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BuyIsraelWeek Branding Israel Business is booming and bolstering national pride Jewish Week Staff Report I n the 19th century, industry in what be-came the state of Israel consisted mainly of small workshops that made farm imple-ments. Today, the country manufactures everything from drugs to lasers to shoes and the closest thing to farm implements are complex drip irrigation systems. Everyone knows the big names in Israeli manufacturing, like Teva Pharmaceutical In-dustries and Ahava cosmetics, and there are others, just as successful on the world stage, that fly under the radar. The establishment of world-leading companies and brands marks a significant stage in a country’s de-velopment. “BMW is Germany. Hermes is very French. Burberry is very British,” said Tim Calkins, a professor of marketing at North-western University’s Kellogg School of Busi-ness. “For some brands, location is a big part of the brand meaning. A strong brand can give a sense of pride to a country.” Manufacturing gener-ates almost a fifth of everything Israel pro-duces in an average year, according to the Manu-facturers’ Association of Israel. North America is Israel’s largest export market, with 30 percent, or $12.7 billion, of all ex-ports, with Europe close behind at 29 percent. Even 40 years ago, Is-rael didn’t have the lux-ury of thinking about branding. Manufactur-ing had advanced but until the 1970s most of the country’s resources were directed into eco-nomic necessities: food production, infrastruc-ture and immigrant em-ployment. Traditional industries such as food processing, textiles, fur-niture, pesticides, rubber and plastic products pro-vided most of the coun-try’s industrial output, according to the Min-istry of Foreign Affairs. The next phase of de-velopment concentrated on weapons manufacture due to various arms embargoes, and that in turn created the base for the high-tech indus-try that hogs the limelight these days. But even as high-tech has exploded, manufactur-ing has grown, too, often from a base in Israel to production facilities around the world. “No doubt, the good reputation of Israeli products and companies in countries around the world contribute a great deal to how Is-rael is perceived,” said Shraga Brosh, who heads the Manufacturers’ Association. “It is the Israeli industry’s commitment to assure that our products are not only competitive on a global scale but also leading in both their quality and innovative technology.” For example, Strauss Group Food Prod-ucts, the country’s second-largest food & beverage company, makes Sabra-brand chilled dips and spreads. It also owns the Max Brenner Chocolate Bar chain, which has a hopping location on the Lower East Side, in addition to 36 others, and is an interna-tional corporation with 13,500 employees manufacturing in 21 countries. Less visible is Delta Galil Industries, whose apparel products most people have worn, although they may not have known it. The company’s clientele includes retail gi-ants such as Target, Wal-Mart, Calvin Klein, Nike, Maidenform and Tommy Hilfiger. Delta has design, development and manu-facturing centers on four continents and em-ploys 7,000 people. Israeli manufacturing also has its grittier side. ICL is one of the world’s leading fertil-izer and specialty chemical companies, with a monopoly on certain Dead Sea and Negev Desert extraction concessions. Palram Plastic Products makes polycarbonate, PVC and other thermoplastic sheets for industries such as construction and graphics. Then of course there are high-flying con-sumer product brand names like Naot, which makes footwear; Ahava, maker of cosmetics with Dead Sea ingredients and Gottex, the high-fashion swimsuit manufacturer. Such companies aren’t as big as Teva, which operates in 60 countries, but they play an important role in shaping Israel’s image. Nations have long defined themselves by their manufacturing. The production of lux-ury goods has shaped French identity, for ex-ample, at least as far back as the days of the Sun King, who nurtured those industries in the belief that the sale of shoes and cham-pagne would help him dominate Europe. Like 17th-century France, modern Israel is known for the export of footwear – sandals --and edibles – hummus. And in decades the country has developed to the point when it has its own brand, one that mainly plays off the country’s rugged beauty, wholesome nat-ural products and active lifestyle. “There’s no question that Israel is bol-stered by some of its strong brands,” Calkins said. “They reflect back on the country, and the country reflects on the brand. It en-hances both.”  7QXYD·VGHOLFLRXVGDLU\DQGFKHHVHSURGXFWV�f; PDGHZLWK IUHVKVKHHS�f;JRDW�f;DQGFRZ·VPLON�f; SURYLGH\RXZLWKDUHDOWDVWHRIWKH ´/DQGRI0LONDQG+RQH\µ $7 DVWHRI,VUDHO jdeal offers unique bargains on all kinds of stuff people love. Who doesn’t love a bargain? From fancy shmansi hotels to the best seats in the house at the most popular events or a discount at a restaurant, jdeal offers seriously surprising deals every day. www.jdeal.com Buy Israel Week Washington Jewish Week • November 17, 2011 B3
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