Olive oil bounces back in Australia after "The Drizzle Effect" campaign

Australia's olive oil sector, represented by the Australian Olive Oil Association (AOOA) and working alongside the Spanish Olive Oil Interprofessional, launched a new promotional campaign in this market in March under the banner "The Drizzle Effect". The campaign had a very clear aim, as Teresa Pérez, manager of the Spanish Olive Oil Interprofessional, explains: "This market had contracted and we wanted to work on increasing household penetration, so as to multiply consumption occasions. To that end, a great deal of effort went into a digital campaign to get current olive oil consumers to increase their consumption and to attract new consumers as well." Now that the campaign has finished, the results are highly promising: "By April we had already accumulated 12,000 tonnes of Spanish olive oils exported to the Australian market, and the growth rate is around 7%, while the market as a whole is growing at only 3%. So we are growing at more than double the rate for Spanish olive oils."

The campaign's results are clearest of all in domestic consumption, as recorded by the Australian Olive Oil Association (AOOA), whose chairman, David Valmorbida, confirms a very marked change in trend: "Normally, a campaign like this takes many, many years to show definitive results. And of course there are other factors, such as the price of olive oil, which has been coming down and has helped. What pleases us greatly, however, is that the recovery in consumption in Australia has been faster than in other markets around the world, the United States for example."

The figures for the first half of the year are encouraging: "Household penetration for olive oil in retail sales had already fallen to 60.8% from a peak of 65%. And right now what we are seeing is that we have already reached 63.5% household penetration in the 12 months to May this year. And we are on track to return to 65% in 2027. Besides penetration, there is of course the amount each household consumes. We used to have a level of around 3 litres per household, and that had fallen to around 2.5 litres per household. We are already seeing it climb back up to 2.9. And given the speed of the forward momentum, we are confident we will once again pass the 3-litre mark."

Valmorbida stresses that this rise in consumption has benefited Australian olive oil producers, but above all Spanish companies, which have dominated this market for years: "The largest brands in the market are clearly Spanish. And if we look at the past 20 years, what we see is that many brands with an Italian feel, which perhaps sold Mediterranean blends, have gradually been losing market share, as consumers have realised that the oil actually comes from Spain. They trust the big brands that offer good quality or good value for money."

"The Drizzle Effect" featured well-known Australian chefs and food content creators who shared their professional tricks for turning everyday dishes into restaurant-quality experiences. The campaign achieved close to 38 million impacts. The chefs' and influencers' videos alone recorded more than 22 million views.