Electra Consumer Products reports today (Monday) that it has signed an agreement with retail giant Carrefour to open a chain of supermarkets in Israel under the brand.
The franchise agreement was signed about a month after the signing of the memorandum of understanding between the parties and is valid for 20 years with automatic extension for another 20 years and the possibility of further extension for the same period of time.
Under the agreement, more than 150 pavilion wine chain branches will be gradually renovated and adapted to Carrefour branches.
The chain's first branches will open before the end of 2022, and even before that, the Bitan Wines Group is expected to start selling the brand's products in its branches.
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.
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 turnover of 81.2 billion euros.
The network operates in more than 40 countries in Europe, the Middle East, North Africa, East Asia and Africa.
Carrefour brands are the largest in Europe.
Carrefour is a public company whose shares are listed on the Euronext NV, the largest stock exchange in Europe, and the market value of the company is about 15 billion euros.
Carrefour carries out more than two billion transactions a year and the company's sales turnover for 2021 amounted to 81.2 billion euros.
The company operates in various retail formats: hypermarkets, supermarkets, Cash & Carry (a form of sale in which a retail company sells products wholesale to business owners who are authorized dealers), municipal stores and online sales sites tailored to each country and state.
Branch of Bitan Wines in Lod (Archive),
Electra Consumer Products from the Elco Group is controlled by the Zalkind brothers.
Its activity currently concentrates on three main areas of activity: In the first, it is an importer and manufacturer of electrical products and air conditioners and is the leading retailer in the field of electricity with the electricity storage chains and Shekem Electric.
In the second, it controls the Pavilion Wines chain;
The owner of the franchise to open a chain of supermarkets in the global Carrefour store and the owner of the franchise to open a chain of convenience stores of the global brand Saban Elban.
Last month, the company signed an agreement with Quick to establish a joint platform controlled by the Bitan Wines Group (51%) that will operate online and sell food and consumer products.
The third arm of activity is in the field of leisure and the field that Electra entered with the acquisition of control of ET Saar Entrepreneurship and Trade, the Colombian franchisee in Israel.
Electra is traded at a value of NIS 4.1 billion.
In the last three years, the stock has yielded investors a return of 480%.
Electra Consumer Products CEO Zvika Schweimer: "The agreement with Carfor is a sub-market move that opens Israel to the world.
It will create a revolution for consumers as well as a tremendous opportunity for Israeli suppliers to enable them to sell their products in all thousands of Carrefour branches in dozens of countries.
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 force 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 the world leader Saban Elban."
He added: "These strategic moves, along with strengthening the online infrastructure in the expected merger of operations with Quick, complement the infrastructure required for the company to break through and lead the food and consumption market in Israel. Carrefour management sees great importance in entering Israel. "Carpor teams that will come to Israel to accompany the process of building the chain and the brand in Israel. I have no doubt that Carpor's tremendous capabilities will soon be reflected in the local market for the benefit of all consumers in Israel."
Amit Zeev, CEO of the Bitan Wines Group: "The signing of the agreement with Carrefour 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."
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