Dunnhumby and Kroger have announced a new chapter in their alliance that aims to provide greater flexibility for both parties to use data to create substantial opportunities for innovation and growth. This article is copyright 2015 The Best Customer Guide.

Under the new arrangements Dunnhumby Ltd and Kroger will replace their existing exclusive joint venture with a new long-term license and service agreement and the acquisition of certain assets from DunnhumbyUSA by Kroger. A new business called 84.51° will operate with those assets as its foundation.

Dunnhumby Ltd will continue to operate in the US as Dunnhumby, expanding its client base and accelerating the growth of its business through the greater flexibility of the new arrangements with Kroger. Dunnhumby will now have the ability to use its proven insight products and data expertise to capture the substantial, previously unavailable potential of the North American market through working with new retailers, consumer brands and media partners. Dunnhumby will continue to pioneer the field of customer science through innovations in retail consulting services, analytics software, data science and digital media and will continue to develop its existing strong platform of client relationships in the US. Current retail clients of the joint venture will be seamlessly transitioned to Dunnhumby. Dunnhumby will continue to operate from offices in the US in Cincinnati, New York, Boston, Chicago and Sacramento. Dunnhumby's work with retailers and brands in its other 70 countries earning the loyalty of almost one billion customers continues as normal.

Under the new arrangements, Kroger will retain Dunnhumby Ltd.'s technology and the talent to continue developing Kroger's leading customer insights and loyalty programmes for the benefit of its customers. More than 500 of DunnhumbyUSA's employees will become associates of 84.51°, a wholly-owned subsidiary of The Kroger Co. 84.51° will also have the benefit of a perpetual license to use Dunnhumby Ltd's analytical tools to find customer insights in Kroger's data. Dunnhumby Ltd will provide service and maintenance on those tools for a period of five years, but will no longer have access to Kroger's data. Current consumer packaged goods companies that serve Kroger customers and work with DunnhumbyUSA will be seamlessly transitioned to 84.51°. Stuart Aitken, who previously led DunnhumbyUSA, will become chief executive officer of 84.51°.

In addition, 84.51° will have the flexibility to accelerate future innovation by working with new partners and new tools, always toward the goal of engaging customers where, when and how it matters most to them. Where previously Kroger was restricted to working with Dunnhumby only, the new non-exclusive arrangement now makes available to 84.51° the use of tools from other companies to analyse its data. 84.51° will be an innovation engine, focused on rapidly developing customer science, analytics and insights to bring new solutions to market to support Kroger, consumer packaged goods companies, and other partners. 84.51°'s headquarters will be in the building at Fifth and Race Streets in downtown Cincinnati.

Financial terms of the new arrangements have not been disclosed, but there are no anticipated headcount reductions as a result of the new arrangements.