Development of the retail program
One of our vendors, Pieralisi, is the world's leading manufacturer and seller of olive oil centrifuges and decanters. Back toward the end of 2013 they contacted their account manager at DLL.
Pieralisi had two potential deals involving small olive processing cooperatives totaling € 500,000. The non-for-profit cooperatives had limited income and, when looked at from a purely financial perspective, could not support the investment required.
Looking beyond the figures
However, our account manager knew how important the deals were to our vendor. It would also be a chance to increase DLL’s knowledge of this type of customer in Spain, the world’s second largest olive oil market. He decided to visit the cooperatives accompanied by Pieralisi Spain’s General Manager.
The two cooperatives extract olive oil for their members, charging only the expenses (fixed, variable and investments) they incur. Our account manager decided this type of business represents a minimum risk for DLL as all the expenses, including lease payments to DLL, are shared between the cooperative members.
Credit in tough times
DLL’s commitment was key to Pieralisi securing the sales. In turn, at DLL we’ve deepened our knowledge of the core business of one of our vendors. And at a time in Spain when accessing credit can be tough, we’ve helped put partnerships in place to support the future for those local olive oil producers and their communities.