Trinity, fall 1999
Can pesto promote world peace? Can salsa secure stability in global trouble spots? Daniel Lubetzky ‘90 believes they can. His idea, born of a 268-page senior thesis he wrote as a Trinity economics major, is deceptively simple: Profit, from joint business ventures among people of different backgrounds in volatile regions, can be a strong catalyst for peace. Although, according to Lubetzky, the paper originally "put everybody to sleep," the concept now keeps plenty of people wide awake.
Lubeztky honed his theory at Stanford Law School where he earned a fellowship from the Haas Koshland foundation to study legislative means to foster joint ventures between Arabs and Israelis. While conducting his research in Israel, he happened to snack on a delicious sun-dried tomato product and voila!-he discovered the missing link between school theory and business practice!
Returning to New York, Lubetzky founded PeaceWorks in his basement apartment. It works like this: Lubetzky initially puts together joint ventures between, for example, an Israeli manufacturer of basil pesto, and an Arab company that supplies his raw materials and glass jars. Based on the economic theory of "complimentary comparative advantages" each company contributes "what they do best to produce a high quality product". PeaceWorks then imports and markets the products throughout the United States. Lubetzky admits the trading partners are "not doing this for the good of mankind". However, because it makes sense for them economically, they of necessity learn to overcome cultural differences and centuries-old animosities and get along.
Starting with Moshe and Ali’s line of gourmet foods-for which Lubetzky coined the term "spraté" because of its similarity to both a spread and a paté-PeaceWorks initially introduced three products in 30 stores. Today the dynamic company boasts 60 products in 3,000 stores. In addition to basil pesto and a full compliment of spratés with flavors ranging from basics like Sun-Dried Tomato and Smoked Eggplant to the more exotic Luscious Ginger and Mediterranean Spraté, PeaceWorks markets WAFA, a "premium chocolate hazelnut experience" and Azteca Trading Co. products which include a variety of salsas and spreads. The latter are the result of joint ventures with the Mexican state of Chiapas and a Texan manufacturer. In the process, PeaceWorks has become a multinational cooperation with headquarters on Park Avenue South in New York, sales offices in the mid-Atlantic and west coast, and divisions in Israel and Mexico.
This phenomenal growth-and its underlying concept-has not gone unnoticed. More the 500 articles about PeaceWorks have appeared in newspapers and magazines as well as on radio and TV broadcasts including the New York Times and CNN. Strong endorsements have come from leading Israeli and Arab diplomats, The Christian Science Monitor, Good Morning America, and ABC News. At the November 1997 meeting of the Middle East/North Africa Economic Summit, U.S. Undersecretary of State Stuart Eizenstat also commended the young company’s efforts.
To promote the concept in the Middle East, Lubetzky embarked on a goodwill tour. Together with his trading partners, he rented a van and toured the region handing out posters, T-Shirts, and sample products. "People on the streets would swarm the car," he relates vividly. "We would give away the spreads and do magic tricks for them and they loved it. It was just a way to connect with people and shatter stereotypes."
A native of Mexico and Jewish heritage, Lubetzky confesses, "From the pictures you see in the media, you imagine all Palestinians as being terrorists, but the vast majority are just human beings trying to get on with their lives and work together and live happily."
But PeaceWorks doesn’t stop with spreads and salsas. In addition to the specialty foods, Lubetzky has created a division for licensing and publications which will publish a cookbook next year. Another division will focus on the manufacturing and marketing of other consumer goods and a PeaceWorks Mid-East Africa Network functions as a consultant to U.S. companies seeking to do business in those countries. More divisions are in development stages.
Speaking passionately-and almost as rapidly as his company is growing-Lubetzky expresses his not-only-for-profit goals. "We aspire to become the leading producer of high-quality, socially conscious, consumer products. We also hope to have a positive impact on world affairs and public opinion. We want to educate children about cherishing cultural diversity, bring neighbors to work together, and do our part to encourage global peace in the twenty-first century."
Despite his lofty goals, Lubetzky is enough of a realist to recognize that "nobody is going to buy a product out of charitable works. We have to have the best quality and the best prices." However, he believes the fact that PeaceWorks has a mission behind its products "helps generate loyalty among consumers."
Judging from the sample products Lubetzky generously offers after the interview, he should have no trouble expanding sales or forging a loyal customer base. My advice: Try it, you’ll like it, and the world will be a little better for it.
-Mary Denny