Rami Levy confirmed Hashikma Marketing 2006 Ltd. (TASE: RMLI) today in a notification to the Tel Aviv Stock Exchange that it is in talks with international retail companies, including the French companies Auchan and Casino, regarding their introduction to the Israeli market. This follows a franchise agreement between Yeinot Bitan, which is controlled by Electra Consumer Products, and French retail giant Carrefour, and between Shufersal and Dutch company Spar.
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If Rami Levy signed an agreement with Auchan, it would probably not be a franchise agreement, but rather a jointly owned company run by Rami Levy himself, or the introduction of Auchan products in the 56 Rami Levy branches around Israel.
A strong card in Levi’s hands is the kashrut issue. For a huge company like Auchan, which has more than 2,000 points of sale in 12 countries, it may be better to cooperate with Levi’s not only to sell its own branded products in Israel, but also to import Rami Levi’s kosher products, rather than producing these products themselves. at a high cost.
If an agreement is reached, Levy can expect to benefit from the same facilities that the Ministry of Economy granted Electra consumer products when it brought in Carrefour. The ministry promised leniency for international retail chains that would later enter the Israeli market.
Auchan, headquartered in France, was founded in 1960. It has annual revenues of about 33 billion euros and employs more than 160,000 people.
In his notification to the stock exchange, Rami Levy mistakenly mentioned that the Dutch company Spar is the company with which he is negotiating. Spar, which also had an agreement with Shufersal, issued a clarification, saying, “Spar does not conduct negotiations with Rami Levy, and the report is incorrect.” A year ago, it was reported that Rami Levy was in talks with Spar, but these did not mature into an agreement.
Published by Globes, Israel business news – en.globes.co.il – on June 13, 2023.
© Copyright Globes Publisher Itonut (1983) Ltd., 2023.
