MARCA BY BOLOGNA FIERE 2020 THE SUSTAINABLE JOURNEY OF RETAILER BRANDS ITALY, Bologna | January 16th, 2020 THE SUSTAINABLE JOURNEY OF RETAILER BRANDS THE DUTCH CASE KOEN DE JONG THE UNITED STATES CASE THE FRENCH CASE THE DUTCH MARKET Retailer market shares - 2019 21.0% Coop 3.7 Deen 2.1 -0,1 % Dirk 3.7 Dekamarkt 1.7 -0,1 % Hoogvliet-0,4 % 2.1 Jan Linders 1.1 35.7% +0,2 % 25.8% Plus 6.4 = Poisz 1.0 -0,3 % Spar 1.2 + 0,3 % = others 3.7 0 1.8 3.5 5.3 7 10.7% 6.8% Sources: Nielsen/Distrifood/RABO/IPLC 2019 THE DUTCH MARKET Retailer market shares - 2019 21.0% Coop 3.7 Deen 2.1 -0,1 % Dirk 3.7 Dekamarkt 1.7 -0,1 % Hoogvliet-0,4 % 2.1 Jan Linders 1.1 35.7% +0,2 % 25.8% Plus 6.4 = Poisz 1.0 -0,3 % Spar 1.2 + 0,3 % = others 3.7 0 1.8 3.5 5.3 7 10.7% 6.8% Estimate private Label value share: 43% (including Aldi and Lidl) Turnover €38,3bn Sources: Nielsen/Distrifood/RABO/IPLC 2019 THE RETAILER BRAND IN THE NETHERLANDS Further consolidation of retail landscape ▸ Amazing growth of Jumbo: 4.9% to 21% market share in past 10 years ▸ Market share retailer brands: 27,3% (including discounters: 43%) ▸ Retail consolidation has intensified competition ▸ Professional players place private label and sustainability central in their strategy THE ALBERT HEIJN CASE Why addresssing sustainability is important Store image perception Retail brand Shopper loyalty Retail brand Retail brand choice quality perception purchase intention to the store Retail brand price perception Source: Price premium for food brands, Journal of Product & Brand Management, 2014 THE ALBERT HEIJN CASE Sustainability at Albert Heijn ▸ All tea, coffee, orange juice and cocoa is Rainforest Alliance certified (UTZ) all cocoa containing products, sustainably grown ▸ Fruit and vegetables are sourced as close as possible, as far as necessary ▸ Reduce food waste by 50% in 2030 (vs 2015) ▸ Better life scheme for chicken, porc and beef THE ALBERT HEIJN CASE Sustainability at Albert Heijn ▸ Program to improve sustainable dairy supply chain along 3 pillars: cow-soil-farmer THE ALBERT HEIJN CASE Transparent supply chains to build shopper trust ▸ Full traceability and transparency offered to the Albert Heijn consumer for orange juice and eggs THE ALBERT HEIJN CASE Transparent supply chains to build shopper trust ▸ Full traceability and transparency offered to the Albert Heijn consumer for orange juice and eggs THE ALBERT HEIJN CASE Transparent supply chains to build shopper trust ▸ Full traceability and transparency offered to the Albert Heijn consumer for orange juice and eggs THE ALBERT HEIJN CASE Transparent supply chains to build shopper trust ▸ Full traceability and transparency offered to the Albert Heijn consumer for orange juice and eggs THE ALBERT HEIJN CASE Transparent supply chains to build shopper trust ▸ Full traceability and transparency offered to the Albert Heijn consumer for orange juice and eggs THE ALBERT HEIJN CASE Sustainability at Albert Heijn ▸ Focus on reducing, re-using, recycling and the use of renewable materials ▸ By 2025 all packaging to be recyclable ▸ 25% packaging reduction by 2025 (vs 2018) ▸ Case: Bio-based milk container THE ALBERT HEIJN CASE Sustainability at Albert Heijn ▸ Focus on reducing, re-using, recycling and the use of renewable materials ▸ By 2025 all packaging to be recyclable ▸ 25% packaging reduction by 2025 (vs 2018) ▸ Case: Bio-based milk container.