The Mahane Yehuda neighborhood was established in 1887. Three partners: Johannes Frutiger (a German Protestant and owner of a bank), Shalom Construm, and Joseph Navon founded it. They decided to name the market after the Navon's brother Yehuda. Even earlier, across the road, owned by the Valero family, a trading lot was created. This market was known as the Shook Beit Jacob (Beit Yaakov Market). Arab merchants and fellahs sold their goods to residents who lived outside the Old City. As new neighborhoods grew, the Beit Yaacov market developed. In 1906, the Faraj family of Libyan Jews settled here. Arriving in Israel, they changed their surname to Pereg (the Hebrew word for poppy seeds). The aromas of olive oil, turmeric, caraway seeds, and paprika reign there. Today, Pereg is the leading spice company in Israel.