Communication from the Commission to the Council on the seventh campaign of measures to promote the consumption of olive oil within the Community for a period of three years from the beginning of 1999
Date: 1998-04-23
Institutions: European Commission
Subjects: marketing, merchandising, olive oil, public awareness campaign, sales promotion

COMMISSION OF THE EUROPEAN COMMUNITIES 

Brussels, 23.04.1998 
COM(1998) 248  final 

COMMUNICATION FROM THE COMMISSION TO THE COUNCIL 

on the seventh campaign of measures to promote the consumption of olive oil 
within the Community for a period of three years from the beginning of 1999 

COMMUNICATION  FROM THE COMMISSION TO THE COUNCIL 

on the seventh campaign of measures to promote the consumption of olive oil within 
the Community for a period of three years, from the beginning of 1999 

1.  Article  11(6)  of  Regulation  (EEC)  No  136/66/EEC  on  the  establishment  of  a 
common organisation of the market in oils and fats1, as last amended by Regulation 
(EC)  No  1581/962,  forms  the  legal  basis  for  the  accomplishment  of  information 
measures  and  other  measures  to  promote  the  consumption  of  olive  oil  in  the 
Community.  The  budget  proposed  under  budget  line  B-1-3 801  amounts  to  45 
million  ECU 
to  compile  and  disseminate  scientific 
technical 
knowledge,  public  relations  and  publicity  programmes,  surveys, 
assistance  and  market  studies  in  the  three  new  Member  States  under  the  seventh 
campaign  to  promote  the  consumption  of  olive  oil  in  the  Community.  The 
campaign will cover three years from the beginning of 1999. 

to  fund  programmes 

2.  Article  1 of Council  Regulation  (EEC) No  1970/80 on general  implementing  rules 
for campaigns aimed at promoting the consumption of olive oil in the Community3, 
as  last  amended  by  Regulation  (EEC)  1651/864,  lays  down  five  types  of 
Community  measures to promote the consumption of olive oil: a) Dissemination of 
existing  knowledge,  in  particular  as  regards  the  various  qualities  of  olive  oil;  b) 
Market  studies  aimed  at  enlarging  the  olive  oil  market  in  the  Community;  c) 
Advertising  and  promotion  campaigns  to  encourage  the  consumption  of  olive  oil; 
d)  Research  work;  e)  Special  reduced-price  sales  to  certain  categories  of 
consumers.  Furthermore,  the  implementing  arrangements  for  establishing  the 
detailed programme of measures envisaged, the procedure for their  implementation 
and  the  criteria  for  selecting  the  proposals  submitted  as  a  part  of  invitations  to 
tender,  are defined  by Article  4 of  Commission  Regulation  (EEC) No  1348/81  on 
detailed  rules  for  applying  Council  Regulation  (EEC)  No  1970/80  laying  down 
general implementing  rules for  campaigns aimed at promoting the consumption  of 
olive  oil  in  the  Community5,  as  last  amended  by  Regulation  (EEC) No  2213/866. 

3.  The seventh campaign to promote the consumption of olive oil will be based on 

Article  1 a), b) and c) of Council Regulation (EEC) No  1970/80, i.e. dissemination 
of existing knowledge, in particular as regards the various qualities of olive oil, 
market studies aimed at enlarging the olive oil market in the Community and 
advertising and promotion campaigns to encourage the consumption of olive oil. 
The programme is divided into five parts: 

172, 30.9.1966, p.3025 

' OJ No 
2 OJ No L 206,16.8.1996, p. 11 
3 OJ No L 192,26.7.1980, p.5 
4 OJ No L 145, 30.5.1986, p.10 
s OJ No L 134, 21.5.1981, p.17 
6OJNoL  193, 16.7.1986, p.7 

X 

(A)  Collection and dissemination of scientific knowledge on the nutritional values 

of olive oil; 

(B)  Advertising, public relations and promotion; 
(C)  Surveys and evaluations; 
(D)  Technical assistance; 
(E)  Market studies in the three new Member States of the European Union. 

4.  This  Communication  relates  to  the  seventh  campaign  of  measures  which  the 
Commission plans to implement during a period of three years, commencing at the 
beginning of 1999. 

THE CURRENT CAMPAIGN (THE SIXTH OLIVE OIL CAMPAIGN) 

The  current,  i.e.  the  sixth,  campaign  to  promote  the  consumption  of  olive  oil  is  a 
biannual  campaign  amounting  to a total of 30 MECU. Following  a tender procedure, 
contracts were concluded with selected agencies in June/July  1996. Consequently, the 
contracts  will  expire  in  June/July  1998.  The  campaign  comprises  twelve  Member 
States. The three new  Member  States have not been included  in the campaign  which 
officially  started in 1994, before the last enlargement. 

After  a tender procedure, different  categories of agencies were selected: One  scientific 
institute  and  one  European  wide  agency  which  collected  and  disseminated  the 
scientific  knowledge on the nutritional  values of olive oil; seven agencies  specialised 
in advertising  and/or public relations; one institute with a European wide network  for 
the  evaluations  and  surveys;  and  one technical  assistant  for  communication  and  cost 
analysis. 

During the first period (June  1996-June  1997) of the sixth campaign, the consumption 
of  olive  oil  has  increased  in  all  the  countries  involved  in  the  campaign.  The  price 
reduction  during  the  period  has  played  an  important  part  in  this.  The  actions 
conducted  in  the  framework  of  the  EC-campaign  and  evaluated  by  an  independent 
institute have also had a satisfactory  impact and have proved to be efficient.  The price 
factor  and  the  promotional  campaign  conducted  by  the  EC  are  not  the  only 
explanations  of  the  increased  consumption,  but  they  have  both  contributed  to  the 
development in a positive way. 

THE RATIONALE FOR A SEVENTH  CAMPAIGN 

In  the  light  of  the  market  situation  which  is  characterised  by  a  supply  of  olive  oil 
which considerably exceeds demand, a seventh olive oil campaign would contribute to 
the maintenance of the balance of the market. As a consequence, the interval between 
the  end  of  the  sixth  campaign  and  the  launching  of  the  seventh  campaign  should  be 
minimised.  This  would  also  allow  the  EC  to  take  full  advantage  of  the  investments 
which  have been  made  during  the previous  campaigns.  The results  of the  fifth  olive 
oil campaign  and the first period of the sixth campaign  have been taken  into  account 
when  developing  the objective,  strategy, target  and budget  allocation  for  the  seventh 
campaign. For example, the budget for the medical information  has been decreased by 
15% and the promotional message will be specifically  adapted to the situation in each 
Member State and/or region. 

OBJECTIVE, STRATEGY AND TARGET FOR THE SEVENTH  CAMPAIGN 

The objectives of the seventh campaign are  1) to develop the consumption of olive oil 
in  the  producer  countries,  and  2)  to  boost  the  consumption  in  the  non-producer 
countries. 

All  15  Member  States  will  be  involved 
contractually, will be divided into three stages of twelve months each. 

in  the  triennial  campaign,  which, 

Like  all  promotional  campaigns financed by  the  European  Community,  the  olive  oil 
campaign  is to be  generic  and not oriented  towards promoting particular trade marks 
or firms. The promotion of Community olive oil is to be made without reference  to its 
country or region of origin. Comparisons with other products will not be allowed. 

The messages to be conveyed  are the nutritional values of the product, its unique taste 
and the different  qualities of olive oil. Emphasis is to be put on the use of the product 
in cooking, in cold as well as hot dishes. The message must be adapted to the situation 
in terms  of  attitudes, knowledge  and the present  use  of the product  in  each  Member 
State. 

The primary target  of the campaign  is consumers. The second target group  comprises 
intermediaries  between  consumers  and  producers,  such  as journalists,  the  trade,  the 
catering business, teachers and doctors, dieticians and nurses. 

PLANNED MEASURES FOR THE SEVENTH  CAMPAIGN 

The Commission plans to implement the following measures: 

Title  A:  Collection  and  dissemination  of  scientific  knowledge  on  the  nutritional 
values of olive oil 

Main target: Doctors, nurses, dieticians, scientific press and the medical press. 

Title Al:  A research institute or an expert in lipids/nutrition  is to collect  and  evaluate 
topical  scientific  material  on the nutritional  values  on olive  oil  as well  as to  develop 
the scientific material produced during the sixth campaign. A selection of the material 
is to be compiled.  Furthermore, the contractor  is to examine, validate  and control  the 
material produced by the Title A2 and B-agencies. Finally, the contractor  is  expected 
to  actively  participate  at  congresses  and  seminars  organised  on  a  national  and/or 
international basis. 

Title A2: An agency will be selected for the dissemination of the material produced by 
the  Title  Al-contractor  to  the  above  mentioned  target  groups.  The  assignment  will 
involve  development  of  documents  and  press  releases,  organisation  of  press  events, 
conferences  and  seminars  as well  as maintenance  and  development  of  the  Olive  Oil 
Medical Library Website which was created during the sixth olive oil campaign. 

<* 

The  Title  Al  and  A2-contractors  should  co-operate  closely  with  the  International 
Olive  Oil  Council,  IOOC,  which  is  conducting  promotional  programmes  in  third 
countries financed almost entirely by the EC. 

Title B: Communication measures: advertising, public relations and promotion 

Main  target:  consumers  (Bl  and B2)  and  intermediaries  between  the  consumers  and 
producers, such as journalists, the trade, the catering business and teachers (B2). 

Title  Bl:  Advertising  campaigns  comprising  TV-spots,  radio  spots  and  print 
advertisements in journals and magazines. 

Title B2: Public relations and promotion. The agencies selected will be responsible  for 
setting  up  Olive  Oil  Information  Centres.  The  role  of  the  Olive  Oil  Information 
Centres is to inform  the target  groups and answer questions, mainly  from  consumers. 
Furthermore, a wide range of actions with the aim of exposing the target groups to the 
messages  is to be developed  by the selected  agencies. For example, generic  point-of-
sales activities, press events, activities at restaurants and educational material aimed at 
pupils.  The  information  developed  by  the  Olive  Oil  Information  Centres  is  to  be 
obtainable on the Internet as well as in the form of leaflets etc. 

Title C: Surveys and evaluations 

The  institute(s)  selected  will  be  responsible  for  the  evaluation  of  the  consumption 
development,  the attitudes  towards  and knowledge  about  olive oil  among  consumers 
and  doctors,  the  coverage  of  the  publicity  campaigns  and  the  impact  of  selected 
actions executed by the contractors. The studies  carried  out by the Title  C-contractor 
will permit the Commission to evaluate the results of the campaign, by comparing the 
situation  at  the  beginning  of  the  campaign  with  the  situation  at  the  end  of  the 
campaign. 

Title P; Technical  assistance with communication 

The  technical  assistant  to  the  Commission  staff  will  provide  assistance  during  the 
implementation  of  measures  in  all  the  countries  covered  by  the  campaign.  The 
technical  assistant  must  have  a  very  good  knowledge  about  the  situation  in  each 
country in terms of consumer behaviour, marketing strategies and the media situation. 
The contractor will  assist the Commission  in co-ordinating the work executed by title 
A and B agencies  as well as involving the olive oil industry  actively in the  campaign 
at a national level. 

Title E; Market studies in the three new Member States 

b 

The  Institute(s)  selected  will  be  responsible  for  market  studies  in  the  three  new 
Member  States  to  the  EU:  Finland,  Sweden  and  Austria.  The  three  new  Member 
States have not been involved in the previous campaigns. The aim of the studies is to 
examine  the  present  level  as  well  as  the  potential  development  regarding  the 
consumption,  attitudes  towards  and knowledge  about  olive  oil  in the most  important 
target groups, especially among the consumers and the trade. 

PROCEDURES 

The  contractors  will  be  selected  after  a tender  procedure.  Three  different  public  call 
for  tenders will be  followed  in parallel: one in order to choose  the contractors  in the 
categories  A, B  and  C  above, one  for  the choice  of the Technical  assistant  (Title  D) 
and a third for the Market Studies in the three new Member States to the EU. 

FINANCING 

The  overall  amount  to  be  allocated  to  all  of  the  aforementioned  measures  of  the 
seventh  olive  oil  campaign  is  ECU  45  million  for  the  three-year  campaign 
commencing  at the beginning of  1999. An amount of ECU  15 million will be entered 
for  this  purpose  under  heading  B 1.3801  of  the  1999  budget,  to  which  the  requisite 
commitment  appropriations  for  funding  can  be  charged.  An  amount  of  ECU  15 
million will be foreseen  under the same heading of the 2000 and the 2001 budgets. 

The  indicative  allocation  for  each  of  the  categories  of  measures  to  be  undertaken 
during the seventh triennial campaign to promote olive oil is as follows: 

1999/2001 
ECU 

A. Dissemination of scientific knowledge 
4,590,000 
B. Advertising, public relations, promotion  38,925,000 
690,000 
C. Surveys and evaluations 
675.0007 
D. Technical assistance 
120.0008 
E. Market studies in the three new M.S. 
45,000,000 
TOTAL 

% 

10.2% 
86.5% 
1.5% 
1.5% 
0.3% 
0 

THE  ROLE  OF  THE  OLIVE  OIL  INDUSTRY  -  CICHO  (COMITE 
INTERPROFESSIONNEL  COMMUNAUTAIRE  DE  L'HUILE  D'OLIVE) 
AND THE ADVISORY COMMITTEE FOR OILS AND FATS 

A small part of the budget will be included in the  1998-budget (Technical assistance with the 
evaluation of tenders) 

o 

The market studies in the three new Member States to the EU will be realised during summer  1998 
and, thus, be included in the  1998-budget. 

6 

The  Comité  Interprofessionnel  Communautaire  de  l'Huile  d'Olive  (C1CHO)  was 
officially  established  on  23  July  1993.  The  Committee  has  played  a  very  useful 
advisory  role  during  the  sixth  olive  oil  campaign,  on  a  European  as  well  as  on  a 
national  level. Also during the seventh campaign, the Commission  will  actively  seek 
the 
its  opinion.  With  a  view 
Community's  promotional  campaign  and  the  various  campaigns  undertaken  by  the 
industry, co-ordination meetings will be organised on a European as well as a national 
level  on  a  regular  basis.  In  addition,  the  Commission  will  regularly  inform  the 
Advisory  Committee  for Oils and Fats about the realisation of the different  phases  of 
the campaign. 

to  ensuring  maximum  co-ordination  between 

MISCELLANEOUS 

The  Commission  will  ensure  that  the  Community's  financial  contribution 
is 
mentioned  in all promotional material produced and circulated and in connection  with 
all  events  or  communications  related  to  the  seventh  campaign  to  promote  the 
consumption of olive oil. 

The Commission  reserves  the right to review  and modify  the programme  in  the light 
of the results of the global evaluation of all the agricultural promotion programmes of 
the EC, which will be carried out during  1998. Modifications  or adjustments  may also 
be required due to budgetary constraints or in the light of the results of the  evaluation 
studies  which  are  to  be  realised  during  the  seventh  campaign  to  promote  the 
consumption of olive oil. In case of significant  changes, the Council will be  informed 
immediately. 

The Commission  reserves the right also to prolong the seventh campaign  to  promote 
the consumption  of olive oil up to a maximum  of twelve months if it is necessary  in 
order to avoid an interruption between the seventh and eighth campaign. 

? 

ISSN 0254-1475 

COM(98) 248 final 

DOCUMENTS 

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03  10  06  15 

Catalogue number  :  CB-C0-98-268-EN-C 

ISBN  92-78-35308-6 

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