The olive oil group Salov, which oversees historic Italian brands such as Filippo Berio and Sagra, closed 2023 with sales surpassing 105 million liters. Consolidated revenue reached €518.3 million, marking a 5% increase from 2022.
A CHALLENGING 2023
The olive oil sector faced significant headwinds in 2023. Last year was marked by a severe shortage of raw materials due to a poor olive harvest in Spain, which saw volumes nearly halved from potential output. This scarcity drove prices of olive oil and extra virgin olive oil (EVO) to unprecedented heights. EVO oil production prices in EU countries peaked at around €9.50 per kg, more than double the highs seen during the poor harvests of 2006, 2015, and 2017, and roughly four times higher than the 2020 low.
In the seed oils market, sunflower oil prices stabilized throughout 2023. Ample raw material availability from Ukraine helped keep costs in check despite ongoing maritime transport challenges due to the continuing war and the higher costs associated with land transportation.
Despite these adversities, the Salov group maintained strong competitiveness and robust sales volumes. The 12.5% decline compared to 2021 and 2022 was less severe than the consumption drops seen in many other countries, with significant market share growth in its operational territories.
“2023 will be remembered as a year of hardship for the olive oil sector. The anticipated reversal in raw material availability and costs did not occur, and additional economic and financial challenges emerged, squeezing companies’ margins and affecting their financial outcomes,” remarks Fabio Maccari, CEO of Salov. “Despite this, the 2023 consolidated financial statement confirms and underscores the strengths noted in 2022, particularly Salov’s resilience and adaptability in facing new global challenges. Not merely mitigating their disruptive effects, but effectively managing various markets and maintaining high competitiveness”.
SALOV’S EXPANSION IN ITALY AND ABROAD
Salov’s growth is evidenced by its performance in Italy and key international markets. By the end of 2023, the group had become the third-largest producer in the Italian vegetable oils market (evo, olive, and seed). In extra virgin olive oils, Salov holds a 3.8% market share (+0.5% year-on-year), with 1.5% attributed to the Filippo Berio brand. In olive oils, the Sagra and Filippo Berio brands achieved a combined market share of 5.3% (+1.8%), with Filippo Berio alone contributing 2.6%. In seed oils, the market share is 7.2% (+1%) with the Sagra brand alone (source: NIQ, total Modern Distribution, December 2023).
Notable commercial successes were recorded in Brazil and Canada. In Brazil, the Filippo Berio brand reached a new high at the end of 2023 with a 3.6% market share, ranking sixth by volume and as the leading Italian brand in a large but highly fragmented market (source: NIQ, December 2023). In Canada, latest data show Filippo Berio achieving a national market share by volume of 4% and 7% on the West Coast (source: NIQ, October 2023).
The US and UK subsidiaries also performed well, buoyed by the strong reception of the Filippo Berio brand extension into new lines of pesto and ready-made sauces, which were awarded at the 2023 Great Taste Awards in the UK.