Costco Drops Italian Source for Greek Producers
May 1st, 2015 | by Kevin James Krotz
Costco, the popular warehouse wholesale company, has decided to switch its source for extra virgin olive oil to providers who are actually from Greece.
Production in Italy is expected to drop 34 percent this year, according to the International Olive Oil Council. As a result, prices have gone up, with Italian extra-virgin olive oil selling for about $2.97 a pound in March. This undoubtedly will have an impact on providers in Greece who are feeling the effects of the financial crises that the country is currently experiencing. Costco’s reasoning for the change appears to be purely financial.
“We wanted to get a single source of good quality; for this year we went to Greece,” said Costco Chief Financial Officer Richard Galanti, adding that the availability of the extra-virgin olive oil Costco usually purchases from Italy is down to one-tenth of the normal level. The change will be for the extra-virgin olive oil that goes into Costco’s Kirkland Signature 2-liter bottles.
Production in Italy is decreasing because of weather events that have been hitting the region lately, the same events that have hit the world foremost olive-oil producer, Spain. Greece, however, has been spared from the disastrous weather.
These weather events will no doubt give more business to Greek olive oil production, which is expected to more than double this year.
Source: The Pappas Post