Ron Rutter/Serban Lupu
The Castro Hodis Group is expanding its activities in the international markets.
The company announced today that it entered into an exclusive franchise agreement for the distribution of France's leading cosmetics brand "Yves Rocher" in the USA. This is one of the most successful brands in Europe in the field of cosmetics, which represents a new business opportunity for the Castro Group in the US markets.
For the first time, the cosmetics and care products of Yves Rocher will be distributed to points of sale and stores with a wide distribution in the USA with targeted marketing, and this after the company Yves Rocher chose Castro as the exclusive distributor while expressing full confidence of the management of the Rocher Group in the Castro-Hodis Group. The franchise was signed for a period of 20 years.
According to the agreement, a dedicated subsidiary ``RADIXIS'' will be established in the USA, with its shareholders including: Castro, who will hold 80.2% preferred shares, Avi Goldfinger, a strategic partner - a veteran digital marketing entrepreneur, who will hold 9.9% preferred shares and lead As the digital and technology manager of the Veron Rotter development center, he will be allocated ordinary shares at a rate of 9.9% and his shares will be subject to a reverse vesting mechanism for three years.
The subsidiary will receive a total of approximately 25 million shekels (approximately $7 million) in the initial phase, with Castro's share of the investment amounting to approximately 22 million shekels (approximately $6 million) with the possibility of increasing the investment to approximately 50 million shekels, subject to the approval of the board of directors the company
The investment is intended for the launch of an advanced dedicated online site in the USA, the opening of stores and the establishment of a technological development center D CENTER & R RADIXIS in Tel Aviv, which will support the launch of the brand and its maximum adaptation to the American market.
The development center will harness the Israeli technology of artificial intelligence AI, big data, machine learning in the fields of E-Com, retail and cosmetics to improve the customer experience when purchasing online and in stores. Artificial intelligence technologies will improve customer satisfaction by matching the active natural ingredients in the Yves Rocher product to customer needs according to personal biological data. The advisory committee team of the development center will serve The entrepreneurs, Israeli trailblazers, Assaf Hefetz and Rami Lechter, who will invest in the venture and advise in the technological and digital operations field.
Also, following the receipt of the exclusive marketing and distribution franchise for Yves Rocher in the USA, the company announced a series of appointments in senior management positions: Ron Rotter will be appointed CEO The group's overseas activity branch and within this framework he will serve as the CEO of the project and "Yves Roche" Israel and will finish his term as the CEO of the Castro Hodis Group.
Ron will lead the launch of the brand and its introduction to the American market, while establishing an Israeli technological development center, as mentioned, establishing a dedicated online website for the USA and opening stores. Yair Ohion, who served as the group's CFO, will be replaced and appointed as the CEO of the Castro Hodis Group. Itamar Blum who served as deputy CFO in the group until May 2023, will be appointed as CFO of the group.
The list of new appointments
Ron Rutter
, who served as the CEO of the Castro-Hodis Group between 2020-2024, will be appointed the CEO of the Castro-Hodis Group's overseas activity arm and the CEO of the YVES ROCHER USA venture - the French botanical cosmetics brand, the fastest growing brand in Europe and ranked No. 1 in France. Rutter will lead the launch of the brand's new operations in the US.
Yair Ohion
will be appointed CEO of Castro-Hodis Group, after 5 years in which he served as CFO of the group, and before that he held various senior positions.
Itamar Blum
will be appointed CFO of the group, until recently he served as deputy CFO of the group.
Yossi Gavizon
will hold the position of CEO of the group's brands
Shay Ofir
, will be appointed CEO of the Castro brand, after serving as Deputy CEO of the group, and after 18 years at Castro and will be responsible for all the brand's activities in Israel.
Roy Covelio,
the CEO of the cosmetics brands Kiko Milano and Yves Rocher today, will be appointed the director of the retail and wholesale activities of Yves Rocher in the USA.
Gabi Rutter/Serban Lupu
Yossi Gavizon, one of the owners of the Castro-Hodis Group, said: "We continue to lead the Castro-Hodis Group to new goals. Introducing a strong and leading brand to the American market is a significant move for the group. I have no doubt that the combination of capabilities and determination will lead to success."
Ron Rutter, the incoming CEO of the Yves Rocher USA venture, said: "We are proud to mark a milestone today for the Castro-Hodis Group with the receipt of the exclusive franchise for the YVES ROCHER brand, a global leader in the field of botanical cosmetics, which will be distributed and marketed for the first time in a wide distribution in the USA.
Castro's connection with the French company YVES ROCHER began about a decade ago with its successful launch in Israel, while today the brand continues its growth and grows every year in Israel and around the world.
"Yves Rocher is the leading cosmetics brand in France, specializing in the field of botanical cosmetics with a prestigious reputation. The process of launching the brand in the US will begin this year, with dozens of points of sale planned to open in the US in the coming years. We intend to establish an Israeli technological development center that will use artificial intelligence tools and big Data, who will support the launch of the brand in the US while adapting it to consumers in the American market.
The Castro Group is constantly looking at new business opportunities that will advance its business goals.
The introduction of Yves Rocher to the huge US market is based on our experience in the proven operating model of efficient sales points and strong digital and E-com activity. The new activity in the US represents a penetration into a significant market of 100 billion dollars and we intend to exhaust the commercial potential inherent in a central target market It.
"I am ending my position after 4 years full of action and challenges in complex times and moving to focus on a new growth engine for the company that I believe will take us to new and significant achievements. Only about two months ago we presented the work plan for 2024 to the board of directors and I am proud of the work being done in all parts of the group which is reflected in growth and profitability In our latest published financial statements, I have no doubt that our work plan for 2024 will ensure the continuation of the trend in all the group's brands."
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