Signing of cooperation between ELGEKA S.A. and DANONE S.A.
Under the provisions of Article 10, par. 1 of Law 3340/2008 and Article 2, par. b of the decision 3/347/12-07-2005 of the Board of Hellenic Capital Market Commission, we inform the investing public and our shareholders that our Company has concluded an important agreement with the company DANONE S.A. regarding the following activities:
a) Rendering of ordering, merchandising and distribution services for the portfolio of products that DANONE S.A. sells in the Greek market in all stores of large chains except the region of Attica. The work will be done “at the behest and on behalf” of DANONE S.A.,
b) Undertaking by ELGEKA of all commercial activity (sale and distribution) throughout the purchasing groups and independent medium and small retail outlets.
DANONE S.A. is a subsidiary of one of the most successful groups of production and trade of food and dairy products in the world, with 160 plants (dairy, bottled water, infant and clinical nutrition) and approximately 80,000 employees, making business in all five continents in more than 120 countries.
In Greece, DANONE S.A. sells products of high added value to the consumer, with prominent positions in the categories that it activates such as: Activia (yogurt dessert that helps improve the digestive euphoria), Actimel (yogurt drink that helps strengthen the body's natural defenses), Danonino (kid's yogurt dessert and beverage fortified with vitamin D and calcium, which helps in the creation of strong bones) and Danette (dessert).
The contract is two years with effect from 01 November 2011 and expiring on December 31, 2013.
This strategic partnership is expected to contribute to increased turnover of ELGEKA and hence of the Group, per activity as following:
a) About 2.5 million euro from the service of ordering and distribution.
b) About 2.5 million euro from the commercial activity.
Therefore, the estimated annual contribution to the total turnover of ELGEKA and Group will be 5 million euro.
Thessaloniki, 18th of October