Ahava’s multi-site manufacturing tests EU labelling laws

Ahava’s multi-site manufacturing tests EU labelling laws

Following the introduction of EU labelling guidelines requiring goods produced by Israeli manufacturers in settlements to be marked as such, several manufacturers have transferred their operations to within internationally recognized borders.

However, Ahava’s complicated sourcing and manufacturing system may yet flummox EU officials, making it impossible to determine whether the product qualifies as Israeli-made.

While the Dead Sea cosmetics company’s main manufacturing facility lies beyond the Green Line in the West Bank, the company purchases its raw materials from Dead Sea Works, which mines from the sea on the Israeli side. What’s more, some products are produced at a factory in Yeruham, southern Israel, while others are manufactured at a facility in central Israel.

The definition may become moot if Ahava goes ahead with plans to transfer its entire operation to within the internationally recognized border – however, the company’s recent acquisition by China’s Fosun put a question mark over that plan as Ahava diverts its focus to the Chinese market.