Ahold to offer more private brands

by Eric Schroeder
Share This:

AMSTERDAM, THE NETHERLANDS — Royal Ahold, the Dutch operator of U.S. supermarket chains Stop & Shop and Giant, is broadening its offerings to customers through improving its private brand product line and building its on-line business, company executives said Feb. 28 in conjunction with the release of fiscal 2012 earnings.

Underlying operating income in fiscal 2012 totaled $1,069 million at Ahold USA, up narrowly from $1,067 million in fiscal 2011. Sales for the full year increased 3% to $25.8 billion.

The company said it is “satisfied” with the integration and performance of the 15 former Genuardi’s stores that were acquired from Safeway in July 2012 for $113 million and now are part of the Giant Carlisle division. The stores acquired are located in the greater Philadelphia area.

Dick Boer, chief executive officer, said during a Feb. 28 conference call with analysts that Ahold opened the first eight Peapod pick-up points in the United States in 2012, and on Feb. 27 opened a ninth pick-up point in New York. As part of the service, customers may order their groceries on-line through Peapod.com for pick-up at participating stores.

Mr. Boer said Ahold also is continuing to broaden its offerings in the United States. He said the company has set an “ambitious goal” of 40% of sales penetration in 2016 of own brands.

“What’s good in the own brands is that in 2012 the divisions reformulated one in five of the own-brand products to meet higher quality standards,” Mr. Boer said.
Add a Comment
We welcome your thoughtful comments. Please comply with our Community rules.








The views expressed in the comments section of Baking Business News do not reflect those of Baking Business News or its parent company, Sosland Publishing Co., Kansas City, Mo. Concern regarding a specific comment may be registered with the Editor by clicking the Report Abuse link.