Food Lion 2001 Annual Report Download - page 13

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The operating companies of the Group
impose strict requirements on their suppliers
to secure additional quality and food safety
guarantees. Information provided to
customers on labels is expected to be clear
and precise. Overriding strict rules and
controls are enforced at each level of the
supply chain, from the suppliers to the
checkout. All U.S. banners of the Group
buy meat products only from sources that
are approved by governmental agencies.
Operating companies of Delhaize Group
conduct regular internal and external food
safety audits in their stores and with their
private label product manufacturers. Private
label products are regularly tested to ensure
they meet specifications for quality.
Significant effort is dedicated to training
associates in food safety issues. At Food
Lion, store managers must successfully
complete a nationally recognized food
safety program before they can graduate
from the Store Manager College.
A computer based training program has
also been developed to train associates on
food safety. Twice a year, Food Lion
associates participate in food safety
awareness initiatives.
Delhaize Belgium developed the
traceability of its products with, among
others, quality certification for meat or
eggs. Today, Delhaize is the only Belgian
food retailer with an officially recognized
label for pork that is inspected by external
organizations.
Synergies | Delhaize Group’s
customers enjoy the strength of their local
supermarkets, partly thanks to the global
expertise of Delhaize Group.
The financial strength of the Group allows
its different operating companies to invest
in modern stores and infrastructure.
Aggregated buying power allows Delhaize
Group to obtain more attractive price
conditions. The Group’s investments in
information technology make the latest
applications available to the operating
companies. The Group offers training and
skills enhancement programs to its
personnel across all companies. And finally,
the vast knowledge network of a global
food specialist like Delhaize Group gives
the operating companies access to the
world’s most successful practices in food
retailing.
Through membership in the WorldWide
Retail Exchange (WWRE), the different
companies of Delhaize Group are able to
enjoy substantial price reductions. Major
purchasing savings are also realized at the
regional levels. By combining the private
label sourcing programs of Food Lion,
Hannaford and Kash n’Karry with one
broker, significant savings have been
achieved. In 2001, the European operations
of Delhaize Group became a member of
EMD, the largest European buying group,
which allows them to gain scale for both
their private label purchase programs as
well as their common purchasing.
The share exchange completed with
Delhaize America and the introduction of a
more integrated management structure in
2001 will allow Delhaize Group to
propagate these benefits more easily in the
future. In a host of areas such as
information technology, purchasing,
finance, risk management and food safety,
important projects are underway to create
synergies and exchange successful
practices.
Ethnic Food
The Hispanic and Latino population has
grown more than 50% in the United
States since 1990. This consumer group is
looking to find the items that it knows
and loves at a great price. Food Lion has
been able to answer this call by
identifying the high-demand products of
these customers and adding them to their
shelves. Today, shoppers will find Hispanic
and Latino items in 800 of Food Lion’s
1,200 stores.