G. Willi-Food extends Arla Foods exclusivity deal

By Jim Cornall contact

- Last updated on GMT

Arla Foods has extended its contract with Gold Frost that gives the Israeli company exclusive rights on Arla products in Israel.
Arla Foods has extended its contract with Gold Frost that gives the Israeli company exclusive rights on Arla products in Israel.

Related tags: Arla

Arla Foods has extended the distribution agreement with Gold Frost that gives the Israeli company an exclusive non-transferable right in Israel to import, export, market and distribute cheese and butter products manufactured by Arla.

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.

Related topics: Manufacturers, Emerging Markets, Arla Foods

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1 comment

Arla Deal

Posted by Jack Spratt,

This is the sort of anti-competitive deal that Arla likes so it can impose conditions on their customers. Within the EU The European Court of Justice is more than willing to enforce these type of deals where shops such as Tesco are unable to source products outside the EU. Witness the Levi jeans case that stopped Tesco selling half price jeans.

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