On June 9, the Royal Decree draft on the quality for olive and olive-pomace oils was
published.

The objective of this Royal Decree is to update the legislation to adapt it to the current
situation in olive oil sector and to technological advances, especially taking into account
that Spain is the world’s leading producer and exporter of olive oil.

Currently, different provisions regulate the commercialisation of olive and olive pomace
oils, both nationally (Decreto 2484/1967 - Codigo Alimentario Español - and Real Decreto
308/1983) and at European level (Regulations no. 2568/1991, no. 1308/2013 and no.
29/20112).

Due to several amendments to the Real Decreto 308/1983, and to the evolution of
production and consumption, the national rule shall be replaced with a new and specific
one for olive and olive-pomace oils due to their uniqueness and the relevance this product
has in Spain.

Consequently, Real Decreto 308/1983 must be repealed in reference to olive
oils and olive pomace oils, as well as the content corresponding to these oils in the Código
Alimentario Español, approved by Decreto 2484/1967. Such rule will apply to all olive and
olive pomace oils produced and marketed in Spain, without prejudice to the provisions
of EU mutual recognition clauses.

As a novelty, this rule requires operators to have traceability obligations, through the
application of a real-time registration system, the content of which is set out in Annex I.
At transport level, an accompanying document (specified in Annex II), and a notification
in the computerized system, developed by the Ministerio de Agricultura, Pesca y
Alimentación are required. This system aims at making it easier for operators to comply
with the obligations and for the competent authorities to control it, as well as to combine
data on the movements of olive oils and olive pomace oils. The operators responsible for
the notification, the competent authorities for control purposes, the State Security Forces
and other relevant bodies will have access to this system.

Regarding the labeling of these products, Regulation (EU) no. 1169/2011 on food
information provided to the consumer must be considered. For such legal denomination,
the categories established in part VIII of Annex VII of Regulation (EU) no. 1308/2013
must be used.

It is also important to take into account the new specific obligations of packaging,
since, in line with EU policies on sustainable development and those related to the
reduction of the use of plastics, its use for extra virgin olive oils intended to final
consumers is limited only to single-dose containers.