Ahold Delhaize likes its brands

The merger of Royal Ahold of the Netherlands and the Delhaize Group of Belgium is not expected to be completed until the middle of next year, but there are already signs that the deal may be good news for private label and Italian copackers as well.

Dick Boer, Ahold’s current eco and upcoming eco of the new Ahold Delhaize Company, told analysts that Ahold plans to expand its private label programmes in its Albert Heijn stores and other banners across Europe. Albert Heijn products may soon appear in Delhaize stores and the other way around.

Separately, Delhaize eco Frans Muller warned A-brand manufacturers that the merged company could press for lower prices. If A-brands have different prices for the same product in different countries, the new Ahold Delhaize intends to buy products in the country with the lowest price and then distribute them to its stores across Europe. The Delhaize executive added that the retailer has a good relationship with manufacturers of its retailer brands and he expects the relationship will become even stronger in the future.