Yavne, Israel, February 14 - G. Willi-Food International Ltd. (the "Company" or "Willi Food"), one of Israel's largest food importers and a single-source supplier of one of the world's most extensive range of quality kosher food products, provided today several updates regarding the Company's international expansion
strategy.
Dairy Distributor in Denmark
Further to the announcement made on October 23, 2007, the Company's 90% owned Gold Frost Ltd. subsidiary has signed and completed a definitive agreement to purchase a majority interest from the owners of a dairy distributor in Denmark (the "Distributor"). The final closing of the transaction will be concluded at the end of February. Gold Frost will hold a 51% interest in the Distributor and the former owners of the Distributor will hold the remaining interest. The Company expects revenue recognition of the Distributor to commence in the first quarter of fiscal 2008.
The new joint company is a global distributor of both kosher and non-kosher dairy food products. Among its products are a variety of non kosher and kosher dairy products such as blue cheese, edam, gouda, havarti and feta cheeses packaged for industrial, wholesale and retail distribution. Under the terms of the final agreements, all of the present and future kosher activities of the Distributor and its owners and all the future export activities of Gold Frost are to be executed under the new entity. Subsequent to this closing Willi-Food expects to execute its first purchase order in the first quarter of fiscal 2008.
Baladi Meat
The parties have terminated their discussions for the Company to acquire a 51% majority interest in Baladi Ltd, a private Israeli company and a large kosher and halal meat processor in the region that was originally described in an announcement dated December 6, 2007. A final agreement with respect to such transaction was not reached. Willi Food is currently seeking legal remediation with respect to this transaction.
Mr. Zwi Williger, President and COO of Willi Food commented, "We are very pleased to have completed the transaction with the dairy distributor in Denmark which has secured a U.S. import license for dairy products of Gold Frost. Our efforts to expand Gold Frost's international reach and to begin a concerted dairy strategy in the U.S. can now move forward." Mr. Williger concluded, "Following the closing of this transaction, we received our first purchase order in the U.S. for a kosher and non kosher dairy product. We expect to ship in the first quarter of 2008 in excess of $0.8 million dollars of cheese to a wholesaler with distribution channels to major supermarket chains and retailers in the U.S. We are looking for this initial shipment to be the first of many as we continue to expand our global business."
About G. Willi-Food International, Ltd.
G. Willi-Food International Ltd. is one of Israel's largest food importers and a single-source supplier of one of the world's most extensive ranges of quality kosher food products. It currently imports, markets and distributes more than 600 food products manufactured by some 120 top-tier suppliers throughout the world to more than 2,000 customers. Willi Food excels in identifying changing tastes in its markets and sourcing high-quality kosher products to address them. The Company also operated several subsidiaries: Gold Frost Ltd. subsidiary develops and distributes kosher chilled and frozen dairy food products internationally; Laish Israeli subsidiary and joint venture with the Baron Family engage in the global import, export and distribution of kosher products worldwide; Shamir Salads is a leading international distributor of pre-packaged Mediterranean foods.
About Gold Frost Ltd.
Gold Frost is a designer, developer and distributor of branded kosher dairy food products with 20 varieties of products currently on sale in Israel. The Company possesses proven R&D capability for "koshering" chilled, frozen, diary and other products, a number of which have a health advantage by virtue of being low in fat and cholesterol.