Israeli Producers Eye China High-End Market

Producers of Israeli wines, food and cosmetics are hoping their high-end products can find a way into the homes of China's increasingly affluent consumers.

But they could face an uphill struggle in China, where consumers still know little about the Mediterranean country's consumer products.

At Experience Israel, a consumer goods promotional event at Beijing's posh LAN Club on Wednesday, Israeli companies offered Chinese buyers samples of products ranging from hand lotion from the Dead Sea to wines from the Golan Heights.

"Taste the wine, taste the bread, taste everything that can be tasted," said Yehoyahda Haim, Israel's ambassador to China, during the event's opening ceremony. "Maybe you think that as an Israeli and as an ambassador I am biased, (but) let me know if you think they are good. I think they're very good."

The event, sponsored by the Israeli Embassy, the Israel Export & International Cooperation Institute and other organizations based in China, was a packed house, a sign of growing trade between the two countries. In 2006, bilateral trade between China and Israel reached $3.3 billion, an increase of 28 percent from the previous year.

Response from Chinese buyers at the event was encouraging, Israeli company representatives told China Daily.

Amnon Siva, vice-president of marketing for Mehadrin Tnuport Export, Israel's biggest exporter of citrus fruits, sees a huge growth opportunity in the Chinese market.

"We are trying to analyze demand. I think there is a future (in China), because quality of life is improving and people would like to buy good-quality imported fruits," Siva said.

Avivit Turgeman was in Beijing with her husband promoting Stybel Ltd, a 72-year-old, third-generation family-owned flour milling business, Israel's largest.

The company is hoping to cash in on China's burgeoning middle class and their appetite for breads and other products that require high-quality flour. Stybel produces 80 different kinds of flour - including whole wheat, organic and enriched - each for a different purpose, ranging from baguettes to croissants to pizza dough.

"The use of flour (in China) is growing, and the use of bread will increase before the Olympics. We wanted to introduce to the Chinese market and we're having good feedback right now," Turgeman said.

In another dimly lit section of the LAN Club, Chinese buyers tasted wines from Israel's five grape-growing regions.

Because of the country's variety of wines, and the global reputation of Mediterranean wineries, Batia Levy, export director of Carmel Winery, Israel's largest producer of wines, grape juice and brandy, is optimistic her products will find a place in China, where demand for wine is growing.

Carmel already sells several brands in China through its Shanghai representative.

"We hope China becomes a major market for us," said Levy, whose company exports to 30 countries, including the US, UK, Canada and Russia.

But consumer products from Israel remain a mystery to many Chinese consumers. In 2006, just 3.3 percent of all Israeli exports to China fell into the food, beverage and tobacco category. Total exports to China were just $958.4 million.

"Although the wine is good, it will be difficult to open the Chinese market, because it's already occupied by French, Italian and Australian wines," said Guo Jie, a wine trade professional.

"They need to know how to build an Israeli wine brand and how to promote the wine industry as a whole in China."

Still, Guo believes Israeli wine, and other consumer goods, can find a home in the country. "Anything can have a market in China," he said.