Shoppers following a Mediterranean diet might have noticed a decline in their basket spend, as olive oil shelf prices have finally started to fall in the retailers, following months of record-breaking inflation.
The Grocer’s analysis of Assosia data shows 19 out of 123 SKUs (15.5%) available in the traditional big four, Waitrose, Ocado and Iceland have dropped in price since 1 January, with some lines down by as much as 33%.
Napolina Olive Oil 500ml, for instance, is down 33%, from £7.95 to £6, in Asda, Morrisons and Ocado.
Tesco’s one-litre and 500ml own label olive oil lines are down 11%, from £7.80 to £7 and from £5.75 to £5, respectively, the data shows.
La Española Olive Oil one-litre is down 16%, from £13 to £11.25 in Waitrose, while Olivio Oil one-litre is down 13% from £4.50 to £4 in Iceland.
Filippo Berio’s Classic Olive Oil 250ml and Extra Virgin Olive Oil 250ml are both down 11% in Asda, from £5 to £4.50, according to Assosia.
With promotions the price of olive oils has fallen further still. For example, Napolina 500ml is down 46% in Asda from £7.95 on 1 January to £4.28 today (27 February).
And in Waitrose the price of Filippo Berio Extra Virgin Olive Oil 500ml is also down 46% from £10.25 to £5.50.
Improved weather
Olive oil prices hit record highs in 2023 and 2024, following two years of drought in Spain, where almost half the global supply is produced. A return to more rainfall and milder weather in 2024 has meant suppliers have been able to reduce their wholesale prices, allowing retailers to bring base prices down and feature more and deeper promotions.
“We knew olive oil harvests were projected to be higher than last year, helped by rain and milder temperatures in spring, which created better growing conditions,” said Napolina marketing director Jeremy Gibson.
“This ideal climate improved the state of the olive trees, previously decimated by the dry weather and heatwaves experienced across southern Europe last year.
“This was welcomed by growers, and as a result, they were able to shift their focuses away from navigating another poor harvest, to preparing the groves for a solid season and a return to normal volumes.
“With improved harvests in key regions driving down wholesale prices, we may see further adjustments in retail pricing, benefiting consumers nationwide.”
A spokeswoman for Ocado said: “With a great harvest in 2024, we have been able to drop prices across products in our olive oil range to deliver better prices to our customers.”
Waitrose worked “really hard with our suppliers to keep prices as low as possible for our customers”, said a spokeswoman.
Filippo Berio UK CEO Walter Zanre said the price decreases in Asda reflected “the lower cost of olive oil that we have been passing on to the trade and we expect to see further shelf price reductions in March”.
Morrisons declined to comment, while Tesco, Asda and Iceland had not responded to requests at the time of publication.
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