Spanish olive oil manufacturer Deoleo is investing €20 million to promote Italian brands Bertolli and Carapelli in the US and Italy.
The investments are part of the company’s strategy to return to profits by the end of 2018, through the reorganisation of activities and investment in its infrastructure.
Deoleo chairman and CEO Pierluigi Tosato told Il Sole 24 Ore that this year alone, €10 million will be invested in production plants, of which €4.8 million will be invested in the Tavarnelle factory in Tuscany. The money will be used for the purchase of new machinery and the launch of new formats.
Deoleo is the world’s leading olive oil producer with a 10.5% market share. The company ended 2016 with a turnover of €750 million, but with loses of €179 million due to write-downs on brands operated by majority shareholder, UK fund CVC Partners.
As well as Bertolli and Carapelli, which are marketed as premium and super-premium brands, Deoleo’s brand portfolio also includes Sasso, Friol, Koipe and Carbonell.
The company’s new strategy, aimed at raising quality and generating value for the olive oil category and its brands, has begun to bear fruit. Since the start of 2017, the company has received 29 gold and silver medals in ten international olive oil competitions.
© 2017 European Supermarket Magazine – your source for the latest retail news. Article by Branislav Pekic. Click subscribe to sign up to ESM: The European Supermarket Magazine