The agreement is being extended for a term of 15 months commencing from the expiration in June 2016 of the current distribution agreement between the parties.
Gold Frost is a subsidiary of G. Willi-Food International.
Right to terminate
Under the original agreement, Arla had the right to terminate the agreement with 18 months' notice if Gold Frost failed to satisfy the minimum purchase requirements, or with 30 days' notice under certain circumstances, including but not limited to the death or permanent incapacity of Zwi Williger, the previous chairman of the board of Gold Frost, or his ceasing to be involved in Gold Frost's business.
Williger ceased to hold any positions with the company as of January 21, 2016.
After Williger’s departure, Arla had notified the company that, among other changes, it was seeking to reduce the period of exclusivity of the contract.
Iram Graiver, CEO of G. Willi-Food, said he was pleased that Arla has demonstrated its confidence in the company.
“After the company built an experienced new managerial team, Arla has agreed to provide us with an additional year of exclusivity in distributing their cheese and butter products in Israel," Graiver said.