- INTERNATIONALIZATION ACTIVITIES

Technická univerzita v Liberci Anna Barvinská MOP - Mezinárodní obchodní prostředí Lucie Batorková 2016 / 2017 Jana Šourková 4.5.2017 Content • Ahold history • Main milestones • merger • Trade area • Joint ventures • Ahold • Tax and Duty • Outsourcing • Agreements AHOLD • Koninklijke Ahold N.V. / Royal Ahold • , • retailing History • Jan Simonsz Heijn - small grocery store • Sr. - 1887 - took over the store • Albert Heijn Jr. - Dutch chain

Significant impact • grocery chain expanded • 23 shops Albert Heijn in Netherland • pioneering self-service shopping • development of own brand • non-food as a grocery store category • popularizing wine, sherry, kiwi • contributing to the introduction of the refrigerator • convenience items - ready meals, frozen pizza

The largest grocery • 1948 - join-stock company > trade on the stock exchange (Amsterdam) • 1951 - acquisition > Van Amerongen • 1970 - changed name > AHOLD > Albert Heijn HOLDing • 1973 - largest food chain in the Netherlands > alcohol - Alberto (acquisition: Gall&Gall) > health and beauty (acquisition: )

International expansion • in the mid of 1970s > > > United States

• half of the 1990s > Latin America > Central Europe - CZ, PL, SK, N, S, DK, EST, LT, LV > Asia

Next milestones • 1987 - received the designation “Royal” • 1989 - new leadership • 1989 - 2003 - 23 states / 97 companies • 2000 - hospitality / (United States) > U.S. Food Service, PY A/Monarch, Alliant Exchange • 2003 - accounting irregularities - 8 mil EUR • 2003 - “Road to recovery” • 2007 - the divestments - USA, • 2011 - > growth strategy • 2016 - merger with Ahold Delhaize Merger

• merge was finished 23 July 2016 • both chains have got the origin in Benelux • to complete the merger 86 shops in the US had to be sold -> to kill any suspicion concerning negative influence on the economic competition law (US Federal Trade Commission) Ahold Delhaize

• more than 6.500 stores worldwide • 375.000 employees • 50 mil customers per week • 11 countries • wide range of formats • revenue: 62,3 bln EUR

United States • the most trusted local food retail brands • serve 23 states (East coast) • US is Ahold Delhaize´s largest market • 2.000 stores • 210.000 employees • revenue 2015: 40 bln EUR

• Delhaize established (1867) • 800 stores • 15.300 empoyees • revenue 2015: 5 mld EUR

Netherlands • 130 years of tradition • leader in supermarkets, specialty stores and e-commerce • 2.000 stores • 100.000 employees • revenue 2015: 12,7 mld EUR Central and Southeastern Europe

• 4 countries - CZ, GR, SRB, RO • 1.500 stores • 50.000 employees • revenue 2015: 5,2 mld EUR

Czech Republic Greece Serbia Romania Net sales

Joint ventures

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INDONESIA - Super Indo • 51% share • hight quality, fresh meat products • 141 stores (Java, Sumatra, Jakarta) • 7.000 employees • 2016 franchise Lion Express

Joint ventures

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PORTUGAL - • 49% share • providing fresh, healthly food, huge range of non-food items • 401 stores • 23.500 employees • revenue 2015: 3,7 mld EUR Ahold Czech Republic • first foreign retail chain (1990) - Euronova a.s. • purchase the existing stores > 1991 - Mana, Sezam, Prima > 1998 - Hypernova • 1999 - Euronova Holding a.s. • 2003 - Ahold Czech Republic Holding a.s. • 2005 - 56 stores of Julius Meinl (negative) • 2009 - Albert + Hypernova = Albert • 2014 - 50 stores of /INTERSPAR • 2017 - ∑ 330 stores / 17.500 employees

TARIC • Class 1 - animal products > chapter 2: animal products > chapter 4: milk and dairy products

• Class 2 - vegetable products > chapter 7: edible vegetable > chapter 8: edible fruit and nuts > chapter 9: coffee, tea > chapter 11: mill products > chapter 13: oily fruit and oily seed

TARIC

• Class 3 - animal or vegetable fat and oil

• Class 4 - food products > chapter 17: sugar and sweets > chapter 18: cocoa and cacao preparation > chapter 22: beverage and spirits > chapter 24: tabacco

Tariff • ad valorem (%) • fixed amount per kilo • combined (% + 10 /100 kg) • AD F/M - additional tariff from flour • AD S/Z - additional tariff from sugar

Outsourcing & Other Agreements Outsourcing: Quality guarantee • UniConsulting, s.r.o. > product labeling • Bureau Veritas Quality International > laboratory testing

Other Agreements: • Serbia - Transit Union • USA - TTIP Thank you for your attention! Resources

• https://www.aholddelhaize.com/en/home/ • https://www.albert.cz/o-nas/o-spolecnosti • https://zpravy.aktualne.cz/ekonomika/retezce-ahold-a-delhaize- dokoncily-fuzi-zacnou-fungovat- spol/r~cd6d932050f111e682470025900fea04/?redirected=1493379432 • https://is.muni.cz/do/econ/soubory/oddeleni/centrum/ESF_monografie VIII_WEB.pdf • https://www.celnisprava.cz/cz/clo/sazebni-zarazeni-zbozi/spolecny- celni-sazebnik-es/ • https://www.aholddelhaize.com/media/4045/ahold-delhaize_annual- report-2016_interactive.pdf • https://www.celnisprava.cz/cz/clo/celni-rizeni/aktuality/Stranky/pristup- Srbsko.aspx