Electra Consumer Products (TASE: ECP) and French multinational retailing and food giant Carrefour reported today that they have signed a franchise agreement. Under the agreement, 150 branches of the Yeinot Bitan chain will gradually be converted into Carrefour branches and adapted to its format. The agreement is for 20 years with an automatic option to extend it for a further 20 years and an option to extend beyond that.
Today's agreement follows a memorandum of understanding (MoU) which was signed on the matter last month. The first branches under the Carrefour brand will be opened towards the end of 2022, while Carrefour's own brand products will start to be sold in Yeinot Bitan branches before the summer.
Electra Consumer Products and Carrefour have also agreed that Yeinot Bitan will be allowed to manufacture some of the chain's products in Israel and market them under the Carrefour brand. In addition to being a retail giant, Carrefour is also one of the world's largest food manufacturers with 20,000 brands and 14,000 products. Its private brand represents 31% of sales, a very high proportion by the standards of the Israeli market.
Carrefour is the largest international retailer to enter Israel. The company has some 13,900 branches and a sales turnover of €81.2 billion.
Electra Consumer Products CEO Zvi Schwimmer said, "The agreement with Carrefour is a move that will create a revolution for consumers and a giant opportunity for Israeli suppliers. This is one of the world's biggest food corporations and I am very happy that they have chosen to bring Carrefour to Israel."
Published by Globes, Israel business news - en.globes.co.il - on April 4, 2022.
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