Enhanced Customer Service Drives Certified Origins Virginia Expansion

With the goal of enhancing its customer service while also working to overcome logistical challenges, Certified Origins recently announced a $30 million investment in a new Virginia-based bottling and distribution center.

Located in Newport News near the Port of Virginia, the 115,000-square foot facility is slated to open in 2024. It will receive olive oil imported from the Mediterranean area and offer co-packing services and tailored solutions to retailers. 

In an interview with Store Brands, Nacho Nuez, general manager with Certified Origins, and company CEO Gerard Jara, offered additional insight into the new facility and how it will benefit the company and its retail customers.

STORE BRANDS: What were the motivating factors for the company choosing to expand its presence in the U.S. and construct a new facility in Virginia?

CERTIFIED ORIGINS: During the many years we have been operating as a leading player in the U.S. olive oil market, we did everything we could to meet and anticipate the needs of our business partners. The growth of the olive oil sector in the United States and the logistic challenges the world has been facing, gave us the right push to move forward with this ambitious expansion plan. It was in our plans already, and it just had to happen. 

Opening a new bottling plant will allow us to expand our services and remain competitive in a very demanding market. The area of Virginia is centrally located with easy access to other regions, and together with the port of Norfolk, makes it a strategic place to develop our operations. 

SB: Once this new facility is operational, what advantages will it provide Certified Origins?

CO: There will be significant advantages once we become operational in Virginia, affecting many aspects of the business. The versatility of the plant will allow us to offer a broader range of packaging formats to satisfy most of the market trends. We also believe that importing in bulk instead of finished goods will open new opportunities for logistic cost savings and, importantly, to reduce our carbon footprint.

Since we'll be able to produce "Just in Time," we'll improve our efficiencies in inventory management, minimizing the usage of 3PL's warehouses. In addition to Mediterranean extra virgin olive oil origins, where approximately 80% of the global olive oil groves and mills are located today, we'll be able to source from other areas such as South America and California.

SB: Are there any unique features of the new facility (use of technology, A.I., etc.)?

CO: The facility will be equipped with the most modern technologies and control systems available for our sector. Q.A., production, and tech teams from our existing facilities in Europe are actively involved and sharing all their knowledge and passion with us. This combination of European experience in the olive oil industry and the unique U.S. approach to growing business to scale will further improve our capacity to monitor efficiencies and quality of all our processes, from the incoming of raw products to the dispatch of finished goods. 

SB: How large is the facility in square footage?

CO: The whole surface of the building is approximately 115,000-square-foot, located on a site of 15 acres. We are working hard to minimize the impact of our presence on the environment around the facility. Our offices and production lines will be a safe and comfortable space for our U.S. team to meet with clients and partners. The business community in Virginia has been very supportive, and we want to be proud and active contributors to the area and community. 

SB: Will the new facility allow the company to reach its retail customers and other distribution centers more easily and quickly?

CO: Absolutely. A bottling facility in the U.S. will further reduce our reaction time to our customers' needs and volume fluctuations. The COVID crisis has shown us that speed and flexibility will be critical factors for future business. We are fast, and we want to become even faster. 

SB: What changes in product demand has the company seen more recently? 

CO: As a general business trend, we have seen continued growth in private-label product demand over the past few years. That seems to be a trend in retail that will not go away soon. Private label is what we are good at, and that's where our focus will be for the years to come. 

With consumer trends, specifically for our sector, we see a growing demand for healthier products with sustainable packaging, a clear indication of provenance, and uniqueness. We have several ongoing initiatives with U.S.-based and European partners to reduce our carbon footprint. And we invest substantial resources in third-party certifications and research to guarantee the origin and quality of our olive oils. 

SB: From a product standpoint, what are some of the company's more significant sellers? 

CO: Over the years, we have become the leaders in offering fully traceable and great-tasting organic EVOOs. We continue to observe that exact origins and great quality gain loyal followers among U.S. consumers, and we want to help U.S. retailers to meet and anticipate that demand.

The U.S. market’s taste for olive oil has been evolving. If, in the past decade, most families would be satisfied with just a flat, mild, cooking olive oil. But that's not enough anymore. Today there is a growing space for fresher and more intense flavor profiles. The value proposition will still be a key component, but we see an increasing demand for quality and better-tasting experiences. Also, more Americans are curious about the origin of food and don't want to be misled. We hear these messages clearly. 

SB: When looking toward the future, is there anything else you would like to share about growth plans or product expansion? 

CO: Our organization represents thousands of growers. All are firmly united and committed to a shared purpose to contribute to everyone's enjoyment and health through good food, the kind made by using wholesome, sustainable, and genuine ingredients. Our future expansion comes naturally by fulfilling this purpose. We believe our team has plenty of opportunities to do good in the world.