FDBusiness.com

Price Rises and Private Label Drive Up Sales of Olive Oil Across Europe

 Breaking News
  • Nestlé Inaugurates New Nescafé Dolce Gusto Production in Vietnam Nestlé has inaugurated a new Nescafé Dolce Gusto capsule production line in Dong Nai Province, Vietnam. The site will process an expected 2,500 tons of coffee per year (equivalent to 130 million capsules), using high quality coffee beans from Vietnam. This volume is expected to increase in the coming years. The investment reflects Nestlé’s clear focus on high-growth, [...]...
  • Pink Lemonade Yogurt? Arla Brings Indulgence to New Markets Arla Foods is to expand its successful Finnish brand, Ihana, into new markets with the premium yogurt range being launched in Denmark and the UK. Meaning ‘wonderful’ in Finnish, Ihana was launched through an extensive brand launch in 2016 in Finland with an iconic new design. Indulgence is one of the few areas in growth within [...]...
  • Process Components Announces Kemutec Expansion into Netherlands Process Components has announced the expansion of subsidiary company Kemutec in Europe, with the long-established manufacturing brand opening a new office in the Netherlands. The move forms a key part of its global strategy to extend its global territories, significantly grow its revenues and create new jobs. Kemutec has more than three decades’ worth of heritage in [...]...
  • Packaging Automation Supports the Reduction in Plastic Packaging Waste With the launch of the UK Plastics Pact to address the impact plastic waste is having on the environment, retailers and manufacturers are more conscious of single use and non-recyclable plastics and want to cater for the green consumer. The industry is turning to various kinds of eco-friendly packaging with the aim of reducing plastic [...]...
  • Glanbia Cheese Joint Venture to Build New €130 Million Mozzarella Cheese Facility Glanbia Cheese, the joint venture business between Glanbia plc and Leprino Foods, plans to build a new, world-class mozzarella cheese manufacturing facility in Portlaoise, County Laois, Ireland. A site for the new facility has been identified at the recently established Togher National Industrial Estate in Portlaoise. A total of €130 million will be invested in [...]...

Price Rises and Private Label Drive Up Sales of Olive Oil Across Europe

Price Rises and Private Label Drive Up Sales of Olive Oil Across Europe
May 10
10:11 2017

The success of private label and the impact of price increases across European countries is driving up value sales of olive oil, according to the latest figures from IRI, the provider of big data and predictive analytics for FMCG manufacturers and retailers. Despite challenging economic conditions and poor harvests in Spain, Italy and Greece during 2015, value sales were up in several markets, with total sales of 3 billion (January-December 2016) in Western Europe, while prices rose on average by 4.8%.

IRI, which measured sales in supermarkets and hypermarkets (and discounters in selected markets) in Spain, Italy, Netherlands, Germany, UK, Greece and France, revealed a 6.9 million increase in sales over the previous 12 months, representing 0.36% in actual percentage growth. Germany (7.9%) and Spain (6.5%) saw the biggest percentage increase, while Greece (-11.9%) and Italy (-10.4%) suffered the biggest decline in value sales for 2016.

Several countries reported that private label is now dominant in the olive oil category, largely driven by the discount channel, which has extended its product portfolio and increased promotional activity. The UK, for example, saw a rise of 5% in private label, while in Germany value sales of private label products grew by 10.8%, driven by both price and an increase in volume sales. However, private label suffered in Greece when the main retailer, Marinopoulos, which had a very strong private label range, went bankrupt, impacting overall sales in the country last year.

Sebastian Hendricks, Consultant at IRI, comments: “It’s interesting that olive oil, which has traditionally been dominated by recognizable brands, has seen a significant shift in recent years. Private label is now better in quality, which is why we have seen the increase of PL in other categories as well, but we are also seeing retailers, including the discounters, giving much more shelf space and extending the range of their oils, including organic ranges, in-store.”

The increase in the price of olive oil was highlighted a year ago by IRI, when it announced an average price increase of 19.8% in 2015, due to the impact of a bacterial disease on olive production in Italy and poor harvests in Spain, Europe’s largest olive oil producing country. While prices rose much less steeply in 2016 vs. 2015, IRI’s figures suggest that these environmental factors are still affecting the olive oil category. 

Greece saw prices go up the most, more than 8%, but Germany and Spain were close behind with 7.3% and 7.1% increases respectively. The Netherlands (1.2%) and the UK (1.6%) suffered the lowest price increases overall.

IRI figures on Olive Oil in seven Western European markets (January–December 2016):

Total value
sales 2016 (Euros)
Value sales increases
2016 vs. 2015 in Mio Euro
Value Sales
Evolution
Volume (in litres) Sales
Evolution
Price
Evolution
Spain 1,060,000,000 64.4 6.50% -0.60% 7.10%
Italy 800,000,000 -93 -10.40% -13% 2.90%
NL 73,000,000 3.4 4.90% 3.51% 1.20%
Germany 303,600,000 22.1 7.90% 0.60% 7.30%
UK 186,800,000 5.2 2.90% 1.30% 1.60%
Greece 79,600,000 (ex Discounter)                -11.9 -13% -19.60% 8.20%
France 464,000,000 16.7 3.70% -1.40% 5.20%
Total 2,967,000,000 6.9 0.36% -4.20% 4.80%
 

Source IRI Infoscan – Italy: Hyper/Supermarkets + SSS; Netherlands: Total Supermarkets incl. hard discounters; France: Hyper/Supermarkets / HD / Click and collect/Convenience; Greece: Super/hypermarkets; UK: All outlets – Major Multiples & Independent Grocers (exc. hard discounters, M&S); Spain: Super/hypermarkets, Total Spain; Germany: Super/hypermarkets + discounters.

 

About Author

mike

mike

Related Articles



Food & Drink Business Conference & Exhibition 2016

Upcoming Events

  • September 5, 2018Int'l Food Products and Processing Technologies Exhibition (WorldFood Istanbul)
  • September 15, 2018iba
  • September 25, 2018PPMA Show 2018
  • September 27, 2018Int'l Fruit Show (eurofruit)
AEC v1.0.4

find food jobs

The Magazine

F&D Business Preferred Suppliers

New Subscriber





Subscribe Here



Advertisements