Costa d’Oro was created in 1968 when the Sabatini and Santirosi families merged their olive oil businesses. Based in Umbria in central Italy and wth a turnover of €143.5 million in 2017, it sells its olive oil in over 100 countries and has partnered with nutraceutical companies in joint ventures focused on olive oil antioxidants.
Through this alliance, announced today, Costa d’Oro will leverage the operational structure of French oil and protein giant Avril to vertically integrate its own agricultural supply chain and industrial production, which is located in Italy and the Mediterranean basin.
In a joint statement, the companies said the strategic partnership would allow them to combine their expertise to spearhead “nutritional and gustatory innovation” and cross-over product development of oils and condiments.
It would also give them a stronger position to achieve “the conquest of new international markets, notably in China and North America”, the companies said.
Data from market research firm Euromonitor shows a strong year-on-year growth rate for olive oil of 7.5%, with retail value increasing from $9.9 billion in 2012 to $13.9 bn in 2017, with the Americas and Asia key areas of growth.
Avril which recorded a turnover of €5.9 billion in 2016, already has a number of consumer-facing brands, including Lesieur, Puget, Matines, Bunica, Taous, Sanders and Diester.
Financial details of the transaction have not been revealed.
Olivier Delamea, general manager of the Avril group’s oils and condiments business, said: “This alliance will enable the assembly of exceptional teams, know-how and products. All are advantages that will make Costa D’Oro a major Italian brand in olive oil with global reach.”
According to the International Olive Council, Spain leads the way in European production with 1.3 million tons in the 2016/2017 production year, followed by Greece with 260,000 tons and then Italy with 243,000 tons.
Italy has a 9% share in global olive oil production but, according to Avril, the country is often associated with the Mediterranean diet and its health benefits.
In addition to the food sector, Avril is active in the fields of animal nutrition, renewable energies and oleo-chemicals.
Other leading global brands of olive oil include Deoleo-owned Carbonell and Bertolli, Salov’s Filippo Berio and Carapelli, owned by Carapelli Firenze.