Four years after the launch of ÒR-GANIC cold-pressed organic rapeseed oil, the directors of the company got together to reflect on progress. SAOS, an IntercropVALUES partner, facilitated the discussion.
ÒR-GANIC is a Scottish high value culinary oil, made with intercropped organic oilseed rape. The business is a spin-off from an established livestock feed business. It processes the oil as a ‘related diversification’ to its core business. But selling a food product to a premium retail market is very different from the day job of marketing livestock feed. The directors have learned lessons along the way.
What has gone well
- Sharing resources. Processing, bottling, and distribution has integrated well with the main feed business.
- A strong brand. The business ethos comes across well through labelling and the website.
- Price. A high initial price point established a premium product.
- The product itself. It tastes great. And has won several awards.
- A collaborative supply chain. Building strong long-term relationships with farmer producers has been essential for this difficult-to-grow, risky crop. A group of farmers formed a producer group (Scottish Organic Canola Association) and they meet regularly. This aligns well with the business’ sustainable purpose.
What they have learned
- The food industry is different to the livestock feed industry. The food industry is complex. With quite different relationships with retailers and wholesalers. Employing a professional food marketer helped navigate this.
- The consumer market for vegetable oil in the UK is very competitive. Many vegetable oils compete for shelf-space.
- Go digital from day one. Digital marketing is important to build engagement and awareness. Online sales have worked well. The feed company has the capacity and resources to service them.
- Have a clear understanding of your target consumer to focus marketing. Social media is a cost-effective route to reaching target consumers.
- Packaging isn’t straight forward. The bottles look great and differentiate the product. But sourcing replacements was difficult.
- Temper the optimism! With such a great product and brand, it is easy to overestimate initial market prospects. Better understanding the food market has helped with supply chain engagement and planning.
Above: organic oilseed rape with the legumes vetch, berseem clover and fenugreek in the understory (and some weeds); photo by Robin Walker.
What the future looks like
- Growth. Sales are starting to get traction. The prospects are good for this quality, premium, niche product. They will need a greater supply of intercropped organic oilseed rape from an expanded group of growers in future.
- Availability. With increased listings through independent retailers and key wholesalers to drive regular volume sales.
- Communicating purpose. By demonstrating ethical, values-based business practices to the supply chain. And by educating and influencing consumers about the environmental and social impact of purchasing decisions: highlighting short local supply chains and how the product benefits nature.
The company directors are optimistic and are looking forward to developing the product over the next few years. We are keen to keep supporting them and the growers, who collaborate across the supply chain. We will use lessons learned from the IntercropVALUES project to make this product a success.
This news article was written by David Michie (SAOS)