1

Delhaize & Bio packaging

Belgian BioPackaging ConferenceDecember 2007

Philippe GendebienEuropean Indirect Buyer

Delhaize Group

2

Agenda

• Delhaize Group overview & strategy• Environmental Initiatives• BioPackaging at Delhaize

– Why do we use BioPackaging?– Current situation– How to communicate?

• Delhaize expectations from Industry / Authority• Conclusion & Future Plans

3

Delhaize Group at a glance

• Large food retailer headquartered in Belgium• Founded in 1867• Operational in 7 countries (North-America,

Europe & South-east Asia)• Sales network of 2,713 stores• 144,000 employees• Sales 2006: 18.6 billion euro

4

Strategy Delhaize Belgium

What do our customers want?

• Have the choice• Find what they are looking for• Pay a fair price• Feel good with us• Take care of their health

The quality makes the difference

5

Strategy Delhaize Belgium

- Environmental initiatives (Green Energy & BioPackaging)

- Development of Fair Trade and Organic assortment

- Long-term, sustainable relations with suppliers

Focuses on Corporate Social Responsibility

6

Bio packaging – Why?

Background 2005:• Climate change &

Increased focus on environment (NGO, press, custommers)

• DLL strategy : Self-service and convenience

Big use of packaging

Solution 2006: Focus on eco friendly

packaging for fresh products:– Deli & Bakery– Meat & Fish– Fruit & vegetables

7

Bio packaging – Current situation

• 20 millions of Biopackaging since start! 200 tons– PLA bowls for fresh green salads Deli dpt (apr/06)– PLA window for paper bread bags (nov/06)– PLA bags for prepared sandwich Deli dpt (dec/06)– PLA bowls for 15 bakery Gaelens (feb/07)– PLA sealable lid for pasta salad Deli dpt (april/07)– Sugarcane & PLA packaging for tomato (may/07)– Materbi & Biotech shopping bags (july/07)

8

Bio packaging : Delhaize & PLA

Mostly PLA solutions – Why this choice?

1/ Environmental argument• 100% based on corn - Renewable Ressource• Replaces petroleum-based plastic• 100% compostable in industrial installations

2/ Technical & economic argument

• Transparency - Food safety – Manual handling

• Small difference in price

But NEW issues are raised: Food shortage / Price / Supply / OGM / Technical constraints / No end of life solution No easy communication

9

Communication

Test August 2005 : Biodegradability…

Launch April 2006 :

Renewable Resources

Today Dec 2007 : Detailed

info on Renewable

Resources & Industrial

Compost

Evolution

10

Expectations : Industry & Authority

1/ Difficult to compare environmental

benefits :

Weight – Product safety – Raw material – Transportation – composting - Energy use – CO² - Recycle collection – etc…

Solution :

- Life Cycle Analysis ?

- Good communication from industry (% Ren. Resources / CO²)

- Certification ?

Trays for 6 apples

Weight / pc

Expanded Polystyrene (GE)

6 gram

Sugarcane (CH) 16 gram

Pulp (NL) 19,8 gram

Expanded PLA (IT)

18 gram

Printed carton (FR)

22,5 gram

11

Expectations : Industry & Authority

2/ No concrete added value for custommer

Most Bio packaging are compostable (Home & Industrial)

• No selective collection in place

• Discussions at sector level (Fost Plus & Fedis)

OBJECTIVE:

Define what is best end of life solution

Check feasability of selective collection & ind. composting

12

Delhaize - Future plans

• Objective 1000 tons Bio packaging in 2010

• Enlarge scope to different types of Bio Packaging

• Develop packaging from recycled material

• Create coherent communication valid for all eco friendly packaging

• Further lobbying with Fost+ and Fedis to create added value for custommers

13

Thank you for your attention!

Any questions?