Part An Article from AHOL the parent company of U.S. Food Service, A partner of IVFH....
So, in addition to non-food, private label and healthy living, we see a real growth opportunity in U.S. Foodservice. Let me run you through our thinking. In 2003, we announced that we needed 18 - 24 months to recover U.S. Foodservice, and exceed in 2006 the level of performance we had reached in 2002. We are confident this objective will be met. If anything, our views on the longer term potential of U.S. Foodservice are even more optimistic.
We have learned a lot about the foodservice business. We came a long way. We have the #2 position in the business in the US market. Our cash flow is strong. We are identifying opportunities for synergies with retail on sourcing and private label. The foodservice business is growing faster than the food retail market.
Based on all this, our current thinking is that we believe we can create more value by keeping U.S. Foodservice within the Ahold Group. Our key priority now is to develop the capabilities and the performance of U.S. Foodservice to its full potential, which is beyond the levels we reached before. It would be a mistake to divest our U.S. Foodservice operation, therefore we have no intention of doing so. U.S. Foodservice will stay in the Ahold group as we continue to improve the value of the company.
You will recognize that in order to fully leverage all the opportunities, initiatives and ambitions I have just mentioned, we need to nurture key management and associates and to recruit, develop and retain additional capable people. Creating an innovative, learning environment is key. We will continue to focus strongly on our talent pool, without whom we would not have succeeded to put this company back on a sure footing.
Let me draw to a close by repeating my belief that the Road to Recovery strategy is an ambitious yet achievable program to reposition our operations for the future. By accomplishing the goals of this strategic plan, we are creating a solid financial, structural and organizational foundation with common goals, shared values and an unwavering focus on the customer. We predicted that 2004 would be a year of transition, and so it was.
Let's not forget: success is a journey, not a destination. Next week, our company marks its 118th birthday. In the course of our long history as a prominent food retailer in the Netherlands and along the U.S. eastern seaboard, we have enjoyed many highs and one very serious low. Make no mistake: we survived the lost year of 2003, we worked our way through the transitional year of 2004, and we are determined to turn 2005 into the year of reconstruction, execution and delivery.
As we complete the divestment of our non-core assets and focus on our core business, as we continue to strengthen our corporate governance, as we build a firm foundation for future profitable growth, we are determined to keep the customer at the heart of our business, offer an attractive working environment for our associates and strive to provide you, our shareholders, with an attractive return on your investment.
We will leverage our many areas of opportunity within our core food retail markets and within U.S. Foodservice.
In short, we will make the best easy to choose, for you and all our stakeholders. Thank you for your attention.
