Italian extra virgin olive oil sells, with a positive sign in all Nielsen areas, unlike the trend of community oil which is struggling, with a drop of around 10%.
We are talking, however, about shelf oils, therefore of variable quality from mediocre to good. Although labels of premium oils have been appearing on supermarket shelves for some time, they are hardly top and high-end labels, i.e. the kind of product that olive growers and millers aspire to in order to increase margins.
The super-premium and high-end oil sector is such a niche that it is difficult to keep an eye on the situationthat is, understanding how the market is performing. We need a privileged observatory, like that of Eataly, which Teatro Naturale wanted to consult.
The answers he provided Andrea Candeago, Eataly purchasing directordeserve careful reading, not only to understand how the brand’s philosophy has become more “aggressive”, to “seize all the opportunities that the market offers” for the benefit of its customers, but also how it is novelty that rewards and PDOs /Igp are now to be considered a usual product, so much so that they deserve a private label.
– Let’s start with current events: traditionally Eataly positions itself on high-end and premium oils. These oils too, due to the olive growing situation, with the second worst campaign ever, and the increase in production costs, have increased in price. How can we balance the interests of consumers, who want the best product at the lowest price, and those of producers who ask for profit margins to help their companies survive?
This is certainly a complex balance in which the distribution system must necessarily play an active part. Towards our customers, our commitment is to make a selection of the highest quality, representative of all the Italian regions and capable of highlighting the different characteristics of our cultivars. We guarantee that producers can come and talk about their product in our stores which are incredible showcases for their storytelling. In addition to this, continuous scouting activity ensures that all the opportunities offered by the market can be seized.
– Eataly is always very attentive to a selection of extra virgin olive oils that represent all of the national olive growing but generally in a homogeneous price range. With climate change, and production difficulties in hilly and marginal areas, with consequent increase in costs, will you continue with the policy of supporting excellent local oil production?
Absolutely yes because it is part of our DNA. Italy boasts the largest number of denomination extra virgin olive oils in Europe (42 PDO and 7 PGI) and the largest treasure of biodiversity in the world with 533 different varieties of olives. An industry represented by around 400 thousand national agricultural companies including many small production companies that carry on centuries-old traditions, producing oils of the highest quality and in a sustainable way. Our job is to tell these excellent realities which can also be very particular local productions.
– All extra virgin olive oils, including community oil blends, have increased considerably in price. This makes Eataly products more competitive. Are you seeing a match? An increase in sales?
With regards to the oil category we certainly notice a greater predisposition to spend and a greater customer awareness of the quality-price ratio of extra virgin olive oil. For our part, we always pay great attention to new suppliers and formats to always have news and attract customers.
– Eataly also has a strong presence abroad. With the increase in prices, are you noticing a decrease in consumption where extra virgin olive oil has not been well consolidated in the local gastronomic culture?
Preserving and promoting the best of our food and wine heritage means promoting Made in Italy and, undoubtedly, there is still a lot of work to be done on extra virgin olive oil, especially abroad. From our observatory we do not notice a decrease in consumption but we do notice consumers who are more attentive to the label and gradually more competent in understanding the differences in origin and flavor and the different possibilities of use. Our customers are better prepared than before, and this makes us understand that we have worked in the right direction. All this is also reflected in our strategy of having a line of Eataly branded oils which will have an initial selection of three PGIs: Sicily, Puglia and Tuscany.
– We see flavored oils and vegetable oil blends appearing on the shelves. Will these products have a future or is it just a bubble?
Eataly offers only 100% Italian extra virgin olive oil, from the main PDOs and PGIs, including Slow Food Presidium oils: over 100 different oils from north to south, including the islands, to allow consumers to range between all the nuances of aromas and flavors of a 100% Italian treasure. A journey through cultivars, production areas, uniqueness and recommended combinations because each oil is different and unique at the same time. Flavored oils, although they are a minor sector for us, are a family of products with specific customers and Eataly, with the usual attention it reserves for innovation, looks at them with interest, offering products that reflect criteria of quality and excellence.
– Display and layout of extra virgin olive oil: will the “price revolution” force us to reevaluate the ranges and positioning of extra virgin olive oil?
The shelves that we dedicate to extra virgin olive oil in our stores are sectors of the stores that we follow with great attention. We often host tasting stands managed by the producers themselves who try the different oils and guide our customers towards purchasing. When an oil is tasted, the consumer’s attitude changes. Good oil must be told. We need to make people perceive work, effort, peculiarities of the territories and methods of processing. We need to work to ensure that an oil culture develops, as was the case for wine. Our method is to make use of talking shelves that indicate the cultivars, the organoleptic characteristics of the different oils and the ideal combinations. The communication material is essential to guide the consumer towards purchasing the right bottle from the perspective that there is no one oil for all uses but different oils to be used based on different occasions and uses in the kitchen.
