Danish dairy products producer Arla Foods has extended its exclusive distribution agreement with G. Willi-Food International’s subsidiary Gold Frost for one year.
The extension starts from the expiration in June 2017 of the existing distribution deal between the companies.
As per the original deal, Arla had the right to terminate the agreement on 18 months' notice if Gold Frost failed to satisfy the minimum purchase requirements, or on 30 days' notice under several circumstances.
The circumstances include but not limited to in the case of the death or permanent incapacity of G. Willi-Food's earlier board chairman Zwi Williger or his ceasing to be involved in Gold Frost's business.
Williger stopped to hold any positions with G. Willi-Food as of 21 January 2016. After his departure, Arla notified the company that, among other changes, it is planning to reduce the contract's exclusivity period.
Under the extension, Goldfrost secured an exclusive non-transferable right to import, export, market and distribute in Israel cheese and butter products manufactured by Arla.
Goldfrost's exclusivity is contingent to its purchase of several minimum quotas of Arla products.
Arla has the right to terminate the deal under several circumstances, including in the case of the death or permanent incapacity of Graiver or his ceasing to be involved in Goldfrost's business.
G. Willi-Food International CEO Iram Graiver said: "We are pleased that Arla, one of the biggest producer of dairy products in the world, has demonstrated its confidence in us.
"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."