Crackdown on ‘Fraudulent’ Olive Oil at Canadian Retailers Says Expert

Date:

Share post:

Olive production in Italy was hard hit last year due to an early frost. The country’s olive production dropped by 57%. Both Greece and Portugal suffered a similar fate, along with pest issues, and saw their production drop by 35% and 15%, respectively. Pressures generated by shorter supplies with any food product have historically generated more cases of economically-motivated adulteration. This is often the case for spices, tea, vinegar, wine, and of course, olive oil. For fear of losing market share from forced higher retail prices, companies will sometimes commit food fraud in order to cut costs. However, in the case of olive oil, the Canadian Food Inspection Agency appears to have things under control.

PHOTO: DIET OF LIFE

Since June, 2018, many Canadians have noticed that retail prices for olive oil have gone up by over 40% in some cases. When olive oil gets more expensive to produce, processing companies may be tempted to adulterate their products by using palm oil, soya oil or even sunflower oil. The first cases of adulterated olive oil go back to the Roman Empire, so this isn’t a new issue. Even some well-known brands have been involved in cases of adulteration. It is quite easy to switch ingredients, as most consumers would probably not notice the difference in taste. Food fraud affects many food categories, but stakes are a little higher with olive oil, due to potential allergens in substitute ingredients.

In recent years, the CFIA has actually tested some products if it suspects them to be fraudulent. In 2013, 39% of random tests found adulterated olive oil. A total of 28 samples were collected across the country. That ratio went down to 10% in 2018, with the random testing of 20 samples. Obviously, these results do not mean cases of food fraud are actually down in Canada – far from it – but reports are encouraging, nonetheless. This may suggest that the industry is now fully aware that our federal regulator is checking and will find fraudulent products. Anything more than 0% is too high, but the situation appears to be improving. A study out of California a few years ago estimated that almost 69% of all olive oil imported to North America was fraudulent. Most fraudulent products in the study had been produced using chemicals, making them ineligible to be considered extra virgin. The recent numbers determined by the CFIA are nowhere near that high.

Food fraud remains one of the most significant challenges in the food industry. According to some estimates, the intentional adulteration, substitution or misrepresentation of food for financial gain costs the global food industry well over $70 billion. The practice lowers standards for all in the industry and makes conditions for compliant food companies more difficult. Worse, given that mislabelling is the ultimate outcome of food fraud, many consumers with health conditions are exposed to unwarranted risks from hidden ingredients.

PHOTO: WONDER HOW TO

With new technologies, a change in consumer expectations about food fraud, and regulators playing a more active role, fraudulent behavior is slowly becoming marginalized. Such an accomplishment should be celebrated, but much more needs to be done. Public awareness and education, as well as allowing consumers to report suspicious products should be encouraged. The most common cases of food fraud in Canada remain misrepresentation with organic and local products. A simple laboratory test only to identify foreign ingredients is not nearly enough. 

It has been argued recently that blockchain technologies can help the food industry address food fraud. The concept has merit, but its case for market currency remains to be proven. Many grocers have embraced the approach while facing some resistance higher up the food supply chain. For blockchain technologies to work, all involved within the supply chain must comply.

In the mean time, for olive oil enthusiasts, vigilance is a virtue. Typically, 500 millilitres of good quality olive oil should cost 15 to 16 dollars to produce. Price points at retail for good olive oil should be higher than this. So, if you are looking at a bottle retailed at 10 dollars or less, just walk away. 

LEAVE A REPLY

Please enter your comment!
Please enter your name here

More From Retail Insider

Holt Renfrew Bloor Street Flagship in Toronto Marks 45 Years [Feature]

When it opened in March of 1979, it was by far the largest Holt Renfrew store in the chain.

Galleria Supermarket Embarks on Strategic Store Expansion Across Ontario, Targeting Key Urban Areas [Interview]

The grocery retailer is seeking locations in a wide range of sizes, as part of its initiative to operate retail stores while also building awareness for its expansive wholesale division.

Expanding a Brand: Vancouver-Based Entrepreneur Kick-Starts Women’s ‘Wicked Rose’ Martial Arts Activewear Line [Video Interview]

Christina Morrow discusses her plans to rapidly expand her women's martial arts activewear brand, which features performance materials and designs inspired by tattoo art.

The Ballroom Bowl Unveils Bloor-Yorkville Location in Toronto with Additional Expansion Planned in Canada [Interview/Photos]

The upscale bowling and foodservice concept will open another location later this year as it eyes expanding into other parts of Canada, says its founder.

Early Easter Impacting Retail Sales in Canada; New Trends in Chocolates and Merchandising Innovation Showcased [Feature Interviews]

An early Easter, following Valentines, is impacting sales and merchandising in stores. At the same time, some retailers are innovating and looking to make things more experiential.

Canadian Businesses Grapple with Soaring Insolvencies as CEBA Loan Repayments Take Toll: Equifax Reports

It's a perfect storm for disaster with high interest rates, increasing costs and other financial obligations impacting retailers, with insolvencies surging 30% over 2019.

Japan-Based Marugame Udon Enters Canada with 1st Location, Authentic Sanuki-Style Concept to Expand Nationally [Interview]

The world-renowned Japanese noodle hotspot, with over 1,000 locations worldwide, prepares dishes in a theatre-style kitchen. Plans are in place for locations across Canada.

How Canada’s Retail Sector Can Better Serve Families with Children [Interview]

Retailers are missing an opportunity to target parents with children says an expert, while the need to understand Generation Alpha will critical as they become consumers in the years to come.

North America’s First Formula 1 Exhibition Set to Open in Toronto, Showcasing Unique Immersive Experiences for Visitors [Interview]

The highly experiential multi-media exhibit has been designed to engage with visitors while showcasing the sport.

La Maison Simons CEO Discusses New Halifax Store and Retailer’s Ongoing Expansion [Video Interview]

Bernard Leblanc discusses the company's newest store, as well as updates on the company's retail mix, e-commerce strategy, and a future with likely more stores in Vancouver and Toronto.

Australian Haircare Giant ‘Just Cuts’ Announces Canadian Expansion, Eyes Alberta and Ontario for Initial Salons [Interview]

The company has 235 hair cutting salons globally, and is now targeting Canada by seeking shopping centre locations. Its value proposition in this economy could see it expand rapidly.

Rodd & Gunn Opens 1st Standalone Canadian Storefront on Hazelton Ave in Toronto, More Locations Planned [Photos]

Bloor-Yorkville was chosen for the New Zealand-based menswear brand’s first Canadian store, after entering the country through a network of concessions at Hudson’s Bay.

JLL Grocery Report Highlights Contrasting Strategies Among Canadian Grocers to Tackle Inflation and Shifting Shopper Preferences [Interview]

Despite challenges in deal making and urban development, the grocery industry sees potential in discount stores but also emphasizes the importance of grocers as essential amenities within mixed-use projects, says one expert.

Canadian Retail Sales Promising for Some and Ominous for Others in January [J.C. Williams Group Analysis]

The consultancy analyses StatCan numbers for January, noting spending increases in some areas and decreases in other, setting the tone for 2024.

La Maison Simons Opens Store in Halifax, Marking Milestone in Coast-to-Coast Canadian Store Expansion [Photos]

The Quebec City-based retailer opened its first store outside of Quebec 12 years ago, and now has a network of 17 locations from BC to the Maritimes. 

Anatomy of a Leader: Stewart Schaefer, President and CEO of Sleep Country Canada

Schaefer discusses his career over the years, from the financial world to three decades in the sleep industry.

Fitness and Wellness Concept Sweat and Tonic to Open 18,000 Sq Ft. Location on Yorkville Avenue in Toronto

It will be the third location for the company, and joins other boutique fitness concepts opening near the Yonge and Bloor intersection. 

First-Ever Health-Focused ‘KaleMart24’ Opens in Montreal with Plans for Major North American Store Expansion [Interview/Photos]

Described as the "Whole Foods Market" of convenience stores, the new KaleMart 24 is being rolled out in Montreal this year with plans to aggressively move into new markets including Toronto.

Swimco Opens New Stores in Canada, Bounces Back from COVID Hardships [Interview]

The Calgary-based swim retailer, which went bankrupt during the pandemic, has returned and is opening stores as it connects with consumers in new markets.

Changes in Toronto’s Yorkville with Pusateri’s and Flo’s Diner Closing [Podcast]

Craig and Lee discuss the significant closures of Pusateri's grocery and Flo's Diner in Yorkville, Toronto, reflecting on the neighborhood's evolution and future luxury developments.

RECENT RETAIL INSIDER VIDEOS

Advertisment

Subscribe to the Newsletter

Subscribe

* indicates required

RECENT articles

Holt Renfrew Bloor Street Flagship in Toronto Marks 45 Years [Feature]

When it opened in March of 1979, it was by far the largest Holt Renfrew store in the chain.

Galleria Supermarket Embarks on Strategic Store Expansion Across Ontario, Targeting Key Urban Areas [Interview]

The grocery retailer is seeking locations in a wide range of sizes, as part of its initiative to operate retail stores while also building awareness for its expansive wholesale division.

Expanding a Brand: Vancouver-Based Entrepreneur Kick-Starts Women’s ‘Wicked Rose’ Martial Arts Activewear Line [Video Interview]

Christina Morrow discusses her plans to rapidly expand her women's martial arts activewear brand, which features performance materials and designs inspired by tattoo art.

The Ballroom Bowl Unveils Bloor-Yorkville Location in Toronto with Additional Expansion Planned in Canada [Interview/Photos]

The upscale bowling and foodservice concept will open another location later this year as it eyes expanding into other parts of Canada, says its founder.

Early Easter Impacting Retail Sales in Canada; New Trends in Chocolates and Merchandising Innovation Showcased [Feature Interviews]

An early Easter, following Valentines, is impacting sales and merchandising in stores. At the same time, some retailers are innovating and looking to make things more experiential.

Canadian Businesses Grapple with Soaring Insolvencies as CEBA Loan Repayments Take Toll: Equifax Reports

It's a perfect storm for disaster with high interest rates, increasing costs and other financial obligations impacting retailers, with insolvencies surging 30% over 2019.

Japan-Based Marugame Udon Enters Canada with 1st Location, Authentic Sanuki-Style Concept to Expand Nationally [Interview]

The world-renowned Japanese noodle hotspot, with over 1,000 locations worldwide, prepares dishes in a theatre-style kitchen. Plans are in place for locations across Canada.

How Canada’s Retail Sector Can Better Serve Families with Children [Interview]

Retailers are missing an opportunity to target parents with children says an expert, while the need to understand Generation Alpha will critical as they become consumers in the years to come.

North America’s First Formula 1 Exhibition Set to Open in Toronto, Showcasing Unique Immersive Experiences for Visitors [Interview]

The highly experiential multi-media exhibit has been designed to engage with visitors while showcasing the sport.

La Maison Simons CEO Discusses New Halifax Store and Retailer’s Ongoing Expansion [Video Interview]

Bernard Leblanc discusses the company's newest store, as well as updates on the company's retail mix, e-commerce strategy, and a future with likely more stores in Vancouver and Toronto.

Australian Haircare Giant ‘Just Cuts’ Announces Canadian Expansion, Eyes Alberta and Ontario for Initial Salons [Interview]

The company has 235 hair cutting salons globally, and is now targeting Canada by seeking shopping centre locations. Its value proposition in this economy could see it expand rapidly.

Rodd & Gunn Opens 1st Standalone Canadian Storefront on Hazelton Ave in Toronto, More Locations Planned [Photos]

Bloor-Yorkville was chosen for the New Zealand-based menswear brand’s first Canadian store, after entering the country through a network of concessions at Hudson’s Bay.

JLL Grocery Report Highlights Contrasting Strategies Among Canadian Grocers to Tackle Inflation and Shifting Shopper Preferences [Interview]

Despite challenges in deal making and urban development, the grocery industry sees potential in discount stores but also emphasizes the importance of grocers as essential amenities within mixed-use projects, says one expert.

Canadian Retail Sales Promising for Some and Ominous for Others in January [J.C. Williams Group Analysis]

The consultancy analyses StatCan numbers for January, noting spending increases in some areas and decreases in other, setting the tone for 2024.

La Maison Simons Opens Store in Halifax, Marking Milestone in Coast-to-Coast Canadian Store Expansion [Photos]

The Quebec City-based retailer opened its first store outside of Quebec 12 years ago, and now has a network of 17 locations from BC to the Maritimes. 

Anatomy of a Leader: Stewart Schaefer, President and CEO of Sleep Country Canada

Schaefer discusses his career over the years, from the financial world to three decades in the sleep industry.

Fitness and Wellness Concept Sweat and Tonic to Open 18,000 Sq Ft. Location on Yorkville Avenue in Toronto

It will be the third location for the company, and joins other boutique fitness concepts opening near the Yonge and Bloor intersection. 

First-Ever Health-Focused ‘KaleMart24’ Opens in Montreal with Plans for Major North American Store Expansion [Interview/Photos]

Described as the "Whole Foods Market" of convenience stores, the new KaleMart 24 is being rolled out in Montreal this year with plans to aggressively move into new markets including Toronto.

Swimco Opens New Stores in Canada, Bounces Back from COVID Hardships [Interview]

The Calgary-based swim retailer, which went bankrupt during the pandemic, has returned and is opening stores as it connects with consumers in new markets.

Changes in Toronto’s Yorkville with Pusateri’s and Flo’s Diner Closing [Podcast]

Craig and Lee discuss the significant closures of Pusateri's grocery and Flo's Diner in Yorkville, Toronto, reflecting on the neighborhood's evolution and future luxury developments.