The oil industry at large-scale distribution: "Stop the below cost"

THEoil industry renew the request to supermarkets di curb the rush to promotions on extra virgin olive oil and to initiate discussions with the entire supply chain to rethink market strategies. Faced with a significant drop in production, it becomes important to work together to reposition extra virgin olive oil, too often treated as a commodity (ie a simple raw material) e not from premium product Which.
The appeal to start this new season of dialogue to enhance the olive oil has launched Andrea Carrassi (in the picture), general manager of Assitol, the Italian Association of the Oil Industry, in a debate held during the Olio Officina Festival in Milan.
“We knew we had to face a hot autumn – observed Carrassi – but the reality turned out to be worse than expected. Italian olive growing has lost 50% of its production and in the Mediterranean it went no better. That is why, at the beginning of the last campaign, we sounded the alarm, fearing that we would soon see the olive oil stocks run out. To deal with the complexity of the situation it is necessary great sense of responsibility by the entire supply chain, from agricultural production to industry, up to large-scale distribution. Push on promotions, at this moment, it would be absurd and misleading for the consumer, we have said it several times. Our hope is that this negative scenario will be an opportunity to open a new season of dialogue and collaboration with large-scale distribution, with the aim of making the most of that extraordinary product which is extra virgin olive oil”.
In recent years, some positive steps have been taken, just think that today 100% Italian represents 30% of sales, when in 2007 it was just 10%. However, much remains to be done: the consumer, observes the oil industry, is more attentive, his passion for olive oil is always strong, however the phenomenon of sales below cost, aggressive and constant throughout the year, demeans product, workers and businesses, making it impossible to maintain real profitability in the supply chain.
“We will never be able to have the same quantities as in Spain – Carrassi reiterated – but we can work on increasing production and, at the same time, on quality, designing a strategy that relaunches 'premium' products.