Tiv Ta'am to Co-Own Produce Supply Company with Granot

Tiv Ta'am, a non-kosher food company controlled by Hagi Shalom, is set to become a fruit and vegetable supplier through a new joint venture with Granot, an agricultural cooperative owned by kibbutzim. The companies signed a memorandum of understanding to establish an equally held company, which will operate under Tiv Ta'am's industrial arm, Yashirko, to supply produce to the retail sector. The joint venture is expected to be operational by the start of the second quarter of 2027.

Upon its establishment, Granot will transfer its entire retail marketing and sales operations, including those serving supermarket chains, private clients, institutions, and food networks, as well as its professional and institutional sector sales requiring logistical handling from its logistics center in northern Israel. Concurrently, Tiv Ta'am will channel its fruit and vegetable procurement for its retail chain, previously handled by Bikurei Sadeh Tzafon, to the new entity.

Granot operates under kashrut supervision, and its produce is sold in kosher supermarkets, similar to Bikurei Sadeh Tzafon. Tiv Ta'am's 2025 financial reports indicate its vegetable sales reached NIS 165 million with a 26.4% gross profit margin, suggesting annual purchase volumes from suppliers around NIS 130 million. Industry estimates place Granot's annual vegetable sales at approximately NIS 100 million.

To address potential discrepancies between transferred activities and current estimates, a review will be conducted 18 months after the joint operation begins to balance their contributions. This review will compare Granot's customer turnover with Tiv Ta'am's purchase turnover from the joint company, with adjustments to be made as agreed in a detailed agreement. The memorandum also outlines governance, including appointing three board members from each side and a CEO, and establishes a long-term lease for the use of Granot's logistics center and transportation services.

In the event of a change in Tiv Ta'am's control, Granot will have the right to purchase Yashirko's share in the joint company at a price determined by an independent appraiser. Negotiations began last month, but Tiv Ta'am delayed reporting them, citing potential harm to the deal. The transaction is contingent on operational, financial, and legal due diligence, as well as regulatory approvals, including from the Competition Authority. This move is expected to bolster Tiv Ta'am's industrial expansion, which has seen recent acquisitions of companies like Zilber Delicacies and Mizrach U'Ma'arav.