Landec has agreed to purchase California-based O Olive Oil (O Olive) for $2.5m in a complete cash transaction. 

Established in 1995, O Olive has been producing specialty olive oils and wine vinegars that are sold 4,600 natural food, conventional grocery and mass retail stores, primarily in the US and Canada.

Landec president and CEO Molly Hemmeter said: “Landec’s mission is to create innovative products that support each person’s unique health and wellness journey.

“The oil and vinegar markets are currently experiencing a dramatic shift in consumer behavior from conventional to natural and organic oils and vinegars and O Olive is uniquely positioned to take advantage of this transition.

“Retailers across North America are making ‘clean label’ and organic products a priority. O Olive sells a variety of products, including certified organic options, that are all-natural, high quality, great tasting and with easily traceable ingredients for retailers to offer their consumers.

"O Olive has created a strong brand recognition and has been honoured with 17 SOFI awards by the Specialty Food Association."

“O Olive has created a strong brand recognition and has been honoured with 17 SOFI awards by the Specialty Food Association, more than any other oil and vinegar company in the world.

“By supporting O Olive products with growth capital and the strength of Apio’s sales, customer service, procurement and logistics capabilities, O Olive can achieve its true potential and offer consumers a healthy and delicious option for everyday eating.” 

The market size for oils and vinegars in US multi-channel outlets is reported to be approximately $4.3bn, and O Olive products occupies a share of approximately $1.9bn of the total market.

Upon completion, O Olive will continue the business operations with its existing management team and retain its headquarters and operations at its facility in Petaluma, California.