Hatov produces its ice cream at the Atarot industrial zone in northeast Jerusalem. The packaging of their ice cream carries the label "Israeli product made in Jerusalem."
In 2015, the European Union released labeling guidelines stipulating that Israeli products made in east Jerusalem and the West Bank be labeled as "Product of the West Bank (Israeli settlement)," as opposed to simply "Made in Israel."
As such, BDS activists in Britain approached supermarket chain Sainsbury's, which sells Hatov ice cream, and asked them to label the item as "Product of the West Bank (Israeli settlement)," as opposed to "Israeli product made in Jerusalem."
As a result, Hatov retained the services of UK-Israeli law firm Asserson. In response to BDS claims that "Atarot is on occupied Palestinian land and therefore the ice cream cannot be labeled as made in Israel," Asserson replied, "It is unlikely that the customer reading the label will change their mind if they see the product is made in east Jerusalem. Most of the buyers are religious Jews who will continue to buy it."
Local authorities agreed with the argument and will allow the ice cream to continue to be labeled as "Israeli product made in Jerusalem."