Discounter Aldi now holds over 8% of the UK rapeseed oil market through a £1.2 (€1.6) million deal with Phoenix Specialty Oils. The agreement with Phoenix, in which it will supply oil to Aldi's Specially Selected range, is estimated to be worth 8.4% of the £14 (€19) million market.
Since being launched in 494 UK Aldi stores, the discounter's first permanent listing of rapeseed oil has been selling at 80,000 units per month. It is expected that one million units will have been sold within the first year, as industry figures show the rapeseed oil market as growing by 40% per year.
Managing Director of Phoenix, Ben Guy, explained that the company keeps Aldi's production costs down by having its own on site presses and filtration systems, which in turn allows the oil to be offered at a low price.
"The oil's selling three time 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 so often.
Guy added, "We're looking forward to see how the product develops as Aldi continues to attract new customers in 2015."
© 2015 - Checkout Magazine by Jenny Whelan.