“What makes Deoleo stand out from its competitors is our consumer-oriented approach. We ask them what they want and expect from us. This is one of the reasons why our turnover has almost doubled over the last four years”, explained Ignacio Silva, Deoleo chairman and CEO, at the latest ‘Esade Desayunos’ session held by Esade Alumni in Madrid.

Silva gave not merely a talk but a master class on how to bring a company back to life. “In 2019, Deoleo was doomed. The firm had just 18 months of life left and was already in receivership.” He also gave an insight into the traits of the oil industry and its circumstances in Spain.

Position in the industry

As regards Deoleo’s positioning, Silva added, “Deoleo is not a landowner. This could have been a drawback but in fact it allows us to concentrate on the consumer. This is the big difference between us and the other companies in this industry that focus on trading (buying well and selling better). The Deoleo magic touch consists of taking care of consumers by pinpointing their preferences. In other words, our competitive edge is our ability to deliver the blending that caters best for consumers’ requirements”.

In keeping with the philosophy of customer centricity, sustainability is now very close to the company’s heart – starting with the drive towards sustainable practices from the field to the table.

The Deoleo renaissance

When Silva joined the company in 2019, it had debts of €557m and was in the hands of its creditors. Four years on, its debt has fallen to €100m and its turnover has doubled. According to Silva, various factors account for this miracle: “leadership; a credible plan able to convince in-house and external stakeholders (both creditors and shareholders); always putting the company first; doing everything as quickly as possible with no preconceived ideas; and surrounding ourselves with the best in every field.”

Spain’s edible oil industry: room for improvement

The edible oil industry is extremely volatile being completely dependent on harvests and, therefore, the weather. The consumer price of edible oil has risen in recent years not because of speculation but due to the rising price of raw materials, which account for 80% of the costs in this industry. “We could pray for rain and carry on using traditional production methods like those used in Spain with costs of more than €4/kilo,” said Silva, “but we could also adopt new, intensive production models featuring irrigated hedges of olive trees that start providing crops 5 years after planting, with costs of less than €1/kilo.” Just 30% of Spain’s production uses this type of intensive or super-intensive production model.

The Deoleo CEO was accompanied at this session of ‘Esade Desayunos’ by Mario Lara, director of Esade Madrid.