Tiv Taam and Granot Sign MOU to Form Produce Supply Joint Venture
Tiv Taam announced that its subsidiary Issarco and Granot signed an MOU to form a 50-50 joint venture supplying fruits and vegetables, starting in Q2 2027.
The Tiv Taam Group announced on Wednesday that its subsidiary, Issarco, has signed a memorandum of understanding with Granot to establish a joint venture for the supply of fruits and vegetables. The joint venture will be owned in equal parts by Issarco and Granot, aiming to establish and operate a joint enterprise supplying fresh produce to the Israeli retail sector.
Conditions and Timeline for the New Venture
The launch of operations is subject to the fulfillment of preliminary and suspending conditions, including the signing of a detailed agreement and the approval of the Competition Authority commissioner, if required. According to the company's estimates, operations are expected to commence in the second quarter of 2027, coinciding with the completion of Granot Group's new logistics center.
Under the terms of the memorandum, Granot will transfer all of its marketing and sales activities directed at the retail sector—including supermarket chains, private clients, institutions, and food networks—requiring logistical handling from the new Granot logistics center at the Iron Junction. It will also transfer its wholesale and institutional marketing activities, subject to specific exceptions. Conversely, Tiv Taam Networks will purchase all of its fruit and vegetable requirements, excluding organic and dried produce, exclusively from the joint venture.
Strategic Expansion and Management Remarks
«We are delighted with this partnership with Granot, which represents another strategic move to expand the group's trading sector operations. Granot is the country's leading agricultural produce company with a broad customer network, strong ties with farmers, and operational infrastructure that includes a new logistics center,» said Chagai Shalom, CEO and controlling shareholder.
Shalom added that the partnership will leverage Issarco's import capabilities, its subsidiary Mizrach U'Ma'arav, and Tiv Taam's purchasing power to significantly expand trade activities, enter new product categories, and broaden the customer base. The company intends to further accelerate growth by targeting additional retail chains, restaurants, cafes, hotels, and independent produce shops.
