Naot

Naot, also known as Teva Naot, is an Israeli footwear brand and manufacturer based at Kibbutz Neot Mordechai. The business began in 1942 as a small kibbutz factory producing work boots. Over time it developed into an international maker of shoes and sandals for women, men, and children, with a product proposition centered on comfort, adjustability, and foot-shaped support. The company faced a serious strategic challenge in the late 1980s. Israeli footwear manufacturing was under pressure from an influx of inexpensive imports from the Far East, and the kibbutz considered closing its shoe factory. Naot Mordechai was also examined in an academic study of failing companies conducted through Tel Aviv University. As part of a class exercise, consultant Ami Bar-Nahor was assigned to work with the factory. His response was to modernize both the product and the manufacturing approach, targeting consumers who were increasingly interested in health, comfort, and supportive footwear. Bar-Nahor’s approach repositioned the company around a more flexible and contemporary interpretation of the traditional sandal. He described the concept as an “Israelization” of Birkenstock, but Naot developed its own construction characteristics. Instead of relying on inflexible traditional soles, the company used footbeds made from combinations of cork, natural rubber, or leather. Adjustable leather straps were designed to accommodate changes in foot volume, including swelling. The footbeds could be removed and replaced with custom orthotic inserts or standard replacement footbeds when the original components wore out. Design modernization was another part of the turnaround. Bar-Nahor recruited young designers from the Bezalel Academy of Arts and Design in Jerusalem and Shenkar College in Tel Aviv. Their work added more color and visual variety to a product range that had previously been dominated by beige, brown, and black sandals. The company subsequently introduced a new footwear line each year to respond to changing fashion trends while retaining its comfort-oriented construction. Naot expanded internationally through distributors and retail operations. The company exports approximately 80% of its production, with important markets including the United States, Canada, Germany, the United Kingdom, and Australia. Its North American distribution arrangements included Yaleet Inc. in the United States and Solemates Inc. in Canada, while European distribution was handled through Naama Naot Germany and AJJH Ltd. in the United Kingdom. The brand’s products are sold through a combination of company stores, distributors, and international retail channels. In 2006, Burbank, California-based Shamrock Holdings acquired 66% of the enterprise for US$31 million. Naot later became the subject of a political and sourcing controversy in Canada in 2011, when protesters alleged that its soles were manufactured in the Gush Etzion West Bank settlements. Despite the protests, the company’s Canadian sales reportedly increased that year. The available reference material describes Naot as continuing to operate with approximately 160 workers and as maintaining a global footwear business.

Naot originated in 1942 at Kibbutz Neot Mordechai, where it operated as a small factory making work boots. Its early activity reflected the needs of a kibbutz-based manufacturing operation rather than the internationally oriented comfort-footwear business it later became. The company’s most important transformation occurred during the late 1980s. Israeli footwear producers were being squeezed by inexpensive imports from the Far East, and the kibbutz considered shutting down its factory. The severity of the situation led to Naot Mordechai being included in a Tel Aviv University economics study concerning failing companies. Ami Bar-Nahor joined the business as a consultant through an academic class exercise and spent four years working with it. Bar-Nahor proposed modernizing both production and product design. Rather than competing directly on price with imported footwear, Naot could appeal to consumers seeking supportive and health-conscious shoes. The resulting direction combined the visual language of traditional sandals with more flexible materials and a more adaptable fit. Naot used footbeds made from cork, natural rubber, or leather, while adjustable leather straps allowed the footwear to accommodate changes in foot swelling and volume. The company also enabled users to replace worn footbeds or substitute custom orthotic inserts. Product design was modernized through the recruitment of young designers from Jerusalem’s Bezalel Academy of Arts and Design and Tel Aviv’s Shenkar College. Their involvement broadened the color palette and introduced greater visual interest to a range previously concentrated in neutral shades. The brand continued to develop new footwear lines annually, balancing changing fashion preferences with its established comfort proposition. Naot then expanded beyond Israel through exports and distributor relationships. Approximately 80% of production was exported, with the United States, Canada, Germany, the United Kingdom, and Australia among its named markets. Distribution arrangements cited in the reference material included Yaleet Inc. for the United States, Solemates Inc. for Canada, Naama Naot Germany for European distribution, and AJJH Ltd. for the United Kingdom. The company also operated stores in Canada and developed a wider international retail presence. A significant ownership change took place in 2006, when Shamrock Holdings acquired 66% of the enterprise for US$31 million. Naot remained associated with Kibbutz Neot Mordechai as its manufacturing base and continued to be described as an Israeli footwear manufacturer. In 2011, the company encountered political controversy in Canada. Protesters claimed that its soles were produced in the Gush Etzion West Bank settlements. The issue affected the brand’s public profile and was connected to broader debates about the labeling and commercial treatment of products associated with Israeli settlements. According to the reference material, however, Naot’s Canadian sales increased during the period, including sales through its Canadian stores. The available source describes Naot as continuing to employ approximately 160 workers and as producing footwear for women, men, and children. Its enduring identity is based on the combination of adjustable uppers, replaceable supportive footbeds, Israeli manufacturing roots, and international distribution.

1. 2011Canadian sourcing controversy

   Canadian protesters target Naot over allegations concerning production of soles in the Gush Etzion West Bank settlements. The cited reference reports that Canadian sales increased despite the protests.

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2. 2006Shamrock Holdings buys a majority stake

   Shamrock Holdings acquires 66% of the enterprise for US$31 million.

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3. 1988The company begins a comfort-focused turnaround

   Competition from inexpensive Far Eastern imports places Israeli footwear manufacturing under severe pressure. Naot responds by modernizing its products and production around supportive, health-conscious footwear.

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4. 1942Naot opens as a kibbutz work-boot factory

   The factory at Kibbutz Neot Mordechai begins producing work boots.

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Comfort-oriented Israeli footwear combining supportive, replaceable footbeds and adjustable construction with updated colors, styling, and seasonal design.

• Naot shoesComfort footwear

  Naot produces shoes for women, men, and children with an emphasis on supportive fit and everyday comfort. The range grew from the company’s traditional work-boot and sandal manufacturing base and was later refreshed through contemporary colors, styling, and annual line development.

• Naot sandalsSandals

  Sandals are central to Naot’s identity. The company’s modernized sandal concept uses flexible footbeds made from cork, natural rubber, or leather together with adjustable leather straps. The design combines a traditional sandal reference with a more accommodating fit and a broader fashion palette.

• Replaceable footbedsFootwear components

  Naot footwear uses removable footbeds that can be replaced when worn. Users can also substitute standard replacement footbeds or, where compatible, custom orthotic insoles. This replaceability is a central part of the brand’s comfort and long-term-use proposition.

• 2006Majority investment by Shamrock HoldingsM&A

  Naot had developed from a kibbutz factory into an internationally distributed footwear business.

  What changed. Shamrock Holdings purchased 66% of the enterprise for US$31 million.

  Aftermath. The transaction changed the company’s ownership structure while the business continued to be associated with Kibbutz Neot Mordechai and international footwear production.

  Acquisition price. US$31 million (2006)

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• 1988Repositioning around supportive comfort footwearStrategy

  Inexpensive imports from the Far East created a major threat to Israeli footwear manufacturing, and the kibbutz considered closing the factory.

  What changed. Naot modernized its products and production, emphasizing flexible footbeds, adjustable straps, replaceable insoles, and appeal to health-conscious consumers.

  Aftermath. The strategy helped turn the factory toward differentiated comfort footwear and supported subsequent international expansion.

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• 2011Canadian controversy over alleged settlement productionControversy

  Canadian protesters alleged that Naot soles were manufactured in the Gush Etzion West Bank settlements. The controversy placed the brand within wider political and sourcing debates concerning Israeli settlement-linked production. The available reference states that Naot’s Canadian sales increased despite the protests.

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• 2006Shamrock Holdings acquires a majority stake in Teva Naot

  Shamrock Holdings acquired 66% of the Naot enterprise for US$31 million.

  M&A
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1. Naot