international marketing ahold eng
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International Marketing Ahold ENGTRANSCRIPT
International Marketing of Cashew Products;
Case Study: Ahold’s Expectations
Mary Adzanyo
Ghana Cashew WeekApril 17-19, 2007,
Alisa Hotel, North Ridge, Accra Ghana
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Ahold
� 1887... Albert Heijn opens first store� International group of local retail and
food service operators that do business under their own brand names, with headquarters in the Netherlands
� Primarily active in the United States and Europe
� Over 200,000 associates (full-time equivalent)
� Millions of customers are served each week
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Ahold
� Multi-channel, multi-format� > 9,000 supermarkets, hypermarkets,
speciality stores� Food service� E-commerce
� 27 countries, 4 continents
� Our brands: AH, Etos, Gall & Gall, ICA, Rimi, Giant, Stop&Shop etc
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Inside an Ahold Shop
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Ahold in Africa
� Ahold Sustainable Assistance Project: 2002-2005 in Ghana
� Part of Ahold Corporate Social Responsibility Program � Goal: To build sustainable business relationships with
producers and manufacturers in the developing world� Ahold uses its expertise in the area of supply chain
management to support producers with exporting their products ―Mostly fruits and vegetables―Also shelf stable products like tuna, shea butter,cashew nuts,
macadamia, pecans, raisins
� From Ahold ASAP, we now have Ahold Sustainable Trade Development program
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Ahold Sustainable Trade Development
� Build sustainable business relationships with producers and manufacturers in the developing world
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Where?
GHANA: ACCRA
SOUTH AFRICA: JOHANNESBURG
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Ahold Cashew Nuts
� Top quality whole white cashews only (sizes 240, 320, or 450 depending on the different products)
� Volume for our Dutch operation are around 1500 MT per annum. For Ahold total, volume is higher
� Quality control is a special attention point.� Supply: Spread over the year
� Packaging: cashews are packed in big bags (1000kg) or 25 kg boxes. However, when packed in boxes, the boxes must be flushed with nitrogen
� Delivery: Rotterdam, full containers
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Ahold Cashew Nuts
� At least 500 tons annual volume to sell. This means an approximate total production of 2000+ ton
� Audit has to be positive� The region or country needs to have a reliable and
independent lab for original testing.� Has to be able to ship in big bags and conditioned flex
bags� Supplier needs to be able to follow ETI base code:
Ethical Trading Initiative
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Food Safety and Quality Issues
Global Food Safety Initiative(Initiated by global top 40 retailers = >80% of global organized retail sales)
� Global Food Safety Standards: � BRC Technical Standard version 4� SQF 2000 (June 2006) & SQF 1000 (January 2006)� IFS Version 4+� NZ GAP (July 2006)� Dutch HACCP*
� Farm-to-Fork Approach: HACCP based
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Product Pyramid Revised: Compliance and Differentia tion
Broader Societal Issues
Product Quality & Social Accountibility
Food Safety & Availability
If the quality is the same we want social accountable products
Product Buying
Decision
Hygiene Factors:
Compliance
Choice of Store / Brand: Differentiation
No longer relevant for consumer decision
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Ahold Cashew Nuts: What we want to do
� Develop new suppliers from Africa� Direct coordination with growers and processors to
secure supply � Differentiate cashews from Africa in a special way e.g.
fairtrade certification� Better quality products or more competitively priced
products
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Ahold Cashew Nuts: Constraints in sourcing from Africa
� Very few processing done in Africa even though Africa produces about 36% of the world’s cashews
� Ahold want to source directly from processors but this has not been possible
� Low volumes, certification limitations, less competitive prices
� Some experiences -
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Working with Ahold and other multiple chains� ABC is backbone of sourcing
� A = Attractive New Products� B = Better Quality Products� C = Cheaper Products
� Right certifications� Consistency in supply of right Quality and Quantity at the
Right Time� Increasing demand for Fairtrade and Organic
� Purpose of Fairtrade is to help disadvantaged farmers acquire and retain export markets
� More expensive but consumers are willing to pay premium to ensure better wages and social conditions
� Technical Requirements - traceability
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You may contact us
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Southern Africa Office (Johannesburg, South Africa):Woodmead Business Park, 145 Western Service Road17 Maple Place South, Woodmead 2148P. O. Box 3290, Dainfern 2055, South AfricaTel: +27 11 602 1287; Fax: +27 11 802 0798
West Africa office (Accra, Ghana):Ground Floor, "Codemm House”1st Dzorwulu Crescent, West AirportP. O. Box CT. 3757, Cantonments, AccraTel: +233 21 775 350, 774 453; Fax: +233 21 775 293Email: [email protected]
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THANK YOU!!