- Companies involved in selling branded cooking oils are shying away from building packaged FMCG brands in canola oil due to low consumer awareness, unsteady imports and labelling issues. Adani Wilmar and Cargill Foods, for example, would rather focus on building brands in the...
Companies involved in selling branded cooking oils are shying away from building packaged FMCG brands in canola oil due to low consumer awareness, unsteady imports and labelling issues.
Adani Wilmar and Cargill Foods, for example, would rather focus on building brands in the premium olive oil segment in their FMCG business than enter the canola oil category despite its health benefits and lower pricing.
Difficult to brand
Angshu Mallik, COO, Adani Wilmar, said, “Almost 90 per cent of canola oil imports get blended with mustard oil and imports are erratic in the canola oil category due to the labelling issues. As a result it is difficult to build a canola oil brand in India. We would rather import olive oil from Spain or Italy for our FMCG portfolio under our existing brands than enter the canola oil category.”
Last year, the Food Safety and Standards Authority (FSSAI) had stopped the import of vegetable oils under any particular brand name insisting that every container of canola oil should get labelled as “imported rapeseed low erucic” acid oil.
Canola oil is one of the largest exports from Canada and the Canola Council of Canada has been trying to convince the Government that canola is different from the oil extracted from conventional rapeseed. Vegetable oil consumption in the country is increasing by about 400,000 tonnes (3.6 per cent) per year and the Canola Council of Canada wants to tap into this opportunity.
But given the labelling norms controversy, players such as Cargill Foods, is avoiding the canola oil category.
“Even though 2 lakh tonnes of canola oil gets imported, most of it gets adulterated with mustard oil. We would rather focus on growing our olive oil portfolio with Leonardo as an FMCG brand,” says Siraj A Chaudhry, Chairman, Cargill India.
Players who continue to be in the canola oil market, Dalmia Continental for example, have moved the courts to revoke the labelling norms.
“Commodity players do not want to invest behind the development of canola oil and get hassled by the FSSAI norms for this category. Now that we have an interim order from the Bombay High Court, we are using the name of canola oil in our labelling since we do not want to confuse consumers,” said VN Dalmia, Chairman, Dalmia Continental and owner of Hudson Canola oil.
RPS Kohli, Director, Jivo Wellness and President Canola Council of India, said that commodity players do not want to jump into a category which has low volumes and awareness.
Playing on health part
“Sales for canola oil have grown by word of mouth rather than big budget advertising in the olive oil category,” said Kohli.
While the canola oil category is pegged at ₹150 crore, the olive oil segment is a ₹600-crore market. “Olive oil is perceived to be healthier oil than canola and we will enhance presence in the segment with our brands like Leonardo and Gemini as we are growing at 20 per cent which is much ahead of category growth,” said Chaudhry.VN:F [1.9.22_1171]VN:F [1.9.22_1171]
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- The SA Olive Competition is held annually to award the finest of that year’s vintage. Entries are blind judged over a period of three days. ”The South African consumer is increasingly aware of the high quality of locally produced olive oils and keeps a close eye on the...
The SA Olive Competition is held annually to award the finest of that year’s vintage. Entries are blind judged over a period of three days.
”The South African consumer is increasingly aware of the high quality of locally produced olive oils and keeps a close eye on the results of this competition,” says Andries Rabie, prior SA Olive chairperson.
The competition, was in its ninth year, attracted 76 locally-produced extra virgin olive oils. A total of 17 exceptional extra virgin oils received gold medals in three categories – 3 for Delicate, 8 for Medium and 6 for Intense style oils.
WHAT THE SEAL MEANS:
1. The content is 100% South African.
2. The year of harvest is prominently displayed, indicating the freshness of the oil.
3. The producer is committed to the standards set in the SA Olive Codes of Practice and based on international quality standards.
4. Labelling is honest and transparent.
About SA Olive
SA Olive is an association representing the common interests of the South African olive industry. SA Olive members consist of olive growers, olive oil producers, table olive producers, tree nurseries and olive importers.
SA Olive is committed to supporting a healthy future, i.e. ensuring a healthy future for its members, healthy growth and development for the industry and a healthy lifestyle for all South Africans.
Postal address: P O Box 357, Paarl, 7620
Physical address: 258 Main Street, Paarl
Tel nr: 021-870 2900
Fax nr: 021-870 2915
Contact the Manager, Vittoria Jooste, at
Contact the Chair, Nick Wilkinson, at firstname.lastname@example.org
Contact the Secretariat at email@example.com
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- Comes after a deadly microbe spread by insects was discovered in them and fears that unless they are destroyed it will spread to other areas of Italy. Some of the trees that might have to be chopped down are centuries old. The price of olive oil is expected to rocket after the...
Comes after a deadly microbe spread by insects was discovered in them and fears that unless they are destroyed it will spread to other areas of Italy. Some of the trees that might have to be chopped down are centuries old.
The price of olive oil is expected to rocket after the EU ordered the felling of millions of trees infected with a deadly microbe.
Brussels has recommended that about 11million olive trees in southern Italy, many centuries old, be chopped down.
They have been infected with Xylella fastidiosa, a bacterium spread by an aphid. The disease, first identified in the Americas has already wiped out a million trees in Salento, southern Puglia.
Olive trees in southern Puglia in Italy. The EU has recommended that 11million trees be cut down after they were found to be infected with a deadly microbe
It is feared that unless drastic action is taken to fell the groves, the bacterium will spread to other olive-producing regions of Italy such as Tuscany and Umbria, and even to other Mediterranean countries.
Xylella fastidiosa can also infect vines, almond trees and other crops.
Puglia, a region in the heel of Italy, produces about 11million tons of olives a year, more than a third of the national crop, and they are used to make some of the country’s best oils.
If the trees are destroyed, it could effect production and send the prices of olive oil soaring
The initial area to be culled is 20,000 acres – about 30 sq miles – between Lecce to Brindisi. It contains around 11million trees, according to Unaprol, the largest consortium of growers.
Many of Italy’s oldest olive groves, some dating back 500 years, have been infected by the bacterium, which causes plants to shrivel, leaving them incapable of bearing fruit.
The effect on production will mean shortages in the supply of olive oil and is likely to lead to higher prices for shoppers in Britain and around the world.
Vytenis Andriukaitis, the European Commissioner for Food Safety and Security, said he was ‘profoundly concerned by the gravity of the situation’.
He added: ‘We have to take decisive measures with immediate effect. Naturally it is very painful for the growers but it is necessary to remove all the affected trees, it is the most effective measure.’
A committee will meet on Thursday next week to rubber stamp the directive, which growers fear will create a desert in the area as it will not be possible to replant it with olive groves.
Popular singer and olive producer Albano Carrisi said culling the trees is ‘cruel’ and ‘useless’. He said: ‘Do not disfigure our beautiful Puglia.
Puglia without olives is like the Vatican without cardinals’. Gianni Cantele, president of one Puglia producers’ consortium, Coldiretti, said it was ‘a natural disaster’.VN:F [1.9.22_1171]VN:F [1.9.22_1171]
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