Ahold Delhaize USA expands cold-storage space with Americold partnership

Americold has expanded its partnership with Ahold Delhaize USA to build two fully-automated frozen warehouses.

Americold has expanded its partnership with Ahold Delhaize USA to build two fully-automated frozen warehouses. The new facilities are part of the Ahold Delhaize USA’s supply chain transformation plan as it transitions to a fully-integrated, self-distribution model.

The plan will expand cold-storage space by 500,000 sq ft, by building the two frozen facilities in partnership with Americold. The facilities will be located in Plainville, Connecticut, which will serve Ahold Delhaize USA’s Northeast brands, and in Lancaster, Pennsylvania, which will serve Ahold Delhaize USA’s Mid-Atlantic brands.

The new locations will provide facility locations near the local brands of Ahold Delhaize USA and their customers, aiming to enable local product expansion, increased product freshness and speed of delivery. The two warehouses will also create about 200 new jobs each.

“We are thrilled to partner with Ahold Delhaize USA to design, build and operate these strategically-located retail distribution fulfilment centres over an initial term of the next 20 years. With state-of-the-art automation, these two facilities will deliver a combined 59,000 pallet positions to support the local brands of Ahold Delhaize USA in the Northeast and Mid-Atlantic regions,” said Fred Boehler, President and Chief Executive Officer of Americold.

In addition, the new facilities aim to enable Ahold Delhaize USA to innovate in new frozen storage warehouse design, including transforming facilities to enhance automation and leverage technology advancements, such as an integrated transportation management system and end-to-end forecasting and replenishment technology, designed to support the omni-channel experience and multi-channel growth.

Chris Lewis, Executive Vice President, Supply Chain for Retail Business Services, the services company for Ahold Delhaize USA, said, “Through this expansion, we will continue to modernise our supply chain distribution, transportation and procurement through a fully-integrated, self-distribution model that will be managed by our companies directly and locally”.

Ahold Delhaize USA companies’ distribution networks include 16 traditional and e-commerce distribution centres that service the local brands of Ahold Delhaize USA, including Food Lion, Giant Food, The Giant Company, Hannaford and Stop & Shop. The network is hoped to grow to 23 facilities by 2023.

The companies of Ahold Delhaize USA are said to comprise nearly 2,000 retail stores, with more than 1000 trucks.

Source: Americold

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