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Welcome to SKU Hero,

We’re thrilled to launch SKU Hero, a new series where we spotlight a product and uncover its fascinating story — its origins, journey, and present-day significance. For our inaugural issue, we explore a product that’s been a staple for thousands of years: olive oil.

Liquid Gold 🫒

It is as old as agriculture. Greek poet Homer called it “liquid gold,” and the Romans believed it to be an elixir of life.

We’re talking about olive oil—the valuable golden liquid passed down through several generations.

Today, olive oil is more than just a flavor enhancer — especially the extra virgin olive oil. It’s fast becoming a staple in kitchens worldwide, not just for its taste but for its incredible health benefits. 

But this global love affair with olive oil didn’t happen overnight. The story stretches back thousands of years, weaving together myth, culture, and tradition. 

The tale of the olive tree and its oil begins in ancient times. In the Bible, an olive branch carried by a dove to Noah signaled the end of the Great Flood, symbolizing hope and renewal. In Greek mythology, the goddess Athena presented the olive tree as her gift to humanity.

But it was the people of the Mediterranean who first discovered how to extract liquid gold from the precious olive fruit. They pressed olives to create oil that quickly became more than a cooking item — it was their fuel, their medicine, their cosmetic, and a key part of their rituals and traditions.

Fast forward to today, and the Mediterranean remains the epicenter of global olive oil production, responsible for an astounding 97% of the world’s supply. Leading the charge are Spain, Italy, and Greece — olive oil powerhouses whose centuries-old expertise continues to set the global standard. 

Presently, olive oil is one of the most widely used cooking oils in the world. In 2023, the worldwide consumption reached approximately 2.6 million metric tons. But how did an oil deeply rooted in Mediterranean life become a magic elixir of sorts in global cuisine, reaching millions of kitchens around the world?

Gold rush

The health benefits of olive oil have been known for centuries in the Mediterranean. However, olive oil gained its global reputation as a healthy food only in the mid-20th century. Thanks to American physiologist Ancel Keys and his groundbreaking Seven Countries Study in the 1960s.

The findings from this study were groundbreaking and are largely credited with sparking global interest in the health benefits of olive oil. And thus began the liquid gold rush in the Mediterranean! 

Made in the Mediterranean

Over the years, olive oil consumption and its market have grown drastically. In 2023, the olive oil market was valued at $14.64 billion, and it’s projected to reach $19.77 billion by 2032, growing at a steady 3.42% annually. Behind these numbers is a thriving industry deeply rooted in the Mediterranean. 

Warm, dry summers paired with mild, wet winters in Medditerian became the ideal conditions for cultivating olives. Now, add to this the expertise of the people of the Mediterranean; the region soon turned into the epicenter of olive oil production. 

The process of cultivating olive oil is both an art and a science. The journey from grove to bottle begins with harvesting, often done by hand or with minimal machinery to protect the quality of the fruit. Interestingly, some of the olives are harvested from trees that are several hundred years old. The olives are then cleaned and crushed into a paste. 

Image credit: Olive Oil Australia

The paste is gently churned to encourage the separation of oil, water, and solids before centrifugation extracts the pure oil. The result is extra virgin olive oil. The extra virgin olive oil is highly prized for its low acidity (below 0.8%) and untouched, chemical-free production process. It is rich in antioxidants and is famous for its flavor.

On the other hand, regular olive oil is a blend of refined and virgin oils, making it more neutral in flavor. It has an acidity level of around 1.5% to 3.3%, depending on the blend and production process. 

Once the oil is extracted, it enters a supply chain that combines age-old traditions with modern logistics. Small farmers often sell their oil to cooperatives or bulk buyers, who oversee its journey to markets worldwide. 

Middlemen and brands play a crucial role in maintaining the quality of the oil, packaging it, and ensuring it meets stringent international standards. 

Oils extracted from groves in Mediterranean countries like Spain, Italy, and Greece are transported by road, rail, and sea freight to distribution hubs in countries like Germany, France, and the UK. These hubs act as gateways, moving the oil to supermarkets, specialty stores, and restaurants across the globe.

Between 2016 and 2021, global olive oil production averaged approximately 3.1 million metric tons annually. The Mediterranean region, encompassing countries like Spain, Italy, Greece, Tunisia, Turkey, and Morocco, was responsible for over 90% of this output. Spain alone contributed about 44% of the world's olive oil during this period. In fact, Spain accounts for nearly half of the world’s output, with Andalusia as its epicenter. 

Data credit: Statista

But where does all this olive oil go? Enter the United States — the world’s largest olive oil importer. 

According to the International Olive Council, the U.S. accounts for a staggering 35% of global olive oil imports. In the 2022-2023 period alone, America brought in approximately 380,000 metric tons of olive oil, highlighting the country’s growing appetite for this Mediterranean staple.

However, there’s a surprising twist. A UC Davis study on olive oil revealed that 73% of the five top-selling imported brands failed international sensory standards for extra virgin olive oil. This means a big chunk of olive oils you find in your supermarkets are fake and are not actually “extra virgin.”

Before we delve into what’s causing this, let’s tell you how Americans came to love extra virgin olive oil so much.

Olive in America

Olive oil's journey to America is a fascinating story. According to the book Olives: A Global History, it was during Spanish missions in the 18th century that olive cultivation in the U.S. began in California. Olive oil became more famous during the Italian immigration in the late 19th and early 20th centuries when waves of Italian immigrants reached the American shores with dreams in their hearts. They had left their homeland but not their love for the olive oil.

However, the popularity of olive oil and the Mediterranean diet skyrocketed after Ancel Key’s study. Olive oil soon became a regular item on American shopping lists. This coincided with a rise in the popularity of Italian cuisine as Americans embraced dishes like pasta, bruschetta, and Caprese salad. By the 1980s, olive oil had evolved from a niche product to a culinary staple in American households.

But with this popularity came exploitation. The Italian Mafia, long involved in the olive oil trade, capitalized on America’s appetite for extra virgin olive oil from Italy. 

Soon, counterfeit products — often blends of lower-quality oils — flooded American supermarket shelves, misleading consumers and tarnishing the reputation of authentic producers. 

You might ask us: How did the mafia succeed in doing this? Let’s break that down.

Fake gold

The Italian Mafia’s involvement in the olive oil industry is a tale of calculated attack. And it starts at the very source — olive groves and ports in Italy. Organized crime groups like the ‘Ndrangheta have been known to exert control over olive-growing regions and key distribution hubs, such as the port of Gioia Tauro in Calabria, a critical gateway for moving adulterated olive oil.

Once harvested, the oil is often diluted with cheaper alternatives like sunflower, soybean, or rapeseed oil. To maintain the illusion of authenticity, counterfeiters enhance these blends with chlorophyll and beta-carotene, mimicking the color and flavor of genuine extra virgin olive oil. These adulterated products, indistinguishable to the untrained eye, are then packaged as extra virgin olive oil and shipped to Boston, New York, and other major cities in the US.

In this game of faking and deception, sometimes simple things like labels play a significant role. Fraudulent certifications like PDO (Protected Designation of Origin) or PGI (Protected Geographical Indication) are slapped on bottles alongside Italian flags and rustic designs, creating the illusion of high-quality, authentic Italian olive oil. 

Importers in the US buy these fake products, thinking they are original, and consumers shell out hard-earned dollars, thinking it’s the precious extra virgin olive oil. 

For consumers, the impact is twofold. First, they are overpaying for a substandard product. Extra virgin olive oil is an expensive product and costs anywhere between $25 to $50. Also, they are potentially putting their health at risk, as these oils may fail to meet safety standards and can cause health issues in the long run. 

So how are governments fighting back this attack on the precious extra virgin olive oil?

Mamma Mia

In Europe, the fight against olive oil fraud is backed by strict regulations and enforcement measures. The European Union has implemented certifications like Protected Designation of Origin (PDO) and Protected Geographical Indication (PGI), which ensure that olive oils labeled with these designations are authentic and traceable to their origins. 

The EU mandates the producers to meet stringent criteria to use these labels, helping to safeguard the integrity of the market. In countries like Italy and Spain, authorities have ramped up inspections, leading to high-profile busts of counterfeit olive oil operations. 

For example, in 2023, a joint operation between Spain and Italy led to the seizure of over 260,000 liters of adulterated olive oil and the arrest of 11 individuals involved in international fraud schemes.

One of the most notable efforts to combat fraud came with Operation Mamma Mia, an undercover investigation launched by Italian authorities in 2016. This operation exposed a multi-million-dollar fraud where producers in regions like Umbria, Calabria, and Puglia falsely labeled cheaper Spanish and Greek olive oil as premium Italian extra virgin. In that operation, over 2,000 tons of mislabeled oil were seized.

EU Olive Oil Labeling Guidelines

While Europe is making strides in combating fraud, the U.S. tells a different story. Unlike the EU, the United States lacks mandatory quality standards for olive oil. The USDA’s grading system is voluntary, leaving it up to producers and importers to decide whether they comply.

Sadly, even the Food & Drug Administration (FDA) does not regularly test imported olive oil for signs of adulteration in the United States. These inefficiencies create a significant gap in enforcement, allowing counterfeit olive oil to flood American markets. 

What does this mean? Any company can label their cheap olive oil as extra virgin and sell it for a high price. It is as easy as that. 

As a result of all this, today, America has become the dumping ground for low-quality olive oils, and there are no organizations or governmental bodies to counter this. That is why, despite repeated scandals, adulterated olive oils still manage to fill the supermarket shelves.

So, how’s the olive oil industry faring now? 

Current State 

Currently, the global olive oil industry is facing a critical crisis in the form of a never-seen-before drought, climate change, crime, and economic pressures.

The worst drought in 500 years has devastated European production, with Spain, the largest producer, harvesting only 666,000 metric tons in the 2022- 2023 season – almost just half of what it usually produces. This shot up the prices of Olive oil globally. 

While a slight recovery is expected this year, erratic rainfall and rising temperatures threaten long-term yields. Experts warn that without intervention, olive cultivation may decline significantly in the future.

Another important predicament that’s troubling the olive oil industry is climate change. Olive trees, the foundation of the industry, are highly vulnerable to extreme weather. In a first-of-its-kind report, the European Environment Agency warned in March 2024 that European countries need to prepare for “catastrophic” consequences as the climate crisis deepens.

This means olive oil production, a key part of Mediterranean agriculture, is at risk, too. Rising temperatures, droughts, and unpredictable weather could seriously impact harvests and reduce the amount of olive oil the region produces.

On the other hand, economic pressures are also rampaging the industry. High inflation and rising interest rates have driven up production costs, making it harder for small producers to stay afloat, and have made olive oil a luxury for many consumers. 

However, not everything is gloomy for the olive oil industry. Emerging markets like Asia and Latin America are witnessing a surge in demand, bringing a wave of opportunities for the industry. 

In the Asia-Pacific region, for instance, the olive oil market is to reach $2.68 billion by 2030, growing at a strong 6.6% annually. Meanwhile, in Brazil, imports of virgin and extra virgin olive oil have more than doubled since 2015.

Moreover, Spain’s Deoleo, the world’s largest olive oil producer, believes the tough times might be easing up. The company says that “liquid gold” prices, which hit an all-time high recently, are expected to nearly halve in the coming months as industry estimates point to a much better 2024-2025 season.

Conclusion

Olive oil is more than just a kitchen staple—it’s a centuries-old commodity that has stood the test of time, rooted in tradition and cultural significance. However, the rise of counterfeit products threatens not only its reputation but also the livelihoods of genuine producers and the trust of consumers. Adulteration must be tackled head-on to preserve the authenticity of this precious “liquid gold.”

Also, securing the olive oil supply chain is essential. Governments must take stricter action, implementing robust regulatory frameworks and proactively identifying fraudulent products disguised as extra virgin olive oil. 

There must be stronger collaborations between organizations like the International Olive Council and the North American Olive Oil Association, along with the adoption of technologies like blockchain, which can help ensure transparency and maintain the integrity of this ancient industry.

By protecting the supply chain and holding fraudsters accountable, we can honor the legacy of olive oil while ensuring future generations continue to enjoy its unmatched quality and benefits. It’s not just about preserving a product—it’s about safeguarding a tradition that connects us to our history.

Thank you for reading. We’ll see you at the next edition!