Filippo Berio’s annual volume sales fell 10% last year as sky-high inflation continued to afflict the already struggling olive oil sector.
The UK’s leading olive oil brand also saw sales revenues increase by 19% year on year to £83.6m, although that was a reflection of “the very high inflation in the cost of olive oil”, according to its 2024 FY results published this week.
“It’s been a really tough two years in the olive oil business and our latest published accounts reflect this,” Filippo Berio MD Walter Zanre told The Grocer.
The volume decline was “due to the massive inflation in olive oil in 2024” and “in line with the category”, Zanre added.
A challenging climate
Olive oil producers have been struggling with output due to long-lasting extreme drought conditions across the Mediterranean region, where most of the world’s olive oil comes from.
Additionally, inflationary pressures across the supply chain – from packaging costs to higher energy bills – have pushed supermarket olive oil prices to record highs in the past year, which in turn reduced shopper consumption.
Read more: Olive oil prices down as much as 33% in the mults amid mild weather
“Just to put this in context, a bottle of Filippo Berio Extra Virgin Olive Oil 500ml retailed at £3.75 at the end of 2022 – by the end of 2024 it was £10.50,” Zanre noted.
The company’s results read: “For the second consecutive year there has been a poor olive crop in Spain, which has caused a dramatic shortage of olive oil and resulted in very significant price inflation on raw material.
“These higher prices have been passed on to the trade, who in turn have increased their supermarket shelf prices, which has caused a substantial decline in the consumption of olive oil in the UK.”
Filippo Berio’s net profit decreased from 4.2% to 4.0% in the year, which was “in part due to the dilution resulting from the higher turnover”, its MD said.
On the flip side, the brand’s “2025 has started really well”, Zanre added, as yield levels in Spain and Italy have started picking up and production costs have reduced.
Read more: Oils 2024: soaring price of oil scares off shoppers
This olive oil raw material deflation “is working its way through the supply chain, which has allowed us to reactivate strong promotional activity”, according to Zanre.
Filippo Berio’s January to April volumes were up 24%, which “more than compensates for the decline we experienced in 2023/24”.
Turnover is up “just 12%, being suppressed by the deflation in olive oil prices”, Zanre said, but the brand is now “outperforming the category” with a “latest value share of 18.8%” in the four weeks to 19 April [NIQ].
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