Kristal Olive Oils Grows in Global Market Through Contract Manufacturing
· GıdaTarım
Kristal Olive Oils, part of Arkas Holding, has implemented a contract manufacturing model to overcome European Union customs barriers and ensure supply continuity.
Multinational Production in the Global Market
Kristal Olive Oils, founded in Izmir in 1938 and acquired by Arkas Holding in 2007, is expanding its global market presence through overseas production initiatives. Bernard Arkas, Vice Chairman of Arkas Holding, outlined the brand's objective with the following words:
'We aim to create a Turkish brand that has a long-standing presence in international markets'
Emphasizing the importance of supply continuity, Bernard Arkas, Vice Chairman of Arkas Holding, explained their strategy as follows:
'However, we do not want to sell to a customer one year and then say ‘we don’t have it’ the next. We have developed a strategy for this.'
The company began contract manufacturing by establishing a company in Spain in 2018 to overcome European Union barriers.
Customs Pressure and Export Demand
Kristal Oils General Manager Vural Gözgeç announced that branded products manufactured in Tunisia are exported to Brazil with zero customs duty, and direct investment in Spain through the Valencia-based company is also being considered. Gözgeç stated that exports, which were limited in the past, have now reached 37 countries with a volume of $15 million. Pointing to the threat of a 12.5% customs tariff in the U.S. market and the surplus harvest in the sector, Gözgeç called for urgent export support to be provided to producers to protect Turkish olive oil in global competition.
| Value | Period | Measure |
|---|---|---|
| 12.5% | — | US customs duty rate |
| 15 million dollars | — | Export volume |
| 37 countries | — | Number of countries exported to |
| 2018 year | 2018 | Company establishment year in Spain |