Thursday, October 07, 1999
Disco-Ahold International Holdings, the Argentine joint venture between the international food retailer Royal Ahold and Velox Retail Holdings, announces its purchase of the La Plata-based Pinocho supermarket chain. Disco also announces the opening this month of its new, state-of-the-art distribution center in the outskirts of Buenos Aires.
Regional leader expands
Disco, already a leading supermarket chain in Buenos Aires and surrounding areas with annualized sales of approximately USD 1.8 billion, has purchased the eight Pinocho stores in and around the town of La Plata with total annual sales of approximately USD 36 million. The acquisition brings the number of stores in Argentina operated by Disco to 208. The joint venture also holds a 65% stake in the Santa Isabel chain, which operates 90 stores in Chile, Peru, Paraguay and Ecuador.
New distribution center opened in Buenos Aires
The Fritz Ahlqvist Disco Distribution Center has officially opened in the outskirts of Buenos Aires and will service all Disco stores in the area. Named after the late Ahold board member who was instrumental in the establishment of the Argentine joint venture company, the new center marks the first step in the implementation of a new distribution system for the Argentine operations. Before the end of the year, the currently high level of direct deliveries from suppliers to individual stores is expected to be a thing of the past. The new centralized distribution system will result in considerable improvements in efficiency and cost savings as well as top level customer service and quality assurance. Plans for a central meat processing plant are also underway at the location, continuing the trend towards centralization.
Remarks of Eduardo Orteu and Cees van der Hoeven
At the opening of the new distribution center, Eduardo Orteu, President & CEO of Disco-Ahold International Holdings, said that the joint venture sees considerable further growth. "Disco is known for its excellent store operations and quality customer service," he said. "With our combined expertise, we see clear opportunities to boost sales and results of our existing stores. The addition of Pinocho shows that opportunities also exist with regard to companies who seek the expertise and financial backing we offer. We are very positive about the developments in Argentina."
Cees van der Hoeven, President & CEO of Royal Ahold, was present at the official opening of the Fritz Ahlqvist Distribution Center. Van der Hoeven mentioned the close relationship between the distribution specialists from various countries who together developed the new, state-of-the-art logistics system. "We see Latin America as a high potential region for our food retailing operations. Our presence today in Brazil, Argentina, Chile and other countries will see further expansion. In the region, we are in the process of strengthening our network in order to best serve the local customer and build a prosperous business. The Disco operations and its high-caliber management team demonstrate the speed at which this can be accomplished."
Royal Ahold operates nearly 4,000 supermarkets in the U.S., Europe, Latin America and Asia, with annualized sales approaching USD 40 billion. Latin American operations account for approximately 10% of worldwide sales.