French agri-food giant Avril acquires majority stake in Italian olive oil maker Costa d’Oro
16 May 2018
French agri-food giant Avril yesterday acquired a majority stake in family-owned Italian olive oil maker Costa d’Oro, making it the third-largest producer in the fast-developing market.
Financial terms of the deal were not disclosed by the companies, but Avril said that Costa d’Oro has annual sales of €143.5 million ($171 million).Avril, which produces olive oil itself, said it is joining forces with the company's founding Sabatini and Santirosi families "to create the third most important branded olive oil worldwide".
The Paris-based group said it wants to accelerate the brand's growth in both the Italian market and internationally, where it currently achieves half of its sales.
The global olive oil market was worth €12 billion in 2017 and is expected to grow by 4 per cent to 5 per cent a year to reach €17 billion by 2025, driven by a rise in demand notably in China and North America, Avril said in a statement
“This alliance will enable the assembly of exceptional teams, know-how and products. All are advantages that will make Costa d’Oro a major Italian brand in olive oil with global reach,” said Olivier Delamea, general manager at Avril Group’s Oils & Condiments business.
“Together, we will be pursuing the initial goals of Costa d’Oro in Spoleto, Umbria, by providing it with the resources it needs to conquer new markets that are not only geographical but also concern innovation that will enable the best gustatory and nutritional quality,” said Ivano Mocetti, director general of Costa d’Oro.
“Our project will also eventually develop a vertical integration of the agricultural supply chain and industrial production in Italy and the Mediterranean basin,” he added.
Founded in 1968 in Spoleto, Umbria (central Italy) by the Sabatini and Santirosi families, Costa d’Oro is an Italian leader in the production and distribution of top quality olive oil in Italy and throughout the world.
Avril was founded in 1983 by French producers of oilseeds and protein crops. Avril's main aim is to develop oilseed products – rapeseed, sunflower, soybean– and protein products – peas, field beans, lupin.
In 2014, Avril processed half of the rapeseed and sunflower grains collected in France.
Avril has a presence in 22 countries and employs 7,200 people. It had 2014 turnover of €6.5 billion and net profit to €44 million.