Electra Consumer Products and Quick Brochures to establish a common online retail platform that will challenge market hegemony and increase competitiveness | According to the agreement, the online activities of the two companies in the field of food and consumption will be merged into a joint company to be maintained by EMZ (51%) and Quick (49%) | Expected: The deal will double the online sales of Pavilion Wines Is this also the entrance ticket to the ultra-Orthodox online market of ‘Mehadrin Market’?
Shi Klein 31.03.2022
Electra Consumer Products (EMZ) From the Elco Group, controlled by the Zalkind brothers And ‘Quick’ in a strategic move to double online sales: The companies report today (Thursday) that they have entered into an agreement to establish a joint company controlled (51%) by the Bitan and Quick wines group (49%), which will operate online and sell food and consumer products. Recall that only recently Amatz also signed a memorandum of principles for the opening of a supermarket chain of the global retailer Carrefour.
The joint online activity will operate under the Quick brand and upon completion of the transaction, all the online sales of Quick on the one hand, and of the Pavilion Wines Group on the other, will be transferred to the partnership.
The joint activity will be based on the technology platform developed by Quick, which is the most advanced platform in the market for food sales and consumption online, as well as from Quick’s operational infrastructure. In addition, the partnership will enjoy the benefits that Bitan Wines will bring to the partnership, and the main thing is to improve trade conditions and a nationwide deployment of branches that will enable the expansion of activity to other geographical areas. The joint activity is expected to expand into additional potential areas. The parties will inject an initial capital of NIS 30 million into the new partnership according to their relative share. Completion of the transaction is subject to the approval of the Competition Authority.
Electra Consumer Products CEO Zvika Schweimer said when the agreement was signed that the new partnership allows us to shorten procedures on the way to a significant expansion of online sales and gives us an advantage over competitors. This is a complementary move to the two agreements we signed with the international giants Karpor and Saban Elban, which are intended to improve the activity of the Bitan Wines Group and create market leadership and differentiation for it. ”
Pavilion Wines CEO Amit Zeev welcomed the merger of online activities with Quick, noting that this is another strategic move in the series of moves we have recently reported on. The combination of Quick’s technological leadership with the trading conditions and deployment of the Bitan Wines chain, provides the joint company with the stable and advanced infrastructure for doubling online sales and expanding operations to other geographical areas. Today, Quick leads with satisfaction among all food sales sites in Israel, and this priority is also expected to support the expansion of operations. ”
Quick CEO, Aviram Ganot: “Within three years, Quick has become the third largest online retailer in Israel with well-established and strong technology and a high level of service. The combination of the two entities creates a platform that brings a significant line to the consumer in terms of service experience, wide range, product quality and accessibility. There is no doubt that this partnership is the beginning of a joint growth for other areas. “
It will be recalled that both the Pavilion Market’s Mehadrin’s branches may now reach online activity – perhaps as an appropriate replacement for Shufersal’s ‘Directly Strict’, which closed last November, and for ‘Quick’ high accessibility for the ultra-Orthodox public through ‘Encore’ devices.