Ahold Delhaize (AD NA) Netherlands

Consumer Staples

the IDEA!

High inflation is leading to downtrading, both reflecting in consumers buying cheaper products and turning to cheaper supermarkets. AD has been a beneficiary. In Europe, its private label products account for over 50% of sales. With its ‘Price Favourites’ and other innovations (multi-channel strategy, personalised offers for loyalty programme users, etc.), its Dutch subsidiary Albert Heijn has hit the bull’s eye in its attempt to keep its customers coming to its stores. This strategy is increasingly being rolled out into other countries as well. This is one of the main reasons why the IDEA! has maintained their positive stance on AD despite reservations towards other consumer sensitive stocks.

- 26 May, 2023