Address: Europark (France Building), P.O.B. 10, Kibbutz Yakum 60972
Chairman of the Board
Line of Business:
Retailer operating fuel stations, supermarkets, convenience stores, non-food stores, and commercial centers within gas stations; refiner and asphalt producer; real estate holdings
lon Israel Oil Company Ltd. is an international company with operations in Israel and the U.S. Alon is the largest Israeli Service & Trade Company with over $8 billion in turnover. Alon operates through its subsidiaries in Israel in the Fuel and Convenience Stores Sector in the Food Retail and Non-Food Retail Sectors, including related real estate. In the United States Alon operates in the Refining and Convenience Stores Sectors.
Rapid Growth Path
Alon was established in 1989 by ten cooperative agricultural economic organizations controlled by the Kibbutz Movement. Today, Alon is held by the Bielsol Group (53%), owned by David Wiessman and Shraga Biran and the Kibbutz Movement (47%). In 1993, David Wiessman was appointed President & CEO of Alon and opened Alon’s first fuel and convenience station, pioneering the combined model of a fuel station with a convenience store in Israel.
The Group’s dynamic expansion included the acquisition of Dor Energy and Dor Gas (LPG) in 1999, which positioned Alon as one of the four leading energy companies in Israel. In 2000 Alon purchased the Down Stream operations of TotalFina including the Big Spring refinery in the U.S. Alon continued the expansion of its business in the U.S. through the purchase of the Paramount & Edgington Refineries in 2006, the Krotz Springs Refinery in 2008 and the Bakersfield refinery in 2010.
In 2003, Alon completed the acquisition of 78.1% of Blue Square Israel Ltd., one of the two largest Israeli supermarket chains, and made additional acquisitions of leading non-food retailers under Blue Square, such as Vardinon and Naaman, thus positioning Alon as one of the largest retail companies in Israel. The Alon Group also operates in the Real Estate sector through its holding in Blue Square Real Estate and is engaged in providing financial services to its customers and others through its 49% holding in Diners Club Israel.
A Pioneer in Fueling and Commercial Centers in Israel
Alon expanded rapidly, through its indirectly subsidiary Dor Alon (a public company listed on the TASE), by offering its customers gasoline at competitive prices within service stations that set new standards for design and service. Today Dor Alon is one of the four largest fuel companies in Israel. The green dיcor and oak tree logo of these stations symbolize the company’s commitment to protecting the environment. Alon was the first to combine gasoline service stations with commercial centers, convenience stores, coffee shops, fast food outlets and supermarkets. During 2007, Dor Alon expanded its convenience store operation by purchasing AM:PM – the leading city market convenience stores located in the Tel Aviv Region. Currently Alon is a market leader in convenience stores – both in gas stations and stand alone city-type convenience stores. Dor Alon is also a marketer of fuels, lubricants (Texaco/ARAL), Jet Fuel (with Chevron) and LPG to companies and private customers.
Leading Refiner in the US
In 2000, Alon purchased the Down Stream assets of TotalFina in the US and established Alon USA (a public company listed on the NYSE in which Alon holds approx. 75%). From 2001, Alon USA holds 100% of Southwest Convenience Stores (SCS) – the largest 7-Eleven licensee in North America. Alon USA’s Big Spring refinery, terminal and pipelines have over 1,000 FINA branded retail stations that are located primarily in Texas, Oklahoma, New Mexico, Louisiana, and Arkansas. In 2006 and 2008 Alon USA seized two unique opportunities to leverage its knowledge and experience and purchased three additional refineries in California and Louisiana, thus tripling its refining capacity, and in 2010, Alon USA bought the Bakersfield Refinery in California for a bargain in price with the intention of combining its three refineries in California into one, higher complexity refinery.
Holdings in Tamar
Alon holds 4% of the “Tamar” and “Dalit” natural gas drillings near the coast of Haifa through Alon Natural Gas Exploration Ltd. (a public company listed on the TASE in which Alon holds 75%) the estimated quantity of natural gas in the “Tamar” field is approx. 240 BCM.
Leading Food Retail Brand
As a leader in convenience stores at gasoline stations, Alon saw great opportunity in the acquisition of Blue Square (a public company traded on the NYSE (BSI) and the Tel Aviv Stock Exchange in which Alon owns approx. 70%). Blue Square is one of the two largest supermarket chains in Israel and today Alon enjoys the synergies between its convenience stores and supermarkets operations. Alon once again demonstrated its vision and leadership through the purchase of Eden Nature Market – the only Organic and Natural hypermarket in Israel and through the purchase of BEE Group – one of the largest non-food groups in Israel operating stores under the leading brands of Kfar Ha-shashuim, Naaman, Vardinon, “The $1 Shop” and more.
Alon (through Blue Square) also holds 33% in several regional radio stations and a daily newspaper – “Israel Post”, which is distributed in Blue Squares’ supermarkets, Dor Alon fuel and convenience stations and other third party outlets.
Prime Real Estate Locations
As a 70 year old veteran in the Israeli retail market, Blue Square holds high quality assets across Israel. Blue Square Real Estate was established in 2006 following a two-stage re-organization, which started with the spin-off of Blue Square real estate in 2006 and which was completed in 2009 when real estate held by Blue Squares’ subsidiary were transferred to Blue Square Real Estate. Blue Square Real Estate has become a platform for the future growth of the Alon Group in the real estate sector. Blue Square Real Estate issued its shares on the TASE; and Blue Square currently holds approx. 80% of the wholesale market shares.
In 2010 Alon completed a reorganization of its holdings by merging Dor Alon and Blue Square and thus creating the largest retail company in Israel. Blue Square’s name was subsequently changed to Alon Holdings Blue Square – a company which holds today Dor Alon, Mega Retail, BEE Group and Blue Square Real Estate.
Alon was part of the Derech Eretz consortium, which won the tender to build the Cross Israel Highway, Israel’s first ever toll road (a $1.2 billion investment). Today Alon owns 40% of the 51% controlling shares in the company that operates the highway and a 100% right to construct and operate retail service centers along the highway. In 2004, Dor Alon opened four unique commercial centers combined with gasoline stations along the highway.
In 2006, the Alon Group acquired 49% of Diners Club International in Israel (via Blue Square in partnership with Dor Alon). The Alon Group has launched the “You” loyalty program based on the Diners platform, which is designed to increase loyalty of customers to the companies within the Group by providing them with benefits and incentives for their combined purchases.