Delhaize America Cheers Kash N’ Karry, Looks To Future

May 04, 2000

Annual shareholder’s meeting showcases Tampa-based Kash n’ Karry subsidiary

Tampa, FL — Top executives of Delhaize America (NYSE: DZA, DZB) celebrated the new holding company’s emergence as a major force on the East Coast today at its annual shareholder’s meeting.

The holding company, created last fall when the company began trading shares on the New York Stock Exchange, owns Salisbury, N.C.-based Food Lion and Tampa-based Kash n’ Karry. It expects to consummate its acquisition of Scarborough, Maine-based Hannaford Bros. shortly. The company is the first in the supermarket industry that will operate stores in nearly every major market from Maine to Florida.

“We are entering the 21st century positioned as a leader in the supermarket industry with strong earnings and sales momentum,” Bill McCanless, Delhaize America’s Chief Executive Officer told shareholders. “The Delhaize America family of companies will generate sales of $15 billion following our acquisition of Hannaford, and we will have the purchasing power and economies of scale of a multi-regional powerhouse.”

In addition to posting earnings growth of over 15% in the first year after the acquisition, the chief executive forecasted the company’s unmatched presence and growth potential in key east coast markets.

Leading up to its successful bid for Hannaford Bros. – the industry’s most sought-after acquisition in 1999, Delhaize America created momentum by growing the prominence of Kash n’ Karry, a west Florida chain the company purchased more than three years ago.

“Today, Kash n’ Karry is stronger than ever, with positive sales, growing customer counts and an expanding base of modern stores,” said Bruce Dawson, president of the Tampa subsidiary. “The number of Kash n’ Karry stores has grown by more than 40 percent since the acquisition… This year alone, we plan to open 10 new Kash n’ Karry stores and renovate 40 existing stores.”

In addition, Dawson pointed to the growing popularity of Kash n’ Karry’s loyalty shopper program, which has attracted more than one million members who collectively saved more than $42 million in 1999. Kash n’ Karry unveiled a new, trend-setting round store format last fall in suburban Orlando, and inked the industry’s first co-branding partnership with a drug store operator. More than 50 Kash n’ Karry stores now house Medicine Shoppes® pharmacies.

Chief Financial Officer Laura Kendall’s report of financial highlights included record sales of $10.9 billion, making 1999 the 32nd year of consecutive of increased sales. Kendall also noted record earnings, which rose 10.2 percent to $300 million or $1.91 per share.

In other business, shareholders voted to appoint Pricewaterhouse Coopers LLP as the Company’s independent accountants. Shareholders voted in a new slate of directors: Pierre-Olivier Beckers, Dr. Jacqueline Kelly Collamore, Jean-Claude Coppieters ’t Wallant, Pierre Dumont, William Ferguson, Dr. Bernard Franklin, Joe Hall, Margaret Kluttz, Bill McCanless and Dominique Raquez.

With 1999 sales of $10.9 billion, Delhaize America is one of the nation's largest supermarket companies. The Company and its more than 95,000 employees serve more than 10 million customers a week at 1,144 Food Lion, 123 Kash n' Karry and 18 Save 'n Pack supermarkets. With the addition of Hannaford Bros., Delhaize America will have over 1,400 stores throughout the eastern United States from Maine to Florida, with total projected annual revenue of approximately $15 billion in the first year of the acquisition and more than 116,000 full-time and part-time employees.