Filippo Berio, a major retailer supplier predicts that consumers will see cheaper prices on olive oil in just three months.
A drought and scorching temperatures in Spain, which supplies half of the world’s olive oil, have led to two difficult years for brands and olive producers.
Last spring, temperatures in Spain returned to normal. Olive groves produced healthy blooms which were followed by average winter rainfall, resulting in an olive harvest of 1,4m tonnes, higher than normal for this industry. Walter Zanre, managing director of Filippo Berio UK says that the crops were less than half as large in 2022/2023.
He says, “We are a company that sells 60 million litres per year of olive oil, but at the end last year we had a hard time sourcing. We’d prepared, but the product was not of high quality.”
The price of the oil has fallen as the season changes. In reality, the reduced prices take around 3 months to hit the shelves.
He claims that there were some discounts in November but retailers did not want to share them with consumers.
How much will olive oil cost?
The category is seeing a reduction of shoppers, even though the output and prices are up. Zanre explains that the consumption of food has dropped by 20% due to the recent high prices.
The category has also dropped to its lowest level since 2004. “The shortage has undone the good work that was done to build it.”
Zanre, and other sector players, are concerned that people may not necessarily return to this category just because the prices will be coming down.
The UK, for example, has a low average frequency of purchases of only twice per year.
The consumers have developed “new habits” by purchasing other oils. Zanre says that “we are formulating a powerful marketing campaign” to encourage people to return to this category.
Zanre, the Filippo Berio Team and their marketing team have not yet launched the big campaign but they are concentrating on the link between olive oil and health. Particularly heart health.
Olive oil and heart health
Brand has launched new campaign encouraging consumers to add olive oil to diets to help improve heart health.
Filippo Berio funded two videos that explain the scientific research behind the claims of improved heart health and olive oil.
The key message is that 20mls of olive oil per day will improve your general health and heart health.
This campaign is based on a study by Dr Bill Mullen of Glasgow University, who was the senior researcher of cardiovascular and metabolic health. The study proved that 20ml oil can be good for your health.
Mullens stated: “The study results were stunning. After only six weeks both extra virgin olive and olive oils produced significant changes, a change in the CAD score of 0.3.
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