“The brand is a sales leader in France, specializing in the prestigious botanical cosmetics industry. We will commence the U.S. brand launch, initially opening dozens of points of sale in the upcoming years. We intend to establish an Israeli technological development center that will utilize AI and Big Data to support the brand launch in the U.S., adapting it to consumers in the American market.”
Rotter added: “Castro Group continuously evaluates new business opportunities to facilitate its business objectives. Launching Yves Rocher in the U.S. market is based on our proven track record with the operational model of efficient points of sale and strong digital and e-commerce operations. The U.S Beauty market sales are estimated at $100B and we intend to maximize the commercial potential of this major target market.”
Castro Hoodies Group expands its operations to international markets. The company announced its engagement in an exclusive franchise agreement for distributing Yves Rocher, the leading French brand, in the U.S. Yves Rocher is among the most successful cosmetics brands in Europe, comprising a new business lever for Castro Group in U.S. markets. For the first time ever, Yves Rocher cosmetic and grooming products will be broadly distributed to points of sale and stores throughout the U.S., applying targeted marketing. Yves Rocher, has chosen Castro as its exclusive distributor, demonstrating the brand’s confidence in the Castro-Hoodies group. The franchise agreement was signed for a period of 20 years.
Under the agreement, the parties will establish a dedicated subsidiary in the U.S. – RADIXIS – whose shareholders include: Castro (TASE: CAST), which will hold 80.2% in preferred stock, Avi Goldfinger, a strategic partner – a veteran digital marketing entrepreneur who will hold 9.9% in preferred stock and will lead the development center as Head of Digital and Technology – and Ron Rotter, who will be allocated 9.9% ordinary shares subject to a reverse vesting mechanism for three years.
~25M NIS (~$7M) will be initially invested in the subsidiary, where Castro’s share of the investment totals ~22M NIS (~$6M) with the option of increasing the investment to ~50M NIS, subject to board approval. The investment is intended for launching an advanced dedicated online website in the U.S., opening stores and establishing the Radixis R&D Center in Tel Aviv to support the brand launch and optimally adapt it to the American market.
The R&D center will harness Israeli AI, Big Data and Machine learning technologies relating to e-commerce, retail and cosmetics in order to improve the customer experience when purchasing online and in stores. The AI technologies will improve customer satisfaction by matching the active natural ingredients of Yves Rocher products to customer needs based on individual biological traits. The R&D Center advisory committee will consist of groundbreaking Israeli entrepreneurs Assaf Hefetz and Rami Lechter, who will invest in the venture and consult it on matters of technology and digital operations.
About Castro Group (TASE: CAST)
The Castro-Hoodies group is one of the leading fashion and lifestyle retailers in Israel operating in the country since 1950 with more than 350 stores across the country and 7 brands; Castro – the leading casual fashion brand in Israel, Hoodies – a leading basic apparel and athleisure brand, Urbanica – the leading affordable fashion brand in Israel, Top Ten – the leading accessories brand in Israel, Carolina Lemke – the leading eye wear brand in Israel, Kiko Milano – the leading make up brand in Italy and Yves Rocher. Castro-Hoodies group turnover is $0.5bn and has more than 5,000 employees.
About Yves Rocher
Yves Rocher is a French cosmetics brand that is a pioneer in naturality and CSR issues. Founded in Brittany by Mr. Yves Rocher, a lover of Nature and convinced of its benefits, he created Botanical Beauty in 1959, which offers the best in botanical efficacy. 65 years later, the Brand now appeals to more than 20 million consumers, for a turnover of 1.5 billion USD.
Proud of its Breton presence, and strong in its unique positioning – Botanist, Harvester, Manufacturer and Distributor – the brand is present in more than 90 markets, where it distributes more than 250 million products per year in retail (2,300 physical points of sale), in digital and direct sales and has nearly 6,800 employees worldwide.
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SOURCE Castro Group
Originally published at https://www.prnewswire.com/news-releases/expanding-to-the-us-castro-hoodies-group-won-an-exclusive-franchise-for-marketing-and-distributing-yves-rocher-the-leading-french-cosmetics-brand-in-the-us-302074067.html
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