Ahold - Wikipedia, the free encyclopedia

18/09/16, 8:35 PM

Ahold
From Wikipedia, the free encyclopedia

Koninklijke Ahold N.V. was a Dutch international retailer

based in Zaandam, The Netherlands.

Koninklijke Ahold N.V.

Contents
1 History
1.1 Growth in the Netherlands
1.2 International expansion
1.3 Accounting crisis
Ahold headquarters in Zaandam

1.4 Legal ramifications

1.5 Road to recovery
1.6 Strategy for profitable growth
1.7 Merger with Delhaize Group
2 Assets
2.1 Europe
2.2 North America

Type

Naamloze vennootschap

Industry

Retailing

Fate

Merged with Delhaize

Successor

Ahold Delhaize

Founded

1887

Headquarters Zaandam, The Netherlands

Number of
locations

3,206

Key people

Dick Boer (CEO), Jan Hommen

2.3 South America

3 Major shareholders in Ahold

(Chairman of the Supervisory Board)

Services

Convenience/forecourt store,
discount store, drug store/pharmacy,
hypermarket/supercenter/superstore,
other specialty, supermarket, online
retailer

Revenue

38.2 billion (2015)[1]

Operating
income

1.3 billion (2015)[1]

Profit

0.85 billion (2015)[1]

Total assets

15.88 billion (2015)[1]

Total equity

5.62 billion (2015)[1]

Number of
employees

236,000 (2015)[1]

Website

www.ahold.com (http://www.ahold.
com/)

4 Key people [25]

5 See also
6 References
7 Sources
8 External links

History
Growth in the Netherlands

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The company started in 1887, with the founding of an Albert Heijn grocery store in Oostzaan, The Netherlands.
The grocery chain expanded through the first half of the 20th century, and went public in 1948.
Under the leadership of the founders grandsons, Albert and Gerrit Jan Heijn, the company continued to make a
significant impact on food retail in the Netherlands in the next four decades, pioneering self-service shopping, and
the development of own brand and of non-food as a grocery store category. The company also influenced culinary
development in the country, popularizing products such as wine, sherry and kiwi fruit, contributing to the
introduction of the refrigerator in Dutch households and introducing convenience items, such as ready meals and
frozen pizzas, to Dutch consumers.
Albert Heijn became the largest grocery chain in the Netherlands during this time, and expanded into liquor stores
and health and beauty care stores in the 1970s. In 1973, the holding company changed its name to "Ahold", an
abbreviation of "Albert Heijn holding".[2][3]

International expansion
In the mid-1970s, the company began expanding internationally, acquiring companies in Spain and the United
States. Under a new leadership team, which for the first time did not include any members of the Heijn family, the
company accelerated its growth through acquisitions in the latter half of the 1990s in Latin America, Central
Europe, and Asia.
Ahold N.V. received the designation Royal from Dutch Queen Beatrix in 1987, awarded to companies that have
operated honorably for one hundred years.[4] That same year Gerrit Jan Heijn, Ahold executive and only brother of
Albert Heijn, was kidnapped for ransom and murdered.[2]

Accounting crisis
The companys ambitious global expansion was halted by the announcement of accounting irregularities at some
of Aholds subsidiaries in February 2003. The CEO, Cees van der Hoeven, and CFO, Michael Meurs, and a
number of senior management resigned as a result, and earnings over 2001 and 2002 had to be restated. The main
accounting irregularities occurred at U.S. Foodservice, and, on a smaller scale, Tops Markets, in the United States,
where income related to promotional allowances was overstated. In addition, accounting irregularities were found
at the companys Argentine subsidiary Disco, and it was determined that the financial results of certain joint
ventures had been accounted for improperly.[5]
As a result of the announcements, the companys share price plunged by two-thirds, and its credit rating was
reduced to BB+ by Standard & Poors.[6]

Legal ramifications
The irregularities led to various investigations and criminal charges by both Dutch and U.S. law enforcement
authorities against Ahold and several of its former executives.
Dutch law enforcement authorities filed fraud charges against Ahold, which were settled in September 2004, when
Ahold paid a fine of approximately 8 million. Aholds former CEO, CFO, and the former executive in charge of
its European activities were charged with fraud by the Dutch authorities. In May 2006, a Dutch appeals court
found Aholds former CEO and CFO guilty of false authentication of documents, and they received suspended
prison sentences and unconditional fines.

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The United States Securities and Exchange Commission (SEC) announced in October 2004, that it had completed
its investigation and reached a final settlement with Ahold.[7]
In January 2006, Ahold announced that it had reached a settlement of US$1.1 billion (937 million) in a securities
class action lawsuit filed against the company in the United States by shareholders and former shareholders.[8]
Another class action lawsuit was filed against Aholds auditors, Deloitte, but this suit was dismissed.[9] The suit
was brought up again by shareholders in 2007,[10] and by a different shareholder group in 2012.[11]
The SEC filed fraud charges against four former executives of U.S. Foodservice: the companys former CFO,
former chief marketing officer, and two former purchasing executives. The purchasing executives settled the
charges.[12] The former chief marketing officer was sentenced to 46 months in prison.[13] The former CFO was
sentenced to six months of home detention and three years' probation.[14]

Road to recovery
Anders Moberg became CEO on 5 May 2003.[15] Under his and other new leadership appointed following the
crisis, Ahold launched a Road to Recovery strategy in late 2003 to restore its financial health, regain credibility,
and strengthen its business.[16]
As part of this strategy, Ahold announced it would divest all operations in markets where it could not achieve a
sustainable number one or two position within three to five years, and that could not meet defined profitability and
return criteria over time. The company divested all its operations in South America and Asia, retaining a core
group of profitable companies in Europe and the United States. As part of its Road to Recovery strategy, Ahold
strengthened accountability, controls and corporate governance and restored its financial health, regaining
investment grade in 2007.[17]

Strategy for profitable growth

In November 2006, Ahold announced the results of a major strategic review of its businesses.[18] As a result of
this review, Ahold launched its strategy for profitable growth focused on strengthening its retail competitive
position, particularly in the United States. The company focused on building its brands by creating an improved
product and service offering, delivered an improved price position and lowered operating costs; and reorganized
the company into two continental organizations led by Chief Operating Officers. As part of the strategy, Ahold
further focused its portfolio, including the divestment of U.S. Foodservice (completed in July 2007, to CD&R and
KKR for US $7.1 billion), Tops (completed in December 2007, for US $310 million to Morgan Stanley Private
Equity) and the companys operations in Poland (completed in July 2007, to Carrefour). The company made solid
progress in delivering its strategy under the leadership of John Rishton, appointed CEO in November 2007, who
had been part of the team that developed the strategy in his previous role as CFO.[3]
In November 2011, under the leadership of Dick Boer, appointed CEO in March 2011,[3] Ahold announced a new
phase of its growth strategy, Reshaping Retail. This strategy has six pillars - three designed to create growth and
three to enable this growth. The six pillars are: increasing customer loyalty, broadening our offering, expanding
geographic reach, simplicity, responsible retailing, and our people.[19]

Merger with Delhaize Group

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On 24 June 2015, Delhaize Group reached an agreement with 'Ahold to merge, forming a new company, Ahold
Delhaize. At completion of the merger, Ahold shareholders will own 61% of the new combined company while
Delhaize Group shareholders will hold the remaining 39%.[20][21][22] Ahold CEO Dick Boer will become CEO of
the merged company, with Frans Muller, CEO of Delhaize to become deputy CEO and chief integration officer.
[23]

Assets
Europe
Ahold Coffee Company B.V. (Netherlands)
Ahold Czech Republic a.s. (Czech Republic)
Albert Heijn B.V. (Netherlands/Belgium/Germany)
Etos B.V. (Netherlands)
Gall & Gall B.V. (Netherlands)
Bol.com (Netherlands)
Gesto de Empresas de Retalho, SGPS. S.A. (JMR) (indirectly 49%) (Portugal)
Formerly owned
Jernimo Martins - (Portugal)
DinoSol- (Spain)

North America
Giant-Carlisle
Martin's Food Markets
Ukrops
Stop & Shop/Giant-Landover
Stop & Shop
Giant-Landover
Peapod
Formerly owned
BI-LO
Bruno's
Tops
Ahold had a minority interest in La Fragua that operates supermarkets in Guatemala, Honduras, and El
Salvador
Ahold also formerly owned the Edwards chain of stores but changed most of the stores under that banner to Stop
& Shop in 2000.

South America
Formerly owned
Bompreo, Ahold's joined venture in Brazil, operated several Brazilian supermarket chains.
Santa Isabel, Ahold's joint venture in Chile, Peru, Paraguay and Ecuador from 1999 to 2003
Ahold owned Disco, which operates supermarkets in Argentina, but afterwards it was sold to the Local
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Market.

Major shareholders in Ahold

Ahold's major shareholders are:[24]
Stichting Administratiekantoor Preferente Financieringsaandelen Ahold (Capital interest: 20.19%; Voting
rights: 6.55%)
Mondrian Investment Partners Limited (Capital interest: 4.26%; Voting rights: 4.99%)
ING Groep N.V (Capital interest: 9.26%; Voting rights: 4.92%)
Blackrock, Inc (Capital interest: 2.99%; Voting rights: 4.46%)
Deutsche Bank AG (Capital interest: 3.63%; Voting rights: 4.26%)
DeltaFort Beleggingen B.V. (Capital interest: 11.23%; Voting rights: 3.82%)
Silchester International Investors LLP (Capital interest: 3.00%; Voting rights: 3.52%)

Key people [25]

Dick Boer (31 August 1957), Chief Executive Officer since March 2011.
Jeff Carr (17 September 1961), Chief Financial Officer since November 2011.
Hanneke Faber (19 April 1969), Chief Commercial Officer since September 2013.
James McCann (4 October 1969), Chief Operating Officer Ahold USA since February 2013.
Wouter Kolk (26 April 1966) Chief Operating Officer Ahold Netherlands since February 2015.
Jan Ernst de Groot (11 April 1963), Chief Legal Officer since February 2015.
Abbe Luersman (4 December 1967), Chief Human Resources Officer.

See also
European Round Table

References
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.

"Annual Report 2015". Royal Ahold. Retrieved 23 May 2016.

"Albert Heijn memorial site". Royal Ahold. Retrieved 25 April 2012.
"Ahold history". Royal Ahold. Retrieved 25 April 2012.
List of company name etymologies#cite note-15
"Ahold announces significantly reduced earnings expected for 2002". Royal Ahold. Retrieved 25 April 2012.
"Ahold shares slump as executives are sacked over US profits error". The Telegraph. Retrieved 25 April 2012.
"Ahold reaches final settlement with SEC". Royal Ahold. Retrieved 25 April 2012.
"Ahold receives preliminary approval of settlement of securities class action in the United States". Royal Ahold. Retrieved
25 April 2012.
"Judge says Deloitte & Touche not liable for Ahold's fraud". Baltimore Business Journal. Retrieved 25 April 2012.
"Deloitte faces huge Ahold claim". Retrieved 1 July 2015.
"Deloitte Faces Dutch Shareholder Suit Over Ahold Fraud". Retrieved 1 July 2015.
"Europe's Enron: Royal Ahold N.V." (PDF). Price College of Business. Retrieved 25 April 2012.
"Ex-Ahold Official Mark Kaiser Sentenced to 46 Months in Prison for Fraud". Bloomberg. Retrieved 25 April 2012.
"Former Ahold CFO Avoids Prison". CFO.com. Retrieved 25 April 2012.
"Ahold to nominate Anders Moberg as President and CEO". Royal Ahold. Retrieved 25 April 2012.
"Road to Recovery program highlights". Royal Ahold. Retrieved 25 April 2012.
"S&P Lifts Ahold to investment grade; CDS tighter". Reuters. Retrieved 25 April 2012.
"Ahold announces strategy for profitable growth". Royal Ahold. Retrieved 25 April 2012.

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19. "Ahold presents its six strategic pillars to accelerate growth". Royal Ahold. Retrieved 25 April 2012.
20. http://delhaizegroup.com/en/PublicationsCenter/OtherPressReleases/OtherPressReleasesView/tabid/301/Article/1670/aholdand-delhaize-announce-intention-to-merge.aspx
21. "Growing Dutch company eats up Maine-based Hannaford chain". The Portland Press Herald / Maine Sunday Telegram.
Retrieved 1 July 2015.
22. "Stop & Shop parent to purchase owner of Hannaford - Business - The Boston Globe". BostonGlobe.com. Retrieved 1 July
2015.
23. "Ahold, Delhaize complete merger agreement". SupermarketNews. 24 June 2015. Retrieved 26 June 2015.
24. "Annual Report 2013" (https://www.ahold.com/web/file?uuid=898bf647-2994-4744-9312-115b85fed07d&owner=f6216a8f
-4a2d-494f-8168-ae6cd1765756&contentid=2282). Koninklijke Ahold N.V. Retrieved 12 January 2015.
25. Ahold. "Executive Committee and Management Board". www.ahold.com. Retrieved 10 February 2016.

Sources
Helsingin Sanomat (http://www.helsinginsanomat.fi) (daily, print version, 15 June 2004)

External links
Official website (http://www.ahold.com)

Wikimedia Commons has

media related to Ahold.

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