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

Tiv Ta'am, a leading Israeli supermarket chain, is taking direct control of its fruit and vegetable supply for the first time through its subsidiary Yashraco, its food and beverage import arm. This move is part of preparations for Yashraco's planned IPO next year and aims to ensure high-quality produce for Tiv Ta'am's stores.

Tiv Ta'am announced Wednesday that Yashraco is establishing a 50-50 joint venture with Granot, a corporation owned by 43 kibbutzim. This new company will supply fruits and vegetables to Tiv Ta'am's branches, replacing the previous external supplier, Bikurei Sadeh North. The venture is expected to significantly boost Yashraco's annual sales turnover to approximately one billion shekels, up from its current 700 million shekels, which also includes the recently acquired Asian food importer, Mizrach U'Ma'arav.

The joint company will not only serve Tiv Ta'am but also other retailers in Israel. Operations are slated to begin in the second quarter of 2027, pending approval from the Israel Competition Authority, and will coincide with the completion of Granot's new logistics center. Tiv Ta'am CEO Hagai Shalom stated that the partnership leverages Yashraco's import capabilities and Tiv Ta'am's purchasing power to expand the group's trade sector, enter new product categories, and broaden its customer base.

Under the agreement, Granot will transfer its entire retail marketing and sales operations, including those for institutional clients, to the joint venture. Granot, a major economic entity among kibbutz corporations and a significant avocado grower, will also contribute its new logistics infrastructure. Tiv Ta'am will procure all its fruit and vegetable needs from this new entity. Shalom highlighted a successful pilot program where supplying high-quality produce to seven Tiv Ta'am stores resulted in increased fruit and vegetable sales, expressing confidence that the partnership will accelerate customer base growth by expanding services to additional retail chains, restaurants, and hotels.