A month after the memorandum of understanding was signed between Electra Consumer Products And the French retail giant Carrefour, reported this morning (Monday) Electra needs that the franchise agreement has been signed, and finally Carrefour on its way to Israel. The agreement is valid for a period of 20 years, with automatic extension for another 20 years and the possibility of further extension for the same period of time.
● The private label and prices: 5 things you should know about the European food chain Carrefour on its way to Israel
Under the agreement, more than 150 pavilion wine chain branches will be gradually renovated and adapted to Carpur branches. The first branches under the Carrefour brand will open before the end of 2022 and branded Carrefour products will begin to be sold at Pavilion Wines branches before the summer.
It was also agreed that Pavilion Wines would be given the opportunity to produce some of the products in Israel and market them under the Carrefour brand. In addition to being a retailer, Carrefour is also one of the largest food producers in the world with 20,000 brands and about 14,000 products. This model allows it to cut production costs sharply. The chain’s private label accounts for 31% of its total sales, a rate that is considered very high in relation to the Israeli market. The parties will work in the coming months to regulate the scope of the product range and expand it, to regulate kosher restrictions, to attract the prices of the products and to set the opening dates of the stores accordingly. The franchise will include an initial payment that will be spread over a number of years, plus payments that will be paid as a percentage of the income.
Carrefour is the largest international retailer to date in Israel, with about 13,900 branches and a sales turnover of 81.2 billion euros.
Electra Consumer Products CEO Zvika Schweimer said: “The agreement with Carpur is a move that will create a revolution for consumers and also a tremendous opportunity for Israeli suppliers. This is one of the largest food corporations in the world and I am very happy that they chose us to bring Carrefour to Israel. The agreement is also a power multiplier for both the customer club and the food division of Electra Consumer, which will soon be strengthened with another international player with the opening of the first convenience stores of world leader Saban Elban. Carrefour management sees great importance in entering Israel and has expressed its full commitment to the success of the move. We will soon see Carpor teams coming to Israel to accompany the process of building the chain and the brand in Israel. “
Amit Zeev, CEO of the Bitan Wines Group, said: “The signing of the agreement with Carfor allows us to offer consumers in Israel a basket of differentiated solutions in the consumption experience, in the variety of products and in the price level. Our challenge now is to quickly assimilate the changes that will be felt in each and every home. “We will continue to work with local farmers and small and medium-sized producers and even open up the opportunity for them to produce for the global Carrefour chain and get an entry ticket for sale at thousands of Carrefour branches around the world.”
Carrefour has over 2 billion transactions a year
Carrefour Group is one of the largest food retail companies in the world, operating about 13,900 stores in more than 40 countries in Europe, the Middle East, North Africa, East Asia and Africa. The company operates in various retail formats: hypermarkets, supermarkets, Cash & Carry, municipal stores and online sales sites, tailored to each country and state.
Carrefour carries out more than 2 billion transactions a year and the company’s sales turnover for 2021 amounted to 81.2 billion euros. Carrefour is a public company whose shares are listed on the Euronext NV stock exchange and the company’s market value is about 15 billion euros.
Electra Consumer Products from the Elco Group is controlled by the Zalkind brothers. In the last two years, the company, led by CEO Zvika Schweimer, has made a number of strategic moves, and its activities are currently concentrated in three main areas of activity: Rishon, is an importer and manufacturer of electrical products and air conditioners and is the leading retailer of electricity. In the Bitan Wines chain, the owner of the franchise to open a global supermarket chain of carports and the franchisee to open a convenience store chain of the global brand Saban Elban. In March 2022, the company signed an agreement with Quick to establish a joint platform controlled by Bitan Wines Group The third arm of activity is in the field of leisure and the field that AMZ entered into with the acquisition of control of ET Saar Entrepreneurship and Commerce, the Colombian franchisee in Israel. As a strategic move designed to create a synergy of all of the group’s operations, an agreement was recently signed with ICL to establish a customer club based on a credit card that will be wholly owned by Electra Consumer.
About a year ago, Bosch Global became a partner of AMZ after acquiring 40% of Electra Industries and joining it in establishing an advanced thermo-technological park in Ashkelon. Recycle 50% of all electrical waste in the State of Israel within a decade. Amatz is traded at a value of NIS 4.1 billion. In the last three years, the stock has yielded investors a return of 480%.