Austrade media release21 December 2005
The Australian olive oil industry is on the brink of following in the Australian wine industry’s successful footsteps, according to Roger Ley, Group Sales & Marketing Manager for the Mitolo Group, the parent company of the Ollo Olive Oil brand.
Mr Ley said that Australian olive oil is a first-rate product that is as yet largely unrecognised offshore.
“Our olive oil industry is where Australian wine was 20 years ago and is taking a giant leap forward onto the world stage in terms of brand recognition. Like Australian wine, we have an ultra-premium product that is equal to, if not better than, olive oils from Europe,” Mr Ley said.
And the industry could be helped even further due to tariff eliminations on olive oils thanks to the Australia – US Free Trade Agreement (AUSFTA), which came into effect nearly a year ago.
“The AUSFTA is a positive factor for us in the US market, because the biggest issue for our product is not quality, but price. Many factors increase the retail price – a company’s margins, shipping, distribution, retailer costs; it all adds up. The AUSFTA helps us reduce the ultimate cost to the consumer, which is vital in a very price-sensitive grocery category in the US market,” Mr Ley commented.
Mr Ley also had high praise for Austrade. “They offer many services such as marketing support, market data and finding distributors and retailers,” he said. “Austrade is a bit of a life line. In fact sometimes it’s hard to do business without Austrade’s help – they offer priceless support.”
The Ollo Olive Oil brand can be found in 11 export markets, including the US, UK, Japan, Canada, China and Singapore. While the company concentrates on providing a premium product at supermarket prices, it has also secured a private labelling opportunity with a large US specialty food retailer.
Jeremy Meltzer, Export Manager at Victoria-based Yellingbo Gold Extra Virgin Olive Oil agrees about the AUSFTA’s benefits to Australian olive oil and Australian exporters in general. He said that the AUSFTA has been instrumental in the ever-strengthening ties between the US and Australia and in the promotion of ‘Brand Australia’.
The company produces its eponymous flagship product as well as a limited release single estate unfiltered olive oil, all made in Three Bridges olive grove in Yellingbo, Victoria. Mr Meltzer began exporting Yellingbo Gold to the US in 2003, after walking around New York in the snow, with a suitcase of the product. Now Yellingbo has almost full distribution coverage of the US market.
“The AUSFTA facilitates trade and is therefore a great enabler of business for Australian exporters in the US market. Apart from tariff gains, it gives tremendous opportunities to sell Australia as a lifestyle brand, as a vibrant country that is elegant and sophisticated and has abundant produce and talent.”
According to the August 2005 Sensis® Business Index, the US is a more popular export destination since the introduction of the AUSFTA. Over one quarter of SMEs nominated the US as a major export destination, a rise of five per cent from the beginning of the year.
Ollo Olive Oil and Yellingbo are currently stocked in gourmet food store across the US. Both companies will be at G’Day LA Australia Week’s Australian Made Campaign Food and Beverage Trade Day on 20 January 2006 and at the 31st Annual Winter Fancy Food Show in San Francisco, 22-24 January 2006.
Austrade now provides expanded on-the-ground support for Australian exporters in the US market with unprecedented representation in 18 US cities and a dedicated network of USA Export Advisers around Australia.
Media ContactAdam Blight, Austrade
Tel: 61 2 9390 2336
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