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Victoria Mindova

Olive oil is considered the gold of Greece. According to the International Council of Olive Oil Producers, the country produced 350,000 tons of olive oil in the period 2012 - 2013. The olives from the regions of Kalamata and Crete are some of the most famous and finest varieties on the market and they are known in every part of the world. However, Greece ranks third among the exporters of olive oil following Spain and Italy.

In Bulgaria, the consumption of olive oil has been gradually increasing but at a slow pace. Traditional Bulgarian cuisine has a long lasting relationship with sunflower oil. Olive oil is still considered a luxury good compared to conventional oil, mainly because of the price difference between the two products. Nevertheless, the consumption of olive oil in Bulgaria has almost doubled since 2007 and the interest in the Mediterranean product is tending to grow.

According to the National Statistics Institute, just under two thousand tons of olive oil were consumed in Bulgaria in 2011, half of which was imported from Greece. By comparison, the consumption of branded bottled olive oil in Greece, as a producing country, is around forty thousand tons. The consumption of bulk olive oil is the same and the rest is exported to foreign markets. Expert estimates show that the consumption of olive oil in Bulgaria will increase. Today, the Greek producers want to ensure that they will have a larger market share of the future distribution.

The Greek Association of Industries and Processors of Olive Oil is launching a massive campaign for the distribution of Greek olive oil to foreign markets entitled Olive Oil World. The programme aims to promote the supply of Greek olive oil in countries such as Sweden, the United Kingdom, Germany, Bulgaria as well as in Greece itself and in Cyprus. The total budget for the programme is about five million euro, half of which comes from European Union funds, 20% - from the state and 30% from members of the Association.

"Our goal is to promote the sale of olive oil produced in Europe and in particular, of Greek high-quality olive oil, which is certified as a protected designation of origin and protected geographical region according to the standards of the European Union," George Economou, economic director of the Greek Association of Industries and Processors of Olive Oil, told GRReporter exclusively. The Association has 55 members - producing companies that offer their goods both in the local and foreign markets.

The Association has allocated a budget of 550,000 euro for a massive advertising campaign in various forms in Bulgaria in order to promote the consumption of olive oil. It is expected that the exports to Bulgaria, as a neighbouring country, will increase and that the revenues of the Greek producers will increase by 10% -15% as a result of the specific campaign.

"The budget may not be large, but we are planning to carry out a series of advertising campaigns at the points of sale (shops and supermarkets) as well as in magazines and with advertising spots on radio stations. We are also planning to work with nutritionists and other specialists who will help us acquaint the public with the healthy properties of olive oil," says the specialist.

The Bulgarian importers will be an active part of the campaign. It is expected that they will disseminate recipes for typical Bulgarian dishes that are cooked with olive oil rather than with traditional oil, but the Greek producers mainly rely on entering the restaurant business. The establishment of closer trade relations between the Greek producers and the representatives of catering can bring great benefits to both parties.

George Economou does not underestimate the impact of the crisis. Nevertheless, he believes that there is a significant percentage of consumers in Bulgaria, who have the knowledge and the financial capacity to prefer olive oil to other similar products.

"We think we can convince the consumer that it is worth spending a little more for olive oil instead of for other vegetable oils by paying for superior taste and health," Economou stresses.

The proven healthy properties of olive oil in the prevention and improvement of cardiac function, in the reduction of blood sugar and in strengthening the body are some of the strong points of the marketing strategy of the producing companies for increasing the supply of olive oil.

The proven healthy properties of olive oil in the prevention and improvement of cardiac function, in the reduction of blood sugar and in strengthening the body are some of the strong points of the marketing strategy of the producing companies for increasing the supply of olive oil. While Greek olive oil is already well known in countries such as Sweden, the UK and Germany and has a wide distribution network, it is not yet available everywhere in Bulgaria.

"We will be able to attract new customers with a series of campaigns, in which consumers will receive a 200 ml bottle of olive oil as a gift during a promotion, for example. We know our product and we also know that a large number of these consumers will return to the supermarket to buy a 500 ml bottle of olive oil the next time, not just because olive oil has many properties that are beneficial for human health, but also because its taste is very good," states the representative of the industrial union.

A long-standing problem in Greece has been the massive purchase of Greek olive oil in bulk from Italian processing companies. They are mixing it, branding it and selling it to foreign markets as original Italian olive oil.