F Our sustainable busmess model in action Save for our customers •w 1 j I' Always saving for our customers Turning food waste to electricity New way of working brings pride, better customer service Overview Business review Governance Financials Investors Ahold Delhaize Annual Report 2016 o Albert Heijn has fully embedded its cost-saving program in its strategy and is supporting this mindset change with internal story-telling videos that bring it to life for associates and share best practices. Associates are challenged to look for ways to save in every part of the business. For example, Albert Heijn is buying better by expanding its collaboration with buying alliances AMS (for own-brand products) and Coopernic (for international brands). It is also saving significantly through packaging improvements and investing the savings back into the quality of products. In one project alone Albert Heijn is saving €2 million annually by switching from glass to plastic juice bottles. Delhaize Belgium has been transforming its company-operated stores, as part of an overall plan aimed at guaranteeing its sustainable future and reducing its cost base in order to reinvest in its customer proposition. As part of this, the brand has put in place a new labor model focused on better communication and flexibility in terms of both work and hours for associates, with the goal of offering customers better service. In 2016, the Delhaize teams successfully completed the rollout of this new store organization across the brand’s 128 company-operated supermarkets. Sometimes our stores create food waste that can’t be donated or used for consumption - in those cases, we make sure we dispose of it in the best possible way. Stop Shop opened a Green Energy Facility fueled by non-edible food waste that is capable of creating up to 40% of the power needed to operate its Freetown Distribution Center. The innovative anaerobic digester is helping the Ahold USA brands to increase food waste recycling. Buy better Waste less Operate smarter

Jaarverslagen | 2016 | | pagina 171