Ahold Delhaize reported strong sales growth for its fourth quarter and fiscal full year, saying that the integration of the Ahold and Delhaize retailers groups is making good progress. Total turnover in 2016 reached 62 billion euros, a 2.4% increase over the prior year. Operational profit also grew, up 3.9% to 1.9 billion euros. Performance was especially strong in the Netherlands, where fourth quarter turnover grew 7.5 % and full-year turnover went up 5 % to 13 billion euros. Albert Heijn’s market share grew to over 35% and its Dutch like-for-like turnover climbed 4.1 %. Results were not as strong in Belgium, Delhaize’s home territory. Fourth quarter turnover dropped 1 % and its full-year turnover increased by only 1.7 % to 4.9 billion euros. Delhaize’s market share remained stable, at slightly over 24%.
Aldi and Tesco, UK
Aldi is now the UK’s fifth largest grocery retailer. Latest grocery market share figures from Kantar Worldpanel for the 12 weeks ending 29 January 2017 show that the discounter’s sales were up 12.4% year-on-year with its market share increasing by 0.6 percentage points, overtaking the Co-op and clinching the fifth place slot for the first time. Kantar said: Just a decade ago Aldi was the UK’s tenth largest food retailer, accounting for less than 2% of the grocery market. Since then the grocer has grown rapidly, climbing the rankings by an impressive five places to hold a 6.2% market share. Underpinned by an extensive programme of store openings, the past quarter has seen Aldi attract 826,000 more shoppers than during the same period last year. Meanwhile, Britain’s largest grocer is finding success with its organic products. Tesco reports that its total organic product sales increased 15% over the past year, as organic fish and dairy products proved more popular with shoppers. Organic meat and chilled foods sales increased by 13% over the past 12 months. The popularity of organic food began with fruit and vegetables but we are now seeing customers exploring areas such as grocery, fish and dairy, so you can now use organic produce for the whole meal, Tesco said.
Lidl France
Lidl spent more money on advertising than any other large retailer in France, according to published reports. The retailer posted a 40% like-for-like increase in its advertising budget last year, with a total of 415 million euros spent. The next-largest budget for a supermarket retailer was E. Leclerc, with 325 million euros.
Rema, Norway
Rema 1000, one of Norway’s leading retailers, is removing many major brands from its shelves, in favour of local suppliers and only a few national conglomerates. The retailer’s so-called “best friends” strategy involves developing closer ties with selected suppliers and dropping others on a national basis, to cut costs. With higher volume for the “best friend” brands selected, Rema figures it will be able to sell them at lower prices and resume its position as Norway’s lowest-priced chain, by Norwegian standards. Along with the new strategy, Rema 1000 is introducing the Rema Prima brand.
Edeka, Germany
Edeka Group is extending its range of dairy-based products, made with milk from cows that are fed GMO-free feed for a minimum length of time. The newly-launched or re-branded GMO-free milk-based products can be recognized by a green, diamond-shaped ‘Ohne Gentechnik’ seal, which is issued by the VLOG: the ‘Verband Lebensmittel ohne Gentechnik’, or the German Association of Foods (produced) without Genetic Engineering. In addition, Edeka is launching around 40 yoghurt and milk-based products under a new private label brand ‘Good Food’, which represents more sustainable and eco friendly farming. To qualify for this label, products need to have been produced with milk from cows fed a GMO-free feed (which was produced in Germany, or at least the EU) as well.
Migros, Swiss
Migros reports that its food production unit, M-Industry, posted sales growth across most of its divisions last year, as well as recording a 12% increase in export turnover. The business posted total sales of CHF 6.39 billion, a 2.1% increase on the previous year. The best-performing division in terms of sales growth was confectionery, which posted sales of CHF 838 million, a 5% increase, and 36% increase in export sales. The retailer said that while the Swiss market will ‘remain challenging’ for M-Industry, the group’s international business will be further developed organically and through acquisitions in key markets.
Albert Heijn, Netherlands
Dutch retailer Albert Heijn has launched an interactive YouTube channel, ‘Appie Today’, which presents vlogs, shows, reviews and informative features about food, trends and current affairs. The online content will be created in collaboration with customers and employees of Albert Heijn. The media landscape is fragmenting and the media consumers are increasingly selective in their search for a story that they can connect with. We believe that ‘Appie Today’ offers exactly that, Albert Heijn said.
Agromousquetaires
Agromousquetaires, the food and drink manufacturing division of French conglomerate Groupement de Mousquetaires, is preparing for a move into the UK private label market. Just Food reports the supplier is in advanced talks with some of the UK’s top retailers to offer a range of French appetizer-to-dessert products. Agromousquetaires Ceo Christophe Bonno said the UK is a “key market” for the group’s expansion: We are not in the UK at present, but it is a big market for French food manufacturers and so we are already prospecting there. He confirmed talks are already underway with retailers including Tesco, Asda, The Co-operative Group and Marks and Spencer. Agromousquetaires, which has more than 60 production sites in France, claims to be the leading supplier of private label products in France by market share. Agromousquetaires’ turnover in 2015 was 4 billion euros, three-quarters of which was generated by sales to its sister grocery business Intermarche. The group supplies 45% of Intermarche’s private label products.
