Avo smash and grab: Spanish firm aims to seize gap in avocado oil category in China

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Avocado oil is said to be gaining interest from the younger population in China. ©Getty Images

Spain-headquartered edible oils firm Aceites Naturales Del Sur (ANDS) is looking to set foot into China, where avocado oil is gaining interest from the younger population despite a lack of product awareness and availability in the market.

Founded in 2009 by four friends with rich experience in the vegetable oils sector, ANDS’s portfolio includes refined oils of avocado, almond, grapeseed, and apricot kernel.

The company oversees every aspect of the oil production process, from the sourcing of fruits to extraction, refining and bottling, with an annual production capacity of 80 metric tonnes.

We have extraction plants in Kenya, Peru, Tanzania, and Spain, where our refinery is located in. We distribute mainly in the US and European countries, including Poland, France, UK, and the Netherlands. We think that it is now the right time to start doing business in China and Asia overall.

“The idea came about when our customers in the US started exporting our avocado oil to China this year. This is our first time in China and in Asia, and the response at our booth has been so good. In particular, avocado oil is gaining a lot of interest from young people, who told us that they are happy for it to finally be available here,” Antonio Cano, co-founder and CEO, told FoodNavigator-Asia at Hi-Fi Asia-China.

According to Cano, the application of these oils in China is mostly in skin care and cosmetics, and the company is looking to introduce them to the local food industry.

“As avocado oil is not well known here, many Chinese consumers don’t know about the benefits of avocado oil for their health and skin. Avocado oil has high content of antioxidants, vitamin E, polyphenols and carotenoids, which support heart health and have anti-ageing effects, such as wrinkle prevention.

“In addition, it has a high smoke point (270 degrees Celsius), making it an excellent option for sauteing, frying and baking. We want to educate the local people on how they can use avocado oil for salads and for cooking.”

To raise awareness, the firm plans to carry out educational marketing promotion with the assistance of a native Chinese.

“European countries like Spain have vastly different cultures from China, so we prefer to work with a local who can help us grow the business with the right strategies. Our interpreter, Carol, is going to help us create a social media strategy to increase awareness of the benefits of avocado oil.

“Live commerce is very popular here, and it really helps with marketing as well. Carol has given us a lot of advice on how we should utilise social media platforms, such as Douyin, as part of our marketing strategy.”

In-house brand in the works

ANDS claims to be the first company in Spain, known for producing high-quality olive oil, to make avocado oil.

The firm supplies its oils as ingredients to companies in the food and cosmetic industries, as well as manufactures private label products, such as bottled oils.

Although it does not have its own brand of products yet, ANDS is working on developing one.

“At the moment, we are mainly selling the oils through intermediate bulk containers (IBC tanks) and flexitanks for the food sector. For example, some companies use them to fry chips or to make mayonnaise. We have a lot of customers that make avocado oil mayonnaise.

“However, we want to create our own brand for the Asian market, so we can sell the oils to retailers and directly to consumers. In fact, at this trade show, we received requests for us to package our avocado oil in bottles to sell in retail,” said Cano.