Tiv Ta'am and Granot Form Joint Venture for Fruit and Vegetable Supply

Tiv Ta'am Group announced Wednesday it has signed a principles agreement with Granot to establish a joint corporation for the supply of fruits and vegetables to the retail sector in Israel. The new entity will be equally owned by Granot and Yashraco, a subsidiary of Tiv Ta'am.

The joint venture is expected to commence operations in the first quarter of 2027, pending the completion of preliminary conditions, including a detailed agreement and potential approval from the Competition Authority. The new operation will be housed in Granot's new logistics center at the Iron Junction.

Under the agreement, Granot will transfer its entire marketing and sales operations for the retail sector, including to supermarket chains and private clients, to the joint corporation. This will involve logistical handling through Granot's new center. Yashraco will purchase all its fruit and vegetable needs from the joint venture, excluding organic and dried produce.

Hagai Shalom, CEO and controlling shareholder of Tiv Ta'am, stated that the partnership is a strategic move to expand the group's trade sector. He highlighted Granot's leading position in agricultural produce, its farmer relationships, and its operational infrastructure. Shalom added that the venture, leveraging Yashraco's import capabilities and Tiv Ta'am's purchasing power, will significantly expand the group's trade activities and customer base, potentially impacting results within the coming year.

Shalom also indicated plans to accelerate customer base expansion through increased activity with additional retail chains, restaurants, cafes, hotels, and private stores. He sees the joint company as a key step in Yashraco's strategy to broaden its trade and distribution activities and create new growth engines, following the recent acquisition of "Mizrach U'Ma'arav." The company aims for continued accelerated growth at Tiv Ta'am and long-term value for shareholders.