COSTA D’ORO INVESTS IN 100% ITALIAN OIL

COSTA D’ORO INVESTS IN 100% ITALIAN OIL
  • "L’Italiano" has hit the market – the new extra virgin olive oil with a traceable supply chain and geopositioning of its mills.
  • So what’s next? Investment, with the development of olive grove in Tuscany and southern Italy, and our first supply chain contracts with POs.
  • Oliver Delamea, General Manager of the Avril Vegetal business line: we want to make the Costa d’Oro brand a global benchmark in the high-quality olive oil market.

(Milan, 30 January 2020). Costa d’Oro’s main focus is on Italian extra virgin olive oil and on traceability of its Italian made extra virgin olive oil, using technology that gives consumers the ability to geolocate our mills – an industry first. The company is owned by Avril – the world’s third largest branded olive oil group – who announced today the arrival of "L’Italiano" on the market at a press conference in Milan. This is Costa d’Oro's first 100% Italian extra virgin olive oil, made exclusively from olives grown and pressed in Italy with traceability across all aspects: olive harvest period, pressing period, province of cultivar production, as well as the oil mills. The product, now in supermarkets, prides itself on its transparency and careful selection of olive growers, with over 50 mills located across 7 regions of Italy (73% in Puglia and 27% in Sicily, Calabria, Basilicata and Umbria) totalling around 4 thousand hectares. In the 2019-2020 period, we produced 20 thousand hectolitres, made mainly from cultivars from Coratina, followed by Ogliarola, Carolea and Leccino. In addition to our suppliers selected by the Spoleto-based firm through a rigorous DNV-certified annual audit, we will also be signing supply chain contracts next month with POs (producer organisations) from Italy's main associations in the industry: Unaprol and Italia Olivicola.

We also ensure full traceability (certified ISO 22005) thanks to a strict quality control system throughout the production process, as well as automated management systems at all stages with geopositioning of our mills based on the production batch. This all-round traceability gives consumers a transparency that is unprecedented in the olive oil industry. Costa d’Oro is one of the few brand that takes you right to the mills: just enter the production batch on the Costa d’Oro website or scan the QR code on the bottle to see your EVOO’s “identity card”, as well as its origin and pressing site, thanks to an integration with Google Streetview.

MOCETTI: BEST ITALIAN EXTRA VIRGIN OLIVE OIL IN THE WORLD, OUR GOAL IS TO BECOME THE MARKET LEADER OF THE ITALIAN TRACEABLE AND CERTIFIED SEGMENT

"We strongly believe in the Italian product”, said Ivano Mocetti, Managing Director of Costa d’Oro, “which we consider to be the best olive oil in the world in terms of quality and organoleptic properties. The ‘100% made in Italy’ segment continues to grow, outperforming the rest of the market. According to the latest 2019 Osservatorio Nielsen data, in 2018 the 100% Italian market accounted for 19.4% of retail volumes, up 6.9% in 2018. That's why we are focusing on this segment, with a fine oil that meets consumers’ demands for transparency, providing certainty over the product’s authenticity and origin. Today we are leaders in the unfiltered extra virgin olive oil segment and organic extra virgin olive oil segment. We want to become a market leader in this segment as well. We will do this by giving guarantees to consumers and extending traceability technology to all Italian oils across our brand: Grezzo (unfiltered), which is currently the segment with the most impressive performance (up 17.3% in value) through to our organic product."

DELAMEA: WE STRIVE TO BE A GLOBAL BENCHMARK IN HIGH-QUALITY OLIVE OIL AND ADD VALUE TO THE SUPPLY CHAIN, FROM THE AGRICULTURAL SECTOR THROUGH TO LARGE-SCALE RETAIL. AGREEMENTS LINED UP WITH PRODUCER ORGANISATIONS.

"Our aim is to make the Costa d'Oro brand a world benchmark in the high-quality olive oil sector, with new markets, especially in China and North America" announced Olivier Delamea, General Manager of Costa d’Oro and Avril's Vegetal business line, “combining innovation, traceability and natural origins. Our goal is not just commercial – we also want to add value to the Italian supply chain and to a product with excellent organoleptic and production qualities, one that is too often in crisis due to inherent market dynamics. We want to do this by staying true to the integrated supply chain, bringing together all players from the world of farming through to large-scale retail, bearing in mind the unique nature of the oil market and experiences already gained in other countries.”

UPCOMING UPHILL INVESTMENTS

The next step is production investment. The company has embraced the spirit and roots laid down by the Avril Group. With its base of oilseed producers, it is strongly considering the possibility of integration into existing supply chains or creating ad hoc chains. Negotiations are already underway in Tuscany and southern Italy (mainly Basilicata and Puglia) to lease land (some of which is already partly planted) to start production. “The choice of olive varieties to plant,” said Mocetti, “will meet the requirements of authentic Italian oil, together with new varieties suitable for an intensive model (600-800 plants per hectare) to produce an excellent quality oil at competitive prices, with the aim of reaching at least 1,000 hectares.”

AFTER ACQUISITION, EXPORTS AND SALES UP IN 2018

With total net sales of 156.8 million euro in 2018 (up 9.6% over 2017) and more than 40.5 million litres produced between its own brands, private labels and bulk, Costa d’Oro is one of the top three Italian players in large-scale retail olive oil. After the acquisition by the multinational Avril in May 2018, the Umbria-based company has become the world's third largest olive oil group (7 billion euro in turnover), but the organisation and management have remained Italian. The company's own brands – including Extra, Grezzo, Integrale and Biologico – are worth 86.6 million euro and account for 55.2% of total sales. Of these, the best performing segments are Grezzo and Extra, which together make up 63% of sales for company brands. In 2018, the Grezzo saw a spike in sales (17.3% in value), while Extra remains the best-selling product (9.7 million litres) for net turnover of 40.8 million euro.
The alliance with Avril has played a key role in the company's export growth, which makes up 45% of turnover, allowing us to expand sales in 80 countries and gain ground in new markets.

COSTA D'ORO, a leading Italian olive oil producer and distributor for the unfiltered extra virgin olive oil segment and organic extra virgin olive oil segment, in Italy and across the world. The family business was founded in 1968 in Spoleto, Umbria, in central Italy, by the Sabatini and Santirosi families who wanted to pool their expertise to produce a top-quality olive oil. COSTA D’ORO has acquired advanced industrial equipment for staying abreast of trends and developments in the olive oil market to best meet the needs and expectations of customers and consumers in Italy and in over 100 countries. In 2018, COSTA D’ORO achieved a turnover of € 156.8M.

Founded in 1983 on the initiative of French farmers, AVRIL is the main industrial and financial player in the vegetable oil and protein sector. The multinational is now the third largest olive oil group, with a turnover of 6 billion euro in 2018 and a workforce of 7490 employees across 22 countries. It operates in France and internationally in various areas such as food, animal nutrition, renewable energy and chemistry, with a portfolio of brands including Sanders, Lesieur, Puget, Costa d'Oro, Matines, Bunica and Taous. The group's goal is to create sustainable value in the vegetable oil and protein sector, helping to improve food and preserve the planet. To achieve its mission, Avril draws strength from its industrial activities in the plant and livestock sectors, and from its experience in investment through Sofiprotéol, its financial and development company.
To discover more: www.groupeavril.com | Twitter : @Avril

Press Contacts :
Hélène TABOURY | Groupe AVRIL
+33 (0)1 80 97 20 45 | +33 (0)6 23 08 83 54 | helene.taboury@groupeavril.com

Ilaria Koeppen INC | Costa d’Oro
+39 342 0773826 | i.koeppen@inc-comunicazione.it