SupplyScan

Dutch conglomerate Royal Ahold NV announced plans to sell its U.S. Foodservice division as part of a new strategic plan to improve profits and boost shareholder values.

November 1, 2006

Ahold To Sell U.S. Foodservice
Dutch conglomerate Royal Ahold NV announced plans to sell its U.S. Foodservice division as part of a new strategic plan to improve profits and boost shareholder values.

The plan calls for reducing operating costs by 500 million euros ($638 million) by the end of 2009 as the company focuses on the local retail food markets in the United States and Europe.

Ahold says it would follow its divestment of the Tops stores in the U.S. state of Ohio by selling the remaining operations in New York and Pennsylvania, which the company says would allow it to refocus its resources on remaining retail businesses.

The company has also announced the appointment of new chief operating officers in the U.S. and Europe to lead its restructured continental organizations.

"Since the crisis in 2003, we have completed a comprehensive revitalization program," says Ahold President and CEO Anders Moberg. "We have implemented a successful repositioning program at Albert Heijn and ICA and recovered significant value in U.S. Foodservice.

"It is now time for us to focus our efforts on strengthening our retail competitive position, particularly in the U.S."

FMI, GMA Honor Data Sync Leaders
The Food Marketing Institute (FMI) and Grocery Manufacturers Association (GMA) presented Excellence in Data Synchronization Awards to 24 food manufacturers and retailers last month at the first Data Synchronization Summit in Las Vegas.

With nearly 270 attendees, this was the first time that FMI and GMA, in conjunction with 1SYNC, sponsored an industry-wide data synchronization event.

"Getting new customers to the data pool is not the main focus anymore. Today data synchronization is about integrating with other processes in an organization and increasing connections," says Bob Noe, CEO of 1SYNC, Chicago.

"The industry's participation at this event proves that the adoption and implementation of data synchronization is on the rise."

Awards were announced under three categories:

Excellence awards to suppliers who are synchronizing with 10 retailers or more. Winners were: The 3M Co.; Cadbury Schweppes Americas Beverages; Colgate-Palmolive; ConAgra Foods; Campbell Soup Co.; Clorox Co.; Coca-Cola Co.; Dean Foods; Georgia Pacific; Hershey Co.; HJ Heinz Co.; Johnson & Johnson; Kimberly-Clark; Kraft Foods; Nestle; Procter & Gamble Co.; PepsiCo; Sara Lee,; J.M Smucker Co.; and Unilever.
Excellence awards to retailers who are synchronizing with more than 500 suppliers. Winners were: Wegmans; Supervalu; Wal-Mart; and Lowe's.
The Rapid Adoption Award to a trading partner who dramatically adopted data synchronization in 2006. This award went to Lowe's, which expanded the number of vendors in its data synchronization efforts from 37 at the beginning of the year to more than 600 suppliers now.

Today, Lowe's has more than 60,000 GTINs published.

Maine Dairy Switches To Bio-Diesel Fuel

Oakhurst Dairy says it will have transitioned 130 delivery trucks, or more than 90 percent of its fleet, to bio-diesel fuel by the end of 2006.

This switch will make the Oakhurst fleet the largest private bio-diesel fleet in New England, reducing carbon dioxide (CO2) emissions by 1,332 tons per year.

"We have been working on decreasing our carbon emissions for several years as part of our commitment to a healthier planet," says Stan Bennett, president of the Portland, MA-based dairy processor. "But this is a huge step forward for our organization. We are proud to help make our state a cleaner place to live. Bio-diesel is an eco-friendly, cleaner-burning fuel, which reduces carbon and sulfur vehicle emissions and decreases the nation's reliance on foreign fuel sources."

The company made the switch as part of its commitment to the Governor's Carbon Challenge, a voluntary carbon dioxide emissions reduction program initiated in 2004. Oakhurst was one of the first companies in Maine to sign on to the challenge, agreeing to cut direct emissions by 15 percent and indirect emissions by 5 percent (below year 2000 levels).

Oakhurst also cited the 8 cent per gallon reduction in the excise tax for motor fuel that contains at least 2 percent bio-diesel, a provision of Governor Baldacci's energy bill last session, as a reason for the switch to bio-diesel. "Maine is supporting sound environmental policies with good tax policies, and this is helping speed the transition to cleaner renewable fuels," says Bennett.

Maine was the first state in the nation to put forth a Governor's Carbon Challenge, and was among the first to use bio-diesel to heat state offices and buildings and to join the Regional Greenhouse Gas Initiative. The Maine DOT also plans to begin using bio-diesel in the spring in some of its regions.

The B20 bio-diesel that Oakhurst will use most of the year will consist of 20 percent bio-diesel and 80 percent petroleum diesel, which is a blend that has demonstrated significant environmental benefits with no modifications to a diesel engine. The greenhouse gas emissions to be saved by Oakhurst annually are estimated to be equivalent to avoiding the use of 137,628 gallons of gasoline.

Oakhurst's goal is to increase the bio-diesel ratio in its fuel beyond 20 percent in the future, as long as no engine problems arise.