Shopping Centers Today -> May 2006
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TASTE OF PROVENCE

L’Occitane sister brand O&Co. brings French flavor to U.S. kitchens

By Elyse Umlauf-Garneau

American consumers who love the je ne sais quois of L’Occitane beauty and skin care products can now enjoy the charms of Provence, France, in their kitchens as well. L’Occitane’s founder, French retailer Olivier Baussan, is expanding his O&Co. chain, which sells high-end olive oils, throughout the United States.

O&Co.’s products, which include olive oils, pastas and other gourmet products, have the same French authenticity, quality and simplicity that have made L’Occitane’s lotions and potions so popular.

Instead of looking to mass producers for its oils, for instance, every year O&Co. seeks out family farms or small producers around the globe to find the best products. Each oil is subjected to a rigorous analysis of taste and acidity by a sensory analyst in France.

“With some oils, there’s just 1,000 liters of a production, so we’re bringing the best from all over the world to customers’ tables,” said Rose Malindretos, O&Co.’s New York City-based education and communications manager.

Last year the company expanded its product line to include pasta, sauces, herbs, tapenade, crackers and jams.

The chain currently operates 10 U.S. stores, with units in Boston, Denver, Los Angeles, New York City, Newport Beach, Calif., San Francisco, Seattle and Short Hills, N.J., and it is finding the U.S. to be anything but a fast-food nation.

Given the broadening American palate, a growing body of evidence of the health benefits of olive oil and a greater emphasis on cooking and gourmet products among consumers, the time is ripe for O&Co.’s expansion here, sources say.

For one thing, many U.S. cities have populations with second- and third-generation residents from Spain, France, Greece and Italy — all cultures that rely on olive oil as a dietary staple. Other consumers have been exposed to such products during European vacations.

According to a 2005 study on the U.S. market for olive oil by New York City-based Packaged Facts, publishing division of MarketResearch.com, Americans are second only to Europeans in olive oil consumption, with retail sales of the commodity expected to reach nearly $1.2 billion in the U.S. by 2009. The study points to the popularity of the Mediterranean diet for cardiovascular health as a factor behind the growing demand for olive oil.

Though O&Co. could easily build its image on snob appeal, the company has chosen a different route. “Our aim is not to intimidate,” said Malindretos. “We want to educate people about the different uses of olive oil and encourage people to use it in different ways. I call it the third condiment, along with salt and pepper. We encourage people to drizzle oil on popcorn and use it for baking and sautéing.” Indeed, the study says another reason olive oil has caught on with American consumers is that it has varied flavors and a wide range of applications.

O&Co. helps customers find the right oils for their needs. Some people have distinct taste preferences, others want cooking oil, and still others seek salad toppings. Each store has a tasting table where sales associates work with customers. “It’s one thing to explain the differences between a French and Italian oil, but the beauty of the store is that people can taste all of them and understand those differences,” said Malindretos. “Customers are taken on a journey of the different flavors, and it makes it fun for them.”

In addition, staff members make recipes available for preparing healthy, tasty meals with just a few ingredients. Some are as simple as topping saffron pasta with a flavorful oil. Recipe cards and products for meal ideas are grouped together for ready accessibility. At least once a week the recipes change, which tends to generate return visits.

O&Co. says consumers want to do more with olive oil than just drizzle it on salad. At the chain’s Greenwich Village store in New York City, for example, 20-somethings are as likely to wander in as 60-somethings, Malindretos says. Some carry books outlining the health benefits of components in certain oils. Bill Rams, a spokesman for the Newport Beach, Calif.-based Irvine Co., finds that the store appeals to sophisticated shoppers looking for healthy gourmet products. O&Co. operates a store in the firm’s Fashion Island center in Newport Beach. “O&Co. fills the need for shoppers seeking high-quality gourmet products and unique gifts,” Rams said.

Customers also appreciate the ambience, which tries to capture the feel of old Provence and maintain a marketplace sensibility. This is accomplished in part with cast-iron furniture, wood shelves, ceramic jars and chalk boards highlighting the day’s offerings.

One aim of the design is to suggest a Mediterranean venue, says Malindretos. In fact, she says, customers frequently say the store reminds them of their vacations in Europe. Rams likens O&Co. to its sister store, L’Occitane. “Both shops have a welcoming ambience, with visuals and scents that seem to transport shoppers to the Mediterranean. Fashion Island is an outdoor center with a Mediterranean atmosphere, so O&Co. fits well with that ambience.”

O&Co.’s space requirements (units range from 550 square feet to 1,100 square feet) make the concept quite adaptable. The company is as comfortable with urban street locations, such as the Greenwich Village store, as with malls, such as Fashion Island, where it occupies 910 square feet.

The company is likely to seek expansion in big cities and areas where the population is diverse and more likely to have been exposed to its products. It is also looking at franchising. An ideal situation is one in which an O&Co. is near a L’Occitane. Such is the case at Fashion Island, where the two are situated diagonally from each other. “It’s a nice way to co-brand,” said Malindretos. “On numerous occasions, people walk in with L’Occitane bags. Food and cosmetics are different markets, but shoppers get the same feeling when they enter O&Co. and L’Occitane.”

Each O&Co. store has a chandelier with 100 1.7-ounce olive oil bottles dangling from it. Each also features a custom wood furniture piece, reminiscent of a bookstore’s floor-to-ceiling shelving, to house the oils. In addition, some stores have unique articles, such as the O&Co. in Cherry Creek Mall, Denver, where an old stone press once used for crushing olives is a visual draw.

“It’s a unique piece that helps us connect the customer to the history and roots of olive oil,” Malindretos said.

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