Castro Group introduces Yves Rocher to the US market

Castro Hoodies Group announced a 20-year franchise agreement to distribute French botanical cosmetics brand Yves Rocher in the United States.

According to the agreement, Castro Hoodies group will hold 80.2% of the newly established subsidiary Radixis, which is dedicated to launching and promoting Yves Rocher products in the US market.

Joining the Castro Hoodies group is digital marketing entrepreneur Avi Goldfinger, who will hold 9.9% of the company's preferred shares and lead Radixis' development center as head of digital and technology. Veteran executive Ron Rotter will become CEO of Yves Rocher USA. He will receive 9.9% of the common stock under a reverse vesting mechanism for three years.

"We are proud to announce that the Castro Hoodies group has signed an exclusive franchise with Yves Rocher, a global leader in botanical cosmetics, which will mark a milestone for what will be the first time that the product will be widely distributed and available in the United States," said Rotter.

"The bond between the Castro Hoodies group and France's Yves Rocher began ten years ago with the successful launch of the brand in Israel, and since then the brand has grown year by year in Israel and globally."

The initial investment in Radixis totals approximately $7 million, with Castro contributing $6 million, with the option to increase the investment, subject to board approval. The funding will be used to build a dedicated online website, open retail stores across the United States, and establish a Radixis research and development center in Tel Aviv.

The Radixis R&D center will leverage Israel's expertise in artificial intelligence, big data and machine learning to customize Yves Rocher products according to the different needs of U.S. consumers. Israeli entrepreneurs Assaf Hefetz and Rami Lechter will serve on the R&D center's advisory board, providing insights into technology and digital operations.

Rotter added: "The Castro Hoodies group continuously evaluates new business opportunities to further its commercial objectives. The launch of Yves Rocher in the US market builds on our efficient point-of-sale operating model and proven track record of strong digital and e-commerce operations.The U.S. beauty market is estimated at $100 billion in sales and we intend to maximize the commercial potential of this key target market. "

The Castro Hoodies group has been operating in Israel since 1950 and has more than 350 stores and 7 brands across the country. The group has a turnover of US$500 million and has more than 5,000 employees.

Yves Rocher is a French skin care, cosmetics and fragrance company founded in 1965 in La Gacilly by French entrepreneur Yves Rocher. The company has more than 3,000 stores, about half of which are franchised, in 88 countries on five continents and employs 13,500 people.