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Delhaize Presentation

Presented by:Jan Claessens

Senior Category Manager Fresh Meat Delhaize

17 November 2006

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Delhaize Group

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139 years of history

• 1867: Jules Delhaize & Jules Vieujant open first Delhaize-store, in Charleroi

• 1914: 500 stores, all over Belgium

• 1957: opening first supermarket on European continent (Place Flagey – Brussels)el)

• Seventies: start of the international expansion

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Activities in 8 countries on 3 continentsUnited States:

1.537 storesFood Lion, Hannaford, Sweetbay, Kash ‘n Karry, Harveys

Greece: 135 stores

Belgium, Luxemburg, Germany: 808 stores

Delhaize Group: Sales: € 18,6 billion180.000 associates

Emerging markets:Czech Republic, Romania, Indonesia156 stores

Figures End 2005

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Activities in 8 countries on 3 continents

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Home base of Delhaize Group

808 stores, 8 store formats– Food – Experts

Market share: 26%

16.000 associates

Sales: € 4,0 billion

Delhaize Belgium

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130 supermarkets Delhaize

189 AD (affiliates)

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Proxy 141 Delhaize

19 Delhaize City

54 Shop ‘n Go

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131 Di(drugstore)

100 Tom & Co(petshops)

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41 Cash Fresh

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Strategy Delhaize Belgium

What does our customer want?

To have a large choice

To find what he is looking for

To pay the right price

To feel at home in our stores

To look after his health

Delhaize. Quality makes us different.

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To have a large choice

Live like you wish

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Via:

Clear in store communication

Correct price labelling

Good stock management

Helpful associates

To find what he is looking for

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Delhaize offers products for every budget, with quaranteed quality

National brands– Prices constantly compared with those of competitors

Delhaize private label– Quality at least as good as national brands– At least 10% cheaper

365– Products for every day use, of good quality– Same price as discounters

Produce– Sold every day at best market price

To pay the right price

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For every customer a

Delhaize store in the

neighbourhood

Clean and pleasant

stores

Friendly and

motivated staff

Delhaize takes care of

environment, mobility

and diversity

To feel at home in our stores

16Bewegen

Delhaize, thé reference for healthy food Products:

– Large produce assortment– 650 organic products– Health department in stores– Products for specific dietary needs– …

Quality and food safety:

– Quality label Controle & Origine

– HACCP in stores and distribution centers

– ISO 9001-certification for cold chain

– …

To look after his health

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• Information– Logos for products with added nutritional value– Health campaigns (in store and media)– Raise awareness of associates– Partnership with Olympic Health Foundation

To look after his health

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Meat Department

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Types of meat sales

• Supermarket full self-sevice

• City full self-service

• AD service and self-service

• Proxy service and self-service

• Shop&Go full self-service

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1. Delivery of technical pieces of meatprepared & packed in store (650 butchers) 80%

2. Delivery of bulk products prepared by supplierrepacked in store 15%

3. Delivery of products ready for salepacked by supplier 5%

Types of meat delivery

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Division of the fresh meat categorysupermarkets in tonnage

Beef 41 % =

Porc 39 % -

Veal 10 % +

Lamb 8 % +

Offal 1,5 % -

Horse 0,5 % -

Total 100 % =

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Origine of meat in supermarkets

Beef 90 %7 %3 %

Belgian meat MeritusImport meat

Belgian Organic meat

Porc 95,5 %4 %

0,5 %

Belgian meat CertusBelgian organic meat

Import meat

Veal 100 % Belgian meat BCV

Lamb 78,5 %21 %

0,5 %

New Zealand – AustraliaEU

Belgian organic meat

Offal 100% Belgium

Horse 100% South America

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The future of the meat departement

• Quality : constant level

• Health : more and more important

• Security : delicate subject

• Convenience : change of lifestyle

• Traceability : consumer trust in product

• Profession : personal recruitment

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Questions?