Brussels, Belgium, May 19, 2004 – Delhaize Group (Euronext Brussels: DELB) (NYSE: DEG), the Belgian international food retailer, announced today the launch of a new European brand: the 365 brand. This new brand fits in the strategy of Delhaize Group. The retailer wants to offer its customers quality products at the best price. 365: all year long, basic quality products at low prices. The new brand will be launched in Belgium on May, 19 and in the following weeks in Greece, the Czech Republic and Romania.
A new European brand of Delhaize Group
The 365 brand will reinforce the existing private label offer. The 365 assortment will consist of basic products of a quality at least equivalent to that of hard discount and better than that of the first price products of other competitors. The 365 products will be offered at the best price, all year long. The European brand will be available in the stores in Belgium, Greece, the Czech Republic and Romania.
Basic products for every day use
The 365 assortment consists of low-price products meeting the everyday and seasonal needs. The first products will be launched in following departments: grocery, frozen food, beverages (including wine), dairy, fruit & vegetables and wine. In the next weeks, other products will be added to the assortment, to reach 300 products by the end of the year in Belgium and Greece. In the Czech Republic and Romania, fifty products will be available by the end of 2004.
Quality at the best price
By grouping the purchasing volumes for the subsidiaries, the total volume allows to decrease the production cost. Costs and supplies can also be reduced by supply chain optimization (e.g. one delivery place for Europe).
In order to guarantee the quality of the products, all suppliers have been audited according to the BRC-standard and strict quality criteria have been written down in specification books. External labs conduct quality controls on the products.
Price setting of the 365 brand
For products of the same quality and volume, prices will match those set by the hard discounters. For products of a better quality, the price might be higher.
A common European packaging displaying up to 8 languages
The packaging shows a common logo (a lion in a sun, against an orange background on top of 365) and displays up to 8 languages (French, Dutch, German, Greek, Czech, Slovak, Romanian and English). This common approach considerably reduced development and production costs.
The 365 brand will be launched in the different food stores
In Belgium, all food stores will offer the products of the 365 brand to their customers (supermarkets, AD, Proxy Delhaize, Delhaize City, Shop ‘n Go, Caddy Home). In Greece, the brand will be available at AB Vassilopoulos, AB City and Trofo Markets, in the Czech Republic at Delvita and Delvita City and in Romania at Mega Image en Mega Image City.
More convenience for the customer
Once the whole operation completed, all Derby products in the Belgian stores and C-brand products (products of national brands at low prices and without marketing support) will have disappeared. This will bring more clarity to our shelves and simplify the shopping for our customers.
European synergies
The 365 brand has been developed by a European task force. This task force has been in charge of the relations with the suppliers, the common procurement of products, the sharing of information, the development of strict specification books, the quality controls, the packaging, …
Delhaize Group
Delhaize Group is a Belgian food retailer present in ten countries on three continents. At the end of March 2004, Delhaize Group’s sales network consisted of 2,534 stores. In 2003, Delhaize Group posted EUR 18.8 billion (USD 21.3 billion) in sales and EUR 171.3 million (USD 193.7 million) in net earnings. Delhaize Group employs approximately 142,000 people. Delhaize Group is listed on Euronext Brussels (DELB) and the New York Stock Exchange (DEG).
This press release is available in English, French and Dutch. Questions can be sent to investor@delhaizegroup.com.
Safe Harbor
Some of the statements in this press release and other written and oral statements made from time to time by Delhaize Group and its representatives are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of Securities Exchange Act of 1934, as amended, and involve a number of risks and uncertainties. These statements include, but are not limited to, statements about strategic options, future strategies and the anticipated benefits of these strategies. These statements are based on Delhaize Group’s current expectations. Delhaize Group’s actual results could differ materially from those stated or implied in such forward-looking statements. Risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements are described in Delhaize Group’s Annual Report on Form 20-F for the year ended December 31, 2002 and other periodic filings made by Delhaize Group and Delhaize America with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group and Delhaize America disclaim any obligation to update developments of these risk factors or to announce publicly any revision to any of the forward-looking statements contained in this release, or to make corrections to reflect future events or developments.
Contacts
Catherine Alexandre (media): + 32 2 412 82 57
Hans Michiels (investors): + 32 2 412 83 30