A “direct delivery” (also known as a container shipment) is when a truckload of olive oil is delivered to you direct from the manufacturing site in the Mediterranean. The cost of delivery is included, and the oil is often cheaper because you receive volume discounts.
If you’re looking at making a bulk olive oil purchase with Centra Foods, it’s important to know that our order minimums are one pallet. A pallet is a large portable platform that the olive oil is stacked, stored and moved on. It is typically 48”x48” or 48”x40”. Items are stacked about 4-5 feet high, depending on which packaging you get.
I received my B.A. in Communication, which has given me an unique perspective into understanding of how people talk to each other and how people make sense of what the other is saying.
I think of this often working with Centra Foods, because I speak with such a variety of buyers who each have different ways of talking about what they’re looking for. For example, I talk to some buyers looking for what they describe as “huge volumes” of olive oil-- in reality, they’re looking for a couple gallons to use in their home kitchen for the the year.
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There are a few grades of olive oil that are commonly used in manufacturing, that you may not recognize from a retail shelf. If you’re new to purchasing and researching bulk olive oil for food/body care production, here is a review:
Refined Olive Oil is Virgin Olive Oil that has been processed and refined create a mild, light tasting, and more stable oil. The refining process also removes many of the health benefits that Extra Virgin Olive Oil offers (though this is debated). On a retail shelf, this olive oil is labeled “Light” Olive Oil.
If you’re buying bulk olive oil for your small business, you may be buying it “wholesale” from a superstore like Costco or Sam’s Club. You probably want to save money on these raw ingredients and (if you haven't already) you will at some point look into buying bulk quantities rather than wholesale.
Surprisingly for many small businesses, sometimes buying in bulk does not save money. We're going to review why, and how much oil you need to be using to think about buying in bulk.
The term “first, cold press” refers to the inherent qualities of Extra Virgin Olive Oil. By definition, Extra Virgin Olive Oil should come from the initial “pressing” of the olive pulp, which creates the highest quality oil.
As a supplier of olive oil in 55 gallon drums, we work with a lot of new customers looking at this packaging size for the first time.
One of the most common questions we get is, “How do I get the oil out of the drum?”. This is a great question, because it’s something that a smart business owner needs to prepare for before their drum of olive oil delivers.
Centra Foods supplies Wholesale and Food Service Distributors with olive oil in bulk, and as a result, we get a lot of great business questions from companies in this industry.
One of the most common is from wholesale distributors, working with new accounts for olive oil. They are concerned that after they work hard to set up a new supply chain for their customer, they will eventually be cut out of the supply arrangement.
The olive oil market has changed significantly in the last year. In September 2012, Spain announced that their 2013 production was predicted to be down by 40% from the year before, due to the harsh storms in the spring that destroyed many of the olive blossoms. Olive oil prices started rising around the globe within days.
National suppliers work with manufacturing customers across the country. They are setup for large scale, high volume distribution. They can offer long term contracts on your oils, and can help you strategize to find the best long term program. They partner with freight companies to deliver your oil, and will often work with surrounding businesses in the area.
Soap makers that run a small business or work at home want to save money on olive oil-- just like every business owner does. Olive oil is an expensive ingredient, and can significantly affect the cost of your finished product.
We work with purchasers buying bulk olive oil on a daily basis. One of my favorite questions to receive is about bulk packaging. Switching to more efficient packaging size is one of the easiest ways to save money, but it is under-utilized by the vast majority of US manufacturing companies.
The majority of manufacturing companies use 55 gallon drums. My first suggestion is always to consider a larger tote size. These totes are available in both the standard plastic with an aluminum frame, and in a Box-in-Box version (my personal favorite).
A price for bulk olive oil can be quoted ‘F.O.B.’ or ‘Delivered’. Have you ever wondered what those terms mean? A clear understanding is very important to allow you to to do accurate cost comparisons.
F.O.B. stands for “Freight on Board” or “Free on Board” depending on who you ask. This term indicates who pays the transportation costs.
In the bulk edible oil industry, the biggest mistake we see manufacturers’ making is purchasing 1-2 drums of olive oil at a time, instead of ordering full pallets of 4 drums.
For some buyers, it is a no-brainer always buy full pallets, but others choose to simply buy what they need at the moment.
