Full Breakdown
Supermarkets Accused of Delaying Olive Oil Price Reductions
4/14/2026, 9:23:11 PM
Rising Prices and Consumer Frustration
Walter Zanre, director of Filippo Berio, a prominent olive oil brand, has criticized supermarkets for not passing on reductions in wholesale olive oil prices to consumers. Despite a decrease in the wholesale price of a 500ml bottle of Filippo Berio from £10.50 at the start of 2025 to £7.50 today, the price remains significantly higher than the £3.75 recorded in 2022. Zanre expressed his frustration, stating, “We brought prices down twice last year and it’s not all been passed on to the consumer, which is a huge frustration.” He noted that supermarkets appear to be capitalizing on consumer resilience to high prices, suggesting they are reluctant to lower prices fully.
Production Challenges in Spain
Spain, the world's largest olive oil producer, has faced significant production challenges due to adverse weather and poor harvests. The International Olive Council reported that Spain's olive oil production plummeted from nearly 1.5 million tonnes in the 2021-2022 season to 666,000 tonnes in 2022-2023, with a slight recovery to 854,000 tonnes projected for 2023-2024. This decline has contributed to the rising prices of olive oil in the UK and elsewhere.
Retailer Responses and Market Dynamics
In response to Zanre's accusations, Andrew Opie, director of food and sustainability at the British Retail Consortium, defended retailers, stating that they strive to pass on cost savings to customers. He emphasized that supermarkets operate on tight margins and that the market is driven by consumer behavior, allowing shoppers to compare prices and switch brands as needed. Opie remarked, “Retailers work hard to pass on cost savings to customers wherever possible,” highlighting the competitive nature of the grocery market.
Future Outlook for Olive Oil Prices
The International Olive Council has indicated that Spain's olive oil production is expected to rebound to approximately 1.37 million tonnes this year, which could lead to more stable pricing in the future. This potential increase in production may alleviate some of the pricing pressures that have frustrated consumers and producers alike.
Criticism of Supermarket Practices
Zanre's comments reflect a broader concern among producers regarding supermarket pricing strategies. He described the situation as “almost like taking the mickey,” suggesting that supermarkets are exploiting the current market conditions rather than providing fair prices to consumers. This sentiment underscores the tension between producers seeking fair compensation and retailers aiming to maintain profit margins.
Verbatim Quotes
- “Mr Zanre told Sky News: “We brought prices down twice last year and it’s not all been passed on to the consumer, which is a huge frustration.” — Walter Zanre, Director of Filippo Berio
The ongoing dialogue between olive oil producers and retailers highlights the complexities of pricing in a market influenced by both production challenges and consumer behavior.
