Sales of the confectionery store chain Jamin, including sales by
franchisees, slipped by 7.2% to NLG 135 million. This was due to
streamlining of the store network. Conversely, operating results
rose. The new format focuses on self-service, a wider candy and ice
cream assortment and an eye-catching presentation and has caught
on well in urban areas. Customized introduction of this format into
other regions offers room for further growth.
Sales for the Ter Huurne stores on the Dutch-German
border mildly declined in 1995. Contributing to this were a drop in
cigarette sales, coffee-price decreases, and floods early in the year.
Operating results rose.
The Pragmacare pharmaceutical retail activities were sold
in 1995.
The combined sales of the production companies (Marvelo,
Meester, Nistria and Vaco), primarily producers of private label
grocery items for Albert Heijn, amounted to NLG 557 million.
Combined operating results decreased slightly, reflecting pressure on
the profit margins.
Good progress was made on 'chain integration': further coordina
ting the activities of the production companies with the specific
needs of Ahold retail companies.
Marvelo, a processor and packager of coffee, tea, wine, sand
wich spreads and peanuts, had fractionally higher volume.
Despite fluctuating coffee prices and pressure on margins, opera
ting results stayed about the same.
Meester, Ahold's processed meats subsidiary, had lower
operating results on slightly lower volume. Meester is now focused
on providing many new added-value products to Albert Heijn,
increasing the stores' appeal to customers. This close commercial
relationship allows Meester to work considerably more efficiently,
following a cost-cutting reorganization.
Nistria (dietary meat products supplier) posted a moderate
decline in volume, with a slightly negative operating result.
Vaco, a supplier of heat-and-serve meals, increased volume
in 1995. Some losses in efficiency resulted from construction
and expansion activities. Vaco is working to expand its product
assortment.
The activities of Albro Bakeries were sold off to a third party.
Institutional Food Supply (GVA), a wholesale supplier of grocery
items, became more selective in its sales policy, leading to a moderate
decline in sales to NLG 624 million. GVA acquired new clients and
introduced numerous new forms of service. One of GVA's newest
areas of specialization is in events supplying, such as for the World
Jamboree, an international scouting event held last year in The
Netherlands. Costs were further reduced and the operating result
showed a further solid improvement.
Production companies
Institutional Food Supply (Grootverbruik Ahold GVA)
Annual Report 1995 Royal Ahold 13
