Yves Rocher to expand into the US through new franchise agreement

French brand Yves Rocher is preparing for a US expansion after it struck an exclusive franchise agreement with Castro Hoodies Group, which has been selected to distribute its products in the region.

It will be the first time the cosmetics company will be broadly distributed to points of sale and stores throughout the US.

Yves Rocher and Castro will act under a newly established dedicated subsidiary, Radixis, whose shareholders include Castro, holding an 80.2 percent stake; strategic partner Avi Goldfinger, holding a 9.9 percent stake; and Ron Rotter, who will be allocated 9.9 percent of ordinary shares.

Around seven million dollars will initially be invested into the subsidiary with the intention of launching a dedicated online website in the US, alongside store openings and the establishment of a research and development centre in Tel Aviv to support the launch and adapt to the new market.

Rotter, who will serve as chief executive officer of Yves Rocher USA, said in a release: “The bond between Castro and the French Yves Rocher started a decade ago, when the brand was successfully launched in Israel and since then the brand continues to grow in Israel and worldwide year over year.”

He continued: "Castro Group continuously evaluates new business opportunities to facilitate its business objectives. Launching Yves Rocher in the US market is based on our proven track record with the operational model of efficient points of sale and strong digital and e-commerce operations."