BRUSSELS, Belgium, June 16, 2008 - Delhaize Group (Euronext Brussels: DELB - NYSE: DEG), the Belgian international food retailer, announced today that on January 1, 2009 it will become a member of AMS. Through AMS’ international sourcing expertise Delhaize Group will further optimize its price negotiations for its private label programs.
AMS is one of the largest buying alliances in Europe for private label products. By sourcing commodities on a European and global scale, AMS has the objective to deliver its members the best possible quality products at the best possible price.
Today, the AMS partnership counts 11 European retailers. These represent approximately EUR 75 billion in sales in Europe. As from January 1, 2009, Delhaize Group becomes a member, together with Système U (France). Until then, Delhaize Group remains a partner of European Marketing Distribution (EMD), the European buying alliance it joined in 2001.
“As a partner of AMS, we will be able to improve our private label programs further and create economies of scale that will benefit the consumer”, says Renaud Cogels Executive Vice President Delhaize Group, Chief Executive Officer Southeastern Europe and Asia and Head of Global Sourcing. “Private label products have become an increasingly important tool for differentiation and customer loyalty building, especially in our historical Belgian and European markets. Today more than ever, they also present a welcome alternative to consumers which purchasing power is under pressure.”
Delhaize Group
Delhaize Group is a Belgian food retailer with operations in seven countries on three continents. At the end of 2007, Delhaize Group’s sales network consisted of 2,545 stores. In 2007, Delhaize Group’s revenues amounted to EUR 19.0 billion. In 2007, Delhaize Group posted EUR 410.1 million in net profit. At the end of 2007, Delhaize Group employed approximately 138,000 people. Delhaize Group is listed on Euronext Brussels (DELB) and the New York Stock Exchange (DEG).
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
Statements that are included or incorporated by reference in this press release and other written and oral statements made from time to time by Delhaize Group and its representatives, other than statements of historical fact, which address activities, events and developments that Delhaize Group expects or anticipates will or may occur in the future, including, without limitation, statements about strategic acquisitions, future strategies and the anticipated benefits of these strategies, are “forward-looking statements” within the meaning of the U.S. federal securities laws that are subject to risks and uncertainties. These forward-looking statements generally can be identified as statements that include phrases such as “guidance”, “outlook”, “projected”, “believe”, “target”, “predict”, “estimate”, “forecast”, “strategy”, “may”, “goal”, “expect”, “anticipate”, “intend”, “plan”, “foresee”, “likely”, “will”, “should” or other similar words or phrases. Although such statements are based on current information, actual outcomes and results may differ materially from those projected depending upon a variety of factors, including, but not limited to, regulatory review of transactions, changes in the general economy or the markets of Delhaize Group, in consumer spending, in inflation or currency exchange rates or in legislation or regulation; competitive factors; adverse determination with respect to claims; inability to timely develop, remodel, integrate or convert stores; and supply or quality control problems with vendors. Additional 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, 2006 and other periodic filings made by Delhaize Group with the U.S. Securities and Exchange Commission, which risk factors are incorporated herein by reference. Delhaize Group disclaims 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.