Ahold CEO: Shoppers Continue to Buy Budget and Premium PL

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June 21, 2011

Shoppers continue to buy Ahold’s budget and higher-priced premium private label products, and overall, consumer sentiment is fairly positive in Europe and U.S. markets, according to Royal Ahold NV CEO Dick Boer.

“We all know in Europe and the U.S. we have an economy quite under pressure and consumers are always reacting,’’ Boer told Bloomberg at the recent Consumer Goods Forum in Barcelona. Still, “we are a retailer selling food so that’s a good thing.’’

Boer noted that he does not expect high demand for its private label products – either its low-price value tier or higher priced premium tier -- to change any time soon particularly in the U.S.

The Amsterdam-based grocer reported earlier this month net income that beat estimates. Sales were up 5.9 percent, operating income was up 8.6 percent, net income was up 6.2 percent underlying retail operating margin was up 4.9 percent.

As part of its health and wellness initiatives, Hold said it will be adding “Healthy Living’’ labels on 25 percent of goods sold by 2015, according to the report. All products will be re-labeled with calorie counts on the front of the package, Boer said.

During a recent earnings call, Boer said the company plans to further expand its private label offering, and develop more U.S. store formats.

In the U.S., Ahold owns and operates Stop & Shop, Giant Foods, Martin’s and Peapod.

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