Aldi in £1.2M deal with rapeseed producer

By Rod Addy

- Last updated on GMT

The rapeseed oil will be sold as part of Aldi's Specially Selected range
The rapeseed oil will be sold as part of Aldi's Specially Selected range

Related tags Retailing

Aldi has seized 8% of the UK rapeseed market through a single £1.2M deal with Phoenix Speciality Oils.

Phoenix estimated that the agreement, through which it would supply Aldi with a new addition to its Specially Selected range, represented 8.4% of the UK’s £14M rapeseed oil market – or £1.2M.

The discount retailer’s first permanent listing of cold pressed rapeseed oil has been selling at rates of 80,000 units per month since being launched into 494 UK Aldi stores.

It expects almost one million bottles to be sold within the first year, as it claimed the latest industry figures showed the rapeseed oil market was growing by 40% a year.

Production costs

“I’m really happy with how the contract’s going so far,”​ Phoenix md Ben Guy said. “The fact that we have presses and filtration systems together on site helps Aldi keep production costs low. That gives consumers great value for money, making cold pressed rapeseed oil an affordable luxury with a price point similar to that of olive oil.

“The oil’s selling three times faster than rival brands as a result. We’re even moving from packs of six to 12 to save staff in stores having to replace stock as often. We’re looking forward to seeing how the product develops as Aldi continues to attract new customers in 2015.”

Aldi’s Specially Selected cold pressed rapeseed oil retails for £1.99 in stores nationwide.

Largest cold press facilities

Phoenix has the UK’s largest cold press facilities at its site in Redhill, Nottingham, allowing it to deliver 0.5Ml of oil to Aldi each year, it claimed.

All of its rapeseed came from its extensive grower network of quality-controlled British farms, it said.

Formed in 2007, the company now supplies three million litres of filtered, oils a year to top grocery retailers for food and non-food uses. It also covers a wide range of industrial and export markets. In addition, it offers speciality contract filling, labelling and packaging services.

Related topics Ambient foods Fats & oils

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