Israel-based Ahava Dead Sea Laboratories: Operating in a Hostile Business Environment

<< Previous

Excerpts

Even as Ahava's popularity was growing, the company found itself the target of several boycott campaigns initiated by anti-settlement activists. The company's operations from the West Bank came under severe criticism. The protestors alleged that Ahava was using natural resources that rightfully belonged to the Palestine population and was making huge profits from them. The report 'Who Profits' by American anti-war organization Code Pink: Women for Peace (Code Pink), claimed that the establishment of the Ahava plant was illegal. It cited International Humanitarian Law that stated that "the occupying power is prohibited from constructing permanent infrastructure in occupied territory, unless it serves military purposes or advances the interests of the occupied population."...

or or PayPal (9 USD)

The campaigns by various groups had an adverse impact on Ahava, with several retailers and distributors deciding not to stock its products. Even in 2002, when Ahava was selling in the UK through independent distributors, protests by Palestine groups forced London-based department store Harrods to remove Ahava products from its shelves. After adverse reaction from the Jewish community and the Israeli embassy, the products were reinstated, but with signs explaining their origin....

Denying the allegations, Ellis wrote a letter addressing all the stakeholders. In the letter he claimed that the protests were tactics to discourage the business partners of the company from continuing to carry Ahava products. He said that the attacks were politically motivated. He claimed, "The mud and minerals used in Ahava's cosmetic products are not excavated in an occupied area. The minerals are mined in the Israeli part of the Dead Sea, which is undisputed internationally....

Exhibit I: About Dead Sea
Exhibit II: Ahava - Global Presence