Major Olive Oil Producer Loses $3M in Spate of Thefts

The CHO Group experienced warehouse thefts in Canada and the United States, with some stolen olive oil appearing at discounted prices.
Terra Delyssa is CHO Group's flagship brand. (Photo: CHO Group)
By Paolo DeAndreis
Oct. 17, 2024 12:10 UTC

Tunisia’s largest olive oil pro­ducer, CHO Group, is appeal­ing to the North American olive oil com­mu­nity for assis­tance in inves­ti­gat­ing a large-scale theft of its award-win­ning Terra Delyssa extra vir­gin olive oil.

On September 21st, a truck loaded with pal­lets of Terra Delyssa bot­tles was stolen in Montreal, Canada, prompt­ing an ongo­ing inves­ti­ga­tion by local author­i­ties.

A few days later, Houston police began an inquiry after receiv­ing reports that a dis­count retailer was sell­ing CHO Group’s olive oil at unusu­ally low prices.

Using lot codes from the seized bot­tles, CHO Group tracked them back to a Houston ware­house oper­ated by a third party. The esti­mated loss from these inci­dents is around $3 (€2.8) mil­lion.

This is the third time thieves have tar­geted CHO Group’s extra vir­gin olive oil, though the com­pany believes the two most recent thefts are not con­nected.

We believe this hap­pened because Terra Delyssa can eas­ily be placed on the mar­ket, as it is the num­ber one brand in Canada and one of the best sell­ers in U.S. stores as well,” Wajih Rekik, CHO America’s chief exec­u­tive, told Olive Oil Times.

See Also:Technology Drives the Ambitions of Tunisia’s Largest Olive Oil Producer

The noto­ri­ety of Terra Delyssa and the trust con­sumers have in the prod­uct make it very easy to sell, espe­cially for thieves offer­ing it at a 50 per­cent dis­count,” he added.

CHO Group’s blockchain trace­abil­ity tech­nol­ogy, orig­i­nally designed to help con­sumers track the ori­gin of their olive oil, played a cru­cial role in the inves­ti­ga­tion.

In this case, it helped us trace all lot num­bers to the stor­age loca­tion and made it pos­si­ble to iden­tify the stolen prod­uct instantly,” Rekik said.

Since the theft was made pub­lic, many com­pa­nies in the olive oil indus­try have offered their sup­port.

We received phone calls from retail­ers as well as from our com­peti­tors, offer­ing use­ful leads which were passed on to the police,” Rekik said. Some thieves attempted to con­tact legit­i­mate retail­ers right after the theft, and some of those retail­ers are now help­ing to track down the cul­prits.”

CHO Group has assured con­sumers that all Terra Delyssa bot­tles sold by major retail­ers are safe and unre­lated to the theft.

We sell directly to major retail­ers such as Whole Foods, Kroger, Target, Walmart, and Costco,” Rekik said. Those bot­tles are com­pletely legal and legit­i­mate.”

However, some smaller retail­ers pur­chased the stolen olive oil, mainly inter­na­tional food stores, spe­cialty shops, and dis­count out­lets.

Stores that offered these bot­tles were smaller inter­na­tional food stores or dis­count chan­nels we’ve never done busi­ness with,” Rekik said.

In some cases, these stores con­tacted CHO Group after real­iz­ing they had bought stolen goods. They coop­er­ated with the inves­ti­ga­tion and offered to return the bot­tles imme­di­ately,” Rekik added.

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Only about ten per­cent of the stolen bot­tles have been recov­ered, and Rekik empha­sized the need for wide­spread coop­er­a­tion.

We ask all actors in the indus­try to help with any infor­ma­tion they might have,” he said. This is why it is essen­tial that news of the theft spreads, as the whole sec­tor has a direct inter­est in pro­mot­ing and defend­ing legal sales.”

He warned retail­ers that pur­chas­ing and reselling stolen goods could make them com­plicit in the crime.

Buying those prod­ucts from thieves and reselling them can eas­ily trans­form any retailer into an accom­plice of a crim­i­nal theft,” Rekik said. Some retail­ers did not con­tact us when approached with the stolen bot­tles, only doing so after they saw the news.”

Rekik expressed frus­tra­tion with how eas­ily dras­ti­cally dis­counted goods can sway peo­ple.

People buy a $90 (€83) prod­uct for $10 (€9.20) or $15 (€13.80), and they don’t ask ques­tions,” he said. They should be call­ing the com­pany listed on the label. Every food prod­uct in the U.S. has a label with the producer’s infor­ma­tion. It’s easy to get in touch.”

He added that some retail­ers who pur­chased the stolen olive oil claimed they thought the dis­count was due to a qual­ity issue.

If some­thing seems too good to be true, and you still go through with the pur­chase, you’re at risk of being an accom­plice,” Rekik said.

See Also:Italian Police Official Explains How Olive Oil Fraud Works

Though many retail­ers even­tu­ally coop­er­ated with the inves­ti­ga­tion, Rekik stressed how sim­ple it would have been to pre­vent the issue: Stopping this is easy: a two-minute phone call to the pro­ducer can clear every­thing up.”

To mit­i­gate the chances of future inci­dents, CHO Group is imple­ment­ing GPS track­ing sys­tems for their pal­lets and increas­ing audits with third-party logis­tics com­pa­nies from once a year to four times a year. We will main­tain the use of third-party audits of third-party logis­tics as well,” Rekik said.

Rekik expressed his grat­i­tude to those who assisted in the inves­ti­ga­tion. I’d like to thank all the retail­ers, smaller retail­ers, and com­peti­tors who helped by shar­ing infor­ma­tion,” he said. We were so touched by direct com­peti­tors who reached out, invest­ing their time and effort to sup­port us.”

It’s that strong sense of com­mu­nity that will help us all as an indus­try,” Rekik added.

He also shared a sep­a­rate anec­dote that could serve as a cau­tion­ary tale for the indus­try.

When the prod­ucts arrived at a retailer’s dis­tri­b­u­tion cen­ter, we received a call inform­ing us that a fork­lift had acci­den­tally run into a pal­let and bro­ken five bot­tles,” Rekik said.

The con­se­quences of an acci­dent like this go beyond just a few bro­ken bot­tles. Five bot­tles of olive oil can soak an entire pal­let, mak­ing it nearly impos­si­ble to han­dle due to the slip­pery mess,” Rekik said. You’ve got all the ingre­di­ents for a cat­a­stro­phe.”

Under nor­mal cir­cum­stances, logis­tics teams would con­tact CHO Group for guid­ance on how to han­dle the sit­u­a­tion.

The cost to sal­vage the remain­ing bot­tles and clean up the spill would range between $3,000 (€2,755) and $4,000 (€3,675), while the total value of the dam­aged prod­ucts might only be around $1,000 (€920),” he said.

Rekik explained that recov­er­ing the prod­ucts does not make sense eco­nom­i­cally. In cases like this, we usu­ally tell them to dis­pose of the olive oil,” he said.

However, there’s a gap in the sys­tem: the peo­ple respon­si­ble for han­dling the dam­aged goods do not always over­see their destruc­tion.

The trans­porter or the per­son man­ag­ing those bot­tles won’t nec­es­sar­ily be the one dis­pos­ing of them,” Rekik said. Sometimes, dri­vers, load­ing per­son­nel, or even other staff end up in charge and no one is inspect­ing whether the bot­tles are destroyed.”

This cre­ates an oppor­tu­nity for wrong­do­ing. Those bot­tles could be taken by some­one and resold,” he added.

Though he under­stands the temp­ta­tion, Rekik expressed mixed feel­ings about the sit­u­a­tion. Of course, we feel bad about destroy­ing our olive oil because of a spill,” he said. If it were me, I’d just clean the bot­tle and use it at home.”

But for some peo­ple, ille­gally sell­ing those bot­tles at a steep dis­count is a quick way to make easy cash,” he added. That might make cer­tain indi­vid­u­als look for­ward to the next time such an acci­dent hap­pens.”

The Involved Lots

CHO America listed the involved lots and asked any­one with infor­ma­tion about those prod­ucts to call +1 2817121549.

  • Lot N° : L1185/40695
  • Lot N° : L1144/40752 Expiry Date : 29/01/2026
  • Lot N° : L1152/40753 Expiry Date : 26/02/2026
  • Lot N° : L1152/40754 Expiry Date : 26/02/2026
  • Lot N° : L1152/40758 Expiry Date : 26/02/2026
  • Lot N° : L1149/42545 Expiry Date : 16/02/2026
  • Lot N° : L1163/42584 Expiry Date : 29/03/2026
  • Lot N° : L1178/42591 Expiry Date : 29/03/2026
  • Lot N° : L1185/40695 Expiry Date : 05/02/2026
  • Lot N° :L1187/40787 Expiry Date : 06/05/2026
  • Lot N° : L1131/42520 Expiry Date : 03/01/2026

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