Supermarkets Under Fire for Inflated Olive Oil Prices
British supermarkets are facing serious accusations of "taking the mickey" with olive oil prices, despite significant reductions in wholesale costs. While most grocery items have seen price increases in recent years, olive oil has experienced particularly dramatic spikes that continue to burden consumers.
Record Price Increases Despite Improved Harvests
Wholesale olive oil prices skyrocketed in 2024, leading to a staggering 42% increase in supermarket prices. This surge brought the average litre bottle of own-label extra virgin olive oil to a record £7.38. Producers initially blamed poor crop yields resulting from drought conditions, but even with harvest improvements since then, consumers have seen little relief at checkout counters.
Filippo Berio director Walter Zanre has been particularly vocal about the situation, accusing retailers of exploiting previous supply issues to "expand their margins" rather than passing savings to customers when possible. "We brought prices down twice last year and it's not all been passed on to the consumer, which is a huge frustration," Zanre told Sky News.
The Consumer Resilience Factor
Zanre suggested supermarkets have been surprised by how resilient shoppers have been in the face of high prices. "It's almost like taking the mickey," he continued. "And I think what's causing it is that even the supermarket was surprised at how resilient the shopper was at high prices, so the view is they don't need to give it all away for nothing."
The price trajectory tells a concerning story. A 500ml bottle of Filippo Berio's extra virgin olive oil now costs around £7.50, down from £10.50 at the start of 2025 but still dramatically up from £3.75 in 2022. Despite these increases, consumption only dropped by 20%, far less than the company's prediction that it would "literally fall off the edge of a cliff."
Industry Pushback and Conflicting Data
The British Retail Consortium has strongly refuted these accusations. BRC director of food and sustainability Andrew Opie stated: "Retailers work hard to pass on cost savings to customers wherever possible and, as confirmed by the CMA, operate on very tight margins, reflecting a market driven by savvy customers."
Opie emphasized that "olive oil, like many everyday products, is something shoppers can compare across brands and retailers to take advantage of promotions or switch to alternatives that suit their budget."
Office for National Statistics figures provide some support for the retail industry's position, showing average olive oil prices are now about 11% lower than this time last year. However, this reduction appears modest compared to wholesale market trends.
The Wholesale-Retail Disconnect
According to the International Council of Olive Growers, wholesale Italian olive oil prices were down 30% in March compared to the previous year. This significant wholesale reduction suggests a substantial disconnect between production costs and retail pricing that continues to disadvantage British consumers.
The situation highlights ongoing tensions between food producers, retailers, and consumers in an era of persistent inflation. While supermarkets maintain they operate on tight margins and respond to market competition, producers argue that significant wholesale savings aren't being adequately passed through to shoppers who continue to face elevated prices for this kitchen staple.
