liquid gold? Do you stock learn now and be ahead of the curve A new industry standard is set to eradicate inferior olive oils in your store

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1 FOOD FOCUS: OLIVE OIL Do you stock liquid gold? Extra virgin olive oil is extracted from healthy fruit picked at the right stage of ripeness, which retains the fruit s virtues of no cholesterol, freshness and fragrance. A new industry standard is set to eradicate inferior olive oils in your store learn now and be ahead of the curve Growing consumer demand The consumption of olive oil has increased by more than 20% per annum over the last eight years and the local supply has not kept pace with this increasing demand, comments Nick Wilkinson, vice chairman of SA Olive, the voluntary association representing the country s olive industry. South African production, despite continued increase in plantings and production, supplies less than 30% of domestic consumption and imports have maintained their share of the growing market, he says. According to BMI s 2012 report Edible Oils in South Africa, the category as a whole has shown consistent growth. Speciality oils showed good volume growth in the last year, largely as a result of more lower priced olive oil/seed blends entering the market. Many consumers are unaware of the difference and it is believed that the much lower price of these blends has contributed to the increased demand, notes the report. By Laura Durham Olive oils are not created equal far from it and South African producers have long been at a disadvantage in the market thanks to cheaper imports, some of which aren t even pure extra virgin olive oil at all! As consumer demand for olive oil grows, make sure that you understand what you re really stocking on your shelves. Wilkinson says this proliferation of different brands and grades of olive oil on South African shelves represents a doubleedged sword for the local industry. Extra virgin olive oil is expensive to produce but contains the most health-giving properties. On the other end of the quality spectrum is pomace and lampante oil, which is of questionable quality. Numerous imported brands have been found to contain either blended foreign oils or poorer grade olive oils although still labelled as the real deal extra virgin olive oil, he says. Leonard Arangies, a consultant to SA Olive, says that the association recently sent of 47 different bottle of extra virgin olive oils typically found on South African supermarket shelves (both local and imported) to be tested in Australia using parameters and technology developed by the International Olive Council (IOC). The results are expected shortly. Unfortunately, the official report had not been published at the time of Supermarket & Retailer going to print. The 2011 study revealed that while none of the South African bottles showed any sign of being sub-standard, 26% of imported olive oils were falsely labelled as extra virgin. Cheap imports muddy the waters The big problem is locally produced olive oils are no match for these imported, often 39

2 FOOD FOCUS: OLIVE OIL sub-standard, products in terms of price. Unfortunately, this ends up being the major factor in many consumers purchasing decision, particularly now that times are tough. The European Union subsidises production and reduces the real cost of olive oil imported into South Africa, leading consumers to believe that local production is expensive, explains Wilkinson. Cheap and often nasty imported oils have become the market leaders in South Africa due the attractive prices that the local retailers have been able to offer to the struggling consumer, comments Paul Vermeulen, business development manager at The Greenleaf Olive Company. The good news for local producers is that this situation has now been reversed in the last six months due to a massive crop failure in Spain and the weakening Rand. The effects of this will become evident on shelf in months to come, he adds. Pouring with health Nick Wilkinson of SA Olive explains the process of producing extra virgin olive oil: Extra virgin olive oil is produced mechanically by effectively squeezing the juice from the olive and separating the oil from water in temperatures below 28 C. The resultant product is completely natural and will contain the highest percentage available of the health benefitting antioxidants, polyphenols and vitamins. The lower grades are produced from reprocessing the waste by-product (pulp) from this initial process using either mechanical, chemical or heat extraction techniques to extract the remaining oil. Extra virgin olive oil will deteriorate unless stored properly with little or no exposure to heat, light and air. Oxidation will reduce Pair wine, olive oil, cheese and antipasti in a display to help customers prepare for that romantic picnic or dinner party. the quantum of health benefits and the oil will lose flavour. Cooking shows have done wonders to promote the use of olive oil in everyday cooking and general food enjoyment. We are what we eat and the educated consumer now has an appreciation of the negative health effects of the easy choice in food with the proliferation of fast foods and processed foods, he says. We have also found an increasing awareness amongst communities that have traditionally been vegetable oil users. A prime example is the Asian community who tend to have a higher cardiac failure and stroke rate that has largely been attributed to their generic dietary habits. Your typical vegetable oils do not have the nutritional and health benefits that extra virgin olive oil offer, comments Vermeulen. As a rule of thumb, extra virgin olive oil is likely to be better in quality the less it is handled, the less it is travelled, the better it is stored and the fresher it is when consumed, explains Wilkinson. Arangies recommends that consumers think of olive oil as fruit juice. If you make fruit juice out of inferior fruit, it s going to be an affected product. Many European farms are mass-producing their olives so quality control is not in place and even rotten olives are harvested. If you start with a tainted fruit then you re going to have a tainted product. This is then blended with extra virgin oil and sold as such, he says. A seal of approval In order for the quality of the oil to be ensured, olives should be picked and processed at optimal quality rather than optimal yield. In addition, all reputable locally produced extra virgin olive oil will bear the CTC (Commitment to Compliance) seal of approval from SA Olive. 40

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4 Introduce your customers to the great health and taste benefits of versatile macadamia nut oil No Cholesterol (0%) Very low in Omega 6 (3%) High in Omega 3 (81%) Perfect for frying 210 C burning point Delicious nutty flavour in salads Macadamia nut oil is on a roll internationally, due to its extraordinary health benefits and delicious taste It is a far superior oil as it contains the highest percentage of monosaturated fatty acid (the good fat) of any food and is low in polysaturated fat Be the first to offer your customers this premium internationally acclaimed oil Sales are growing on its health benefits, its taste and versatility visit us on Jill Whyte Mobile: +27 (83) Tel: +27 (15) whytespr@mweb.co.za South Africa Alex Whyte Mobile: +44 (79) alex@gfnc.co.za United Kingdom FOOD FOCUS: OLIVE OIL The CTC seal means the oil in the bottle has been submitted to a tasting panel for organoleptic and chemical testing and confirmed as being extra virgin olive oil, explains Arangies. It s free so if an oil hasn t been entered to taste why not? SA Olive is currently in the process of determining an extra virgin olive oil standard together with government ministries, SA Bureau of Standards (SABS) and representatives of the olive oil industry. The standard will be more specific than the current world standard as determined by the International Olive Council (IOC) which historicaly represented the major producers in Europe, says Nick Wilkinson. Whilst there is nothing inherently wrong with the world standard, the IOC is more concerned with promoting olive oil in general and the standard is thus outdated in terms of differentiating qualities. Needless to say, South African production has consistently displayed quality parameters way above the international standard and it is now timely to provide a modern standard which will ensure the consumer can differentiate quality, he says. South Africa is working together with new world producers (Australia, USA, New Zealand) and quality producers in Europe. Already in place is, of course, the Consumer Protection Act (CPA), which local producers see as a positive development for the industry. The CPA will hopefully introduce greater transparency when it comes to the exaggerated or fraudulent claims often associated with the different classifications of olive oil. Ultimately, by penalising these producers and importers, the industry will undergo a purification process leaving those who sell the real deal to battle it out on a level playing field, and this will benefit the consumer as well, comments Wilkinson. Clean up your shelves In June, Government gazetted a levy on all olive oil whether produced locally or imported [Marketing Of Agricultural Products Act, 1996]. This funding will in part be used for generic marketing to educate the consumer (including retailers and their buyers) in the different qualities of olive oil, as well as monitoring misrepresentative labelling and fraudulent product, explains Nick Wilkinson. 42 For consumers, it s no longer just about price. They are looking for value-formoney and if better labelling and industry certification gets them buying quality products produced in South Africa, then so much the better. Paul Vermeulen concludes: Now that imported prices are climbing at an unprecedented rate and the Rand is suffering in comparison to major international trading currencies, local retailers have been forced to look within our own borders for an alternative supply source. It is my opinion that they are now finding a few gems in their own backyards and will be seeking ways to exploit these opportunities. Placing your olive oil display alongside the pasta will lead to customers purchasing both for convenience sake. A new industry standard is set to change the way consumers buy and retailers sell extra virgin oil.

5 Extra virgin olive oil the facts What is extra virgin olive oil? The term virgin olive oil has nothing to do with the virgins who tended the sacred olive groves in classical Greece. It denotes the highest quality oil with the lowest acidity. Extra virgin olive oil is a product derived from nature with human help, extracted from healthy olives at the right stage of maturity and retaining the fruits virtues of no cholesterol, freshness and fragrance. It also denotes only the free acidity of an olive oil. What to look for on the label If a label states Extra Virgin Olive Oil, you will be assured of more olive flavour, which is the result of extraction by pressing. Cold pressed indicates the highest quality. Look for a brand name, which implies that the producer stands by his product and an expiry date, as fresher oils are the better buy. It is also important to establish the provenance of all olive oils. Even if the bottle states product of Italy, this could in fact mean no more than that the oil was bottled in Italy. What characterises a good bottle? Look for freshness, a full body, a pleasant tactile sensation, and the total absence of defects, such as rancidity or a mouldy smell or taste. The most common fragrances apart from a pervading aroma of olive fruit are freshly mown grass, tomato, artichoke, almond and apple. No addition of preservatives, anti-fermenting agents or colouring is allowed or required to maintain the aromatic value in an extra virgin olive oil. As extra virgin olive oil is extracted from healthy fruit picked at the right stage of ripeness; it has an intense, fruity flavour. A peppery scratch at the back of the throat characterises a new vintage and certain cultivar. This fades as the oil ages, becoming blander with age. The colour of extra virgin olive oil ranges from yellow to an intense green. All olives are green when unripe. The different shades depend on the ripeness and cultivar of olive greener olives provide fruitier, greener oil, while riper (black) olives provide a more golden oil the maturity when picked and the type of oil extraction method. Colour is, however, no indicator of quality. Young oils tend to be greener, but all olive oils become more golden in colour with time and will lose flavour as the oil is exposed to oxygen. What makes it special? Like all the other vegetable fats, olive oil has nine calories per gram. The perception of olive oil as heavy is probably due to its aromatic elements and tactile quality, as compared with seed oils which are generally washed with chemical solvents, deodorised and discoloured, only appearing lighter because of their paler colour and lack of fragrance or flavour. Generally speaking, it takes six kilograms of olives to make one litre of oil. The cultivars, harvesting and extraction methods and rigorous quality control all contribute to the higher price of extra virgin olive oil. But the flavour and health benefits far outweigh the price considerations. Compiled by Shane Dean, national sales and marketing manager at Morgenster Wine & Olive Estate. 43