John Lennon famously coined the parlance “Everybody's talking about ministers, sinisters, banisters and canisters” in his renowned song Give Peace a Chance. When folks think about Israeli business successes, that same parlance can be used to claim “Everybody's talking about processors and scanners and lasers and pill cams” which, quite truthfully, reflect the country’s phenomenal, if not otherworldly, achievements as a “Startup Nation”.
Something as amazing as Israel’s tech prowess does not just happen. It has deep roots in the country’s contemporary history and a culture of innovation born of necessity. With few resources, hobbled by embargoes and dubious attitudes by global suppliers, intimidating geopolitics and a hunger for critical self-sufficiency, Israel spawned hundreds of industries whose innovation and creativity drove the country’s economy and supported its defenses for more than fifty years before the “Tech Revolution”.
Before there was Sodastream there was Sypholux, before Better Place – the Susita and Sabra fiberglass shelled cars, before Copaxone there was Dr. Zeinfeld’s Assialgan, and before Iron Dome – the Shavit 2. So in this entry I’d like to talk about what I call Israel’s “Heirloom” industries – hundreds of brick & mortar companies and manufacturers, some of whom attained "Star Brand" international status – which continue to enrich and bolster Israel’s economy and global business stature.
From Messerschmitt to Toolboxes
On a rainy day in the winter of 1943, Arie Taub, a Hungarian born immigrant who had served in the Royal Navy arrived at Kibbutz Sde Nehemiah in the upper Galilee. Mr Taub’s suitcase contained his most treasured artifact: a piece of window Plexiglas that used to be part of a German Messerschmitt Arie had helped shoot down in Africa’s western desert. Sadly, when asked to display the window fragment, Mr. Taub discovered that heat and pressure had warped the artifact beyond repair.
And that’s when Mr. Taub had an idea. He convinced the kibbutz’s secretariat to approve the purchase of a few sheets of Plexiglas, warmed the material on a kerosene lamp and pressed the pliable plastic between two tin plates from the dining room. He had just manufactured a plastic dinner plate. When the “experiment” was done, Arie Taub had effectively conceived Israel’s plastics industry. Seventy years later, every Stanley toolbox is manufactured in Israel.
Israeli Counter Intelligence in Your Kitchen
In the 1980’s Kibbutz Sdot Yam, located just south of Caesarea, was in serious trouble. Heavily in debt and bleeding members, the community sought to reinvent their outdated marble tile business only to be battered by defective products and ill suited machinery. Enter Professor Moshe Narkis, the Dean of the Technion’s Chemical Engineering department who figured out how to manufacture Quartz slabs that are stronger and easier to maintain than Granite and other types of kitchen counter materials. Thus was born Caesarstone, a leading manufacturer of super high-end Quartz kitchen counters.
During the mid 2000’s, Caesarstone grew at an amazing annual rate of 30%. Investment funds rushed to invest in the rapidly growing, fast-earning company and two new manufacturing facilities were debuted. In 2012 the kibbutz IPO’d the company on the NASDAQ and Caesarstone became the second best non American IPO performer for 2012. Today, Caesarstone’s high end, maintenance free Quartz surfaces adorn gourmet kitchens across the globe positioning the company and its brand as one of the most recognized names in the building and home improvement industry.
Ben Gurion’s Rice on the Food Network
Beginning in 1949, Israel encountered acute deficiencies in both food and foreign currency. Consequently, for the next ten years, the Israeli government enacted measures to control and oversee distribution of necessary resources to ensure equal and ample rations for all Israeli citizens. One staple, rice, was acutely scarce and David Ben Gurion, Israel’s first Prime Minister, asked a local food manufacturer to devise a wheat based substitute for rice. The young company, today the Nestle-owned Osem food conglomerate, quickly developed the rice shaped, pasta based Ptitim (translation: Morsels) which overnight became a local hit. Over the years, Osem developed a round version of the ubiquitous pasta. In the late 1990's, an Israeli sous chef working at a famous New York City restaurant cooked some round Ptitim she had brought from Israel in the restaurant’s kitchen, her famous boss was enchanted and thus was born Israeli Couscous.
Other world famous, non-tech Israeli innovations and brands:
Before there was Sodastream there was Sypholux, before Better Place – the Susita and Sabra fiberglass shelled cars, before Copaxone there was Dr. Zeinfeld’s Assialgan, and before Iron Dome – the Shavit 2. So in this entry I’d like to talk about what I call Israel’s “Heirloom” industries – hundreds of brick & mortar companies and manufacturers, some of whom attained "Star Brand" international status – which continue to enrich and bolster Israel’s economy and global business stature.
Carmel, Sabra and Sussita Cars at the Autocars Plant in Haifa circa 1964
On a rainy day in the winter of 1943, Arie Taub, a Hungarian born immigrant who had served in the Royal Navy arrived at Kibbutz Sde Nehemiah in the upper Galilee. Mr Taub’s suitcase contained his most treasured artifact: a piece of window Plexiglas that used to be part of a German Messerschmitt Arie had helped shoot down in Africa’s western desert. Sadly, when asked to display the window fragment, Mr. Taub discovered that heat and pressure had warped the artifact beyond repair.
And that’s when Mr. Taub had an idea. He convinced the kibbutz’s secretariat to approve the purchase of a few sheets of Plexiglas, warmed the material on a kerosene lamp and pressed the pliable plastic between two tin plates from the dining room. He had just manufactured a plastic dinner plate. When the “experiment” was done, Arie Taub had effectively conceived Israel’s plastics industry. Seventy years later, every Stanley toolbox is manufactured in Israel.
Israeli made Toolboxes at Home Depot
Israeli Counter Intelligence in Your Kitchen
In the 1980’s Kibbutz Sdot Yam, located just south of Caesarea, was in serious trouble. Heavily in debt and bleeding members, the community sought to reinvent their outdated marble tile business only to be battered by defective products and ill suited machinery. Enter Professor Moshe Narkis, the Dean of the Technion’s Chemical Engineering department who figured out how to manufacture Quartz slabs that are stronger and easier to maintain than Granite and other types of kitchen counter materials. Thus was born Caesarstone, a leading manufacturer of super high-end Quartz kitchen counters.
A Caesarstone manufacturing plant next to Caesarea's Roman Amphitheatre
During the mid 2000’s, Caesarstone grew at an amazing annual rate of 30%. Investment funds rushed to invest in the rapidly growing, fast-earning company and two new manufacturing facilities were debuted. In 2012 the kibbutz IPO’d the company on the NASDAQ and Caesarstone became the second best non American IPO performer for 2012. Today, Caesarstone’s high end, maintenance free Quartz surfaces adorn gourmet kitchens across the globe positioning the company and its brand as one of the most recognized names in the building and home improvement industry.
Caesarstone designer kitchen counters
Ben Gurion’s Rice on the Food Network
Beginning in 1949, Israel encountered acute deficiencies in both food and foreign currency. Consequently, for the next ten years, the Israeli government enacted measures to control and oversee distribution of necessary resources to ensure equal and ample rations for all Israeli citizens. One staple, rice, was acutely scarce and David Ben Gurion, Israel’s first Prime Minister, asked a local food manufacturer to devise a wheat based substitute for rice. The young company, today the Nestle-owned Osem food conglomerate, quickly developed the rice shaped, pasta based Ptitim (translation: Morsels) which overnight became a local hit. Over the years, Osem developed a round version of the ubiquitous pasta. In the late 1990's, an Israeli sous chef working at a famous New York City restaurant cooked some round Ptitim she had brought from Israel in the restaurant’s kitchen, her famous boss was enchanted and thus was born Israeli Couscous.
Israeli Couscous
Netafim – the originator of drip irrigation equipment, Sodastream – the NASDAQ traded retail leader of seltzer making equipment, Plasan – maker of blast protection kits for American armored personnel carriers in Iraq and Afghanistan, Max Brenner – world renowned chocolatier and boutique delicacy establishments world-wide.
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