Oil China 2006 - your promotion partner
Olive Allure
China Daily 2006-01-16 07:27 |
The olive tree came to China hundreds of years ago via the warm climes of
the Mediterranean, but the famous oil that figures so prominently in
Italian cooking was still fairly new to most Chinese consumers up until
a few years ago. Times have changed, and an increasing number of Chinese shoppers are
buying olive oil, which is generally healthier than most other cooking
oils. A number of brands are available in large supermarkets throughout China's
first-tier cities. Carrefour in Beijing carries over 10 brands of olive
oil, including both domestic brands and foreign names. Commercials have
started airing on TV as well. It seems that the distinctive taste of
olives has struck a chord with affluent Chinese consumers. One Carrefour spokesperson says that new brands are constantly being
introduced, with four to five new varieties hitting store shelves each
year. He refuses to reveal sales figures, but says consumer interest in
olive oil is definitely growing. "Around 3,000 tonnes of olive oil were consumed in China in
2004," confirms Lin Yongqing, vice-president of the China Vegetable
Oil Association, adding that China's olive oil market is still
relatively small. Growth has been rapid, however. "Last year the market was expected to increase by at least 50 per
cent." Lin attributes the huge consumption increase to growing awareness of the
health benefits of olive oil. Rising individual incomes are also
fuelling the product's popularity. The International Olive Oil Council says China will become the world's
largest consumer of olive oil within the next decade. The country's
geographical environment is unsuitable for mass production, however. Lin
says that over 90 per cent of the olive oil on the domestic market is
imported from Western countries. This is why prices are much higher than
other types of vegetable-based oil. Most olive oil retails for between
50 yuan (US$6.17) and 200 yuan (US$24.69) per 500 millilitres. The rapidly expanding market is naturally attracting an increasing number
of olive oil producers, including Chinese food industry leader China
National Cereals, Oils and Foodstuffs Corp (COFCO). In November last year, Eastocean Oils & Grains Industries (Zhangjiagang)
Co Ltd, a subsidiary of COFCO, formally launched its Soliva olive oil
brand. Tao Changding, deputy manager of the company's marketing centre,
says the brand's two varieties, extra virgin olive oil and pure olive
oil, will first be sold in Beijing, Shanghai, Guangzhou and other
prosperous cities. Tao says the goal is to make Soliva the "second oil" in
households. "We are not asking our customers to use olive oil whenever they
cook," Tao says. "We want them to use it on special occasions
for romantic moments or family reunions, for example." Tao says it took the company four years to prepare the new product for
the market, adding that it was an important step towards entering the
high-end edible oil market. He says sales in China's high-end cooking
oil market reached 300 million yuan (US$37 million) last year, and olive
oil accounted for 90 per cent. Zhang Dongfeng, assistant president of COFCO, says there are currently
over 50 olive oil brands available in China. "It's a bit messy at the moment," says Zhang. "We want to
be the first to educate and regulate the market." He adds that the sector is characterized by huge price differences
between different products, and consumer awareness is still relatively
low. Zhang says it will take another five years to cultivate the market, and
COFCO will direct approximately 10 million yuan (US$1.2 million) per
year into promotions. |
2005-2006 Copyright reserved by Beijing Regalland, E-mail: regalland@regalland.com.