A large Dutch grocery company is buying Freshdirect


The two companies announced the deal on Wednesday, but did not disclose the terms of the transaction. The deal is expected to close next year. Fresh Direct will retain its name and operate outside of New York City, where it was launched in 2002.

Ahold Dealize (ADRNY), Formed in 2016 from the merger of Ahold and Dilhais Group, is one of the largest grocery operators in the United States. He said Freshdirect would help it reach new customers and sell in New York’s lucrative market. Freshdirect said gaining access to the Dutch company’s size and scale would allow it to grow.
“Ahold is determined to grow up to compete with such heavyweights Amazon (AMZN) And Walmart (WMT)“John Springer, executive editor of industry trade publication, Vincent Grocery Business, wrote in an email.” Freshdirect gets parents with real purchasing power and a means of further expansion in the East Coast markets. “

The deal came at a time when the epidemic was shaping up the grocery industry.

Such as leading groceries Kroger (K.R.), Albertson, Publics and others have logged in stores and in-line boom sales as consumers take more food with restaurant shutters at home and many people think about going out for dinner.
FreshDirect, F online delivery service, will soon be Dutch owner.
U.S. sales of ahlord at stores that have been open for at least a year increased 12.4% in the most recent quarter compared to the same period last year, excluding gasoline, the company said earlier this month. Online sales are up 114.7%. The company said the growth was “largely due to the Covid-19 outbreak.”

Online shopping was slower than shopping for electronics, clothing, and other items in the United States for grocery shopping.

“Covid was a kind of wake-up call for us,” Natalie Knight, chief financial officer of the Old World, told the Wall Street Journal in August.

Brick-and-mortar grocery and delivery online delivery services have been stretched to keep pace with demand, causing long delays for canceled orders and customers.

The first blow to the epidemic was not Freshdirect employees to handle the flood of existing customer and shopper orders, CEO David McInerney told CNN Business in an interview last month.

In March, he said, “barriers to online grocery shopping were completely eliminated.” Increased demand “We couldn’t take” The company’s systems were overwhelmed because people were buying two and three times more than usual, shopping longer than usual, and placing orders for friends and relatives.

Fresh Direct plans to increase coronavirus cases for the busy winter. It acquired holiday items such as pumpkins, baking supplies and spices prepared earlier this year than usual and is storing large quantities of them.

“We expect a really, really busy winter, and that food will be replenished many times the first time customers get it by buying food online,” McInerney said last month. “The cold weather is just pushing it forward.”

.