Ahold marketing exec gets seven years

Mark Kaiser, the former top marketing guy at US Foodservice, was sentenced to seven years in jail for the trade promotion accounting games that the Ahold subsidiary played a few years ago. He might consider himself lucky, since the prosecutors wanted twenty years.

The judge said he had to sentence Kaiser to prison because the criminal conduct was serious. "It was deliberate," Griesa said. "He had a leadership role and he got other people into trouble."

Ahold was forced to restate more than $800 million in earnings because of the fraud at U.S. Foodservice, and its stock lost 60 percent of its value. Two weeks ago, Ahold agreed to sell U.S. Foodservice to two private-equity firms for $7.1 billion dollars in a deal expected to close later this year.

Kaiser also was fined $50,000. He will remain free while the case is appealed. He was convicted in November after a one-month trial on securities fraud, conspiracy and false-filing charges.

In related news, Ahold recently sold US Foodservice.

Weekend quick notes

Woolworths is the latest retailer to show an interest in India. The Australian giant is developing a deal with India's Tata Group to supply the group's retail outlets -- an opportunity for Woolies to study the market up-close. More on India here.

Home Depot has had a shake-up in its marketing ranks. Roger Adams is the new CMO -- the position has been vacant for a year. The exec-vp of merchanding & marketing is gone, as are a couple of other top folks.

Ahold's former marketing director has gone on trial for fraud. According to the government, he "booked whatever amount in income that they needed to make their targets."

Winn-Dixie looks like it will be out of bankruptcy soon. The question, as noted in the article, is whether they've figured out a way to compete with Wal-Mart. If not, how long before the next filing?

Ahold advised to exit US

Major shareholders are arguing that leaving the US market would increase Ahold's value:

The Amsterdam-based company would be worth more than 9 euros ($11) a share, 26 percent above the Aug. 11 share price, if it were restructured, Centaurus Capital Ltd. and Paulson & Co. said today. The hedge funds together own 6.4 percent of the retailer.

Among rumors about the company are that Centaurus may be leading a buyout. Other speculation says that parts might be sold to Super Valu.

Wednesday quick notes

NASCAR is planning to increase its licensed merchandise directed toward women, recognizing that women are now 40% of its fan base. NASCAR-branded swimwear, shoes and boots, and leather jackets are among the items planned. "Sales of NASCAR's licensed merchandise have flattened at $2 billion, and the brand thinks it can boost product sales - and image - by courting female fans."

Home Depot is testing an expansion into automotive supplies. The test will consist of about 500 square feet in ten stores in the Jacksonville area.

Ahold's Tops Markets chain in upstate New York is planning to spend up to $60 million renovating stores over the next two years, and says it will "be more aggressive in its marketing, so as to better compete not only with Wal-Mart, but also with Northeast star players such as Wegmans."