Electra Consumer Products sign agreement with 7-Eleven to establish dozens of convenience stores throughout Israel
Tel Aviv, Israel (ots/PRNewswire)
- The chain's first store is expected to open in Tel Aviv during 2022
- 7-Eleven will supply fast food and exclusive products to the Israeli market in stores in Israel
- By the end of 2024, Electra is expected to invest over NIS 60 million in branding and opening of 7-Eleven stores in Israel.
- The agreement between the parties was signed for 20 years, with an option to extend for another 50 years
Electra Consumer Products (TASE: ECP) today announced the signing of an agreement with the global 7-Eleven chain, following the memorandum of understanding signed between the parties in November 2020. According to the agreement, Electra Consumer Products will act in Israel to develop and operate convenience stores under the 7-Eleven brand, when it was agreed between the parties that dozens will be established in Israel over the next 3 years.
7-Eleven is a multinational convenience store chain based in Dallas, Texas, which operates and grants franchises and licenses to more than 77,000 stores in 18 states. Under the franchise agreement signed, the parties agreed that the franchise period would be 20 years, with an option to extend the period for another 50 years, subject to compliance with the terms set forth in the franchise agreement. The franchise agreement includes the payment of an initial amount and monthly payments that will be paid as a percentage of the total income of the franchise activity in Israel.
Joe de Pinto, President and CEO of 7-Eleven: "With its growing and vibrant population and continued economic expansion, Israel presents an ideal location for the growth of 7-Eleven stores. Our strategic relationship with Electra Consumer Products will bring the 7-Eleven brand, which specializes in convenience products and services, to millions of Israeli consumers."
Zvika Schwimmer, CEO of Electra Consumer: "The entry of 7-Eleven into Israel is another significant factor in making Electra's food division a rising force in the food market in Israel. We strive and anticipate that 7-Eleven, as having international experience and reputation, will ensure a first-class experience for Israeli customers. The chain has exposed the world to the field of convenience retail, and today it is the undisputed international leader in the industry. The chain will supply fast food and exclusive products in stores in Israel that will reach the Israeli market for the first time. We are committed to offering the best shopping experience and the best products, both in city centers, office areas and other locations with high traffic.
The agreement with 7-Eleven, which we see as great business potential, is a significant move in the establishment of the food division of Electra Consumer Products, in parallel with the acquisition of the 'Yeynot Bitan' food chain, which we recently completed. These transactions are in line with Electra Consumer Products' business strategy to become the best consumer group in Israel, while strengthening the value chain and deepening the benefits to size and expanding the range of products and services to our customers. "
The company intends to open dozens of stores in the next 3 years in Israel, when the chain's first store will be launched in Tel Aviv during 2022. Electra should expect to invest NIS 60 million by 2024 in opening stores and the 7-Eleven brand in Israel.
The franchise agreement includes various commitments of Electra Consumer Products to 7-Eleven, including a commitment on issues of non-competition in the field of convenience stores, restrictions regarding a change of control and a commitment to comply with the financial terms set forth in the agreement.
The 7-Eleven entry is expected to bring shoppers a unique retail environment, as it characterizes the brand around the world, and popular international products, including drinks, snacks and fresh food. The international chain will support Electra Consumer Products and the implementation of its unique retail business model.
The 7-Eleven network has a wide presence in many countries including: the United States, Canada, Mexico, Japan, Thailand, South Korea, Taiwan, China, the Philippines, Singapore, Malaysia, Vietnam, Cambodia, Australia, Norway, Sweden, and Denmark. Worldwide, the network's mission is to provide its customers with "what they want, when, where and how they want it". According to the chain's CEO: "Soon, Israeli consumers will be able to experience the trademark of Eleven-7 firsthand and enjoy everyday quality and convenience."
The current agreement adds to a number of significant deals that Electra Consumer Products has reported over the past year. Among other things, in May 2021, the Group completed the acquisition of control of the 'Yeynot Bitan' food retail chain. Under the agreement, Electra Consumer Products acquired the actual control of the chain. Electra purchased 35.05% of the Bitan's shares for NIS 193 million. Simultaneously with Electra Consumer Products, the Phoenix Group also acquired about 15% of the chain's shares, so that in total, Electra Consumer and Phoenix together hold 50.05% of the chain's shares, and the rest is owned by the Bitan family.
About Electra Consumer Products
Electra Consumer Products is a group that operates in four areas of activity, which are also reported as activity segments in its financial statements, as detailed below: the first - import, production, export, marketing, sale and distribution of electrical consumer goods and service ("consumer electrical products"); The second - operating retail marketing networks for the sale of electrical consumer goods ("electricity retail sector"); The third - the activity of the 'Yeynot Bitan' Retail Group ("Food Retail Sector"); The fourth - development and construction of investment real estate ("investment real estate sector"). The company's CEO is Mr. Zvika Schwimmer.
About 7-Eleven
7-Eleven is the leading name in the global convenience retail industry. The company's offices are located in Irving, Texas, and it operates more franchises and / or licenses in more than 77,000 stores in 18 states and regions, including 16,000 in North America. In addition to 7-Eleven stores,. Operates and serves as a franchisee of the Speedway®, Stripes®, Laredo Taco Company® and Raise the Roost® brands and more. 77-Eleven is known for its iconic brands like Slurpee®, Big Bite® and Big Gulp® and has expanded into sandwiches, salads, toppings, fruit and protein boxes, as well as pizza, chicken wings and mini taco beef. 7-Eleven offers customers leading private label products
Contact: Amir Eisenberg Co-CEO, Eisenberg-Eliash Ltd. Investor and Public Relations +972-3-7538828 amir@pr-ir.co.il