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VN Dalmia Offers an Olive Oil Reality Check

Posted on December 04 2011 | Categorized in: Asia

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VN Dalmia | VN Dalmia Offers an Olive Oil Reality Check | asia

Jean-Louis Barjol, the executive director of the International Olive Council has called the results in India a “disappointment,” and has since put the IOC’s limited promotional dollars to work elsewhere.

Meanwhile, Dalmia Continental has announced a plan to spend Rs. 60 crores ($13 million) on getting the word out, and it is inviting investors to come along for the ride. “We have several offers for participation in our growth equity and are evaluating the proposals. We shall make announcements shortly,” VN Dalmia said.

Dalmia’s $13 million campaign dwarfs the $1.7 million the International Olive Council hopes will have an impact in the world’s biggest market. And the differences just get more stark from there.

The IOC’s North American olive oil promotional campaign was launched at a small Lincoln Center photo op that coincided with New York’s Mercedes Benz Fashion Week, featuring EVOO cocktails and an aspirational message that likened olive oil to the “little black dress.”

While in India, the campaign is aimed at getting people to move up from unhealthy seed oils by explaining that olive oil doesn’t have to be expensive: By using olive pomace oil and “reusing it up to three times,” olive oil’s famous health benefits can be obtained affordably and without altering the taste of traditional India dishes, the pitch goes.

“We should not waste time and energy in criticizing different grades of olive oil or each other,” Dalmia suggested. “ Olive oil purists, in their zeal to promote the benefits and taste of extra virgin, miss the point, he said. “Internecine squabbling will not serve to grow the world market.”

Olive Oil Times contributing writer Vikas Vij acknowledged the different market segments and what drives their decisions: “Health is the primary concern of urban Indians, and they will need a scientific assurance that olive pomace oil is at least ‘not worse’ than their existing cooking oils in terms of health,” Vij said from Delhi adding, “however, rural and less affluent Indians may opt for olive pomace oil due to economic compulsions if it is effectively cheaper than other cooking oils.”

Nidhi Jhingan, a 39-year-old professional  and married mother of two children in Delhi wonders if the approach employed by Dalmia and others might prove to be shortsighted: “Olive pomace oil may initially sell due to consumer confusion about the difference between pomace oils and higher grades. That is not a sustainable strategy in the long-term. It is better to present scientific facts and comparisons with other traditional Indian cooking oils, and let the consumer make an informed choice. Consumer education about extra virgin and pomace oils is critical for any responsible Indian olive oil producer as well as the government. ”

Of course with big risks come big rewards. “We agree that olive oil consumption in this giant country is miniscule but are encouraged by the potential,” Dalmia said, but he admitted he’s not alone: “This notion that a quick buck can be made by importing a container of olive oil has been the sure road to ruin for many and creates havoc in the market. However, a slow process of consolidation is taking place, a few brands are gaining prominence and I expect that many brands will fall by the way-side in the next 2 years.”

Meanwhile, India is a mess when it comes to health and VN Dalmia thinks olive pomace oil is one product that can reverse the deadly trend:  ”India ranks as World No.1 in cardiac patients. More than 100 million people in India suffer from heart disease. 31 percent of urban Indians are either overweight or obese. 140 million people in India have high blood pressure,” Dalmia said. “Over 40 percent of urban Indians have high lipid levels. India is the diabetic capital of world with an estimated 51 million people affected. The situation is already a national emergency. We need a healthy oil. Olive oil, including olive pomace oil, is the world’s healthiest edible oil.”

See the complete transcript of the interview with VN Dalmia..

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This article was last updated December 7, 2011 - 6:43 PM (GMT-4)

Tags: grades of olive oil, India, Indian cooking, Indian Olive Association, olive pomace oil, VN Dalmia
  • Richard Gawel

    While I do get the argument regarding the mismatch between some Indian cuisine and strongly flavoured extra virgin olive oil, I hope that the proponents of olive pomace oil tell their consumers that 1) olive pomace oil is solvent extracted, 2) that solvent residues remain in the oil 3) that olive pomace oil is refined just like the seed oil they are currently using and 4) that yes, that while olive pomace oil has higher levels of monounsaturated fats than what they are currently using, some other refined oils like peanut at around 50% aren’t that far behind and 5) lastly, just like the seed oils they are currently using, olive pomace oil contains solid amoutns of artificial shelf life extenders like butylated hydroxyanisole (BHA) and butylated hydroxyanisole (BHA).

    Interestingly in just about every jurisdiction in the world (every?), olive pomace oil has to be labelled with the word ‘pomace’ to distinguish it as an oil made from a waste product and with solvents. Not in India it would seem. I just hope (in vain I suspect) that they don’t go down the road of so many other naive countries before them that allowed (either intentionally or unintentionally) for confusion to reign as to the different grades of olive oil. Lots of people have made a fortune out of that confused mire, and from far fewer people than India has!

    The different grades of olive oil are NOT the same, either in how they are made, how they taste, or their health benefits.

    • Himani, Leonardo Olive Oil

      Dear Richard

      You have caught on correctly to the point that olive pomace oil is NOT promoted as a substitute for extra virgin olive oil or olive oil. It is, in fact, to avoid this confusion that it is promoted specifically for Indian cooking and not for western cooking or salads. Leonardo has not one but two extra virgin olive oils plus a regular olive oil, all of which are promoted through various marketing channels for western cooking and for raw use as salad dressings or dips. In fact, Leonardo works hard to distinguish extra virgin olive oil and olive oil for these uses. 

      Olive pomace oil is quite clearly promoted as a substitute for seed oils that, as you have pointed out, are all solvent-extracted. Olive pomace oil is not only ‘not worse’ (as Vikas Vij has said) than seed oils in this regard, it is immensely better in terms of fat composition. The monounsaturated fat content is 80% –  far superior to peanut oil or any other seed oil, for that matter. The health benefit that the Indian people can get from this fat composition is not to be taken lightly. 

      Olive pomace oil marketers in India do not conceal its name (which is broadcast front and centre in most cases) or the fact that it is solvent extracted from their consumers. They may not label the oil ‘solvent-extracted’, but nor do seed oils! Any interested consumer who wants to know more can easily call customer care, visit brand websites or conduct their own research, at which point they would understand the whole issue. The consumer would, in this case, be comparing olive pomace oil with peanut, soybean, safflower or sunflower, which are the commonly used oils in India. Solvent-extraction is common to all. High MUFA is not.

      Yes, the different grades of olive oil are certainly not the same. It is for this reason that Leonardo has very clear product differentiation and precise communication about its different grades. 

      • Richard Gawel

        Thanks Himani for the polite and informative reply.

        I’ve always supported truth in labelling, rather than telling people what they should or should not eat.

        If the label and supporting information is accurate and informs rather than conceals, then consumers can weigh up the costs and benefits of purchasing one product over another. It’s their money and therefore it’s their perogative when and where they spend it.

        Unfortunately for too long this industry has been dogged by labels that lead the average person to believe one thing when in fact the opposite is the case. In this industry, skepticism is as natural as extra virgin olive oil itself.

        • Himani, Leonardo Olive Oil

          Dear Richard

          Mis-labeling is truly a bane in the industry. There is so much scope to confuse the customer!

          One of the biggest instances of mis-labeling and consumer malpractice is the use of the term ‘Extra Light’. As you may be aware, the International Olive Council has no category called ‘Extra Light’. The new Australian standards too have forbidden the use of the term ‘Extra Light’. 

          ‘Extra Light’ is an immensely misleading term as it seems to imply that the oil is somehow ‘lighter’ in content, containing fewer calories or fat. As I’m sure you know, Extra Light is merely an unofficial type of olive oil that contains a lower than normal percentage of blended virgin. Despite the lower percentage of virgin, the price of Extra Light is not significantly lower than olive oil.

          It’s a mystery why more olive oil enthusiasts and purists do not speak out against this blatant malpractice.

          • Richard Gawel

            The new Australian standards for olive oil labelling specifically ‘ban’ (as far as a voluntary standard can go) the words light and pure from olive oil labels for the reasons you give. The International Olive Council immediately responded by calling the move a ‘restriction of trade’. Big oil likes the words as they convey positive connotations at best, and misrepresent the product at worse. They will fight tooth and nail to keep them.

  • Julian C.

    I would like to know: How much healthier is extra virgin olive oil than olive pomace oil? I understand there are some chemicals used to make pomace oil, and traces might remain. Aside from that, what does EVO have that olive pomace does not?

    • Richard Gawel

      In nutshell, pomace oil has the same fat structure of extra virgin olive oil in that it is high in healthy monounsaturated fats, but the refining process used to make pomace oil strips out all the natural antioxidant, anti-inflammatory and other protective stuff that EVOO has – polyphenols being the most important. More and more research is showing that these minor compounds are probably more important when it comes to health than are the monounsaturated fats themselves. But most importantly, EVOO adds great flavour to food which makes you want to use it more and more – so you get healthier and healthier. With the odd exception, all the other edible fats just taste neutral.

    • Himani, Leonardo Olive Oil

      Dear Julian

      Extra virgin olive oil has some antioxidants/ polyphenols that are extremely beneficial. If extra virgin is consumed raw, the complete benefit of these antioxidants plus the great flavor can be fully experienced. 

      However, if extra virgin is heated, much of these antioxidants are lost. So, if it is used for high heat cooking like Indian cooking, the extra benefit of the antioxidants is not obtained.

      We at Leonardo encourage the use of extra virgin as a salad dressing or to be drizzled on pasta or meats, used in dips or as an excellent (and much healthier!) butter-substitute on toast. That way, the benefit of the antioxidants and the flavor can be received in full. 

    • Pathosolives

      Dear Julian, pomace olive oil has no chemicals. Extra virgin olive oil derives directly by pressuring the olive – so is th eolive juice you can say. The pomace is made out of all the extracts when producing extra virgin, such as the skin of the olive and the seed of the olive. No doubt the extra virgin is healtier than pomace with 0.8 acidity, while pomace is well over that. hope that helps

      • Nidhi, Leonardo Olive Oil

        Dear Pathosolives

        Olive pomace oil has only 1% acidity as per IOC trade standards and no more. It also has the same beneficial fat composition of 80% MUFA and only 10% saturated fat as olive oil and extra virgin olive oil.

        Nidhi Singh
        Corporate Executive
        Dalmia Continental

  • Jstamos

    I do not want to engage in opened ended controversy. In my opinion properly refined olive pomace oil has value.
    Properly presented and labeled it has excellent properties.
    The confusion exists more because of how it is traded and mislabeled.

  • jack

    I can appreciate the Leonardo strategy. The pomace olive oil is an easier pill to swallow, both for price and flavor. It’s not the healthiest, but a good beginning for a population that must change its ways. The upsell to better grades will come.

  • Vitória

    What an incredibly small amount of olive oil consumption for that massive country. I’m very surprised by this figure: one quarter of a tablespoon per year for the average Indian. And the health status, unfortunately, is the result. I hope all of the good people of India accept more olive oil and can reduce somehow the stress in their lives. They deserve better.

  • Ram Bansal

    I bought Extra-virgin olive oil from Dalmia Leonardo display at Pragati Maidan during India International Trade Fair, for Rs 750 for a liter. Alongwith that I got a small pack of Gold grade of olive oils which I am using now. Unfortynately, its taste is foul and it seems that your Italian principal has bundled their rejected olive oil for Indian market as a free gift to boost your sale of extra-virgin olive oil. I hope you will be more cautious now on wards. 

    • Nidhi

      Dear Mr. Bansal,

      Thank you for bringing this matter to
      our notice.  We shall be grateful if you allow us to retrieve the said
      sample of Leonardo Gold for testing and further investigation.  We would
      be happy to replace your said “defective” sample free of cost.  Please do
      let us know how to contact you.  It would have been simpler if you had
      simply used the customer service contact particulars on the back of our olive
      oil bottles.

      In any case, please feel free to
      contact Mrs. Chandana Paul, Asstt. Manager-Marketing, on telephone No. 011-
      43744900 or email id: chandana@dalmiaglobal.com

      We are truly surprised by your
      comments.  Leonardo Gold is our 100% Italian premium Extra Virgin oil.

       

      Thank you very much for your feedback.

       

      With kind regards,

        

      Nidhi Singh

      Corporate Executive

      • Ram Bansal

        Unfortunately, the bottle was too weak to be handles. I kept the package in my bag for carrying to Derlhi, but it cracked spilling all the oil. Any way, thanks for your offer of replacement. Indeed, replacement was not my intention of writing here but letting you know that you make a bad image on your ciustomers by supplying such bad products particularly when you have just entered the market with the olive oil. 

    • Amit

      Dear Ram,

      Probably there is something behind your observation. As Italy exports more Olive Oil than it produces hence its very much possible that these “Made in Italy” olive oils in India also have a issue with quality.
      Even there has been a recent article on olive oil times also on the same lines –
      http://www.oliveoiltimes.com/olive-oil-business/europe/made-in-italy-olive-oil-investigations/23505?utm_source=Olive+Oil+Times&utm_campaign=4fa8d09ccf-OOR_212_16_2010&utm_medium=email

  • Ranjan

    I have been using Leonardo and Bertolli brands Extra virgin olive oil. I am surprised at the comments about the flavor of olive oil in India cooking. Well if they use it with all the masalas and deep fry then yes they will face some issues. But for normal, educated , modern middle class Indian cooking that is less in masalas and spices and where high heat cooking can be cut down, Olive oil works fantastic. I developed all this as even though I head an IT firm, I still cook. And I cook lots! Italian and Indian :-)

    When in US we cooked indian all the time using olive oil. For example chicken spices can be done in less oil and once the chicken in in then we add some more Olive oil and cover the lid. It cooks fantastic!

    Himani, I am very impressed by your response to Mr. Ram Bansal. Keep up the good work.

    • Nidhi, Leonardo Olive Oil

      Dear Ranjan,

      It is true that olive oil is fine for low to medium heat cooking and extra virgin olive oil too is fine for low heat cooking if you do not mind the slight flavor change it brings.

      Nidhi Singh
      Corporate Executive
      Dalmia Continental

  • Sandeep raj

    sapid globlisation is challenge……we salute the initiators