper Community Bag purchases to the Alliance of the Chesapeake Bay, an organization whose mission is to bring together communities, companies, and conservationists to improve lands and waters. To learn more about Giant’s Bags 4 My Cause program visit https://giantfood.bags4mycause.com.

For more information on Giant’s commitment to sustainability, visit giantfood.com/pages/sustainability. 

“Ira has been a dedicated leader for Giant Food for 36 years and we are proud to appoint him to this role,” said Kevin Holt, president, Ahold Delhaize USA. “Ira has been serving as interim president of Giant Food since last summer, and he has continued to lead the brand with success. He is an excellent leader, with a strong focus on serving customers, engaging associates and supporting local communities. During his role as interim president, Ira has continued to successfully grow sales, market share and build strong associate engagement during an unprecedented time for our industry.”

Kress added, “It’s been an honor and privilege to lead Giant Food, especially during this time when our customers and communities have never needed us more. I’m honored to continue in the role and am incredibly appreciative of our associates who serve our customers with excellence every day. I look forward to continuing to grow the Giant Food brand in our communities.”

Kress currently serves as interim president of Giant Food. He joined Giant Food, an Ahold Delhaize USA company, in 1984 and has more than 36 years of retail experience, having started in store operations management and served in a variety of leadership roles in retail operations, human resources, training and labor relations. In addition, Ira held a leadership role in human resources at Ahold USA. Kress is active in the community and serves as a Board member on Johns Hopkins Pediatric Oncology Advisory Council and the Ahold Delhaize USA Family Foundation.

Giant Food is headquartered in Landover, Md., operates 164 supermarkets in Virginia, Maryland, Delaware, and the District of Columbia and has approximately 20,000 associates.

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.

“Our new Giant Pickup service is a great option for busy shoppers who can plan ahead and pick up all their groceries without ever leaving the car. Whether on the way home from work, heading to a summer BBQ or just getting the weekly grocery shopping done all that much faster, this really is all about giving our shoppers tools to let them shop however they prefer,” said Gordon Reid, President of Giant Food. “We’re proud to offer this service to help customers save time so they can get back to what matters most.” 

With Giant Pickup, customers now have another option to suit their busy schedules, from shopping in-store to pickup and home delivery. They can choose a convenient pickup window, opting for same-day pickup in as little as four hours or next-day service.  

Last month, two other Ahold Delhaize USA brands announced major steps forward in pickup. Stop & Shop launched same-day online pickup and plans to roll out 175 “click-and-collect” locations by the end of the year and Food Lion announced it would launch "To-Go" grocery pick-up service to close to 50 stores across its network. 

The goal is to expand online pickup to more than 600 stores across the Ahold Delhaize USA brands by the end of 2019.  

Quincy, Mass, United States – Ahold Delhaize USA today announced leadership changes at two of its U.S. brands. The changes include:

• Mark McGowan, President, Stop & Shop has made the decision to leave the organization. McGowan will remain with Stop & Shop through year-end, at the company’s request, to ensure a seamless transition.
• Gordon Reid, President of Giant Food, will become President, Stop & Shop. Reid will begin transitioning to this new role in the coming weeks, and officially assume the role in late July.
• Ira Kress, SVP, Operations for Giant Food, has been appointed as interim President, Giant Food.

Kevin Holt, Chief Executive Officer of Ahold Delhaize USA, said, “Mark McGowan has had a tremendous impact for the Ahold Delhaize USA brands, as well as the communities they serve, and we thank him for his 30-years of tireless service. Under his leadership, Stop & Shop has built a strong foundation for transformation and expanded success that continues through our ‘Reimagine Stop & Shop’ initiative. As Mark transitions, I have full confidence that Gordon Reid is the right leader to continue this transformation by repositioning the business for future success and rebuilding customer loyalty.”

Mark McGowan said, “It’s been an honor and privilege to lead the Stop & Shop brand. I’m grateful for our associates who are incredibly dedicated to serving our customers every day, and I’m extremely proud of all that we have accomplished together. As Stop & Shop embarks on the next phase of its transformation, now is the right time for me to make this change.  I look forward to working closely with Gordon and the entire team to ensure a seamless transition.”

Gordon Reid currently serves as President of Giant Food, which has 165 stores in the greater Washington, D.C., area. Reid joined Giant Food, an Ahold Delhaize USA company, in 2013 and has more than 35 years of international retail experience, having served in a variety of management roles at Boots, A.S. Watson Group and The Dairy Farm Group before joining Giant Food. Reid is active in the community and serves as a member of the USO Washington-Baltimore Executive Board, Capital Area Food Bank Board and a member of the Partnership for a Healthier America. He holds a bachelor’s of science in pharmacy from Heriot Watt University in Edinburgh, U.K. and a master’s degree in business administration from Nottingham University Business School in the U.K.

“We are excited for Gordon to join the Stop & Shop brand,” added Holt. “Gordon is an excellent leader of people, with a strong focus on serving customers, engaging associates and supporting local communities. During his time at Giant Food, the brand has successfully grown sales and market share, and has strong associate engagement results.”

Both Reid and Kress will assume their new roles in late July.

MEDIA CONTACTS:

Christy Phillips-Brown +1 -704-310-2221

Erin DeWaters +1-704-310-3884

The press release it also to download on the upper right side of the page.