02Dec2011
New Letters from Delhaize About ‘Preferred Brokers’
I’ve been getting daily calls and emails from brokers and vendors ever since Delhaize America announced its preferred broker program. Some of the info provided to me I’m not yet comfortable sharing, since I’m not sure what could be traceable to them, and I am not eager to get my sources of information into trouble. You may consider your calls to me confidential, if that’s what you prefer, and most people do prefer it that way for obvious reasons. So far it seems apparent, as you’ll see below, that there is no change in the Delhaize position. Some folk have told me that litigation is being considered by several parties, but that they are waiting for the first actual transactions to be made under the new policies, on or after the Jan. 1 starting date, before they file their actions. Of course I have no way of knowing whether this is posturing, or reality. I’ve heard many reports of brokers attempting to buy or merge in some way with the “preferred brokers,” and perhaps it is their concerns, already expressed to me, that triggered the letter below from Delhaize. No doubt I’ll be calling Delhaize for comment in the near future, but at this point, as things shake out, it seems unlikely I’ll have anything new to report from them. I should add here that I have more than a few good friends within Delhaize, and reporting on things under these circumstances is awkward for me but I feel it is essential. It is a matter of honor for me to NOT contact people I know at Delhaize, to avoid putting them in an awkward position. Enough preamble. Call me if you want at 603-252-0507, or email warren@fdbuyer.com. Here’s the latest that came into me today, not from Delhaize, but from others connected with this whole thing.
Dear Preferred Broker,
In the weeks since the Oct. 26 announcement of our Preferred Broker Network, we have learned of some merger and acquisition activity involving some of our preferred brokers.
Though we understand that each of you must make decisions about how best to meet the needs of your customers, including Delhaize America, please understand that Delhaize America has not and will not render an opinion about how you structure your business. Any suggestion that Delhaize America has encouraged or been part of this activity is incorrect.
Earlier today, we sent a letter to all vendors in our database. The letter, which is attached for your reference, included the following paragraph:
“We realize that our preferred brokers will need to ensure they have the resources to adequately support any new business. To the extent that mergers or acquisitions have occurred that involve any of our preferred brokers, please know that Delhaize America has not been, and cannot be, part of this activity, and that our expectations regarding the level of service and support from our preferred brokers have not changed. We remain committed to working with the brokers that were included in our network based on all of the factors we have previously identified.”
As you will see, the letter also encourages vendors to continue transitioning to our preferred brokers or to a direct relationship. Our intention is that this process will be substantially finished by the end of December. If you have questions or concerns about the preferred network or any other issues, please contact Jeff Hinson.
We greatly appreciate your support during this vital transition, and look forward to a beneficial partnership with you to best serve Delhaize America and our banners. Thank you.
Sincerely,
Mark Doiron Derrick Penick
Chief Supply Chain Officer Senior Vice President, Category Management
Delhaize America Delhaize America
Here’s another letter that just came out from Delhaize…
Sent on behalf of the Category Management officers of Delhaize America
Dear Broker or Vendor,
As a follow-up to last month’s announcement of our Preferred Broker
Network, we want to ensure you continue to receive complete and accurate
information about this important initiative.
On Oct. 26, we announced the list of 33 brokers that comprise the
preferred
network, which we created to help streamline operations, enhance
efficiency
and increase sales at our Delhaize America banners. This list has not
changed, and we have attached it here for your reference.
These preferred brokers will be available to all Delhaize America
vendors,
offering solutions and services across categories, including center
store,
fresh and specialty products. Brokers in the network will have regular
access to our Category Management teams, helping ensure timely responses
and optimum solutions.
In the past two weeks, vendors have started moving to preferred brokers,
and we ask our current brokers, vendors and manufacturers to help us
ensure
a smooth transition. We expect this work will be substantially completed
by
the end of December.
As we have previously stated, determining the brokers that were selected
for the network was an objective, deliberate and careful process. We
considered many factors, including responses to our Request for
Information, staffing resources, analytics, trends, strategy and
innovations. Put another way, our decisions were based on the brokers
that
could best meet our future growth plans, as well as the requirements of
our
banners from Maine to Florida and the unique needs of our customers.
If you have questions about this process or the network in general,
please
submit queries to brkquestions@foodlion.com. We will provide answers as
soon as possible.
We noted last month that change on this scale required us to make
difficult
decisions. We are confident that we are on the right course – a course
that
will allow Delhaize America and our seven banners to best compete in
2012
and beyond.
Sincerely,
Pete Bonneau, VP, Center Store
Lewis Campbell, VP, Pricing, Services and Shelf Management
Jim Corby, VP, Produce
Kristen Hanson, VP, Center Store
Tim Jacques, VP, Private Brand
Mark Messier, VP, Meat and Seafood
Peter Vail, VP, Deli and Bakery
Jeff Hinson, Vendor Relationship Manager
