'Our planned partnership with
the ICA Group adds new markets
to our network'
Albert Heijn
prominent companies in Poland with
considerable room for future growth.
Scandinavia
At the end of 1999, Ahold and
Scandinavia's largest food retailer, the
ICA Group, reached initial agreement
to join forces in northern Europe.
Partnership with the ICA Group adds
another dimension to Ahold's European
strategy. Acquiring 50% of the ICA Group's
shares for a total of approximately Euro
1.8 billion gives Ahold a solid footing in
northern Europe.
With about 35% of the market in Sweden
and some 28% in Norway, the ICA Group
has an excellent reputation. The ICA
Group was formed in early 1999 follow
ing a merger between Sweden's ICA
Handlarnas AB and Norway's Hakon
Gruppen AS. The company is privately
held and services 3,100 Scandinavian
supermarkets, superstores and hyper
markets with annualized net sales of
Euro 6.7 billion. The ICA Group also has
a 50% stake in Statoil Retail, generating
sales of Euro 2.5 billion through 1,500
Statoil gasoline stations in Denmark,
Norway and Sweden.
Upon finalization of the transaction,
Ahold will own 50% and the existing
shareholders in the ICA Group will own
the other 50%. Ahold's Scandinavian
partner has a modern distribution system
in Sweden and is quickly upgrading
logistics in Norway. The ICA Group has
a successful customer card, an effective
e-commerce initiative and also provides
its customers with home delivery services.
Early in 2000, the ICA Group announced
further expansion into the Baltic states.
Supporting European activities
The strong autonomous growth achieved
in all its operating areas and the flurry
of acquisitions and investment in existing
and new European markets were the
main reasons behind the launch of a
European Management Competence
Center. This Competence Center groups
a number of services including finance,
human resources management develop
ment, information technology, real estate,
procurement, retail development and
logistics. The Competence Center con
tributes expertise and know-how to
operating companies and joint venture
partners, helping them to operate even
more competitively while at the same
time driving down costs.
AMS, Associated Marketing Services
Albert Heijn in The Netherlands, Pingo
Doce in Portugal and the ICA Group in
Scandinavia are long-time members of
a consortium of 11 major European food
retailers known as Associated Marketing
Services. This synergy alliance markets
brand names and competitively-priced
quality products sold as Euro Shopper.
At the end of the year, the number of
Euro Shopper products had risen to 191.
Royal Ahold Annual Report 1999 27
