Colavita USA
Manufacturing
Tuesday, 01 May 2007
rp Colavita USA - American Executive - RedCoat Publishing
Joseph Profaci says that to compete in the food industry, this family-owned and -operated company plays on authenticity.

Joseph Profaci will never forget how he and his family ushered in 1978. They spent New Year’s Eve with some friends who had a peculiar tradition: at the stroke of midnight, they all ate lentil soup while walking up and down a flight of stairs for good luck. Joseph recalls getting a good chuckle, but admits that since then, his family has never been without lentil soup on New Year’s Eve. “That was the year I got into Harvard and my father, John Profaci, met Enrico and Leonardo Colavita,” he said.

For generations, the Colavitas owned and operated a stone mill in Italy that extracted oil from olives harvested from local orchards, but they wanted to develop their own brand. They soon discovered that it isn’t easy to sell olive oil in Italy. “They would have just been another brand,” said Joseph.

When Enrico came to America in 1978 on his honeymoon, he contacted a relative who was living in the states and mentioned he was looking for someone to import his extra virgin olive oil into the US. That cousin just happened to know the right person for the job—John Profaci, a food broker representing several Italian food companies in the US, Canada, and Italy. The Colavitas and Profacis shook hands, and Colavita USA was born.

Colavita USA - American Executive - RedCoat Publishing
Joseph Profaci, Vice President

Marketing through education
It was slow going at first as the company was formed at a time when Americans were avid users of butter, vegetable oil, and shortening and had little knowledge of olive oil—let alone extra virgin olive oil—and its many uses. It was also before US consumers started counting fat grams and dividing them into categories—saturated, polyunsaturated, and monounsaturated.

Colavita USA spent the first few years building up a clientele in the foodservice industry, which knew and appreciated extra virgin olive oil. But it wasn’t until the family was hit by another stroke of luck in 1981 that the company took off. That year, the New York Times published a seven-country study touting the benefits of olive oil. As a result, mainstream consumers started demanding the product.

Throughout the 1980s, the company focused on education and sponsored several journalists who traveled to Italy to learn about extra virgin olive oil so they could spread the word. “The little olive oil Americans were using was what we call ordinary olive oil, which has different uses from extra virgin. We needed to teach this to consumers,” said Joseph. Today, supermarkets sell more extra virgin olive oil than any other variety.

For instance, many believed—and still do—that extra virgin olive oil comes from the “first press” while virgin and ordinary olive oil come from the second and third presses, which is not true. In fact, nowadays, most olive oil is extracted without pressing. Extra virgin olive oil is simply an oil that meets certain production, chemical, and empirical standards. It is also superior in taste, color, and aroma. Oil that does not meet this standard is bottled and called virgin olive oil, or it goes through an industrial process that removes color, taste, and aroma. This product is simply called olive oil and is commonly marketed as “pure,” “mild,” or “light.”

All in the family
During the 1980s and ’90s, Colavita USA began selling to major supermarket distributors and specialty food distributors. The company soon established a network of brokers around the country and expanded its product lines to include other staples of authentic Italian cooking, such as gnocchi, polenta, balsamic vinegar, and various tomato-based products. However, Joseph pointed out, extra virgin olive oil remains by far its strongest line.

Luck aside, the Profacis believe that Colavita USA’s success is due to its position as the authentic Italian brand. “Our extra virgin olive oil is 100% Italian—the olives are grown and processed in Italy, and the oil is bottled in Italy. That sets us apart from 95% of the competition, many of which buy olives from other countries and bring them to Italy to package,” said Joseph, who joined the family business in 1993 as vice president and general counsel.

Five Profacis run Colavita today. John remains president while his sons have taken on various roles. Joseph serves as vice president and general counsel, John Jr. as vice president of marketing, Robert as vice president of operations, and Anthony as vice president of sales and quality assurance. As a family company, Colavita USA has found that managing through consensus is the way to go. Joseph noted that although this method sometimes costs the company the ability to make decisions quickly, it gives everyone a sense of pride, ownership, and fairness.

Giving back
Although Spain is by far the world’s largest producer, most people associate olive oil with Italy, Joseph noted. In the mid-1990s, only about 18% of Americans used olive oil regularly, but interest in Italian cooking has intensified over the past decade, and as a result, about 40% of Americans have jumped on the olive oil bandwagon. Colavita USA caters to those looking for an authentic experience. “Authenticity is added value to some people, and those are the folks we have chosen to target.”

To promote Colavita USA as the authentic Italian brand, the company has found creative ways to spread the word. In 1993, the company provided financial and public relations support to The Culinary Institute of America (CIA) to create the Colavita Center for Italian Food and Wine. Finished in 2001, the 18,000-square-foot educational space at the institute’s Hyde Park, NY campus is designed as a Tuscan Italian palazzo.

“Although we were only a small company at that time, we found a way to support the CIA’s efforts. It has been an advantage in the foodservice end of our business primarily, especially as the CIA—the Harvard of cooking schools—continues to churn out a couple of thousand of graduates each year, all of whom study in our center,” said Joseph.

Co-branding has been another effective strategy for Colavita USA. In 1992, it began sponsoring a professional Italian-style bike racing team. “My brother has developed some creative marketing strategies. Cycling is an important sport in Italy, which supports our image,” said Joseph. Recently, Team Colavita has garnered additional support from wine company Sutter Home, Blue Competition Cycles, and the Olive Garden restaurant chain, among others.

In addition, the Colavita Foundation for Children stems from the bike racing team. Its original intent was to donate bicycles to children who lost a family members in the 9/11 terrorist attacks, and from there, the foundation has evolved to support a number of charities helping at-risk children lead healthier, happier lives.

“With all the fortune in our lives—whether it is a result of eating lentil soup on New Year’s Eve or not—we feel it is our duty to give back,” Joseph concluded.

 
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