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Volume 36 March 4, 2016 Number 7

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By Alyssa Mitchell would see an increase in sales,” While continues is experimenting with cheese Gallagher says. to be the most popular cheese on . INSIDE MADISON, Wis. — When one In 2009, DMI forged a part- used on pizza, Heather Porter “We’re always looking for thinks of pizza, it’s hard not nership with Domino’s Pizza Engwall, director of national better and exciting ingredi- to also imagine the melted to promote a line of six new product communications for ents,” he says. “We have a lot of OUR BIG PIZZA ISSUE! deliciousness of the cheese specialty featuring 40 the Wisconsin Marketing fun and can really mix things up ✦ U.S. House passes bill that plays such an integral part percent more cheese. Board says stronger fl avored by adding different on to ease calorie labeling in the favorite food’s makeup. The launch proved success- cheeses, such as Pepper Jack top of our house blend.” regulations on menus. Perhaps surprisingly, 10 ful, leading to the continuation and specialty cheese variet- Stouffer notes The Ro- For details, see page 5. years ago, the pizza industry of the partnership and diversi- ies like Brie and Fontina, are man Candle last year added was facing a decline in sales, fi cation of marketing efforts. among the fastest-growing a Chicken Parm pizza to its ✦ Urschel Labs sells and less cheese was being put While Domino’s has seen varieties. menu and added and company to employees. on pizza while operators put sales growth, product innova- The Roman Candle, a Madi- Parmesan on top of its house For details, see page 11. their investment largely in tion and increased knowledge son, Wisconsin-based pizzeria blend to achieve great fl avor. marketing and other ingre- of the dairy consumer base with a few locations in sur- “Adding a couple extra ✦ Study: Millennials dients, notes Tom Gallagher, through DMI, the dairy indus- rounding areas, prides itself cheeses can really elevate a driving pizza trends. CEO of Dairy Management try also has benefi ted from on sourcing all of its cheese pizza and make it something For details, see page 21. Inc. (DMI). working with Domino’s. from Wisconsin producers, says special,” he says. “We wanted to show that if “This partnership has been Founder and Owner Brewer Creating a pizza version of a ✦ Shelburne Farms offers they focused their core efforts dramatically successful to in- Stouffer. favorite meal, like the Chicken 4-year-old ‘leap cheese.’ back on cheese and put more creasing sales of pizza cheese “Cheese is a staple of our Parm, is an increasingly popu- For details, see page 28. cheese on their pizzas, they and the amount of cheese on menu, and we’ve worked hard lar trend. pizzas,” Gallagher says. to certify that our cheeses are At Toppers Pizza, based in He adds that a lot of pizza made in Wisconsin and sourced Whitewater, Wisconsin, the OF THE companies have taken note from Wisconsin milk,” Stouffer company offers a Taco Topper of Domino’s success and have says. Pizza that features taco sauce, CHEESE MONTH added more cheese and more The Roman’s Candle’s taco meat, Mozzarella, Ched-

Photo varieties of cheese to their house blend used on most of dar and other taco ingredients, courtesy Mozzarella of WMMB pizzas over the years. its pies is a custom blend of with sour cream included • Cheese of choice Wisconsin cheeses including on the side. Toppers’ Mac ‘N Cheese not only makes up Mozzarella and Provolone, Cheese Pizza features a creamy Top pizza topping Mozzarella the base of a majority of pizza and Stouffer says the pizzeria cheese sauce layered with varieties, it also can be added also adds several varieties of macaroni noodles, smothered still is increasing in demand as a tasty topping as pizza cheese to its specialty pies in a mound of Mozzarella and operators have expanded into or by custom order, including Cheddar. Its California Topper Editor’s Note: Welcome to “Cheese of the Month,” Cheese Market topping pies with cheese vari- Cheddar, Aged Parmesan, is topped with Feta and Moz- News’ latest profi le series. Each month, CMN will highlight a different eties ranging from Asiago to Smoked Provolone, Feta and zarella along with spinach, cheese in this exclusive feature, giving our readers a comprehensive Cheddar to . goat cheese. The company also Turn to PIZZERIAS, page 16 a look at production, marketing, sales and in-depth aspects of each profi led cheese type. Please read on to learn about this month’s pizza favorite: Mozzarella.

By Chelsey Dequaine U.S. cheese production up GMO labeling bill passed by Senate MADISON, Wis. — Demand for the United States’ most-produced 2.6 percent from year ago Ag Committee cheese, Mozzarella, continues to increase, and new research has been WASHINGTON — Total U.S. cheese production in January, developed for faster production and extended shelf life. excluding cottage cheese, was 1.00 billion pounds, 2.6 percent WASHINGTON — A bill According to USDA, total U.S. Mozzarella production in 2015 was 3.97 above January 2015’s 977.4 million pounds but 2.6 percent below that would establish a billion pounds, up from 3.49 billion pounds in 2010. In terms of cheese December 2015’s 1.03 billion pounds, according to data released national standard for vol- volume in the channel, Wisconsin Milk Marketing Board Thursday by USDA’s National Agricultural Statistics Service untary labeling of products (WMMB) says Mozzarella is the No. 1 cheese used in U.S. restaurants, (NASS). (All fi gures are rounded. Please see CMN’s Dairy Pro- containing genetically mod- accounting for 29 percent volume share of total cheese usage (largely duction chart on page 18.) ified organisms (GMOs) driven by the pizza segment). Production of Mozzarella, the nation’s most-produced cheese, and preempt states from According to Information Resources Inc. (IRI) data courtesy of totaled 336.6 million pounds in January, up 0.3 percent from implementing their own Dairy Management Inc. (DMI), Mozzarella was purchased last year by January 2015. Total Italian-type cheese production, of which GMO labeling laws passed nearly 60 percent of households, and homes with children purchased Mozzarella is the largest component, was 434.8 million pounds Tuesday by a vote of 14-6 in the most prepackaged Mozzarella. in January, up 2.2 percent from a year earlier. the Senate Committee on While millennials and Generation X shoppers are heavy buyers, IRI Meanwhile, production of Cheddar, the nation’s second Agriculture, Nutrition and says seniors, retirees, African American and Asian households purchase most-produced cheese, was 295.9 million pounds in January, up Forestry. a Turn to MOZZARELLA, page 10 Turn to PRODUCTION, page 18 a Turn to GMO, page 18 a © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — March 4, 2016 MARKET INDICATORS

Chicago Mercantile Exchange Cash prices for the week ended March 4, 2016 CHEESE FUTURES* for the week ending March 3, 2016 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday Feb. 29 March 1 March 2 March 3 March 4 Fri., Feb. 26 Mon., Feb. 29 Tues., March 1 Wed., March 2 Thurs., March 3 FEB16 1.518 3,976 1.519 3,976 1.518 3,981 1.517 4,834 ------Cheese Barrels MAR16 1.510 4,000 1.521 4,003 1.500 4,017 1.508 4,009 1.515 4,000 Price $1.4550 $1.4325 $1.4275 $1.4400 $1.4600 APR16 1.490 3,557 1.499 3,573 1.476 3,637 1.474 3,659 1.483 3,676 Change +2 1/2 -2 1/4 -1/2 +1 1/4 +2 MAY16 1.498 3,582 1.503 3,601 1.467 3,636 1.470 3,698 1.487 3,717 JUN16 1.529 3,180 1.529 3,216 1.493 3,284 1.492 3,323 1.506 3,372 Cheese 40-lb. Blocks JUL16 1.552 2,935 1.563 2,926 1.540 3,046 1.538 3,067 1.540 3,114 Price $1.4800 $1.4600 $1.4500 $1.4700 $1.5200 AUG16 1.596 2,824 1.604 2,828 1.580 2,974 1.581 3,002 1.580 3,007 SEP16 1.622 2,536 1.632 2,548 1.614 2,677 1.620 2,700 1.610 2,702 Change NC -2 -1 +2 +5 OCT16 1.648 2,243 1.650 2,246 1.631 2,337 1.631 2,353 1.629 2,380 1.653 2,564 1.653 2,563 1.637 2,630 Weekly average (Feb. 29-March 4): Barrels: $1.4430(+.0085); 40-lb. Blocks: $1.4760(+.0140). NOV16 1.631 2,656 1.630 2,709 DEC16 1.647 2,400 1.650 2,403 1.638 2,461 1.640 2,464 1.631 2,497 Weekly ave. one year ago (March 2-6, 2015): Barrels: $1.4935; 40-lb. Blocks: $1.5520. JAN17 1.658 253 1.650 267 1.635 288 1.630 294 1.630 294 FEB17 1.658 203 1.655 219 1.647 236 1.641 248 1.641 248 Grade A NDM MAR17 1.670 183 1.669 198 1.661 205 1.655 213 1.655 213 Price $0.7650 $0.7700 $0.7800 $0.7800 $0.7400 APR17 1.684 138 1.680 170 1.669 177 1.664 177 1.663 177 MAY17 1.689 131 1.685 160 1.679 172 1.670 177 1.669 177 Change +1/2 +1/2 +1 NC -4 JUN17 1.690 104 1.690 118 1.680 133 1.679 148 1.671 148 Weekly average (Feb. 29-March 4): Grade A: $0.7670(+.0170). Total Contracts Traded/ Open Interest 1,270/34,872 460/35,078 1,243/35,955 676/37,086 714/32,495 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Grade AA Butter *Total Contracts Traded/Open Interest reflect additional months not included in this chart. Price $1.9650 $1.9575 $1.9800 $2.0200 $2.0400 Change -1 1/4 -3/4 +2 1/4 +4 +2 Weekly average (Feb. 29-March 4): Grade AA: $1.9925(-.0335). DRY FUTURES* for the week ended March 3, 2016 Class II Cream (Major Northeast Cities): $2.2286(-.0271)–$2.5325(-.0513). (Listings for each day by month, settling price and open interest)

Sign up for our daily fax or email service for just $104 a year. Call us at 608-288-9090. Fri., Feb. 26 Mon., Feb. 29 Tues., March 1 Wed., March 2 Thurs., March 3 FEB16 24.50 711 24.35 714 24.38 714 24.69 724 ------MAR16 24.25 697 24.25 697 24.00 689 24.18 678 25.53 670 California Minimum Prices APR16 24.00 627 24.00 627 24.00 628 24.25 634 25.73 628 MAY16 24.00 653 24.25 654 24.50 655 24.50 665 25.83 665 Released March 1, 2016 JUN16 25.18 635 25.18 635 25.00 638 25.50 637 25.63 637 SNF Equivalent JUL16 25.48 429 25.48 429 25.50 430 25.50 434 25.75 435 AUG16 25.00 426 25.00 426 25.53 427 25.75 428 25.78 428 Class 4a $ 2.2846/lb. $ 0.6073/lb. $ 13.28/cwt. SEP16 26.25 400 26.00 402 26.00 414 25.95 416 25.95 416 Class 4b $ 2.2846/lb. $ 0.5806/lb. $ 13.05/cwt. OCT16 26.28 353 26.28 353 26.28 353 26.53 353 26.78 353 NOV16 26.78 303 27.18 303 27.18 304 27.43 305 27.43 305 DEC16 27.50 315 27.58 315 27.58 315 27.58 315 27.60 315 JAN17 29.60 29 29.60 29 29.60 29 29.60 29 29.60 29 Weekly Cold Storage Holdings February 29, 2016 FEB17 30.50 28 30.50 28 30.50 28 30.50 28 30.50 28 MAR17 27.00 31 27.03 31 27.03 31 27.03 31 27.03 31 On hand Week Change since Feb. 1 Last Year Total Contracts Traded/ Monday Change Pounds Percent Pounds Change Open Interest 7/5,757 8/5,763 34/5,775 70/5,797 27/5,060 Butter 20,937 +1,299 +6,441 +44 9,660 +11,277 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. Cheese 93,454 +796 +1,491 +2 95,740 -2,286 *Total Contracts Traded/Open Interest reflect additional months not included in this chart. (These data, which include government stocks and are reported in thousands of pounds, are based on reports from a limited sample of cold storage centers across the country. This chart is designed to help the dairy industry see the trends in cold storage between the release of the National Agricultural Statistics Service’s monthly cold storage reports.) Dry Products* March 4, 2016 CLASS III PRICE NONFAT DRY MILK (Dollars per hundredweight, 3.5% butterfat test) Central & East: low/medium heat $.7500(+1)-$.8400; YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC mostly $.7600(+1)-$.8100(+2). 2010 14.50 14.28 12.78 12.92 13.38 13.62 13.74 15.18 16.26 16.94 15.44 13.83 high heat $.8800(-2)-$1.1000. 2011 13.48 17.00 19.40 16.87 16.52 19.11 21.39 21.67 19.07 18.03 19.07 18.77 West: low/medium heat $.7100(+2)-$.8200(+1); 2012 17.05 16.06 15.72 15.72 15.23 15.63 16.68 17.73 19.00 21.02 20.83 18.66 mostly $.7200(+1 3/4)-$.7800(+2). 2013 18.14 17.25 16.93 17.59 18.52 18.02 17.38 17.91 18.14 18.22 18.83 18.95 high heat $.8400-$1.0975. 2014 21.15 23.35 23.33 24.31 22.57 21.36 21.60 22.25 24.60 23.82 21.94 17.82 Calif. manufacturing plants: extra grade/grade A weighted ave. $.7762(-.0027) 2015 16.18 15.46 15.56 15.81 16.19 16.72 16.33 16.27 15.82 15.46 15.30 14.44 based on 6,337,795 lbs. 2016 13.72 13.80 WHOLE MILK POWDER (National): $1.1700(+17)-$1.4475(-5 1/4). STAFF SUBSCRIPTION INFORMATION Susan Quarne, Publisher Cheese Market News®, Publication #0598-030, (ISSN 0891- EDIBLE LACTOSE (PH 608/831-6002; FAX 608/831-1004) 1509), is published weekly by Quarne Publishing LLC, P.O. (FOB)Central and West: $.1800-$.3200; mostly $.1950-$.2500. email: [email protected] Box 628254, Middleton, WI 53562; Phone 608/831-6002; Kate Sander, Editorial Director FAX 608/288-9093. Periodicals postage paid at Madison, (PH 509/962-4026; FAX 509/962-4027) WI. Circulation records are maintained by Quarne Publishing LLC, P.O. Box 628254, Middleton, WI 53562. POSTMASTER: WHEY POWDER email: [email protected] Send address changes to Cheese Market News®, Subscriber Alyssa Mitchell, Central: nonhygroscopic $.1800(-2)-$.2800(+1/2); Senior Editor Services, P. O. Box 628254, Middleton, WI 53562; Form (PH 608/288-9090; FAX 608/288-9093) mostly $.2200(-1/4)-$.2600(+1/4). 3579 requested; or call direct at 608/831-6002. All rights West: nonhygroscopic $.2300-$.3100(-2 1/2); email: [email protected] reserved under the United States International and Pan- Rena Archwamety, News/Web Editor American Copyright Conventions. No part of this publication mostly $.2300-$.2700. (PH 608/288-9090; FAX 608/288-9093) may be reproduced, stored in a retrieval system or transmitted (FOB) Northeast: extra grade/grade A $.2475-$.2825. email: [email protected] in any form or by any means, mechanical, photocopying, Chelsey Dequaine, Assistant Editor electronic recording or otherwise, without the prior written ANIMAL FEED WHEY (Central): Whey spray milk replacer $.1300(-1)-$.2150. (PH 608/288-9090; FAX 608/288-9093) permission of Quarne Publishing LLC. Opinions expressed email: [email protected] in articles are those of the authors and do not necessarily REGULAR CONTRIBUTORS UHÁHFWWKRVHRI4XDUQH3XEOLVKLQJ//&GED&KHHVH0DUNHW CONCENTRATE (34 percent): $.5400-$.7300; News®. Cheese Market News® does not endorse the products Creative Business Services, FCStone, International Dairy of any advertiser and does not assume and hereby disclaims mostly $.5400-$.6200. Foods Association, Eric Meyer, National Milk Producers any liability to any person for any loss or damage caused by Federation, Rice Dairy, John Umhoefer, U.S. Dairy Export errors or omissions in the material contained herein, regard- Council, WOW Logistics, Edward Zimmerman DRY BUTTERMILK less of whether such errors result from negligence, accident (FOB)Central & East: $.7200-$.8500(+1). ADVERTISING/SUBSCRIPTION ORDERS & INFO or any other cause whatsoever. Copyright 2016 by Quarne Publishing LLC. (FOB) West: $.6600-$.8250(-2 1/2); mostly $.7400(-3)-$.8000. Contact: Susan Quarne - Publisher Subscriptions: $145 for U.S., second-class delivery; P.O. Box 628254, Middleton, WI 53562 IRU86ÀUVWFODVVGHOLYHU\LQFOXGLQJ&DQDGDDQG PHONE 608/831-6002 • FAX 608/288-9093 International rate to all others. Printed in U.S.A. CASEIN: $2.2200(-28)-$3.3500; Acid $2.3600(-37)-$3.5000. WEBSITE: www.cheesemarketnews.com *Source: USDA’s Dairy Market News

DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 3 MARKET INDICATORS

National Dairy Products Sales Report International Dairy Markets March 4, 2016 For the week ended: 2/27/16 2/20/16 2/13/16 2/6/16 Cheese 40-lb. Blocks: Western Europe Average price1 $1.5040 *$1.4933 $1.4958 $1.5011 Butter: 82 percent butterfat $2,550(-300)-$2,725(-325). Sales volume2 13,019,445 *13,014,284 12,916,651 12,422,286 Butteroil: 99 percent butterfat $3,500-$3,925(-50). Cheese 500-lb. Barrels: Skim Milk Powder: 1.25 percent butterfat $1,650(-50)-$1,800(-25). Average price1 $1.5958 *$1.5833 $1.5797 $1.5799 Whole Milk Powder: 26 percent butterfat $2,000(-100)-$2,225(-75). $1.5207 *$1.5126 $1.5074 $1.5102 Adj. price to 38% moisture Whey Powder: Nonhygroscopic $500-$700. Sales volume2 8,695,026 *9,508,649 9,673,471 9,478,002 Moisture content 34.94 35.10 35.02 35.14 Oceania Butter: Butter: 82 percent butterfat $2,750(-50)-$3,000(-200). Average price1 $2.0737 $2.1329 $2.1514 $2.1720 : 39 percent maximum moisture $2,500-$3,000(-200). 2 5,002,912 Sales volume 4,146,845 5,210,395 4,916,851 Skim Milk Powder: 1.25 percent butterfat $1,700(-25)-$1,825(-75). Nonfat Dry Milk: Whole Milk Powder: 26 percent butterfat $1,900(+65)-$2,100. Average price1 $0.7677 *$0.7710 $0.7631 $0.7732 Source: Dairy Market News. Prices reported in U.S. dollars per metric ton, F.O.B. port. To convert 2 14,117,808 *16,020,969 16,260,419 17,591,439 Sales volume to price per pound: divide price by 2,204.6 pounds. Dry Whey: Average price1 $0.2589 *$0.2462 $0.2361 $0.2478 Sales volume2 6,607,968 *8,716,340 7,429,199 7,210,135

*/Revised. 1/Prices weighted by volumes reported. 2/Sales as reported by participating manufacturers. Reported in pounds. More information is available by calling AMS at 202-720-4392. Class & Component Prices

CME FUTURES for the week ended March 3, 2016 February 2016 January 2016 Class III: Class III Milk* Price $ 13.80/cwt. $ 13.72/cwt. Fri., Feb. 26 Mon., Feb. 29 Tues., March 1 Wed., March 2 Thurs., March 3 Skim Price $ 5.68/cwt. $ 5.85/cwt. FEB16 13.80 4,158 13.80 4,157 13.80 4,141 13.80 4,531 ------Class IV: MAR16 13.66 4,793 13.74 4,677 13.56 4,458 13.63 4,408 13.77 4,276 Price $ 13.49/cwt. $ 13.31/cwt. APR16 13.50 4,477 13.57 4,570 13.31 4,853 13.33 4,880 13.52 5,118 Skim Price $ 5.36/cwt. $ 5.43/cwt. MAY16 13.53 3,835 13.66 3,835 13.28 3,919 13.31 3,949 13.53 3,997 JUN16 13.84 3,070 13.87 3,238 13.55 3,332 13.58 3,396 13.70 3,428 Class II: JUL16 14.21 2,729 14.25 2,721 14.01 2,758 14.03 2,779 14.05 2,801 Price $ 14.30/cwt. $ 14.19/cwt. AUG16 14.60 2,394 14.63 2,394 14.47 2,422 14.50 2,442 14.58 2,451 Butterfat Price $ 2.3848/lb. $ 2.3132/lb. SEP16 14.94 2,351 15.00 2,364 14.84 2,397 14.81 2,409 14.81 2,425 OCT16 15.20 1,938 15.21 1,928 15.03 1,946 15.00 1,952 15.05 1,962 Component Prices: NOV16 15.20 1,798 15.26 1,817 15.07 1,827 15.07 1,833 15.05 1,856 Butterfat Price $ 2.3778/lb. $ 2.3062/lb. DEC16 15.19 1,716 15.26 1,722 15.08 1,731 15.05 1,734 15.05 1,751 Nonfat Solids Price $ 0.5951/lb. $ 0.6037/lb. JAN17 15.25 297 15.21 297 15.07 301 15.07 304 15.07 307 FEB17 15.25 238 15.25 238 15.11 239 15.05 241 15.05 241 Protein Price $ 1.7389/lb. $ 1.8169/lb. MAR17 15.36 199 15.36 199 15.29 200 15.17 202 15.17 202 Other Solids Price $ 0.0492/lb. $ 0.0371/lb. APR17 15.40 141 15.40 141 15.32 142 15.25 142 15.25 142 Somatic Cell Adjustment Rate $ 0.00076/1,000 scc $ 0.00076/1,000 scc Total Contracts Traded/ Product Price Averages: Open Interest 1,190/34,893 1,755/35,263 662/35,813 1,012/31,568 976/34,729 Butter $ 2.1350/lb. $ 2.0759/lb. Class IV Milk* Nonfat Dry Milk $ 0.7689/lb. $ 0.7776/lb.

Fri., Feb. 26 Mon., Feb. 29 Tues., March 1 Wed., March 2 Thurs., March 3 Cheese $ 1.5170/lb. $ 1.5178/lb. Dry Whey FEB16 13.44 241 13.45 241 13.45 241 13.49 326 ------$ 0.2469/lb. $ 0.2351/lb. MAR16 13.25 243 13.25 243 13.25 242 13.16 230 13.18 226 APR16 13.28 264 13.30 264 13.32 264 13.32 264 13.34 267 MAY16 13.46 281 13.49 281 13.52 286 13.52 286 13.52 286 JUN16 13.80 255 13.82 255 13.82 255 13.82 255 13.82 256 JUL16 14.15 266 14.15 266 14.15 266 14.15 266 14.15 264 AUG16 14.45 206 14.47 206 14.47 206 14.47 206 14.47 206 SEP16 14.69 173 14.69 173 14.69 173 14.75 177 14.75 177 OCT16 14.83 215 14.83 215 14.86 226 14.95 230 14.95 230 NOV16 14.90 158 14.91 157 14.91 149 14.91 149 14.91 149 DEC16 14.66 177 14.70 176 14.89 170 14.89 170 14.89 170 Total Contracts Traded/ Open Interest 24/2,511 2/2,509 45/2,510 45/2,590 22/2,262 Cash-Settled NDM*

Fri., Feb. 26 Mon., Feb. 29 Tues., March 1 Wed., March 2 Thurs., March 3

FEB16 77.13 1,161 77.13 1,161 76.98 1,159 76.89 1,274 ------MAR16 80.48 1,189 80.10 1,188 79.65 1,176 79.75 1,162 79.00 1,161 APR16 82.23 1,026 82.83 1,027 81.93 1,087 82.00 1,086 79.95 1,081 MAY16 83.53 963 84.25 972 83.73 979 83.75 1,007 81.03 972 JUN16 85.65 825 86.50 835 85.98 858 85.78 885 83.10 862 JUL16 88.25 673 89.50 672 88.53 691 88.48 717 85.50 684 AUG16 91.60 572 92.00 587 91.78 599 92.00 599 89.98 603 SEP16 93.50 451 93.50 454 93.50 474 94.90 468 91.70 466 OCT16 94.00 326 94.65 323 94.60 325 94.90 336 93.08 337 Total Contracts Traded/

Open Interest 291/7,866 276/7,899 383/8,029 457/8,204 614/6,843 Cash-Settled Butter* If you are looking for an Fri., Feb. 26 Mon., Feb. 29 Tues., March 1 Wed., March 2 Thurs., March 3 Exit Strategy or FEB16 213.50 795 213.50 795 213.50 795 213.50 873 ------MAR16 200.50 956 200.13 956 199.78 980 200.33 976 204.50 974 Acquisition, let us help APR16 203.00 975 202.03 988 201.00 991 203.50 1,008 206.00 994 MAY16 203.03 795 203.00 803 200.50 804 203.50 805 208.48 806 you fulfill your Dreams JUN16 203.90 732 203.50 741 202.03 745 204.00 754 209.00 757 JUL16 206.00 482 205.50 485 204.00 489 205.80 490 210.80 507 AUG16 210.28 507 207.80 513 207.00 522 208.00 521 213.00 523 Bob Wolter SEP16 210.50 439 208.25 450 208.00 456 208.00 456 213.00 456 c: 312.576.1881

OCT16 212.00 333 209.28 340 208.58 361 210.00 361 210.05 361 NOV16 211.10 259 209.00 269 209.00 276 209.00 280 209.00 280 Artisan Dairy Industry Total Contracts Traded/ Business Transaction Specialist Open Interest 174/6,474 154/6,541 130/6,622 112/6,727 119/5,861 Daily market prices are available by visiting CME’s online statistics sites at http://www.cmegroup.com. *Total Contracts Traded/Open Interest reflect additional months not included in this chart. For more information please visit www.cbs-global.com DISCLAIMER: Cheese Market News® has made every effort to provide accurate current as well as historical market information. However, we do not guarantee the accuracy of these data and do not assume liability for errors or omissions. © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 4 CHEESE MARKET NEWS® — March 4, 2016 GUEST COLUMNISTS CMN Exclusive!

growing at double digits, up 11.8 percent • Pizza Rev: “Craft your own custom in sales in 2014. pizza.” “Organic red sauce.” “Roman- Perspective: Technomic also reports that the style perfection.” “We dared to revolu- Dairy Marketing largest eight fast casual pizza chains tionize the world’s favorite food.” experienced 156 percent collective These statements paint a picture Bob Carroll is the vice president sales growth in 2014. Across these eight of transformation within the pizza of business development for the chains, the cheese options include: Moz- industry — from mass produced to California Milk Advisory Board, zarella, Cheddar, Parmesan, , customized, from frozen to fresh, slow which is funded by California dairy , , Feta, goat, to fast, and in many cases tipping the producers and executes advertising, “dairy-free” and “vegan” cheese. price value scale toward a new value public relations, research and retail Taking a look at the websites and proposition — freshness, quality and and foodservice programs on behalf marketing materials for this “Innovative speed at a good price. of California dairy products. He Eight,” we see some common themes: As we consider occasions for pizza, contributes this column exclusively • : “Artisanal quality at dinner and weekends dominate. But for Cheese Market News®. crazy-fast speed is what we’re all about.” fast casual opens up signifi cant new “Walk the line and choose any toppings opportunity for pizza at lunch. Elise you’d like.” “It’s all at one price.” “180 Wetzel, co-founder of Blaze Pizza, seconds.” describes its origins, “It’s a concept • Pizzeria: “Personalized, that was scratched out on the back of No need to moderate artisan style pizza.” “78 billion pizza a napkin, because Rick and I wanted possibilities.” “We’re here to feed our some great pizza for lunch.” They and our love of pizza community, nourish creativity, and others have succeeded in delivering bring people together.” “A fresh retreat what is often a lighter, faster, and much Julia Child once said, “Everything in pounds per year. Almost 60 percent of from normal.” more lunch-appropriate pizza. This is an moderation … including moderation.” the cheese that California produces is • Uncle Maddio’s Pizza: “Real obvious opportunity for both Mozzarella What a perfect description of our love Mozzarella, tying the California dairy pizza, real fresh, real fast.” “Everything and specialty cheese growth. affair with food, especially comfort industry even more closely to America’s is fresh…locally grown veggies that Another opportunity for a win-win food. America loves its comfort foods, love of pizza. As we attend the Pizza are delivered every morning.” “Build between the pizza and dairy industries and pizza tops the list. In a December Expo in Las Vegas next week, it’s an ap- it your way.” is with dessert. In the Harris Poll refer- 2015 Harris Poll, pizza was the clear propriate time to evaluate the landscape • Pizza Studio: “Create your mas- enced earlier, ice cream was tied with number one, beating the next two of the pizza industry. terpiece.” “You create it, we make it.” chocolate for America’s second favorite favorites, chocolate and ice cream put Technomic’s Top 500 report mea- • MOD Pizza: “Great people making comfort food. Of the Fast Casual pizza together. Pizza is a food we love to share sured the foodservice pizza industry at simple food for complex times.” “Any chains mentioned, MOD Pizza serves with family and friends and that we eat $53 billion in 2014, with Limited Service toppings, same price.” “Super-fast.” milkshakes and Your Pie offers gelato. because it just tastes so good. In fact, Restaurants (LSR) comprising $35.4 “Made on demand.” “You are in charge.” With a typical pizzeria often lacking most of America will moderate any other billion or two-thirds of the total. Of • Pizza Company: “Custom, some of the margin-enhancing options food choice before pizza. the Top 500 chains measured by Tech- personal pizzas with quality ingredients of other restaurants such as appetizers Because of our love of pizza, Mozza- nomic, Quick Service still dominates in 5 minutes.” and desserts, it seems that gelato and rella is America’s favorite cheese, with the Limited Service pizza space, but the • Your Pie: “Express your inner per capita consumption more than 11 emerging Fast Casual pizza segment is pizza.” “Authentic Italian roots.” Turn to CARROLL, page 8 a

Perspective: ents (the organic ingredients may be happens to the quality of the dairy Cheese Technology declared and identifi ed in the ingredi- product made using such milk? It has ent panel).Products labeled natural are been scientifi cally proven that raw milk Dr. Mali Reddy serves as president not considered organic. Unlike organic held over a weekend tends to result in of the American Dairy and Food labeling, which must meet USDA crite- lower cheese yield and quality unless Consulting Laboratories and ria, the term “natural”is not federally it is protected using milk silo cultures. International Media and Cultures regulated. Considering the above, the follow- (IMAC Inc.), Denver, Colorado. He I have been asked several times by ing questions have been raised by the holds several degrees including various dairy and food industry person- organic manufacturers: M.S. and Ph.D. degrees from Iowa nel regarding the rules and regulations How long could one hold organic raw State University in food technology pertaining to organic cheeses and other milk safely in silos? Does organic and microbiology. He is a guest dairy products in the United States. milk spoil much faster than regular columnist for this week’s issue of In order to produce organic cheese milk? Can we use milk silo cultures Cheese Market News®. you must use organic milk from a in organic raw milk to protect it from producer who has been certifi ed by a spoilage? Should the milk silo cultures USDA-accredited certifying agent. The be organic? How about the rennet we dairy farmer who produces organic milk use, should it be organic? How about must only use organic feed and the cows the starter media and starter cultures, Technical issues on manufacture of should have access to outdoors and should they be organic? Can we use pasture. Antibiotics, growth hormones, approved natural preservatives and organic dairy products in America genetic engineering and cloning are mold inhibitors in organic cheese, and absolutely prohibited. In addition, the should they be organic? and How about Demand for organic products in both In the United States, only dairy cows must be fed and managed organi- the optional ingredients allowed in the the United States and Europe continues products that have been certifi ed as cally for at least one year prior to the standard of identity cheese, should they to grow. Because of rapid communica- meeting USDA organic standards can production of organic milk. be organic? tions and globalization, countries such be labeled “organic.” There are four Several organic cheese producers All of these questions can be an- as China and India also are following types of organic claims: 100 percent report that due to diffi culty in col- swered depending on what kind of suit. Although there is no concrete organic (all the ingredients must be lecting large volumes of raw organic organic claim you want to make. After scientifi c evidence to show that organic certifi ed organic with no exception); milk from farms, oftentimes they have receiving organic milk at a cheese or dairy products are superior to con- organic (product must contain at least to pool and hold raw milk in silos for dairy plant, it is advisable to protect its ventional products, many consumers 95 percent organic ingredients); made long periods, sometimes going as long quality by using a milk silo culture to believe that organically-produced food with organic ingredients (product must as 5 days. The question here is, if you turn on the raw milk natural lacto per- products are far superior. Consequently contain at least 70 percent organic hold organic raw milk for such a long oxidase system. This will minimize the the industry has to concentrate on the ingredients); and product made using time, how does it affect the safety and demands of the customer. less than 70 percent organic ingredi- quality? Going one step further, what Turn to REDDY, page 8 a © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS

U.S. House passes bill to ease menu labeling regulations on calorie information WASHINGTON — The U.S. House nizations — including the International orders being placed over formation on menu boards inside pizza recently passed a bill that would ease Dairy Foods Association (IDFA) and the phone or online, few customers chains and many other restaurants and requirements for restaurants and retail the American Pizza Community (APC) would ever use nutrition information weakens enforcement and consumers chains to post comprehensive calorie — sent a letter last month to House posted on a menu board, the letter says. protection. information for consumers. members in support of the bill. IDFA notes that many dairy products, “Despite the clever name, this anti- FDA in late 2014 fi nalized two rules “This bill will allow our small busi- including cheeses placed on pizza and menu labeling bill is neither common requiring that calorie information be ness owners to get back to doing what ice cream included in sundaes, could be sense nor would it disclose additional listed on menus and menu boards in they do best: making pizza,” says Lynn affected by these regulations. nutrition information,” says Margo G. chain restaurants and similar retail food Liddle, chairwoman of APC. “We will “IDFA has been a longtime supporter Wootan, director of nutrition policy, establishments and vending machines also continue to provide our custom- of common sense labeling regulations, CSPI. “It would result in consumer to help consumers make informed deci- ers with the most important nutrition recognizing that members need fl ex- confusion and prevent disclosure of sions about meals and snacks. The fi nal information, as many of us have been ibility when deciding where to place straightforward, consistent calorie rule also includes grocery stores and doing for a decade.” and display nutritional information to information at many foodservice es- convenience stores that sell restaurant- The letter notes that the rules also help customers make their purchasing tablishments.” type foods. do not provide workable compliance op- decisions,” the organization says. The bill now goes to the Senate The menu labeling rule, as required tions for restaurants that receive most However, the Center for Science for consideration and has been re- by the Affordable Care Act, applies to of their orders remotely, such as pizza in the Public Interest (CSPI) says the ferred to the Committee of Health, restaurants and similar retail food es- delivery. With more than 90 percent of House bill denies customers calorie in- Education, Labor and Pensions. CMN tablishments if they are part of a chain of 20 or more locations, doing business under the same name, and offering sub- stantially the same menu items for sale. (See “Food industry faces challenges, opportunities in calorie labeling” in the March 20, 2015, issue of Cheese Market News.) FDA in July announced it was extending the compliance date for menu labeling regulations to Dec. 1, 2016, for those covered by the rule. The recently-passed House bill, The Common Sense Nutrition Disclosure Act of 2015, maintains but modifi es FDA’s regulations, allowing retailers and restaurants to provide nutritional infor- mation to customers in a more usable format and to protect small businesses from overly burdensome costs. The bill would allow restaurants, including pizza chains, to post calorie information online instead of on menu boards. An adopted amendment offered by Rep. Cathy McMorris Rogers, R-Wash., aims to ensure that businesses would not be penalized for “inadvertent human error” in preparation or variation of in- gredients that could change the calorie counts from the ones posted online. More than 200 food and retail orga-

Pennsylvania dairy organizations offer scholarships HARRISBURG, Pa. — The Center for Dairy Excellence Foundation of Pennsylvania and the Pennsylvania Dairymen’s Association will offer seven $3,000 scholarships to undergraduate students for the 2016-2017 school year. Applications are due June 1. To be eligible, a student must dem- onstrate a commitment to working in the dairy industry in the future. Con- sideration for these scholarships will be given to Pennsylvania residents who are full-time undergraduate students currently enrolled or planning to enroll in an eligible fi eld of study. Applications must be completed using the official Student Leader Scholarship Application form available at www.centerfordairyexcellence.org/ student-leader-scholarships/. CMN For more information please visit www.caputocheese.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 6 CHEESE MARKET NEWS® — March 4, 2016 GUEST COLUMNIST CMN Exclusive!

economies uneasy to begin 2016, pizza dairy products. Perspective: marketers have a simple value message There have been articles in the and plenty of cash to tell the story news recently about the downturn in Dairy Markets as lower commodity costs can drive dairy commodity prices lasting three higher marketing spend if needed. years or more. The argument behind Eric Meyer is president of Convenience is a long-term benefi t shifting demand trends and a struc- HighGround Dairy*, Chicago, a fi rm while low cost can be a short-term tural change needed to slow milk pro- which specializes in dairy hedging, decision driver for pizza chains. Lower duction taking time for recovery can risk management and market gas prices have put more money in the be a compelling one. But global dairy analysis services. He contributes U.S. consumers’ pockets over the past demand is on the rise, particularly in this column exclusively for Cheese year, which has provided a short-term developing countries where Western- Market News®. boost to disposable income. But stock style diets are becoming more the norm market declines or Wal-Mart closing than the exception. 2015 total cheese stores for the fi rst time ever can have imports to Japan were up 7.5 percent an impact on consumer perception and while China and South Korea imports tighten food budgets. Millennials will were both 15 percent higher than the not stop their long-term trend of eating previous year. Those growth patterns out, but instead of taking their family are unlikely to stop. of four to a casual sit-down restaurant Volatility and uncertainty in the Commodity prices make it a great to dinner and spending $50, they may markets has been the one constant pick up a couple of pizzas and spend over the years. Climate changes, time to be in the pizza business $30 less on the meal. The outlook for natural disasters and geopolitical pizza demand is bullish. instability have proven challenging And at present, the outlook for to predict. Dairy futures and options This coming week, pizza industry through the one of the longest com- commodity costs that go into making markets at the Chicago Mercantile participants will gather in Las Vegas modity bull markets in decades, the a pizza are bearish. Thank China for Exchange have provided a pragmatic at the 2016 International Pizza Expo. future looks bright. its relentless commodity purchases solution for dairy buyers and sellers to Store owners, chain managers and Dominos reported fourth quarter in recent years driving raw material lock in or protect costs. No matter your corporate executive attendees will be 2015 earnings with solid results. Do- prices sharply higher causing a surge in method of hedging, whether it be on looking to discover the latest trends mestic same-store sales skyrocketed production. Once China’s milk powder your own or through your supplier, I can and fl avors, while others will use this by 10.7 percent vs. the prior year and imports fell apart in late 2014, global make no more important recommenda- time as a social gathering to network international stores posted an 8.6 milk production growth has proven dif- tion than to learn about, understand with suppliers and colleagues. In years percent increase. And while growth fi cult to shut down. Favorable weather and ultimately utilize these hedging past, conferences have been great was not as solid from their top two over the past two years also has played tools. Cheese futures currently are venues for attendees to complain about publicly traded competitors, the a key role in lowering on-farm costs valued in the $1.60s out through June commodity costs eating into profi t- positive momentum is clear. and boosting milk production and com- 2017! Remember when the CME block ability. Fortunately, that will NOT be a saw 2 percent domestic same-store ponent levels across the world. And Cheddar price was $2.45 per pound? topic of conversation this year as many sales gains while Papa Johns was 1.9 fi nally, the Europeans were ill-timed Today’s bearishness is being refl ected of the commodities they purchase are percent higher versus Q4 2014. Chi- in their removal of milk production in the markets nearly 18 months into far less than where they have been in cago is my hometown, and I continue quotas last April. Combine 30 years of the future. recent years. to be amazed at the saturation of pent up demand by farmers to maxi- Do not get lulled to sleep by all Dough and cheese make up a value chains along with higher-priced mize production with advantageous the bearish chatter in the markets dominant percentage of a pizza’s cost ‘mom and pop’ operations congested weather conditions and the world’s today — what happens tomorrow, next and both are at levels not seen since together, and all seem to be thriving largest milkshed — approximately 1.5 month or six months from can have a 2010! Demand for pizza has grown with little to no attrition. times the size of the United States, 7 negative impact on pizza raw material substantially over the past six years, Those looking through the demand times the size of New Zealand — is costs. Use today’s bearish sentiment both in the United States as well as on lens, pizza sales are poised to remain fl ooding the global supply chain with to lock in cheese prices at levels well a global scale. For those that survived healthy. With the U.S. and global below long-term averages and focus your attention on what you do best, making a fantastic product your cus- tomers will enjoy (and afford!) CMN

The views expressed by CMN’s guest columnists are their own opinions and do not necessarily refl ect those of Cheese Market News®. Eric Meyer President *These observations include in- formation from sources believed to be reliable, but no independent veri- fi cation has been made and therefore New Now Trading NZX Dairy Derivatives their accuracy and completeness cannot be guaranteed. Opinions and Singapore Office Now Open! • HighGround Dairy is an Independent Introducing recommendations expressed are the Brokerage that allows clients to choose from a Learn about our high-touch approach to client variety of clearing firms opinion of the authors and are subject relationships and our commitment to meeting and • We adhere to the strictest confidentiality to change without notice. The risk of exceeding your business and hedging goals. standards on behalf of our customers loss in trading futures contracts or • Almost 15 years of experience in dairy commodity commodity options can be substan- Visit our website today and sign up for a free trial of risk management our comprehensive dairy market intelligence package. tial, and investors should carefully • Specializing in risk management education consider the inherent risks of such an and developing customized hedging strategies and programs to meet client needs investment in light of their fi nancial condition.

Disclaimer: HighGround Dairy is a division of HighGround Trading LLC (“HTG”). HTG is registered as an Introducing Broker with the Commodity Futures Trading www.highgrounddairy.com Commission and an NFA Member. Futures and options trading involves risk of loss and is not suitable for all individuals. PAST PERFORMANCE IS NOT Direct: 312-604-3080 | Toll Free: 877-206-4250 NECESSARILY INDICATIVE OF FUTURE RESULTS.

For more information please visit www.highgrounddairy.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 7 NEWS/BUSINESS

Domino’s adds Apple Watch, Amazon Echo to ordering options; opens 1,000th store in India ANN ARBOR, Mich. — Domino’s Pizza text, smart TV and now Amazon Echo.” Domino’s skill within the Amazon Alexa fastest-growing international market. recently announced its customers can Ordering via Amazon Echo marks app by linking their account to their The store, located in Janakpuri, Delhi, track any order, as well as place their Domino’s eighth platform in the suite Domino’s Pizza Profi le. To track their opened Feb. 5. Domino’s says India has most recent order, or Easy Order, using of AnyWare technology and Apple Watch order, Domino’s customers must enter more Domino’s stores than any other the Amazon Echo and the Apple Watch. marks Domino’s ninth platform. the phone number associated with the market outside the United States, and Domino’s is the fi rst national pizza “The magic of ordering pizza with- order, and Alexa will provide its cur- Domino’s is the largest pizza brand in company in the United States to launch out lifting a fi nger and just using your rent status. India. ordering capabilities via Apple Watch. voice is now a reality with Alexa and To order via Apple Watch, Domino’s “India opened its 900th store this “Domino’s is the fi rst in the pizza Domino’s,” says Rob Pulciani, director, says its customers must download the summer,” says Patrick Doyle, presi- and quick-service restaurant industries Amazon Alexa. “We’ve made it easy for ordering app from the App Store and dent and CEO, Domino’s. “The fact to have an Amazon Alexa skill,” says companies like Domino’s to use the turn on “Show App on Apple Watch” that they are now at 1,000 stores half Dennis Maloney, vice president and Alexa Skills Kit to create more natural, in the watch’s app settings. Customers a year later is a testament to the op- chief digital offi cer, Domino’s. “We’re ex- intuitive ways for customers to interact also must have a Pizza Profi le with a portunity for growth in India and the tremely proud to be the only restaurant with their services.” saved Easy Order. commitment of our master franchisee, company in the U.S. that gives customers To place an Easy Order on Amazon Domino’s also recently opened Jubilant FoodWorks, to serving custom- the ability to order via emoji, Twitter, Echo, customers must enable the its 1,000th store in India, Domino’s ers in this important market.” CMN Toppers Pizza provides meals to families facing hunger through Hunger-Relief Event WHITEWATER, Wis. — Toppers Pizza Through this partnership, the Feeding the lives of families throughout the own personal time. this week held a systemwide, one-day America network of food banks can country. As Toppers Pizza continues to ex- Hunger-Relief Event to help those in provide more food and groceries to Over the past four years, Toppers has pand nationwide, Gittrich says he be- need. Toppers, which has been in a people struggling in the United States,” collectively raised a total of $250,000 lieves the company’s relationship with partnership with Feeding America says Toppers Founder and CEO Scott for Feeding America — the equivalent Feeding America also will continue to since 2011, on Monday held an event in Gittrich. “With more than 70 locations of more than 2 million meals. grow, allowing the brand to aid an even which all Toppers locations sold large, spanning 12 states, we have the poten- In order to spread awareness of this greater number of families affected by one-topping pizzas for carry-out for just tial to feed hundreds of families in need. hunger epidemic, Toppers franchisees hunger in the years to come. $4.99. For each large, one-topping pizza Gittrich notes this is the fi rst time have made the Feeding America net- “Through our partnership with sold, the chain donated $2 to Feeding Toppers held a one-day event like this work a focal point at their individual Feeding America, we’ve been able to America. focused on the individual efforts of its locations, from developing Topperstix connect with the community and make “On the national level, a simple local stores, and he believes this is a eating contests and creating special a true difference for a cause that we feel $1 donation helps provide 11 meals. simple way to make a great impact on menu promotions to volunteering their passionately about,” Gittrich says. CMN

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CARROLL According to Shelia Crandell, the has now grown to $200 million in sales Whether across the world, or across director of sales for California-based driven initially by retail. We see tremen- town, pizza plays an important role Continued from page 4 Villa Dolce Gelato, “Five years ago gelato dous growth for gelato at foodservice as in our lives, connecting us, and often pizza are a natural fi t. sales were $10 million. That category consumers become more savvy and look saving the day. Last weekend my wife for healthier, lighter desserts.” was out of town, and gradually my IMAC products (cultures, According to Euromonitor Inter- house fi lled with nine teenagers. As media, anti-caking agents etc.) national, Western Europe and North dinner time rolled around and they have zero complaints for the America dominate global pizza sales hadn’t left yet, I didn’t have to think past 34 years in the U.S. and with $98 billion between them in 2014. twice about the solution … three European dairy industry, and Latin America is third at $19 billion extra-larges from our neighborhood we are proud of our technology, and Asia Pacifi c fourth at $12 billion. pizzeria. Just doing my part … CMN company and our staff. We Asia Pacifi c however leads the world’s extend our sincere appreciation growth at +27 percent. This presents to our large customer base, who always give us the another significant opportunity for The views expressed by CMN’s guest (International Media And Cultures) five star ★ ★ ★ ★ ★ rating for the U.S. dairy industry and especially columnists are their own opinions consistency and reliability. for California given its proximity and and do not necessarily refl ect those of signifi cant Mozzarella production. Cheese Market News®. • IMAC Anti-Caking agent products (made with either individual ingredients or combinations of Potato Starch, Corn Starch, Flour, Cellulose, etc.) are produced with zero allergens (hypoallerginized) and contaminants using our proprietary Enzyme-Nano Spray drying technology. IMAC produces white, off-white and Regulations (CFR) under title 7, part colored Anti-Caking agents. Considering the recent awareness on cellulose REDDY 205 of the National Organic Program. (wood pulp), we have cellulose-free, spray-dried Anti-Caking agents. Continued from page 4 • IMAC is the leader and strongly believes and proved that the use of Bulk Starters It is clearly stated under section § (both primary and secondary) curtail pathogens (a serious problem due to zero risk of excess growth of psychrotrophs 205.605 that several non-agricultural tolerance) and costly product defects due to the presence of bacteriocins and other (non-organic) substances are allowed pathogens inhibiting compounds. Bulk Starters also improve cheese yields and and pathogens if they are present in customer desired cheese functionalities. the raw milk. The next obvious ques- as ingredients in or on processed prod- • IMAC Functional Cultures (including MJ, AP, Brine Guard and Milk Silo Cultures) tion is, does the milk silo culture need ucts labeled as “organic” or “made are the most popular in the U.S. and European market to eliminate the product to be organically certifi ed? I believe with organic ingredients.” defects in Mozzarella and Provolone cheeses (browning-blistering, excess oil The next major issue that is much release, chewiness, unsatisfactory melt and flavor on pizza), Spanish the answer is no. Dairy cultures are al- cheeses (elimination of pathogens, gas and yeast and molds), lowed by USDA to be used in “organic discussed is organic cheese produc- Cheddar cheese (body and flavor defects). foods,” even though they are non-or- tion. In my opinion, it is not possible • IMAC Flavor Starter Cultures (Parmesan, Romano, and Cotija) ganic (by defi nition). They are catego- to manufacture “100 percent organic” are the all-time favorites in North America and elsewhere. rized under nonsynthetic substances cheese. The only thing that is possible • IMAC provides top class consulting services and soon to introduce in 2016 the popular and practical allowed as ingredients in products is to make “organic cheese,” where classes and seminars on cheese and dairy labeled as organic “or “made with or- the dairy product must contain at product technology. ganic.” In my opinion, the dairy indus- least 95 percent organic ingredients. Please Inquire For Details. try must stick with the “organic” claim The organic raw milk as an ingredient • RETAIL • FOODSERVICE • INDUSTRIAL rather than “100 percent organic.” should constitute 95 percent and any This also applies to fl uid organic milk, non-organic ingredients such as ren- Visit us at the whether it is sold as pasteurized or net (produced from a non-genetically Pizza Expo raw. Organic milk for fl uid consump- modifi ed source), calcium chloride, Booth #2225 tion can be better preserved using dairy cultures, primary starter, sec- WORLD HEADQUARTERS milk silo cultures that are approved ondary starter, etc. must not exceed 1280 S. Parker Rd., Ste. #203 • Denver, CO 80231 (800) 783-4615 or (303) 337-4028 ext. 112 • Fax: 303-337-5140 as non-organic ingredients allowed to 5 percent (in comparison to volume Dr. Reddy’s cell: 303-944-5215 • V.R. Mantha’s cell: 303-994-2820 be used in the organic foods. The next of the milk). Email:[email protected] • Web: www.askimac.com question is, are there any set stan- Another question asked is, what PIONEERS IN DAIRY, FOOD & BIO TECHNOLOGY dards and exceptions? Yes there are. about the anticaking agents used in the For more information please visit www.askimac.com They are listed in the Code of Federal organic cheese? The anticaking agents must be specially designed for this pur- pose. According to the CFR pertaining to organic certifi cation, cellulose is accepted to be used as an ingredient in anticaking agents. However such cel- lulose must be non-chlorine bleached. Starches and cornstarch (native) also are allowed to be used as anticaking agents. Enzymes of non-genetically modifi ed microbial origin and calcium sulfate may be used as well. The amount of anticaking agent applied must be From humble beginnings to time-honored carefully controlled, considering the traditions, Nasonville Dairy always offers quantity allowed according to the quality cheese and you will taste the difference! organic labeling requirements. I hope I have clarifi ed several ques- • Over 40 Varieties, Styles and Types of Award-Winning Cheese • Extensive & Unique Cheeses from Traditional to Specialty tions regarding organic dairy products. • Crafted by Two Master Cheesemakers Since it is a growing area, dairy product • Consistent, Affordably Priced Product manufacturers must take extra precau- • Third Generation Wisconsin Dairy Supporting Local Dairy Farmers tions to curtail the microbiological and Explore our online store and product offerings by quality problems. This area is wide open visiting our website at www.nasonvilledairy.com to the dairy industry. All in all, it is not as hard as people think to manufacture or- ganic dairy products provided you follow USDA set rules and regulations. CMN 10898 Hwy 10 West • Marshfield, WI 54449 Phone: 715-676-2177 • Fax: 715-676-3636 The views expressed by CMN’s guest Email: [email protected] www.nasonvilledairy.com columnists are their own opinions and do not necessarily refl ect those For more information please visit www.nasonvilledairy.com of Cheese Market News®. © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 9 NEWS/BUSINESS

Pie Five Pizza Co. expands with locations, 1000 Degrees expands development deals, new menu items GALLOWAY, N.J. — Fast-casual fran- of Florida, with restaurants expected chise 1000 Degrees Neapolitan Pizza to open in Lake City, Jacksonville, — Pie Five Pizza Co. recently is topped with shrimp, grape tomatoes recently announced the opening of new Gainesville and Orlando within the next opened a new Manhattan location and chopped parsley. locations in several states. three years. and its second Lexington, Kentucky, “With spring right around the cor- 1000 Degrees debuted in Arizona with New stores also are scheduled to open location. The company also recently ner, we wanted to introduce a light, the opening of its Phoenix location Jan. in New Jersey, Michigan, California, Vir- announced plans to add up to 10 new fresh new pizza that is unlike anything 31 and in North Dakota with its Grand ginia, Ohio, Texas and Connecticut. The Pie Five locations in Kansas City, on our menu,” says Patty Scheibmeir, Forks grand opening Jan. 14. A second company currently has more than a dozen Missouri. vice president, research and develop- Arizona location will open soon. Earlier stores open in New Jersey, Michigan, Under a new development agree- ment and product innovation, Pie in January, 1000 degrees announced it Arizona, Connecticut and North Dakota. ment, franchisee Dave Goebel, along Five Pizza. signed a franchise agreement to bring 12 It also has one location in Malaysia. with his sons Kevin and Kerry and his Pie Five also recently launched its units to South Florida, the fi rst of which Founded in 2014, the franchise daughter Lyssa, plan to add stores in new Breadstix in three offerings: Garlic is expected to open this month. anticipates more than 80 units will the Kansas City metropolitan area on Butter, Cheesy Breadstix and Bacon The South Florida agreement is part be open by the end of this year both the Kansas and Missouri sides Cheesy Breadstix. Breadstix are baked of a larger expansion throughout the and more than 170 units by 2017. of the river. using Pie Five’s classic dough, state, which also includes partnerships For more information, visit http:// This is the second Pie Five fran- and the cheesy varieties are made in the Northern and Central regions www.1000DegreesPizza.com. CMN chisee to add locations this year. In with Mozzarella cheese on top. CMN January, Rob Byford, franchise owner, signed a development deal to add seven new Pie Five locations in Memphis. Pie Five currently has 400 locations in development throughout the country. This month, Pie Five began offering There’s a REASON WHY Milano’s its new Shrimp Scampi-zza. The pizza, available until March 27, begins with a is the fastest growing garlic scampi sauce on a thin crust and Italian Cheese Company... tops We're the EXPERTS specializing Harris Poll list ONLY in Italian Hard Cheese. of favorite Grated, Shredded, pizza toppings Shaved & Custom Blends NEW YORK — In a recent Harris Parmesan Poll, pepperoni is top on the list of Romano favorite pizza toppings. Anchovies, on Asiago the other hand, rank fi rst on the list of Three Cheese Blends least favorite toppings. The results are Spice Blends! of the Harris Poll of 2,193 U.S. adults Kosher & Organic surveyed online Jan. 13-18, 2016. Sausage and mushrooms rank sec- Retail & Foodservice ond and third, while a simple cheese Packaging pizza ranks fourth and onions round Bags – 1lb, 5lb, 10lb, 25lb, 50lb out the top fi ve. Mushrooms fall second Tubs – 4/5lb bags as the least favorite pizza topping, fol- Totes – 80/25lb bags lowed by pineapple, onions and olives. Jars – 3oz, 4oz, 8oz, 16oz When it comes to crust style, there’s Canisters – 8oz, 16oz no majority rule, though 29 percent Deli Cups – 4oz, 5oz, 8oz prefer thin crust. Eighteen percent of Display Units – 36 & 64/1lb bags adults surveyed prefer regular crust, 15 percent deep dish and 14 percent stuffed crust. Harris Poll says generation appears to play a factor in preferred crust style. For millennials, stuffed crust is the Highest Quality & Consistency No. 1 pick, while all other generations Master Product Formulator default to thin crust as their top choice. Food Safety Is our #1 Priority In the debate over New York style Private Label is our Pleasure versus Chicago deep dish, New York Laboratory Analysis Available is seen as the best state to get a good slice while Illinois comes in second. Nationwide & Global Distribution Better Price! Better Cheese! Better Service! California comes in third place. The rankings change when looking across regions: Easterners chose New York Contact Anthony Caliendo, VP of Sales & Marketing fi rst, followed by Pennsylvania and New Jersey; the Midwest chose Il- 1-800-BIGCHEESE (244-2433) I www.MilanosCheeseCorp.com linois fi rst, followed by New York SQF LEVEL 3 • HACCP CERTIFIED • APPROVED FOR US ARMED FORCES PROCUREMENT • WBENC CERTIFIED second and Ohio and Michigan tied EU CERTIFIED • LEEDS COMPLIANT / JVM SALES DBA MILANO’S CHEESE CORP., NEW JERSEY, USA for third; Southerners chose New York fi rst, Illinois second and Texas Please Visit Us third; and Westerners chose Califor- In Booth  nia fi rst with New York and Illinois rounding out the top three. CMN For more information please visit www.milanoscheesecorp.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 10 CHEESE MARKET NEWS® — March 4, 2016 CHEESE OF THE MONTH: Mozzarella MOZZARELLA with cow’s milk. Scamorza conform to the defi nition the acidity, we control the in Today in the United States, there are and standard of identity as prescribed the milk to end up with the cheese we Continued from page 1 various forms of Mozzarella as codifi ed for Mozzarella cheese and Scamorza want,” Lucey says. “The idea is to make in the Code of Federal Regulations. cheese, except that its milkfat content it more easy and consistent to make the least amount of Mozzarella. For Mozzarella and Scamorza (a mild, is less than 45 percent but not less than Mozzarella.” Mozzarella has been made in slightly salty cheese similar to Mozza- 30 percent. Lucey uses the analogy of a race car. southern Italy since Roman times and rella that is distinctively shaped into John Lucey, director, Wisconsin The lactose in the cheesemilk is like is believed to have originated in the an oval or pear), the minimum milkfat Center for Dairy Research (CDR), says the fuel. In a relay, race cars don’t want Naples area. It is a pasta fi lata cheese, content is 45 percent by weight of the Mozzarella’s performance attributes, overfull fuel tanks, but only the exact meaning that it is produced by dipping solids, and the moisture content is more such as melting, stretching and brown- amount of fuel needed to fi nish the race. the into hot whey. The cheese then than 52 percent but not more than 60 ing, are sensitive and determined by “We don’t want a lot of extra lactose is stretched and kneaded to the desired percent by weight. the amount of acid development in the in the system,” Lucey says. “We are trying consistency. For low-moisture Mozzarella and cheese. Because of this, CDR currently to fi gure out how much sugar we should The cheese was invented when Scamorza, the minimum milkfat content is researching ways to standardize leave in the cheese milk before we start cheese curds accidently were dropped is 45 percent by weight of the solids and the amount of lactose in the milk to a anything. By doing that we can start with into a pail of hot water. Mozzarella the moisture content is more than 45 specifi c number. The process, which the right amount of fuel in the tank.” traditionally was made using water percent but not more than 52 percent CDR launched in 2015, is called lactose In Mozzarella, too much lactose can buffalo’s milk, although today even in by weight. standardizing. lead to excessive acidity, poor melt and Italy the majority of Mozzarella is made Part-skim Mozzarella and part-skim “Rather than cheesemakers fi ght extra browning. CDR also has been researching high- pressure processing as a way to preserve cheeses for the extended times needed for transport involved in exporting. CDR has been testing the new technology on Mozzarella at American Co.’s facility in Milwaukee. Once Moz- zarella is manufactured, CDR treats it For dry-grated Parmesan, at high pressure for 3 minutes, killing enzymes and bacteria. Romano, Asiago... “It slows down the ripening process in the cheese,” Lucey says. “In Mozza- no one does it better rella, we don’t want a lot of ripening. We want it to melt, stretch and shred Introducing than Bella Pak! well. Shortly after manufacture it is just right, but during further storage these attributes start to deteriorate.” 7EDIDITWITH-ONDO6ECCHIO—our new Using high-pressure processing, product line of authentic Italian tasting hard CDR has extended the performance grated cheeses. shelf life of Mozzarella beyond 6 months. Without high-pressure processing, Lu- Get consistent, cey says Mozzarella’s shelf life in the ,ET"ELLA0AKDOITFORYOU United States typically is 1-2 months. high-quality products, personalized service “This is new to the dairy industry, CHEESE CHEESE and inventory management to help you reach but it’s common in the fruit juice and your sales goals! Choose your private label or meat industries,” he says. “We see this our Mondo Vecchio brand. as on option for a company that exports

NET WT. 8oz (227g) overseas to places like Korea.” NET WT. 8oz (227g) Jason Mounts, director of marketing, s1UICKTURNAROUND Co., Denver, says because s"ATCHDRYERS the majority of Mozzarella the company Offer your customers produces ends up on pizza, Leprino s#USTOMBLENDING authentic Italian taste in challenges itself to not only be cheese the most popular hard- s.EWANDSPECIALIZEDFORMULATIONS experts, but also pizza experts. s-ULTIPLEPACKAGINGOPTIONS “As the pizza industry grows, Moz- grated cheeses: zarella will grow,” Mounts says. s&INISHED PRODUCTPRICINGAVAILABLE With Mozzarella, Mounts says Lep- s0ARMESAN rino works with its pizza customers to s2OMANO Assorted pack sizes including 3-, 8- and 16-oz ensure the cheese delivers on specifi c jars and canisters, 2.25-lb jars, 5-lb tubs, 25- and consumer expectations, such as stretch, s!SIAGO melt, color and fl avor. 50-pound bag in box plus custom sizes! sPLUSDELICIOUSBLENDS Leprino Foods also offers its innova- tion agency, Innovation Studio, which Mounts calls an extension of Leprino’s belief in delivering value to its custom- #HOOSEYOURPRIVATELABELOROUR ers beyond quality cheese. BRAND “We recognize that if we help our cus- tomers grow through consumer-insight- driven innovation, we will grow, and the Call 920.735.4919 dairy industry will grow,” Mounts says. Appleton, Wisconsin USA “A lot of the work we do manifests in pizza because it’s such a specifi c part of our business.” www.bellapak.com Abigail Merz, director of cheese sales and marketing, Foremost Farms USA, Baraboo, Wisconsin, says consumers will always have a demand for pizza. For more information please visit www.bellapak.com Turn to DEMAND, page 11 a © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 11 CHEESE OF THE MONTH: Mozzarella DEMAND Foremost Farms works with indus- they get a load of cheese it will slice, “There are more forms and sizes trial pizza manufacturers and opera- shred or bake the same week in and offered today than 15 years ago,” Merz Continued from page 10 tors who want a high quality, premium week out,” she says. says. “We offer to meet customer needs, Mozzarella. Beyond that, Merz says clients look such as our addition of long styles of Foremost Farms has doubled its produc- “When we enter conversations with for bake appearance in Mozzarella, in Mozzarella for more effi cient slicing.” tion of Mozzarella since 2000. those different channels, we ask what addition to oiling, fl avor and texture. According to IRI, the retail cheese “There will be a continued increase they are looking for in a Mozzarella and “The East Coast likes to see a lighter market for shredded Mozzarella in the of Mozzarella driven by the pizza cat- customize our products to meet their colored pie,” she says. “The Midwest United States is approximately 221 mil- egory,” Merz says. “The other thing you needs,” Merz says. likes a golden-brown pie.” lion pounds, with a value of $968 million. can attribute the growth to is the fact The No. 1 attribute Merz says clients Foremost Farms offers a blending WMMB says shredded Mozzarella is that pizza is more accessible than it has look for in a Mozzarella is consistent service of shredded Mozzarella and popular and growing among American been in the past. A lot of people and quality. other cheeses for clients who want consumers. In the retail channel, volume businesses are serving pizza.” “They need to know every week when to feature specialty pizzas on certain sales of shredded Mozzarella increased nights of operation. by 6 percent from 2014-2015 and account “They might blend Cheddar and Pro- for 72 percent of total retail Mozzarella Urschel Labs sells company to employees volone with Mozzarella to make a more volume sales. CHESTERTON, Ind. — Rick Urschel, think of anywhere else I’d rather work.” specifi c or unique pizza,” Merz says. “Americans consume about 34 pounds president and CEO of Urschel Labora- For generations, the company has “In a 5-pound bag of shreds, you could of total cheese each year,” WMMB says. tories, on Thursday announced that the always tried to do what is in the best have 80 percent Mozzarella, 10 percent “We eat more Mozzarella than any other Urschel family has sold the company. interests of the employees, he adds. Provolone and 10 percent Cheddar.” cheese variety, about 11 pounds each year.” The news, however, was not met with “I know it sounds trite, but we really A desire for labor savings and opera- Beyond pizza, Mozzarella is seeing boos and jeers but rather hugs and high- feel our employees are our No. 1 asset,” tional effi ciencies has led to an increase growth from snacking trends. Mounts fi ves because just a few days before, the says Chairman of the Board Bob Urschel. in demand of shredded Mozzarella at says snacking on cheeses such as Moz- shareholders of Urschel Laboratories “My father always taught me that it was Foremost Farms, Merz says. zarella is increasing as consumers eat sold the company to the employees. the family’s job to look out for the em- “Instead of the block, which we saw smaller meals and look for healthier Over the past few weeks, sharehold- ployee, and decisions should always be an increase in years ago, people are snack options. ers have been tendering their stake in made with them at the forefront.” asking for it already shredded,” she “Mozzarella is an ideal snack choice the company to the Urschel Laborato- Urschel Laboratories has been owned says. “That trend continues as labor is because it’s lower in and calories ries Employee Stock Ownership Plan and operated by the Urschel family for a challenge and is costly.” than other types of cheeses,” he says. (ESOP). Shares are allocated to em- four generations. Started in 1910 by Foremost Farms works with in- “We also see an opportunity to innovate ployee accounts on an annual basis, and William Urschel, the company is a global dustrial customers to make different through fl avor. Mozzarella is a neutral upon retirement from the company, the leader in food cutting technology, with shapes and sizes of Mozzarella for their fl avor profi le, so it provides a blank employees sells their shares back to the direct sales offi ce in Europe, Asia and operations. canvas for unique fl avor options.” CMN ESOP for cash. South America. Urschel notes the uncertainty of “This decision was not an easy one the ability or willingness of the fi fth to come by and has been in the works generation to run the business caused for nearly a year,” Rick Urschel says. the company to start exploring options. “I am grateful that the shareholders of OVAL FULL SHRED CRESCENT FLAT-V® GRANULATION It quickly became clear that conversion the company were able to realize what to an ESOP was fair for the company, the an incredible benefi t this would be for shareholders and the employees. the employees, and what a wonderful WIDE OVAL REDUCED V-SHRED WIDE CRESCENT REDUCED FLAT-V® STRIP CUT “I’m not sure how many years my dad way we can reward them for their years has left to work, but everyone appreciates of dedicated service. Now, instead of having him around,” Rick Urschel says. the Urschel family being the stewards “He’s a great source for institutional of the company, we have passed that $&87$%29(7+(5(67 knowledge, and I rely on his counsel. obligation on to the employees. Today, As for me, I love living here and couldn’t we’re all part of the same family.” CMN

U.S.D.A., Dairy Division accepted Urschel cheese shredders offer a full range of precision cuts through use of easily interchangeable cutting heads. With different Pachine con¿gurations available, one is certain to meet your application requirements. ®

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For more information please visit www.epiplastics.com For more information please visit www.urschel.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 12 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

Papa John’s enters northeast France; eliminates artifi cial fl avors, colors from entire menu

LOUISVILLE, Ky. — Papa John’s In- “We now are approaching 4,800 res- States to remove artifi cial fl avors and search and development Papa John’s. ternational Inc. has signed a 38-store taurants in 40 countries and territories, synthetic colors from its entire food “This exemplifies Papa John’s con- development agreement in northeast and we are proud to add France as our menu, which includes all pizza ingredi- tinued efforts to deliver high-quality France. Hassan Bouanaka, the master newest country,” he says. ents, pizza toppings, dessert items and products.” franchisee, will open the fi rst store in The entry into France is part of Papa sauce selections. Papa John’s began 2016 with April in Mulhouse, France. John’s continued European growth “We’re so proud to be able to show no artificial flavors or synthetic “It’s a good opportunity to contribute strategy. Papa John’s International says our customers how much we care colors and says by this summer to the French economy by bringing qual- it has more than 300 restaurants in the about what they’re eating,” says Sean it will have no antibiotics in its ity jobs to the market,” Bouanaka says. United Kingdom and currently is looking Muldoon, senior vice president, re- chicken toppings and poppers. CMN Tim O’Hern, senior vice president for potential franchisees in other areas and chief development offi cer, Papa of France, as well as the Netherlands, John’s International, says the brand Poland, Czech Republic and Belgium. Report says global organic dairy market continues to experience popularity Papa John’s also announced it is the expected to exceed $26 billion by 2019 and growth. fi rst national pizza chain in the United LONDON — The global organic dairy United States Department of Agricul- products market, valued at $15 billion ture have come up with systems that not in 2014, is expected to exceed $26 bil- only provide farmers with assistance lion by 2019, growing at a compound toward the adoption of such organic annual growth rate (CAGR) of 11.7 methods, but also help them transition Ultra Safe Technology percent, according to a report recently during the process.” released by Technavio, a global technol- The organic dairy products mar- Brooms and Brushes ogy research and advisory company. ket in North America was valued at The growing focus of consumers $6 billion in 2014 and is expected to toward the consumption of organic reach $10.8 billion by 2019, growing food and beverages will compel manu- at a CAGR of more than 12 percent, facturers to launch new organic dairy the report says. It is expected that products, Technavio says. In the last the organic packaged food market in few years, for example, products the United States will grow at a rate of such as organic yogurt with granola more than 5 percent during the forecast and fruit toppings, Greek yogurt and period. In Canada, organic dairy sales organic milk containing anti-oxidants account for more than 12 percent of the and healthy fatty acids like DHA and total organic dairy products market. omega-3 have been introduced to the Concerns over the use of additives What is Ultra Safe Technology (UST)? market. and preservatives in processed dairy UST is a revolutionary new line of brooms and brushes with innovative technology that “With global concerns toward envi- products are driving North American utilizes enhanced bristle security units directly molded to the brush block, removing any ronment and health issues increasing, consumers to opt for organic alterna- gaps or seams while offering unprecedented bristle retention strength. various governmental organizations tives, the report adds. The hand brushes, deck scrubs, and sweeping brooms each have a unique bristle pattern to optimize function, while spacing between the bristle units makes each tool easier to are coming up with aids that encourage The organic dairy products market clean, dry, and inspect. farmers to switch from conventional in Europe was valued at $7.5 billion in Contact us today for more information. farming techniques to organic dairy 2014 and is expected to reach more 1-800-826-8302 farming,” says Arushi Thakur, lead than $13 billion by 2019, growing at a nelsonjameson.comj .com food research analyst, Technavio. CAGR of almost 12 percent, Technavio “Organizations like the Agricultural reports. United Kingdom, France, Ger- and Processed Food Products Export many, Italy, Sweden, Denmark and The For more information please visit www.nelsonjameson.com Development Authority (India) and Netherlands are the key markets in this region. The organic dairy products mar- ket has emerged as the second-largest product segment in the organic food and beverages market, accounting for more than 20 percent of market share in Europe, the report notes. The report adds that the market for organic dairy in Europe is driven by the introduction of innovative products such as fl avored organic milk drinks and functional or energy based milk drinks in the market. There also have been multiple single-serve organic fl avored milk drinks launched in the market targeting the growing on-the-go market for breakfast or after school. Worldwide, the organic yogurt market is the fastest-growing segment, valued at $5.45 billion in 2014 and ex- pected to exceed $10 billion by 2019, growing at a CAGR of 13 percent, the report says. The growing interest by consum- ers in innovative and exotic-fl avored organic yogurt varieties will favor market growth during the forecast period, Technavio says, and the rising demand for organic yogurt in Australia, New Zealand, the UK, France and Italy For more information please visit www.winonafoods.com will further drive market growth. CMN © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 13 NEWS/BUSINESS

Buscemi’s named a top U.S. pizza chain Pizza Hut sets single-day digital sales record

ROSEVILLE, Mich. — Original Buscemi’s annual chainwide gross sales of $61.2 PLANO, Texas — Pizza Hut has an- response we’ve seen to that strategy has Pizza is celebrating its 60-year anniversary million, says Anthony Buscemi, owner. nounced it set an all-time single-day been incredible,” says Jeff Fox, chief this year and recently announced it was in- Buscemi also says the company digital sales record Feb. 7, the day of brand and concept offi cer, Pizza Hut. cluded in Pizza Today magazine’s “Annual is experiencing growth through local the Super Bowl, amassing nearly $12 Pizza Hut says it has continued to Top 100 Pizza Chains in the Country” list. convenience stores, or “party stores,” million in sales (the previous record was make usability improvements to its suite The magazine ranked Original Bus- converting to Buscemi’s Pizza franchises. $10 million). The highest rate of change of digital ordering options after listening cemi’s Pizza No. 40, moving them up Buscemi’s Pizza sells menu items at came from orders via mobile web and to what consumers want. more than 20 positions from 2013 with booths within the stores. mobile app. More than 60 percent of “Throughout the history of our “It’s a better business opportunity,” digital orders were placed via a smart company we have always demonstrated Buscemi says. “We get several calls a day device, and mobile orders represented that we will make the improvements Nuestro Queso buys from existing party store owners wanting one-third of total sales. needed for our customers fi rst, then BatchMaster ERP to convert their location. We have built up a “Pizza Hut is intensively focused on our business,” Fox says. “Our position brand name of quality over the past 60 years giving consumers what they want from of leadership in the digital experi- LAGUNA HILLS, Calif. — BatchMas- and people want to be a part of it.” CMN a digital ordering experience, and the ence has never been stronger.” CMN ter Software, a provider of enterprise resource planning (ERP) solutions developed for the food manufacturing industry, has announced Nuestro Queso LLC recently purchased BatchMaster Private Label Specialists ERP with SAP Business One as its com- prehensive ERP solution to improve the company’s overall effi ciency and gain more effective reporting outputs. “Our goals with BatchMaster ERP with SAP Business One are to improve overall effi ciency and increase access to our data with enhanced operational reporting,” says Mark Braun, presi- dent and CEO, Nuestro Queso. “Our employees can benefi t by the all-in- one, integrated solution that includes terminology familiar to staff.” CMN California Dairies Inc. accepting new members to co-op VISALIA, Calif. — The board of direc- tors of California Dairies Inc. (CDI), the second-largest dairy processing coopera- tive in the United States, is now accepting applications for new members. In addition, approved new members For your brand, freshness matters will be allocated production base associat- ed with CDI’s capacity allocation program, We pride ourselves on the highest level of quality, not only in our award-winning the cooperative announced this week. product, but also in our operations and our customer service. Our full turn-key As a result of the recent capacity operation, experience and our focus on ONLY string cheese, allows us to produce optimization of current assets, CDI has increased its milk handling capacity 2.5 the freshest string cheese for your brand. million pounds per day. This combined with improved sales from its core business and its wholly-owned subsidiary, Challenge Dairy Products, has increased CDI’s milk 125+ years of combined experience from supply needs, the cooperative says. Wisconsin licensed cheesemakers “Boasting one of the industry’s low- est capital goals, a recently restructured member capital vesting program and a • 99% Fill-Rate. • 48 hours from farm to finish. 5-year average return on base capital of 28 • 7-10 Day Lead Time. • Made to order. percent, CDI is one of the most attractive opportunities for dairy producers in the • Need it earlier, just ask! • Always fresh. Never frozen. state of California,” says Andrei Mikha- levsky, president and CEO, CDI. “With a strategic plan focused on innovation, management and the board of directors are dedicated to adding value to its members’ milk. Striving to be the leading source of dairy nutrition for a healthy world, CDI is committed to growing its business and its membership.” California dairy producers interested in applying for membership in CDI may bakercheese.com | [email protected] | 920-477-7871 contact Eric Erba, senior vice president and chief strategy offi cer, CDI, at 559-625-6114 or email [email protected]. CMN For more information please visit www.bakercheese.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 14 CHEESE MARKET NEWS® — March 4, 2016 PEOPLE

Comings and goings … comings and goings The Ambriola Co. Inc., West tor since 1982. John Wenger, Wenger’s Caldwell, New Jersey, a subsidiary of Springbrook Cheese, retired as director Auricchio S.p.A, has appointed John after serving on the board since 1992. Dammacco as national director of sales. IMA Dairy & Food USA, Edison, New He joined the Ambriola Co. in 2013 Jersey, has hired Roberto Anselmi as and previously worked in the specialty area sales manager. Anselmi’s territory          cheese business for more than 40 years. will cover the U.S. Central region as the     Dairy Farmers of America (DFA), company continues its expansion into Kansas City, Missouri, has announced the dairy and food business segment. Bob Gehlke will retire from his posi- Rave Restaurant Group Inc., Dallas,   tion as plant manager of the Goshen, has announced Bob Bafundo as presi- ,%#,' ,) %, ,#$"$,$  ,$$,', $,) %", $$ , , Indiana, milk processing plant, effective dent of , an international pizza %",$, ,(!"$#,#,$, %#$"), ',&,"# %"#, ,", April 8. Gehlke joined a predecessor chain and fl agship brand under Rave "$ #!#,$ , ,# %$ #, ",) %", #,  , !"$ , ,$ )#,"%$, , DFA co-op in 1973 in Orrville, Ohio, and Restaurant Group. Bafundo has more $ ,& $, &"  $,  ,%# ##,'$,$,"$, ! ), ,$,&")$ , transferred to Goshen in 1976. John than 30 years of restaurant experience.     Brown, acting assistant plant manager, In his new role, he will be responsible ,% "#$ ,$,"),"$ ,#)#$#, ,', ', ',$ ,%*,#,#!, , will take over the role. for all Pizza Inn operations, marketing "#"&,!" %$#, , "",$ ,!" %,$,"$#$,& $#, ", %",%#$ "#, The Foreign Type Cheesemak- and training functions and oversee the ers Association, Monroe, Wisconsin, opening of new Pizza Inn locations +  !" #&,% "#$  , ,"$,$" #,!" %$,# %"#,!",& $$) has announced newly elected board in the United States and overseas.  , &"  $,"%$ # Bafundo will report directly to Randy + ","",   members are: Adam Buholzer, vice + "'", $"$,"  president, production, Klondike Cheese Gier, CEO of Rave Restaurant Group. + " $, #$,   $ Inc., Monroe, Wisconsin; John Jaeggi, Papa John’s International Inc., + #$#,   $ cheese industry and applications coor- Louisville, Kentucky, has promoted +  #%$$ , (! # #, &$ #,!"$ # dinator, Wisconsin Center for Dairy Re- Sean A. Muldoon to chief ingredi- + #,   $ search, Madison, Wisconsin; and John ent offi cer. In his new role, Muldoon (Randy) Pittman, owner, Mill Creek will continue leading research and        Cheese, Arena, Wisconsin. The associa- development, quality assurance and + %,  supply chain globally. Most recently, + ", ,%$$" tion also announced retiring board of + "), '"# directors members are: Jeff Wideman, Muldoon served as senior vice presi- + # Maple Leaf Cheese, who retired as dent, research and development, qual- + ', , , vice president after serving as direc- ity assurance and supply chain. CMN

NEWS/BUSINESS

  " "    """! " "! ""  "  Dairy Farms expands voluntary recall         of Blue cheese due to potential Listeria          NEWTON, Iowa — Maytag Dairy wedges, wheels and crumbles because Farms, Newton, Iowa, has expanded its they have the potential to be contami- For more information please visit www.jacoby.com voluntary recall of nated with Listeria monocytogenes. Earlier in February, the company recalled fi ve lots that were packaged in December 2015 and January 2016. (See “ voluntarily recalls Blue cheese due to possible Listeria” in the Feb. 19, 2016, issue of Cheese Market News.) On Feb. 26, the company announced that the recall has been expanded to a total of 35 lots of 1-, 4- and 8-ounce wedges, 2- and 4-pound wheels, and 43 batches of 8-ounce and 5-pound crumbles. The recalled product was sold through distributors, wholesalers, retail stores, restaurants and direct mail orders nationwide between Nov. 24, 2015, and Feb. 11, 2016. No illnesses have been reported in connection with the cheeses. The potential for contamination was discovered after testing by Iowa state officials revealed the pres- ence of Listeria monocytogenes in two lots of product. Maytag Dairy Farms has voluntarily suspended production and distribution while the company collaborates with FDA and state officials to determine For more information please visit www.ivarsoninc.com the cause of the problem. CMN © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 15 EVENTS

FSPCA Preventative Controls for Human Food Course to be April 4-6 in Milwaukee MILWAUKEE — Accelerated by scientists, has created the course, Analytical Laboratories, a microbiology developed and taught by FSPCA lead and analytical chemistry testing facility, instructor Jeff Kronenberg, an exten- and Accelerated University will offer a sion specialist with the Food Safety Preventive Controls Alli- University of Idaho School of Food Sci- ance (FSPCA) Preventative Controls ence. Accelerated Analytical Laboratories and Accelerated University for Human Food course April 4-6 at The course is designed for: direc- are proud to present … the Hilton Garden Inn Milwaukee Park tors/vice presidents of food safety, Place in Milwaukee. maintenance managers, production FSPCA PREVENTIVE CONTROLS According to Accelerated Ana- supervisors, production leads, sani- lytical Laboratories, the course was tation supervisors, plant managers, FOR HUMAN FOOD COURSE created due to new Food Safety Mod- quality assurance, coordinators and April 4–6 ernization Act (FSMA) regulations managers, safety managers, training Hilton Garden Inn Milwaukee Park Place requiring every processing facility to supervisors, lead technicians, pack- 11600 West Park Place have at least one trained individual aging supervisors and managers and Milwaukee, WI 53224 overseeing the implementation of the regulatory personnel. (414) 359-9823 facility’s food safety plan and other For more information, contact Register early! Space is limited! key tasks. David Metzger at dmetzger@acceler- Accelerated University, an e-learn- atedlabs.com, 888-770-6896, ext. 101, Introduction to Course ing industrial science education taught or visit www.aaluniversity.org. CMN The new FSMA regulation requires that every processing facility have at least one individual trained by the Food Safety Preventive Controls Alliance (FSPCA) RYHUVHHLQJWKHLPSOHPHQWDWLRQRIWKHIDFLOLW\·VIRRGVDIHW\SODQDQGRWKHUNH\ WDVNV7KLVSHUVRQLVFDOOHGD´3UHYHQWLYH&RQWUROV4XDOLÀHG,QGLYLGXDOµ Accelerated University has created a specialized 2.5-day training class, NEWS/BUSINESS FSPCA Preventive Controls for Human Food course, developed and taught by )63&$OHDGLQVWUXFWRU &HUWLÀFDWH -HII.URQHQEHUJ06-HIILVDQ Extension Food Processing Specialist with the University of Idaho School of Food Science. Pizza Hut offers cheese-stuffed garlic Who Is This For? Directors/VPs Food Safety, Maintenance Managers, Production Supervisors, knots on pizza crust for limited time Production Leads, Sanitation Supervisors, Plant Managers, Quality Assurance Coordinators & Managers, Safety Managers, Training Supervisors, Lead PLANO, Texas — Pizza Hut for a ing, Pizza Hut. Technicians, Packaging Supervisors & Managers, and Regulatory Personnel. limited time is offering Stuffed Garlic “We always want every pizza night Knots Pizza featuring 16 hand-rolled, to feel like a special occasion. By Current Accelerated Analytical Lab clients receive a discount of $100 off the registration fee cheese-stuffed garlic knots on the crust combining a humongous appetizer of a large pizza. portion of 16 cheese-stuffed garlic Contact Info: The special pizzas are served with knots with a great-tasting large Pizza David Metzger one topping and two dipping cups of Hut pizza, we have created the Stuffed [email protected] (888) 770-6896 Ext. 101 marinara sauce for $12.99. Garlic Knot Pizza,” Drinkwater says. www.aaluniversity.org “Pizza Hut prides itself on being “Now, with an appetizer and pizza all the best-tasting and most innovative in one, our customers have the unique Fast. Reliable. Accurate. pizza restaurant company in the world, ability to make a night in feel like a and the Stuffed Garlic Knots Pizza is a night out.” shining example of that,” says Jared For more information, vis- Drinkwater, vice president of market- it www.pizzahut.com. CMN For more information please visit www.aaluniversity.org Pizza Inn introduces Premium Bacon Cheddar Stuffed • Expert knowledge in all aspects and applications Crust Pizza of marketing cheese DALLAS — Pizza Inn has introduced • We represent quality manufacturers from all over the U.S. and World Premium Bacon Cheddar . • Expertise in imported and specialty cheeses “Our Bacon Cheddar Stuffed Crust • Broad knowledge of club stores and general Pizza gives crust lovers more of what merchandising programs they love along with heaps of savory bacon,” says Patty Scheibmeir, vice Call one of the experts on president of R&D for RAVE Restaurant our team today... Group’s Pizza Inn. „ Patrick Spaulding „ Michael Bauchman Pizza Inn’s Premium Bacon Cheddar „ Mike Feeney „ Rodney Butcher Stuffed Crust Pizza combines strips of „ Nathan Gorang „ Jim Andresen real premium bacon with Mozzarella „ Brian Argersinger „ Larry Noegel Suzanne Spaulding Bryan Kuhn and then stuffs it into fresh Italian dough „ „ „ Jay Spaulding„ Tyler VanWerden and tops it with real Cheddar around  the edges. For a limited time, Pizza Inn is offering its Premium Bacon Cheddar THE CHEESE GUYS Stuffed Crust Pizza for $10.99 for a large (810) 229-4166 • FAX (810) 227-4218 • Email: [email protected] one-topping pizza. The limited time Web: www.cheeseguys.com price will be offered at participating Pizza Inn locations until April 30. RETAIL • FOODSERVICE • INDUSTRIAL For more information, visit www.pizzainn.com. CMN For more information please visit www.cheeseguys.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 16 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

PIZZERIAS “Our complete menu with the excep- tion of our breads is new in the last 10 Continued from page 1 years,” he says. “Looking at upsells, even on our pizza — cheese is a big one.” artichoke hearts, tomatoes and ranch • Beyond the pie sauce. Now, pizzerias are taking cheese Donette Beattie, vice president of even further, adding it to appetizers supply chain, Toppers Pizza, says cus- and other items to bring more fl avor tomers also can build their own pizza and appeal to their menus. Jordan says Domino’s recently If you’re looking for an in-depth and choose from fi ve different cheeses Exclusive compilation of the movers and shakers including Mozzarella, Pepper Jack, launched new specialty chicken wings in the cheese and dairy industry, look Asiago, Feta and Cheddar. that feature some of the company’s fa- no further. CHEESE MARKET NEWS’ vorite pizza toppings, including cheese. Key Players Key Players, our exclusive annual “We’re also looking at other cheeses to add to our menu including smoked Domino’s also offers cheesy bread, Our Annual Profile of Who’s profile of who’s who in the cheese business, gives you comprehensive cheeses and others that really boost which Jordan says has as much cheese Who in the Cheese Business information on companies leading the fl avor,” she says. “Toppers has made as a medium pizza, as well as sand- cheese industry. Key Players features information on plant locations, sales their name on premium toppings, and wiches and pastas that include a variety figures, acquisitions and mergers, cheese is fi rst and foremost.” of cheese. expansions, new products and Technomic data provided to DMI At Toppers, in addition to its pizzas, production data. indicates that after Mozzarella, the top the company’s cheese sticks, Topper- Key Players is included annually in stix, are a popular menu item, Beattie the June issue of CHEESE MARKET fi ve cheeses on pizza menus at quick NEWS® but can be yours in a separate, service restaurants in the past year in- notes. In addition to its Original Top- easy-reference reprint for only cluded Ricotta, Parmesan, Feta, Ched- perstix, Toppers now offers 3-Cheese $30 per copy. dar and Fresh Mozzarella. Provolone, Garlicstix, Pepperonistix, Tacostix, Order your complete snapshot of the Romano, Blue, goat and Gorgonzola Baconstix and dessert versions in- cheese industry’s Key Players today round out the top 10. cluding Cinnamonstix and Chocolate In addition, in the past year, the Baconstix. fastest-growing cheeses in this category “We’re very focused on pizza, but the Order appetizer menu is an exciting way to Today! were , White Cheddar, goat, Parmigiano Reggiano, Fontina, stretch our dollars,” Beattie says. “Our Fresh Mozzarella, Romano, Blue, Feta goal is for everyone who buys a pizza to and Parmesan, according to Technomic. add Topperstix to their order. They’re P.O. Box 628254 • Middleton, WI 53562 Phone: (608) 831-6002 • Fax: (608) 288-9093 Gallagher also notes with more pizza very shareable as a snack occasion as E-mail: [email protected] well as a meal occasion. Website: www.cheesemarketnews.com companies offering different versions of stuffed crust pizza, the amount of “Whatever you’re craving, you can CHEESE MARKET NEWS® KEY PLAYERS REPRINT ORDER FORM: cheese on the pie nearly doubles. fi nd a lot of those fl avors on both our NAME: ______METHOD OF PAYMENT (U.S. Funds Only): “There’s nearly as much cheese pizzas and on the stix side,” she adds. TITLE: ______PAYMENT Enclosed in the stuffed crust as there is on the Beattie notes that from an innova- COMPANY: ______Payment by $30 Credit Card whole pie,” he says. tion standpoint, creating new products ADDRESS: ______VISA MasterCard American Express At Domino’s, pizza cheese varieties and adding cheese is a great way to CITY: ______CARD #:______certainly have expanded over the years boost fl avor and consumer interest. STATE: ______ZIP: ______“I love doing product development, PHONE: ( ______) ______EXPIRATION DATE: ______with the addition of specialty pies in- but being in the supply chain world, I EMAIL: ______SECURITY CODE: ______cluding Philly Cheesesteak, featuring DATE: ______SIGNATURE: ______Provolone and , and look at how to best utilize the SKUs For immediate service, call (608) 831-6002 or fax your order to (608) 288-9093. others, says Joe Jordan, chief marketing — cheeses certainly help me do that,” SUBSCRIBER SERVICES • P.O. Box 628254 • Middleton, Wisconsin 53562 offi cer who also leads menu innovation she says. “If I have a bacon item I want at Domino’s Pizza. to get more use of, for example, I can For more information please visit www.cheesemarketnews.com bring in something like a smoky cheese to innovate with fl avor. Cheese allows you to create something unique.” Stouffer says at The Roman Candle cheeses and other dairy products are used throughout its full menu of pizzas, salads, pastas, soups and appetizers, including its version of cheese sticks, Candle Sticks. Roman Candle’s Original Candle Sticks feature its hand-tossed pizza crust baked fresh with garlic butter and its house blend of cheese, while its Deluxe Candle Stix add sliced tomatoes, fresh spinach and fresh garlic. All of the pizzeria’s dressings are house made, and many feature various cheeses, he adds. The Roman Candle also uses cheese creatively for catering, offering a Cap- rese Kabob with Fresh Mozzarella, and an artisan cheese platter. “We’re proud to serve quality dairy — it’s a huge part of what we serve,” Stouffer says. Jordan says that while Domino’s has expanded its menu offerings, pizza will always be its primary focus. “The best way to sell more cheese For more information please visit www.relco.net is to sell more pizza,” he says. CMN © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 17 NEWS/BUSINESS

Pizza Cones offer on-the-go snack option

By Alyssa Mitchell cones themselves, they often experience issues with leaking or bursting when bak- AVENEL, N.J. — As the snacking occa- ing everything together at once. PCI has sion continues to gain momentum, PCI perfected its recipe to make things faster Frozen Foods Inc., Avenel, New Jersey, and easier for customers to simply pop has created Pizza Cones, a way to pair the premade frozen cones into the oven. pizza with Americans’ love of snacking. “You can use your own ingredients that Yoni Glatzer, owner of PCI Frozen you already have in store, and you won’t Foods Inc., says he began making pizza need to pay franchise fees or buy any new cones about a year ago and debuted them machinery,” he says. at least year’s International Pizza Expo Glatzer adds that PCI works with in Las Vegas. Glatzer says PCI is the only a number of distributors in the United company currently making the cones in States and Canada and works to be fl exible the United States. to accommodate every customer. Photo courtesy of Regina’s Pizza The cones, made of real pizza dough, “Pizza Cones provide an innovative CONE TO GO — PCI Frozen Foods Inc.’s Pizza Cones offer a new, innovative way for pizza com- crisp up golden-brown in the oven and way to present your signature ingre- panies to showcase their signature ingredients. Cones can be sold as a side item, appetizer, or as an stay crunchy until the last bite at the bot- dients in a fun format,” he says. CMN on-the-go snacking option. tom of the cone, Glatzer says. The cones can be sold as a side item, appetizer or as an easy product with visual appeal for special events. In addition, Glatzer notes the cones are increasing in popularity among food truck vendors as a fun, innovative, on-the- go snacking option. Customers can order the frozen cones and pop them in an oven to defrost them before adding their desired fi lling. “The profi t margin on these is huge,” Glatzer says. “The cones retail for about $0.50 each, but most pizzerias sell them for between $5-$8 apiece.” PCI even offers a promotion: for cus- tomers who purchase two cases of cones, PCI also will send them a free oven rack to bake the cones in and a plexiglass display to showcase them, Glatzer adds. “All you need is an oven that reaches 500 degrees and provides 6-7 feet of clear- ance,” he says. The sky is the limit with fi lling the cones, Glatzer says. Cheese is obviously a popular addition, but cones can range from vegetarian to meat lovers to even special breakfast or dessert cones, he says. Glatzer notes it’s best to fi rst defrost the cones before adding in additional ingredients and baking. He says that while some companies may opt to make the Dairy Business Milk Marketing Co-op offers scholarships GREEN BAY, Wis. — The Dairy Business Milk Marketing Cooperative (DBMMC) will award two $1,000 college scholarships to children of its members. Applications must be postmarked by May 2. Applicants must be high school se- niors, high school graduates or college undergraduates enrolled or planning to enroll in a full-time course of study at an accredited four-year college or university or a two-year program at a technical, junior or community college. The area of study does not need to be in agriculture. According to DBMMC, only de- pendents of its members qualify. The application is available at www. dbmmc.com. For more information, contact Lauren Brey at 920-883-0020 or email [email protected]. CMN For more information please visit www.tetrapak.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 18 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

GMO Roberts, R-Kan., now heads to the full hensive solution to the state-by-state effect July 1. NMPF President and CEO Senate for consideration. The U.S. patchwork of labeling laws,” Roberts Jim Mulhern says the bill will provide Continued from page 1 House of Representatives last July says, referring to Vermont and other information that shoppers want without passed similar legislation by a vote of states that have passed laws that will requiring “stigmatizing” label claims. The Biotechnology Labeling Solu- 275-150. require GMO labeling on food. “It sets “Any requirement, even at the state tions bill, introduced last month by “Simply put, the legislation before national uniformity, based on science, level, to use labels to call out GMO ingre- Senate Ag Committee Chairman Pat us provides an immediate and compre- for labeling food or seeds that are ge- dients is a de facto scarlet letter being netically engineered. This allows the forced on many foods without warrant,” value chain from farmer to processor Mulhern says. “Mandatory GMO labels to shipper to retailer to consumer to play into the fear-based marketing we continue as the free market intended.” see too frequently in the food industry.” We do more than just The International Dairy Foods GMA President and CEO Pamela Association (IDFA), National Milk Bailey praised the legislation while Producers Association (NMPF) and touting GMA’s SmartLabel technology move loads Grocery Manufacturers Association initiative that would provide detailed (GMA) released statements praising information about products, including WOW’s TransportationTransportation ProgramProgram bribringsngs unmatched value through:through: the passage of Roberts’ bill. GMO ingredients, through a special code “IDFA thanks the Republican and that consumers could scan. Democratic members of the commit- “SmartLabel doesn’t replace the  Skilled stastaffff with with decades decades o fof shipper-side shipper-side tee who voted in favor of the bill and package label; it complements that label experience – we knowknow youryour challengeschallenges commends them for recognizing the by leveraging digital technology,” Bailey importance of this bill to American says. “It will enable consumers to get PowerfulPowerful transportation management tectechnologyhnology to streamlinestreamline datadata consumers, as well as to the nation’s all the information they want to know food suppliers,” says J. David Carlin, about what they are purchasing — and In-house engineers to drive cost out ofof IDFA senior vice president for legislative when they want to know it.” yyourour suppsupplyly cchainhain affairs and economic policy. “By putting Meanwhile, groups who support an immediate stop to the patchwork mandatory GMO labeling say there FSMA and food safety expertise to protect yyourour productproduct of state-based labeling requirements needs to be more transparency in the for foods with genetically modifi ed, or food system and have urged senators to GMO, ingredients, the bill will protect oppose the bill. consumers from higher food costs and “It’s unbelievable that members prevent food manufacturers from having of the Senate Agriculture Committee 800-236-3565800-236-3565 wowlogistics.comwowlogistics.com to contend with inconsistent and costly would vote to continue the same broken regulations.” system of voluntary GMO labeling that NMPF has urged the Senate to keeps consumers in the dark about expedite passage of Roberts’ measure what’s in their food and how it’s grown,” For more information please visit www.wowlogistics.com before Vermont’s GMO law goes into says Tom Colicchio, chef and co-founder of Food Policy Action. “Americans de- serve transparent and accurate informa- tion to make their own decision about what to feed their families.” CMN

PRODUCTION Continued from page 1

1.4 percent from January 2015. Total American-type cheese production, of which Cheddar is the largest compo- nent, totaled 400.4 million pounds, a 0.9-percent increase over January 2015. Wisconsin led the nation’s cheese production with 262.1 million pounds in January, a 4.0-percent increase over January 2015. California followed with 205.8 million pounds, down 1.8 percent from its production a year earlier. The next four cheese-producing states in January were Idaho with 80.1 million pounds, up 3.4 percent from its production a year earlier; New York with 69.1 million pounds, up 3.7 percent; New Mexico with 65.4 million pounds, down 0.4 percent; and Minnesota with 57.4 million pounds, down 1.2 percent. NASS reports U.S. butter produc- tion in January totaled 175.7 million pounds, down 2.1 percent from January 2015’s 179.6 million pounds but up 1.6 percent from December 2015’s 172.9 million pounds. California led the nation’s butter production with 52.8 million pounds in January, down 8.1 percent from its production a year earlier. CMN © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 19 NEWS/BUSINESS

U.S. dairy industry defends generic cheese names in TTIP, praises GI clarity in Honduras BRUSSELS, Belgium — Geographi- assurance on the continued use of names in exports to that country.” The Offi ce of the U.S. Trade Repre- cal indications (GIs) and generic certain other common names currently Tom Suber, president of USDEC, sentative (USTR) Wednesday released cheese names were discussed dur- protected in Honduras, the groups say also praised this accomplishment while President Obama’s 2016 Trade Policy ing stakeholder sessions at the 12th it does provide important assurances stressing that this is one victory in a Agenda, which specifi cally mentions Transatlantic Trade and Investment on many common name products. continuing battle with Europe over GIs. geographical indications, saying the Partnership (TTIP) negotiating round “The dairy industry has worked “Essentially, through geographi- government will continue to oppose that was held here last week. closely with the administration for cal indications provisions in its FTAs, efforts that use GIs as barriers to trade. The U.S. Dairy Export Council’s several years to mitigate potential Europe wants to monopolize the use “We are happy to see that the (USDEC’s) European office stressed damage to our CAFTA market access of food names that have long been in president’s Trade Agenda includes opportunities already available to opportunities arising from the Central the public domain,” Suber says. “We language to protect the ability of European Union GI holders to register America-EU FTA,” says Jim Mulhern, encourage USTR to keep working in U.S. exporters to continue using com- their products in the United States, president and CEO, NMPF. “USTR’s additional markets — both in Central mon names overseas and acknowl- while U.S. companies are hampered work with Honduras was particularly America and around the globe — to edges the overreach of protection by government regulation from selling important, since a previous lack of eas- preserve our ability to use these com- for geographical indications,” says their products in the EU and, increas- ily accessible information in Honduras mon cheese names, particularly in Beth Hughes, director of interna- ingly, in other world markets. More hurt our own efforts to determine our countries with which we have our own tional affairs, International Dairy competition is better for all, USDEC ability to keep using common cheese free trade agreements.” Foods Association. CMN argued, noting that U.S. producers of products with generic names have built markets and created demand that help benefit EU exports. Also at last week’s TTIP stakehold- er event, oriGIn — the Organization for an International Geographical Indications Network — urged negotia- tors to look for pragmatic solutions to address challenges faced by a growing GI sector in both EU and U.S. markets. “GIs groups from both the U.S. and the EU constantly face challenges and costs in recognizing and protecting GIs in the counterpart’s jurisdic- tion,” says Massimo Vittori, managing director of oriGIn. “We believe time is ripe to come up with answers to their concerns.” Meanwhile, USDEC and National Milk Producers Federation (NMPF) this week thanked the U.S. govern- ment for its work aimed at securing clarifi cations regarding the right to use several generic cheese names in exports to Honduras while also estab- lishing a better model for how Central American countries can more reliably provide such information in the future. Honduras is a member of the U.S.- Central American Free Trade Agree- ment (CAFTA). U.S. dairy exports to CAFTA partners totaled $109 million last year, with Honduras ranking sec- ond in the FTA region. The threat stemmed from a free trade agreement between Honduras and the European Union, in which the EU secured provisions that threatened to restrict the use of these and other food names. After numerous discus- sions between the United States and Honduras, the country agreed, among other things, to clearly spell out on its offi cial website the scope of pro- tection of the names and to create a searchable database to identify GIs. The database also will identify which elements of those terms are deemed to be generic. In addition, Honduras committed to other steps such as pro- viding similar clarifi cations for future GI applications. NMPF and USDEC say the admin- istration this week clarifi ed the use of threatened cheese names includ- ing parmesan, provolone and brie. Although the results did not include For more information please visit www.adpi.org © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 20 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

NMPF testifi es before Senate on impacts of past free trade agreements on dairy industry

WASHINGTON — Trade has become assisted in great part by these negotia- Canada is allowed to continue with intended to work in practice, but it uti- critically important to the U.S. dairy tions, in some cases the industry and this pattern of eroding existing U.S. lizes the strongest point of leverage the sector, thanks to the Uruguay Round government have “to work almost as dairy access, it is diffi cult to see how U.S. possesses: whether or not we will and numerous new U.S. free trade agree- hard to ensure that market access terms new trade commitments with them will decide to put in place a strengthening ments (FTAs) since 1994, according to of the agreement are not subsequently benefi t our dairy industry.” of our trade ties with the FTA partner.” testimony by National Milk Producers undermined,” Mulhern says. He adds that similar post-FTA issues This is especially important now Federation (NMPF) CEO Jim Mulhern Citing access to Canada’s dairy arose with South Korea, but prompt and that the Trans-Pacific Partnership at a Senate hearing yesterday on lessons market through the North American proactive U.S. government actions were (TPP) negotiations have concluded and from how past trade agreements have Free Trade Agreement and the Uruguay successful in resolving most of these. consideration in Congress will begin, he been implemented. Round as an example, Mulhern says The best window of opportunity for says, as well as now that attention is However, Mulhern notes that even Canada continues to erect impediments infl uencing how countries will imple- turning to intensifying the Transatlan- after FTAs are negotiated by the U.S. to block U.S. dairy imports such as ultra- ment their FTA obligations is during the tic Trade and Investment Partnership government, the value of the pacts fi ltered milk. period prior to congressional approval (TTIP) negotiations with the European greatly depends on the ability of the “Canada has been considering ex- of an agreement, Mulhern says. Union. He adds that a concrete approach United States to make other countries panding its restrictions on the use of “Action during this window not to addressing the serious regulatory and live up to their commitments. certain dairy inputs in only ensures that Congress has a clear technical barriers to trade with Europe Even as dairy exports have grown, to hinder imports,” Mulhern says. “If understanding of how the agreement is has yet to develop in the TTIP talks. “At this stage, given our past experi- ences, we do not believe TTIP is cur- rently on the right track,” Mulhern says, adding that in addition to regulatory challenges, EU’s geographical indica- tions strategy is another troubling issue. The geographical indications text in the pending TPP agreement “was conceived as a direct response to trade restrictions that were threatening to crop up in our FTA markets,” Mulhern says. “But our experience tells us that we will have to work hard not only to enforce the letter of that agreement, but also to ensure that its intention to help promote robust competition is not undermined as a result of ongo- INTERNATIONAL CHEESE TECHNOLOGY EXPO ing pressure from the EU.” CMN

Every two years the cheese industry gathers to share technology, knowledge Western Kentucky and a passion for cheesemaking JOIN US. University cheese production facility nears completion • Exhibits are FREE to Opening Address: David Ahlem Dairy Manufacturers! CEO and President of Hilmar Cheese Company, Inc. BOWLING GREEN, Ky. — Western Kentucky University’s (WKU) Depart- • Awarding winners World Class Seminars ment of Agriculture has announced in the 2016 World A Converter’s Dream: Cheese Quality for the End User its new cheese production facility is nearing completion, with an expected Championship Meeting the Challenges: Food Safety for Cheese completion date later this year. Cheese Contest Whey from Vat to Bag: Quality and Marketing WKU says before cheese can be made Processing Wastewater for a Clean Environment for public consumption at the facility, • More than 500 New! Artisan Cheese Track the following must happen: the air- supplier booths handling system and tangential equip- ment must be determined satisfactory for the facility; end-users will receive training in the control room; an expe- rienced cheesemaker must be hired; experimental batches of cheese must be produced and tested for food safety; and clearance for cheese production must be received from all regulatory parties. “Once the above-named steps have occurred, then it will be possible to

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making process,” says Linda Brown, PRESENTED BY: WISCONSIN CENTER CDR chair, department of agriculture, WKU. MILWAUKEE, WI USA “The long-term goal is to use the facility to teach students, dairymen and farmers how to make cheese so they may use this knowledge to expand their own opera- VISIT CHEESEEXPO.ORG FOR MORE INFORMATION tions into value-added production. Also, having the capacity to make cheese on the farm makes it possible to collect For more information please visit www.cheeseexpo.org more revenue at the farm gate. CMN © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 21 NEWS/BUSINESS

Domino’s announces fi nancial results, 88th consecutive quarter of international growth ANN ARBOR, Mich. — Domino’s Pizza expenses related to the company’s re- the world have led to accelerated unit In connection with the company’s Inc. last week announced results for capitalization, which was completed growth. It’s a positive cycle, and the recapitalization, Domino’s borrowed its fourth quarter and fi scal year 2015. during the fourth quarter, and was pos- momentum continued through 2015.” $1.3 billion and used a portion of the Domestic same-store sales grew 10.7 itively impacted by the inclusion of an Revenues were up 15.3 percent for proceeds to retire a portion of its ex- percent during the quarter versus the extra, or 53rd, week in the fourth quar- the fourth quarter versus the prior year isting debt and enter into a $600 mil- year-ago period and 12.0 percent for ter of 2015. On an as-adjusted basis, period, largely due to the estimated lion accelerated share repurchase the full year, the company reports. The fourth quarter diluted EPS was $1.15, $49.7 million positive impact of the 53rd (ASR) program. As part of the ASR, international division posted same-store up 26.4 percent over the prior-year week in 2015. Revenue growth also was the company received and retired sales growth of 8.6 percent during the quarter. Full year as-adjusted diluted driven by higher supply chain volumes 4,858,994 shares of its common stock quarter and 7.8 percent for the full year. EPS was $3.45, up 19.0 percent over and sales of equipment to stores in con- during the quarter. Additionally, on Domino’s notes that the fourth quar- the prior year. nection with the company’s global store Feb. 24, 2016, the board of directors ter marks its 88th consecutive quarter “Our network of strong franchisees reimaging program. Net income was declared a 38-cent per share quar- and 22nd full year of positive interna- has become even more profi table dur- up 30.7 percent for the fourth quarter terly dividend for shareholders of re- tional same-store sales growth. The ing these years of continued positive versus the prior year period, driven by cord as of March 15, 2016, to be paid company had global net store growth same-store sales growth,” says J. Pat- domestic and international same-store on March 30, 2016. This represents a of 901 stores in 2015, comprised of 133 rick Doyle, Domino’s president and sales growth, global store count growth 22.6 percent increase over the previ- net new domestic stores and a record CEO. “Great store economics around and higher supply chain volumes. ous quarterly dividend amount. CMN 768 net new stores internationally. Fourth quarter diluted earnings per share (EPS) were $1.18, up 38.8 per- cent over the prior-year quarter. Full year diluted EPS was $3.47, up 21.3 percent over the prior year. Manage- ment notes that the as-reported dilut- ed EPS for both the fourth quarter and fi scal year was negatively impacted by Jim Demeter, Steve Buholzer, Adam Buholzer, Study: Millennials Dave Buholzer & Ron Buholzer driving pizza trends (from left) AUSTIN, Texas — Smart Flour Foods and the Center for Generational Ki- netics have released the study “Pizza Lovers in America 2015: Unexpected Findings From a Generational Look At Pizza Trends.” The goal of the research • Family Owned Since 1925 was to understand current consumer • Award-Winning Cheese & Yogurt attitudes about pizza and uncover • Dedication to Consistent Quality emerging trends across restaurants and • Progressive People & Ideas retailers in the United States. “Understanding the makeup of Share in our Award-Winning today’s pizza lovers, in particular the Excellence and Dedication emergence of millennials, will have a Whether it is our chunk, crumbled or chunk in brine Feta or our Greek Yogurt, you can always trust our superior quality and taste. signifi cant effect on every pizza retailer and restaurant,” says Jason Dorsey, co- author of the study. Feta Greek Yogurt • Made: From the Freshest • Authentic Mediterranean: Taste According to Smart Flour Foods, the Cow’s Milk • Lowfat and Nonfat Varieties study found 35 percent of Americans • Firm & Crumbly Texture • 2X the Protein go out for pizza and buy frozen pizza • Tangy & Salty to the Taste • Thick, Rich & Creamy at the store every month. In surveying • Steep in Greek Tradition • Flavored or Plain 1,004 people who fall into that category, • Retail & Foodservice • Retail, Foodservice & Industrial they found 63 percent were women and 68 percent exercise two or more times 2015 United StatesChampionship Cheese Contest per week. 1st Place: High Protein — Cow’s Milk Yogurt ® The study also found natural in- 10% Odyssey Greek Yogurt 1st Place & 2nd Place: Flavored Feta gredients and gluten-free options are Mediterranean Herb (1st), Tomato & Basil (2nd) important, with 60 percent looking to 1st Place & 2nd Place: Lowfat Cheese avoid products that contain synthetic Feta in Brine (1st), Fat Free Feta Chunk (2nd) hormones, high corn syrup, 2015 Cheese Contest trans fat and artifi cial preservatives. 1st Place: Feta with Flavor According to Smart Flour Foods, the 1st Place: Greek Style Yogurt “When we come in first, 2nd Place: American Originals (Brick) research determined millennials are 2nd Place: Feta with Flavor driving many of today’s pizza trends and you know exactly 3rd Place: Reduced Fat Feta: Tomato & Basil inspiring new behavior such as social where we stand.” sharing and turning to the Internet for pizza information. “The findings of the study vali- date our mission as a brand and the products we have brought to the marketplace,” Sameer Shah, vice president of marketing, Smart Flour WISCONSIN MADE BY MASTER 608.325.3021 • www.klondikecheese.com Foods. “It’s great to continually hear CHEESEMAKERS that our pizza is right in line with the priorities of today’s consumer.” CMN For more information please visit www.klondikecheese.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 22 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

Across demographics, pizza is a favorite comfort food among Americans, survey says

NEW YORK — Pizza tops America’s list it is third place for all other generations. stressed (54 percent), while men are surveyed indicate they don’t feel of favorite comfort foods, according to a Millennials’ second choice is macaroni most likely to turn to comfort food after guilty after indulging, 41 percent do recent survey by The Harris Poll, which and cheese, while baby boomers opt for a really good day (43 percent). indicate they’ll sometimes work out included online responses from 2,252 ice cream and matures choose steak. A vast majority of the respondents longer or more intensely to justify eat- U.S. adults between Dec. 9 and 14, 2015. Gen Xers name chips as their third- (90 percent) say there’s nothing like a ing their favorite comfort food. This Fifteen percent of respondents place pick. home cooked meal, and 62 percent say is particularly true of millennials listed pizza as their No. 1 comfort food. When they’re sick, nearly six in 10 their favorite comfort food reminds (57 percent) compared Gen Xers (42 Chocolate and ice cream tied for second Americans name either soup or specifi - them of their childhood. percent), baby boomers (29 percent) at 7 percent each, while macaroni and cally chicken soup as their go-to food. And while two-thirds of those and matures (22 percent). CMN cheese received 5 percent and chips 4 Ice cream (3 percent), toast (2 percent) percent to round out the top fi ve. and pizza (2 percent) are the distant Menu developers eying cheese innovation By various demographics including runners-up. gender, generation and geographic When it comes to celebrating a ROCKVILLE, Md. — According to a new topping. Goat, Gorgonzola and Fontina region, pizza came in fi rst for almost special occasion, 22 percent of adults study by Packaged Facts, “Pizza Market are represented more often on restaurant everyone, with the exception of matures choose steak, while 12 percent turn to in the United States: Foodservice and menus in recent years. (those 70 years and older), who turn cake. Rounding out the top fi ve celebra- Retail, 2nd Edition,” traditional pizza “Utilizing more interesting cheeses is instead to ice cream. tory dishes are pizza (7 percent), lobster cheese toppings and sauces remain the one way to denote premium positioning Women turn to chocolate and ice (4 percent) and other types of seafood most menued items although trends sug- as well as to help differentiate menu cream as their second and third choices, (3 percent). gest operators are pushing the boundar- items from traditional pizza variants,” respectively. Men opt for ice cream As for when Americans turn to their ies in an attempt to challenge popular Packaged Facts says. second and then chips. favorite comfort food, 45 percent say conceptions of pizza. Sausage and pepperoni are the most Ice cream is the second choice for when they’re stressed, and 43 percent “Menu developers are exploring ways popular pizza proteins across all restau- both Easterners and Southerners, while say after a really bad day. One third to balance health versus indulgence rant segments, with representation on 73 Midwesterners turn to chocolate and indicate they turn to comfort food when and convenience versus experience in percent of restaurant menus. Prosciutto Westerners prefer macaroni and cheese they’re depressed. terms of pizza types and procurement as a pizza topping has increased 27 per- behind pizza. In third place, those in the However, nearly four in 10 say they’ll methods,” Packaged Facts says. “These cent since 2010. South and West opt for chocolate, while turn to comfort food after a really good changes come on the heels of increasing Onions, tomatoes, mushrooms and those in the Midwest choose ice cream day (38 percent) or on their birthday consumer demand for customization as peppers are the most prevalent veggies and those in the East choose macaroni (37 percent). well as shifts in perceptions of conve- across all restaurant segments, with and cheese. Women are most likely to reach for nience.” representation on at least 73 percent While chocolate is No. 2 for Gen Xers, their favorite comfort food when they’re According to the study, there are four of restaurant menus. Basil as a pizza key ingredient segments where menu ingredient has increased 20 percent developers are innovating with pizza: since 2010. Similarly, the study says other cheeses, proteins, vegetables and sauces. herbs, cilantro and oregano are getting Packaged Facts says cheese is argu- more play. ably the quintessential pizza topping, Packaged Facts also says trends show yet it often goes undefi ned on restaurant operators are looking to differentiate piz- menus with 88 percent citing “cheese.” za by utilizing more unique sauce types. Mozzarella is the most common type of Pizza sauce often goes unspecifi ed with 72 cheese used (71 percent penetration), percent of all pizza menu items mention- with Ricotta and Parmesan following ing “sauce,” yet tomato sauce, marinara with 35 percent and 32 percent usage and red sauce are variants of traditional respectively. pizza sauce. Ranch, white sauce, and The study says trends suggest growth Alfredo are the counter to the traditional in more unique cheese types as a pizza both in fl avor and appearance. 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Pizza Hut gives free pizza to ‘Leaplings’ PRG founders make investment in Pieology PLANO, Texas — Pizza Hut this week “Pizza Hut has been the site of RANCHO SANTA MARGARITA, Ca- strategic advantages on so many levels, offered a special promotion for the many, many birthday parties through lif. — Pieology Pizzeria, which offers as Pieology continues to expand across nearly 200,000 Americans born on Leap the years, and since Leaplings only artisan-style custom pizzas, recently the nation. I am beyond excited about Day, Feb. 29. get to celebrate their true birthdays announced a strategic investment from our future.” To make up for “Leaplings’ lost every four years, we wanted to make Andrew and Peggy Cherng, founders of Pieology, which recently was named birthdays,” Pizza Hut on Monday offered their day special and help them honor Panda Restaurant Group (PRG). the No. 1 “Fastest Growing Chain” by consumers of all ages born Feb. 29 a their birthdays in a big way,” says Doug “We are humbled by Andrew and Technomic, is expanding its national free, one-topping Personal Pan Pizza Terfehr, senior director of public rela- Peggy’s trust in Pieology as a leader in presence with commitments through- for carryout. tions, Pizza Hut. the fast casual custom pizza category, out the country in various stages of In addition, the company hosted a The Personal Pan Pizzas can be and we are truly honored to be partner- development. in Anthony, Texas, known topped with a variety of fresh ingredi- ing with the Cherng family, for whom “Andrew and I are proud to support as the “Leap Year Capital of the World.” ents, and customers can choose from I have tremendous respect,” says Carl Pieology in its growth as a leader in Since 1988, the town has hosted a birth- six sauces including Classic Marinara, Chang, who founded Pieology in 2011. the fast casual category. We appreci- day festival each Leap Year for people Premium Crushed Tomato, Creamy “The Cherngs’ generosity in allowing ate aligning with organizations whose born Feb. 29, welcoming individuals Garlic Parmesan, Honey Sriracha, us access to PRG’s valuable resources mission and values refl ect our commit- from all around the world to its Leap Barbecue and Buffalo as well as sauce provides our organization and our ment to quality and people develop- Day celebration. This year at the event, drizzles and various crust fl avors. CMN franchise partners with unparalleled ment,” says Peggy Cherng. CMN Pizza Hut offered attendees the choice of a free cheese or pepperoni Personal Pan Pizza thanks to the restaurant’s mobile kitchen. The Essential (HAVE-TO-BE-THERE) Domino’s acquires leading German pizza business Seminar and Expo For Dairy, Deli and Bakery Professionals HAMILTON, Australia — Domino’s Pizza Enterprises Ltd. of Australia (DPE) and the United Kingdom’s Domino’s Pizza Group plc (DPG) in December announced that a newly formed joint venture has executed a NETWORKING sale and purchase agreement to acquire the Joey’s Pizza chain of pizza stores in Germany for up to 79 million euros ȍ 9,000 Professionals (US$87 million). Joey’s Pizza is the largest pizza chain ȍ 00 E[KiEitors in Germany with 212 stores, including 209 franchise stores and three corpo- ȍ ,900 BootKs rate stores. The acquisition represents a sig- nifi cant expansion in the footprint of DPE’s European operations. Following completion of the transaction, the store count of DPE in Europe is expected to SHOW & SELL CENTER increase to approximately 775 stores CAKE DECORATING CHALLENGE and will leverage the operational and management expertise as well as facili- MERCHANDISING ties of DPE in the Netherlands, Belgium and France. NEW PRODUCT SHOWCASE The transaction is subject to regu- INDUSTRY RESEARCH latory and other customary approvals June 5 - 7 | Houston and is expected to complete in the fi rst quarter of 2016. The existing CEOs of Joey’s Pizza have been retained by the joint venture to assist with conversion of Joey’s Pizza stores to Domino’s Pizza stores. “Germany is the fourth largest pizza market in the world and our entry into this market represents an exciting long term growth opportunity for DPE,” says Simon Sinek JJ Watt Anthony Bourdain Mike Eardley Phil Lempert Harold Lloyd Don Meij, CEO, DPE. “The acquisition of the market-leading Joey’s Pizza EXPANDED EXPO HOURS FOCUS ON ALLERGENS business provides immediate scale Topical educational sessions and resources! and marketing presence which we can build from. We look forward to part- REGISTER TODAY! nering with the existing Joey’s Pizza franchisees to leverage the expertise FOR MORE INFORMATION that our regional, and increasingly IDDBA.ORG 608.310.5000 global, platform provides in terms of our digital offering, procurement and product innovation.” CMN For more information please visit www.iddba.org © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 24 CHEESE MARKET NEWS® — March 4, 2016 NEW PRODUCTS FOR DAIRY MANUFACTURERS

Thurne High Speed Slicing Systems introduces slicer optimized for cheese applications NORWICH, England — Thurne High and blades that reduce friction and “Our interleaver works differently paper or fi lm, stay sharp and perform Speed Slicing Systems has introduced a product build up, providing better slice from other systems in the market”, well for longer.” dedicated slicer for cheese applications. thickness control and ensuring high- says Keith Shackelford, vice president Thurne also says having a separate The new slicer will be on display at the quality product presentation. of U.S. sales, Thurne. “The product and cutting mechanism for the interleav- International Cheese Technology Expo The machine is available with both the interleaving material are cut by two ing material has the added benefi t of in Milwaukee April 12-14 where Thurne orbital and involute heads, enabling separate cutting mechanisms, enabling enhanced control over the positioning will be at booth 1103. slicing of stacked and shingled retail us to choose the product blade best of the paper or fi lm, as well as provid- Based on the compact Polyslicer and food service packs. An optional suited to the hardness and texture of ing easy access for fast reel changes, 1000 platform, Thurne says the new interleaver, which can be added as a the cheese to be sliced. This circular maintenance and cleaning. slicer has been optimized to provide retrofi t if required, supports multi-lane blade will deliver consistent product For more information, visit http:// effi cient cheese slicing. It features a interleaving of shingles and stacks at placement and pack presentation and, www.thurne.com. CMN range of cheese-specifi c components speeds up to 700 slices per minute. without reducing its edge by also cutting PDC International releases new shrink labeler for any size bottle

SOUTH NORWALK, Conn. — PDC assembly delivers precision cuts for “The R-250-ERT is a heavy-duty International Corp. has established a months, rather than days, and is an packaging solution providing users Jet’s Pizza opens new and higher standard for precise alternative to the knife confi gurations with exceptional fl exibility,” PDC In- Colorado location shrink sleeve label orientation with its R- often found in conventional sleeving ternational says. 250-ERT Shrink Labeler. The R-250-ERT systems, the company says. Systems can be built with modules CENTENNIAL, Colo. — Michigan- was engineered specifi cally for ovals, The R-250-ERT is controlled with for vertical and horizontal perforations based Jet’s Pizza has opened its sec- squares, rectangles and squeeze bottles. an Allen-Bradley CompactLogix PLC, and date coding. The standard sensor ond Colorado location in Centennial, According to PDC International, Touch Screen and Servos. Available and verifi cation package can be en- Colorado. The new location features the R-250-ERT was developed on options include a barcode scanner with hanced to identify jams downstream, the Detroit-style, deep dish square PDC’s R-250 platform, a fi eld-proven laser scan engine that reads 1D and 2D fallen bottles, low air pressure and pizza that Jet’s Pizza has built its workhorse used by manufacturers and barcodes. other anomalies. Conveyors and shrink reputation on. contract packers. The R-250-ERT applies full sleeve tunnels (steam or dry heat) can be sup- The new, corporately-owned lo- The R-250-ERT is built for continu- shrink labels and tamper evident plied as part of any R-250-ERT system. cation has created four full-time ous use. One feature that facilitates its sleeves at speeds up to 300 containers For more information, contact management positions and 30 part- virtually zero downtime capability is per minute. Containers can be fi lled or Gary Tantimonico, 203-853-1516 or time jobs. Jet’s Pizza has more than PDC’s blade assembly. The cutting empty, and virtually any size or shape. email [email protected]. CMN 350 stores in 18 states. CMN DairySpec FT Next Generation of Dairy Product Analysis Your One Stop Service Engineered for dairy laboratories and dairy processing facilities that Equipment require highly reliable and accurate instrumentation for the analysis of a wide range of fluid dairy products. Centrifuge • Fat, protein, lactose, total Parts solids and many more Source components • Powerful software integrates We specialize in the service, repair and control, data collection, remanufacturing of Alfa Laval, Tetra Pak archiving, and reporting and Westfalia centrifuges. Separators, Inc. • Calibration assistance for keeps your equipment in production and specific products • Extensive remote diagnostic running efficiently. and network functionality • Bentley Instruments, serving 24/7 Parts & Service the Dairy Industry’s analytical Bowl Repair/Balancing needs for over 30 years Centrifuge Controls BactoCount IBCm Variable Frequency Drives A rapid test for total bacteria and somatic cell counts making it an ideal and unique solution for any processing plant or laboratory in the quality assessment of milk. • Dual application in a single platform • Rapid results (1 minute for SCC, 11 minutes for bacteria) • Instrument is pre-calibrated with a universal calibration equation • Real time detection of milk tanker contamination before unloading • Improves end product quality and consistency • Fast return on investment

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Chr. Hansen launches Delight three-in-one ripening culture for reduced-fat cheeses HØERSHOLM, Denmark — Chr. Hansen prompts the demand for lowfat alterna- Delight is designed to keep the char- According to Chr. Hansen, Delight is has launched Delight, a three-in-one tives in their daily diet — including acter and bring out a clean taste and a the name of a Lactobacillus helveticus solution to eliminate bitterness, restore parents looking for healthy snacks foods rounder fl avor in reduced-fat cheese. culture that brings unique benefi ts to fl avor balance and give a smooth texture for their children,” the company says. “The culture allows cheesemakers reduced-fat Cheddar and continental in cheeses with reduced calories. “This also is seen in the cheese market, to produce reduced-fat cheeses with cheeses. “Today’s consumers lead high-paced where lower fat cheese is becoming a a taste and texture that no experts “Delight does not have a side effect lives with little time for exercise, which factor in demand.” thought possible and that is why we on curd acidifi cation, which opens the believe we have created a true nov- door to new areas,” the company says. DSI launches new DairyHauler iPhone app elty in the cheese landscape,” says “Mold soft cheese, blue cheeses, cheeses Anne-Claire Bauquis, global marketing with high residual or high water By Chelsey Dequaine and we also have a Google map integra- manager, Chr. Hansen. “It is targeted content can all be inoculated with De- tion. Some of our customers may have at producers who wish to meet the light without risk of post-acidifi cation.” ELKHORN, Wis. — Data Specialists 100-200 trucks out at a given time.” increasing demand for healthier, yet For more information, visit Inc. (DSI) recently launched its new The app includes a mileage calculator. indulgent cheeses.” http://www.chr-hansen.com. CMN DairyHauler iPhone app. Tom Filak, Drivers can enter a starting and ending national sales manager, says the app mileage to DSI’s customers to ensure they Munson blender meets USDA dairy standards was developed by DSI’s staff in response aren’t driving out of the way, Filak says. to clients who wanted to minimize data Another benefi t of the app is the UTICA, N.Y. — Munson Machinery Com- vessel wall minimize residual product in entry and more real-time information reduced time spent on milk ticket data pany Inc. has announced its new Ribbon the trough following discharge, reducing about the location of their milk during entry as well as accuracy. Blender meets USDA dairy standards. material waste and cleaning time. transport. “We have many customers who enter Intended for blending of powdered The blender has a hinged and “It’s exciting from our standpoint that 300 or more milk tickets every day,” Filak milk, cheese, whey, yeast, curd and gasketed cover with safety interlocks. our customers are interested in using the says. “It’s a full-time job for some to punch other dairy products, Munson says the Options include a dust hood inlet with same technology as consumers,” Filak in milk tickets. We thought there must blender’s two-to-one length-to-diameter removable grating for ease of loading, says. “Our customers wanted a new way be a better way to get this information.” ratio distributes ingredients uniformly spray manifolds for liquid additions, to enter data. It’s a forward movement The app also helps eliminate writing during loading, blending and discharge. multiple discharges and special drive with our customers and technology.” errors or damage to the paper tickets, According to Munson, the blender arrangements. Some of DSI’s customers have used such as rain. forces a split double-helical agitator For more information, call 800- hand held devices in the past, but Filak In addition, the app is loaded with through stationary material, producing ho- 944-6644, email info@munson- says it wasn’t a good solution for many milk producer’s stick charts. This infor- mogeneous blends in 5 to 6 minutes. Tight machinery.com or visit www.mun- due to cost and complexity. mation is validated by DSI’s software as tolerances between ribbon blades and the sonmachinery.com. CMN As milk is picked up at a farm, Filak the data is entered. says drivers can signify they are picking DSI will host two webinars March 17 up a load, indicate the temperature, how on the DairyHauler app: 11 a.m. Central much milk is being picked up and their for those who are not DSI customers and mileage at the time of pick up. 2 p.m. Central for current customers. For “As they are updating that data, it is more information, contact Filak at 262- being updated in the app in real time,” 723-5726, tfi [email protected] he says. “All can be seen in the database, or visit www.dataspecialists.com. CMN

Announcing . . . DSI’s New DairyHauler™ iPhone App Designed to eliminate ticket entry, offer real-time SHREDDING milk visibility and hauler route movement Also Can • Eliminate over 90% of data entry at intake SYSTEMS • Provide real-time status of your haulers • Fully integrated to DSI’s Producer Payroll Unparalled Consistency and Operator Control & Liquid Scheduling • User friendly interface with intuitive screens With models to suit all production levels, Johnson Industries cheese for haulers shredders are designed to reduce fines, easily adjusted for variety of • Handles commingled loads • GPS, WiFi and Cell enabled shred types, and capable of blending two or more cheeses at once. • Driver messaging system • All without bulky, expensive hauler handhelds DSI’s Complete Milk Management Software Is Finding New Ways to Better Serve You!

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For more information please visit www.dataspecialists.com For more information please visit www.johnsonindint.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 26 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

Dairy checkoff organizations consolidate to become American Dairy Association North East

SYRACUSE, N.Y. — The dairy farmer Pennsylvania, under a single checkoff northern Virginia. American Dairy ing together, dairy farmers will have leadership of American Dairy Associa- umbrella,” says Rick Naczi, CEO, AD- Association and Dairy Council Inc. greater collective strength, allowing tion and Dairy Council Inc., Mid-Atlan- ANE. “Our priority is to review each says the consolidation will solidify ADANE’s staff to better position dairy tic Dairy Association and Pennsylvania organization’s programs and develop a the collective marketing strategy and in schools and among competing foods Dairy Promotion Program have voted plan that uses the best and most effec- power of more than 13,500 dairy farm and beverages. unanimously to create American Dairy tive business practices of each group. families in an increasingly competitive “More than ever, dairy farmers Association North East. This creates a unifi ed and consistent marketplace. must be united as we work to recon- This week, the American Dairy Asso- delivery of programs and provides a “This change will encourage an ef- nect our consumers with where their ciation North East (ADANE) corporate greater return on investment for our fective use of dairy farmer promotion food comes from and re-establish board, selected by and representing dairy farm families.” dollars and build an expanded go-to- consumer confidence in dairy,” members of the three organizations, ADANE will be responsible for market strategy in today’s competitive says Harold Shaulis, second vice met for the fi rst time to approve bylaws, promoting dairy and its nutritional marketplace,” says Richard Byma, chairman and Somerset County, elect additional offi cers and review benefits to 50 million consumers chairman, ADANE, and Sussex County, Pennsylvania, dairy farmer. CMN current programs. within a six-state region including New Jersey, dairy farmer. “This consolidation unites two of New York, New Jersey, Pennsylvania, Vernon Host, fi rst vice chairman, the top fi ve milk producing states Delaware, Maryland, the District ADANE, and Franklin County, Penn- National Restaurant in the United States, New York and of Columbia and four counties in sylvania, dairy farmer, says by work- Association’s RPI rises above 100

WASHINGTON — Although same- store sales and customer traffic indi- cators remained mixed, the National Restaurant Association’s Restaurant Performance Index (RPI) bounced back above 100 in January. The RPI stood at 100.6 in January, up 0.8 per- cent from December’s level of 99.7. The January gain pushed the RPI above the 100 level, which signifies expansion in the index of key industry indicators. The RPI consists of the Current Situation Index, which measures current trends, and the Expectations Index, which measures restaurant operators’ six-month outlook. The RPI also tracks the health of and outlook for the U.S. restaurant industry. The Current Situation Index stood at 99.7 in January, up 0.3 percent from a level of 99.4 in December. January represented the second consecutive month in which the Current Situation Index stood below 100, which signifies contraction in the current situation indicators. For the second consecutive month, restaurant operators reported mixed same-store sales results. Forty-four percent of restaurant operators reported a same-store sales gain between January 2015 and January 2016, while 43 percent reported a sales decline. January also represented the second straight month in which restaurant operators reported a net decline in customer traffic levels. The Expectations Index stood at 101.5 in January, up 1.3 percent from a level of 100.1 in December. January represented the 39th consecutive month in which the Expectations In- dex stood above 100, which indicates a generally positive outlook for business conditions in the months ahead. Restaurant operators’ outlook for sales growth improved from the previous month. Thirty-nine per- cent of restaurant operators expect to have higher sales in six months (compared to the same period in the previous year), up from only 27 per- cent last month and the highest level For more information please visit www.greatlakescheese.com in three months. CMN © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 27 NEWS/BUSINESS

Total volume of conventional dairy ads increases 11 percent from prior week

WASHINGTON — The total volume one year earlier, AMS says, while 2-pound of conventional dairy advertisements cheese blocks had a weighted average increased 11 percent last week from the advertised price of $5.65, down from $6.92 prior week, with conventional cheese one week earlier and $6.93 one year ago. up 2 percent, says USDA’s Agricultural AMS says natural varieties of 8-ounce Quality Cheese Marketing Service (AMS) in its latest cheese shreds last week had a weighted weekly National Dairy Retail Report average advertised price of $2.26, down From Your Cheese released Feb. 26. from $2.36 one week earlier and $2.41 one AMS says national conventional year earlier, while 1-pound cheese shreds varieties of 8-ounce natural cheese had a weighted average advertised price Specialist blocks last week had a weighted average of $3.49, up from $3.37 one week earlier advertised price of $2.25, down from but down from $3.86 one year earlier. Quality Cheese...at the right price...for the right $2.32 one week earlier but up from $2.21 Meanwhile, national conven- application...with exceptional technical knowledge one year earlier. tional butter in 1-pound packs last and service to meet your needs. Natural varieties of 1-pound cheese week had a weighted average ad- blocks last week had a weighted average vertised price of $2.96, down from Let us provide you with high-quality cheese starting today! advertised price of $3.61, up from $3.22 $3.44 one week earlier but up from FOODSERVICE • RESTAURANT/PIZZA CHAINS • INDUSTRIAL one week earlier but down from $4.03 $2.77 one year ago, AMS says. CMN AMS publishes fi nal rule to amend COOL regs

WASHINGTON — USDA’s Agricultural in lost export opportunities. Repealing Marketing Service (AMS) in Wednes- COOL prevented Canada and Mexico Celebrating day’s Federal Register published a fi nal from imposing retaliatory tariffs on 35 Years rule to amend the country of origin label- U.S. exports, including dairy products. In Business! ing (COOL) regulations by removing the (See “With tariffs on horizon, industry COOL requirements for muscle cuts of urges Congress to act on COOL” in the beef and pork, and ground beef and pork. Dec. 11, 2015, issue.) The Consolidated Appropriations Under the fi nal rule published this Act of 2016 repealed these COOL re- week, beef and pork muscle cuts and quirements, and immediately after the ground beef and pork are removed from legislation was passed, USDA stopped the list of covered commodities subject enforcing the requirements for beef to COOL regulation. Retailers no longer and pork, effective Dec. 15, 2015. (See are required to provide this information “Omnibus bill repeals COOL, delays for beef and pork at the point of sale. school sodium rule” in the Dec. 18, COOL regulatory requirements for 2015, issue of Cheese Market News.) chicken, lamb, goat, farm-raised and In December, the World Trade Orga- wild caught fi sh and shellfi sh, perish- nization (WTO) announced that COOL able agricultural commodities, peanuts, implementation in the United States pecans, macadamia nuts and ginseng 1126 W. Chestnut Street | Chicago, IL 60642 cost Canada and Mexico — two of the are still in effect, AMS says. Phone: (312) 226-1820 | Fax: (312) 226-6806 | Email: [email protected] U.S. dairy industry’s largest trading For more information, call 202-720- VAN SALMANS • KEVIN O’HARA partners — more than $1 billion dollars 4486 or email [email protected]. CMN For more information please email [email protected] The World Group welcomes three new members

WASHINGTON — The World Group this week announced that Nor-Am Cold Stor- age, Premier Refrigerated Warehouse and Sierra Pacifi c Warehouse Group have joined its network of independent refrigerated/frozen logistics and ware- housing companies. These companies join World Group members American Cold Storage, Frialsa Frigorífi cos, Great Lakes Cold Storage, Henningsen Cold Storage, MTC Logistics, New Orleans Cold Storage, Trenton Cold Storage and U.S. Growers Cold Storage. Collectively, The World Group now operates nearly 250 million cubic feet of warehousing space in more than 70 locations across North America. The World Group offers global experi- ence and regional expertise in addition to the horsepower of multi-temperature trans- portation and an effi cient network of top distribution facilities. For more informa- tion, visit http://theworldgroup.com. CMN For more information please visit www.powder-solutions.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 28 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

Shelburne Farms launches four-year aged ‘leap cheese’ for sale at farm store, online

SHELBURNE, Vt. — Shelburne Farms and started to develop a pronounced has taken advantage of this year’s leap crystalline texture without any hints of day by announcing the sale of its leap bitterness or off fl avors. Between last cheese, which was created Feb. 29, year and today, we salivated each time 2012. we walked by the batch in our aging “We made an exceptionally good cooler, trying our hardest not to crack batch of raw milk Cheddar that we it open and devour it.” hoped would mature two to three years Shelburne Farms says the profi le of age,” says Rory Stamp, cheese sales evokes fl avors of blood orange zest and manager, Shelburne Farms. tropical fruit, with a rich, melt-in-your- Shelburne Farms typically ages mouth texture and a long fi nish that Cheddar anywhere from six months excites every inch of the palate. to three years, but the majority of its “I’m convinced we have one of the 165,000-pound annual production ages most exquisite cheeses we’ve ever up to two years. made,” Stamp says. “Between three and “That’s when we strike a balance four years, this leap cheese metamor- WAG is your custom sourcing specialist of rich, deeply savory fl avors,” Stamps phosed from a youthful sharp, savory for procuring Quality Cheddar Cheese to meet \RXUVSHFLÀFQHHGV2XU\HDUVLQEXVLQHVV says. Cheddar to a fl aky, candied beauty that DQGRXU

Castle Cheese exec Michelle Myrter pleads guilty in lawsuit over adulterated cheese

WASHINGTON — Two cheese compa- facility in Slippery Rock, Pennsylvania. bear labels that accurately refl ected the for sale. At no time did the adulterated nies and a cheese company executive The cheese was distributed through products’ ingredients. The corporate de- products pose a threat to the health or pleaded guilty in federal court Feb. 26 retail, foodservice and wholesale cus- fendants likewise knew that the cheese safety of consumers, DOJ says. to charges relating to their introduction tomers throughout the United States. products were also adulterated in that U.S. District Judge Mark R. Hornak of adulterated and misbranded cheese According to DOJ, the corporate certain ingredients had been substi- will set a sentencing date for Myrter at products into interstate commerce. defendants had knowledge of FDA tuted or omitted and other ingredients a later time. The law provides for a total According to U.S. Attorney David J. regulations and standards of identity for had been added. The defendants used sentence of one year in prison, a fi ne of Hickton, Universal Cheese & Drying Inc. Parmesan and Romano cheese products proceeds from the sale of the misbrand- $100,000, or both. Under federal sen- and International Packing LLC each and were aware that the products did ed and adulterated cheese products to tencing guidelines, the actual sentence pleaded guilty to one count of conspiring not conform to FDA standards of identity continue the operation of the cheese imposed is based upon the seriousness to introduce misbranded and adulter- for real Parmesan and Romano cheese, manufacturing and packaging at the of the offense and the prior criminal his- ated cheese products into interstate but represented to customers that the Slippery Rock facility, DOJ says. tory, if any, of the defendant, DOJ says. commerce and one count of conspiracy products contained 100 percent real The adulterated Romano and Par- Pending sentencing, the court to commit money laundering. Parmesan and Romano cheese. mesan products were sold under several released Myrter on a personal re- Each company agreed to pay a fi ne DOJ says the corporate defendants brand names, the owners of which were cognizance bond. Requests for com- of $500,000. Castle Cheese Co. execu- also knew that the cheese products unaware of the fraud, DOJ says. The adul- ment from Myrter’s attorney were tive Michelle Myrter also pleaded guilty were misbranded because they did not terated products are no longer available not returned by press time. CMN as a responsible corporate offi cer to one misdemeanor count of aiding and abetting the introduction of adulterated and misbranded cheese products into interstate commerce. (See “Criminal complaints allege companies profi ted from selling misbranded, imitation Your cheese” in the Oct. 30, 2015, issue of Cheese Market News.) “The Department of Justice (DOJ) One Stop prosecutes people and companies who in- troduce adulterated or misbranded food Cheese to Please into interstate commerce,” Hickton says. Cheese “In this case, the fraud was perpetrated & Cellars to on consumers who purchased Parmesan Store It In and Romano cheeses that were inferior Ask Us About Your Aged Source! to what they believed they were buying.” Cheese Needs or Customizing In connection with the guilty pleas, an Aging Program for You. We buy and sell the world’s finest. the court was advised that the corporate defendants packaged and sold cheese Northern Wisconsin Produce is your full-source under various labels at the Castle Cheese Wisconsin cheese provider. We assemble LTL or truckloads out of our inventory, saving you time and money. CEI to merge into Specializing in Aged Wisconsin 40-lb. Blocks, Prolamina brand Retail and Foodservice as well as Bandage Styles: CINCINNATI — ProAmpac, a global Mammoths, Cheddar, Daisies, Horns, Midgets and Gems fl exible packaging company, this week • Your Direct Source for Award-Winning Pine River announced that Coating Excellence Food International (CEI) will merge into its • Cheese Makers: If you have Cheese to Sell, Prolamina brand, creating a unifi ed Ex- Please Call Us Today! trusion Division. The change refl ects the • Freezer, Cold and Dry Storage Available combined capabilities of ProAmpac’s • Conversion/Cut &Wrap Extrusion Division and better enables • Custom Manufacturing/Packaging Capabilities the company to leverage synergies with • Kosher its other brand divisions — Ampac and • Organic Tulsack, company offi cials say. • Private Label CEI, based in Wrightstown, Wis- consin, specializes in wide web extru- sion coating and laminating of fi lm, foil, paperboard and nonwovens. This expertise coupled with Prolamina’s technology-driven, flexible packag- ing solutions creates a leading North American packaging division serving the food, medical and specialty markets, company offi cials say. “Combining these brands unites Jim, Joan, David, Steven ProAmpac’s Extrusion Division, allow- and Peter — “The Lindemann’s” ing us to better leverage our expertise in laminations,” says Greg Tucker, CEO, ProAmpac. “We brought together two ORTHERN WISCONSIN PRODUC exceptional organizations to create a N E world-class division. Customers can CHEESE DIVISION expect expanded capabilities, extra P.O. Box 126 • Manitowoc, Wisconsin 54221-0126 • (920) 684-4461 • Fax: (920) 684-4471 • [email protected] capacity and outstanding service from the joined Prolamina brand.” CMN For more information please email [email protected] © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 30 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

Kraft Heinz reports Q4, full year results ’s Chèvre recognized by BRC

CHICAGO — The Kraft Heinz Co. re- mix from innovation in Lunchables SONOMA, Calif. — Laura Chenel’s “Since the plant was completed in cently reported its fourth quarter and and growth in condiments and sauces. Chèvre has been recognized by the 2010, we’ve worked to establish systems full year 2015 fi nancial results. For the U.S. segment adjusted EBITDA British Retail Consortium (BRC) for that ensure our products are the high- fourth quarter ended Jan. 3, 2016, pro increased 18.3 percent versus the year- meeting its Global Food Safety Initia- est quality and our facility exceeds food forma net sales were $7.1 billion, down ago period to $1.3 billion, including a tive (GFSI) in the production of fresh safety regulations,” says Eva Guilmo, 5 percent versus the year-ago period, benefi t of approximately 4.5 percentage plain and fl avored goat’s milk cheeses. quality director at Laura Chenel’s and its primarily driven by negative currency points from a 53rd week of shipments. Laura Chenel’s says GFSI certifi ca- sister company, Marin French Cheese. and divestitures impact and partially Excluding this impact, gains from cost tion ensures its production meets food “GFSI certifi cation is an external audit offset by a positive benefi t from a 53rd savings initiatives and favorable pricing industry and legislative requirements that evaluates quality, food safety and op- week of shipments. Pro forma organic net of commodity costs, primarily in across the United Kingdom, Europe and erational criteria ensuring that as manu- net sales decreased 3.1 percent versus dairy, were partially offset by unfavor- United States, including most of the facturers we meet our legal obligations the year-ago period. able volume/mix. recently enacted Food Safety Modern- while providing consumer protection to During the fourth quarter, adjusted Kraft Heinz reports its full year ization Act rules in the United States. retailers and our end customers.” CMN pro forma earnings before interest, 2015 net sales were $27.4 billion, 2015 taxes, depreciation and amortization adjusted pro forma EBITDA was $6.7 Glanbia Ingredients Ireland looks to expand (EBITDA) increased 10.9 percent ver- billion, and 2015 adjusted pro forma sus the year-ago period to $1.9 billion. EPS was $2.19. WEXFORD, Ireland — Glanbia Ingre- high-quality whey for further process- Adjusted pro forma earnings per share “The important integration work dients Ireland has announced it will ing for the sports nutrition sector at (EPS) increased 10.7 percent to $0.62 and fi nancial results we delivered in seek permission for a major expansion at Glanbia Ingredients Ireland’s facility in the latest quarter, compared to $0.56 2015 set a solid base on which we can its Wexford cheese plant. The proposed in Ballyragget, Ireland. in last year’s fourth quarter. drive sustainable growth across our 33 million euro (approximately $36 “This proposed investment is a U.S. pro forma net sales for the fourth global business,” says Kraft Heinz CEO million) investment will double milk tremendous vote of confidence in quarter were $5.1 billion, up 0.2 percent Bernardo Hees. “We are working to processing capacity at the plant and the staff at our Wexford plant, which from the year-ago period, including implement proven management meth- is supported by Enterprise Ireland, a produced record volumes of cheese a 4.6 percentage point benefi t from odologies, remove ineffi cient spending government organization responsible in 2015,” says Jim Bergin, CEO of a 53rd week of shipments. Pro forma and streamline our organization, while for the development and growth of Irish Glanbia Ingredients Ireland. “This organic net sales decreased 4.4 percent. investing in our brands and innovation enterprises in world markets. investment will also enable further Volume/mix decreased 4.6 percentage to drive long-term profi table growth. Wexford Creamery was acquired growth in our highly popular Wexford points due to lower shipments in ready- We believe that all of this positions by Glanbia in May 2014. Last year, the Cheese brand, which is being mar- to-drink beverages and frozen meals, Kraft Heinz for a strong performance plant produced almost 20,000 metric keted in Ireland, the UK, the USA and, partially offset by favorable volume/ in 2016 and beyond.” CMN tons of Cheddar as well as a stream of most recently, the Middle East.” CMN

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Hawaii considers bill to support local dairy production, authorize special revenue bonds

HONOLULU — Hawaii’s House Finance construction’s completion, the local and dairy products, and the bond would also Chad Buck, president of Hawaii Committee last week passed a measure only processor informed the dairy that help it to build a new milk processing Foodservice Alliance, also says a dairy- that would authorize the issuance of they would no longer pay them accord- facility to help bring more local products owned processing and bottling facility special purpose revenue bonds to assist ing to Hawaii’s milk quota and instead to Hawaiian consumers. offers the most effi cient way to provide Big Island Dairy LLC with the operation would purchase the milk at a parity price Representatives from impact invest- fi nished local dairy products for Hawaii of its dairy farm and building a milk to mainland milk, otherwise they would ment company Ulupono Initiative and consumers. processing facility in Ookala, Hawaii. not purchase any of the dairy’s milk. Hawaii Foodservice Alliance LLC also “A dairy-owned processing and bot- In testimony last month, Hawaii “A parity price with mainland has testifi ed in favor of the bonds. tling facility will increase competition Board of Agriculture Chairperson Scott not been feasible for the many dairies “If Big Island Dairy were able to for milk from dairy farmers providing E. Engright said the state’s department that were in Hawaii before us, and it is obtain special purpose revenue bond much needed competition in this mar- of agriculture supports the bill, HB 1982, not feasible for Big Island Dairy. There fi nancing, it would be able to build its ket segment,” Buck says. “Enabling local and requested that the bill include the simply isn’t enough revenue to offset the own processing facility that would allow dairy farmers to support each other and authorization amount of $10 million for high expenses associated with operat- for locally-produced milk to arrive on integrate vertical operations where the the special purpose revenue bond. This ing a dairy in Hawaii,” Whitesides says. shelves within days, ensuring a fresher dairy farms can milk, process and pack- would assist Big Island Dairy with a new Whitesides adds that the dairy has product for local consumers,” says age their own products for distribution is milk processing facility it has proposed, spent the last few years researching Kyle Datta, general partner, Ulupono the fi rst step towards food sustainability which Engright says would also help the feasibility of introducing more local Initiative. and food security for Hawaii.” CMN create free market conditions where other dairies will have the opportunity to choose where to sell their milk for a competitive price.

“There simply isn’t enough revenue to offset the high expenses associated with operating a dairy in Hawaii.”

Derek Whitesides WHITESIDES DAIRY INC.- BIG ISLAND DAIRY LLC

“Currently, the two remaining local dairies are at the mercy of the only pro- cessor in the state where that processor does not have to purchase milk from local producers,” Engright says, noting that the processor, Meadow Gold, can and does purchase milk from California at California prices. “This situation places an undue burden on the local producer where they have to accept the price of milk from the processor or risk dumping their unsold milk, neither of which is economically sound or serves the best interest of the dairy industry in Hawaii.” $TKPIKPI1WT5QNWVKQPU Hawaii’s local dairy industry has diminished from being totally self- 6QIGVJGTHQT;QWT5WEEGUU suffi cient in the 1980s to today account- ing for less than 20 percent of the milk GEA – Your single resource for a complete line of dairy processing equipment and integrated solutions. consumed in the state. In the same We offer a comprehensive portfolio of standard and custom-designed equipment, along with complete period, Hawaii’s dairy cow population production lines, from benchtop R&D solutions to integrated full-scale plants. Our latest innovations have has dropped from 12,000 head to about been specially developed to meet the needs of the 21st century dairy industry. Couple our wide range of 2,000 head. products with superior GEA support that includes 24/7 technical help, on-site service and same day parts Derek Whitesides, an owner of Whi- availability, and you have a partner that is committed to your success. tesides Dairy Inc.-Big Island Dairy LLC, said in his testimony that the special Learn more about the complete range of products and services we offer. Visit our new gea.com website to purpose revenue bond would enable the explore our full portfolio of dairy processing offerings or contact us at [email protected]. dairy to continue to innovate its milking facilities, as well as to build a new milk processing facility, helping to revitalize Hawaii’s dairy industry. In 2011, the Whitesides family pur- chased Island Dairy, now Big Island Dairy, and soon after began construction on a state-of-the-art milking facility. However, Whitesides says prior to the For more information please visit www.gea.com © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 32 CHEESE MARKET NEWS® — March 4, 2016 NEWS/BUSINESS

IDF, U.S. Pharmacopeial Convention sign MOU to collaborate on science-based standards

ROCKVILLE, Md. — The International accordingly in the marketplace, IDF Dairy Federation (IDF) and the U.S. says. Global milk production in 2014 Pharmacopeial Convention (USP) surpassed 800 million metric tons and recently signed a Memorandum of Un- is expected to reach 1 billion metric derstanding (MOU) to collaborate in the tons by 2025, according to IDF. development, identifi cation, elabora- “The anticipated increased demand tion and dissemination of science-based for safe and sustainable dairy will be a standards at an international level with major challenge for the future. Regulatory an aim to promote the safety, quality and frameworks will need to evolve accord- integrity of dairy ingredients. ingly,” says Nico van Belzen, Ph.D., direc- “Access to safe and nutritious food is tor general of IDF. “Global harmonization one of the most relevant needs of all hu- of standards will be a key component of mans, irrespective of gender, age, race such evolving regulatory frameworks.” and nationality,” says Jeffrey Moore, Specifi cally, USP and IDF will jointly Ph.D., director of science for USP’s develop new standards and guidelines Food Program. “Dairy ingredients are for dairy ingredients and review selected important from a global scientifi c and existing standards. Experts from both public health perspective because of organizations will contribute to this work. their nutritional value and widespread The organizations also have agreed to usage in the food supply. This collabo- cooperate in submitting relevant harmo- ration with IDF will provide synergies nized standards to intergovernmental or- that contribute to better safeguarding ganizations such as Codex Alimentarius. the global food supply chain for one of “I believe this collaboration will am- the top components of the human diet.” plify the global public health impact of In most parts of the world, milk both organizations by leveraging our mu- and dairy ingredients are considered tual scientifi c resources to advance in- nutrient-dense foods and are valued ternational standards,” Moore says. CMN KeHE Distributors buys Monterrey Provision Co.

NAPERVILLE, Ill. — KeHE Distributors The acquisition will add two distribu- LLC, which provides natural, organic and tion centers in San Diego and Oklahoma specialty products to retailers throughout City to KeHE’s existing network of 16 North America, recently acquired Mon- distribution centers in the United States terrey Provision Co., a San Diego-based and Canada. distributor of products for the perimeter “Joining the KeHE family leap- departments at retail grocery stores. frogs Monterrey by years in our abil- “We view the perimeter as an es- ity to extend our excellence in fresh sential element of our growth strategy,” perimeter distribution to the entire says Brandon Barnholt, president and country,” says Luke Abbott, president CEO, KeHE. “The acquisition of Monter- of Monterrey. “Further, KeHE and rey expands our perimeter capabilities Monterrey couldn’t be better cul- and further enables our growth plans.” tural fi ts for each other.” CMN For more information please visit www.hadencustance.com Nomination period Innovation, Dedication, and open for fi rst Integrity Every Step of the Way! IDFA Food Safety

Our winning combination of experience, technology, and state-of-the-art Leadership Award equipment will take your business to a higher level in the domestic or international marketplace. WASHINGTON — International Dairy Foods Association (IDFA) is seeking nomi- • Over 30 Years of Experience • Value-Added Services nations for its inaugural Food Safety Lead- • Efficient and Cost Effective ership Award, which will honor a group or an organization for providing outstanding MSS Equipment & Services: leadership that has made a signifi cant • Membranes (RO, UF, NF, MF) • Fabrication contribution to improving or reinforcing • Engineering • Pilot Testing • Field Installation the food safety of dairy products. • Project Management • Membrane Testing • Replacement Parts • Process Design • Feasibility Studies • Troubleshooting Nominees must demonstrate and • Automation • Consulting • Technical Seminars show food safety leadership achieve- • Systems Integration • Comprehensive Plant Surveys ments, originality of work and include • Control Upgrades a peer assessment of nominee. The recipient will receive the award during the Celebrating Excellence Lun- cheon at the IDFA Dairy Forum in 2017, as well as free registration, airfare and hotel accommodations for the Dairy Forum. The deadline for submissions P. O. Box 998 • 1430 Second Street North • Wisconsin Rapids, WI 54495 is Aug. 31. Nominations should be (715) 421-2333 • Fax (715) 423-6181 Email: [email protected] • Web: www.mssincorporated.com sent to John Allan, vice president of regulatory affairs and international For more information please visit www.mssincorporated.com standards, at [email protected]. CMN © 2016 CHEESE MARKET NEWS® — This is Cheese Market News’ E-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) March 4, 2016 — CHEESE MARKET NEWS® 33 CLASSIFIED ADVERTISING

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New Parmalat facility receives $2.5 million in Study fi nds retail concentration has funding from Canada, Manitoba governments signifi cant effect on retail dairy prices

WINNIPEG, Manitoba — The gov- dairy industries in Manitoba, and we ST. PAUL, Minn. — Grocery retail sor in the department of agricultural and ernments of Canada and Manitoba are committed to seeing this project concentration has a statistically positive applied economics at the University of will provide $2.5 million toward the move forward.” signifi cant effect on retail dairy product Wyoming, and Marin Bozic, assistant construction of a new Parmalat dairy In July 2015, the City of Winnipeg prices, according to a recent working professor in the department of applied processing facility in St. Boniface, Mani- announced it would sell city-owned paper, “The Effects of Retail Concentra- economics at the University of Minnesota toba, according to Canada’s Agriculture property in St. Boniface to Parmalat tion on Retail Dairy Product Prices in the and associate director of the Midwest Minister Lawrence MacAulay and Canada worth C$2.625 million, allowing United States.” Dairy Foods Research Center. Manitoba Agriculture, Food and Rural the company to keep its dairy operation The study contributes to the dis- Extensive research has been devoted Development Minister Ron Kostyshyn. in Winnipeg. Offset by the sale of the cussion of the relationship between to studying retail market power when “The government of Canada is com- land, the city, the province and Parmalat grocery market structure and retail marketing a variety of dairy products, mitted to supporting this country’s Canada will cover the C$5.61 million performance. the paper notes. This was mostly driven dynamic agricultural industry, which cost to extend services like electrical Specifi cally, it offers an empirical by “signifi cant structural changes” in the is a key driver of jobs and economic and water to the new facility. investigation of the effects of rising retail U.S. food retailing sector over the past growth, MacAulay says. Parmalat Canada employs 139 concentration on dairy products in a large three decades. One such change was the The new facility will replace an ag- people at facilities in St. Boniface, St. number of diverse local markets from rising retail concentration, with the four ing building with a new, C$50-million Clause and Grunthal, Manitoba, and across the United States. The analysis largest grocery chains accounting for 36 facility in a new location that will allow expects to hire more employees once was conducted on a unique store-level percent of U.S. total market share in 2005 Parmalat to increase production with the expanded facility in St. Boniface dataset for a period of 2008 through as opposed to 16 percent in 1982. modern equipment in a neighbor- becomes operational in 2017. 2011 provided by Information Resources A large number of local markets from hood more suitable for its business. “Parmalat Canada is pleased to Inc. (IRI). across the United States now have top Government funding will be used for have such enthusiastic partners in the Major study fi ndings indicate that four or eight fi rm market concentration energy- and water-use reduction equip- provincial and federal governments and retail concentration had positive signifi - ratios exceeding 80 percent of the mar- ment, wastewater treatment, and new the City of Winnipeg for this important cant effects on dairy retail prices with the ket, the study notes. processing equipment. expansion,” says Jean Paul Quiblier, vice impact diminishing in the aftermath of “This level of retail concentration has “Manitoba is proud to support this president, operations, Parmalat Cana- the recession of 2008. the potential to reshape not only vertical strategic investment to maintain and da. “Local dairy producers have been ex- Specifi cally, a 10-percent increase in interactions between food producers and secure good jobs, create opportunities tremely supportive in providing us with retail concentration was found to lead to retailers but also horizontal interactions for growth in the agricultural sector and the raw materials to make a world-class a 0.46-percent rise in retail dairy product among rival retail chains,” the paper says. benefi t Manitoba’s economy,” Kostyshyn product, and this investment shows our prices, according to the paper, written by To read the paper, visit http:// says. “This expansion is important to company’s commitment and support Vardges Hovhannisyan, assistant profes- dairymarkets.org. CMN the future of the food processing and of agriculture in Manitoba.” CMN Jeni’s hires new director of food safety COLUMBUS, Ohio — Jeni’s Splendid and Food Safety Net Services. Ice Cream recently announced that it Jeni’s has ramped up its food has hired a new staff microbiologist safety program after it recalled all of and director of food safety, Cynthia its products and temporarily closed Celebrating Over 80 Years Decker. its shops in April 2015 following the of Service to the Industry... Decker has more than 20 years of discovery of Listeria monocytogenes experience in food safety and quality in a random sample of its ice cream monitoring programs, including time collected by the Nebraska Depart- at Ross Laboratories, The Scotts Co. ment of Agriculture. CMN

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GDT price index up for fi rst time in 2016 Judge halts New York sodium labeling law

AUCKLAND, New Zealand — The down 2.9 percent. NEW YORK — A New York state judge Global Dairy Trade index increased 1.4 • Cheddar: US$2,528 per metric ton FAS has granted the National Restaurant percent, and average prices for some ($1.1467 per pound), down 0.7 percent. Association’s request for an emergency “(This decision will) commodities improved Tuesday follow- • Lactose: US$613 per metric ton FAS stay of New York City’s sodium labeling grant emergency relief ing the latest auction on GDT, Fonterra’s ($0.2781 per pound), up 7.9 percent. law that would require chain restau- internet-based sales platform. • Rennet casein: US$4,569 per rants with more than 15 stores to post from this unlawful and The average prices achieved across metric ton FAS ($2.0725 per pound), salt-shaker labels next to menu items unprecedented sodium all contracts and contract periods, and up 14.9 percent. exceeding 2,300 milligrams of sodium. the percent change from last month, • Skim milk powder: US$1,802 per The Feb. 29 decision by Justice David mandate.” are as follows: metric ton FAS ($0.8174 per pound), Friedman of the Appellate Division of • Anhydrous milkfat: US$3,254 per up 1.3 percent. the New York Supreme Court in Manhat- Angelo Amador metric ton FAS ($1.4760 per pound), • Whole milk powder: US$1,974 per tan temporarily prohibits the New York NATIONAL RESTAURANT down 8.3 percent. metric ton FAS ($0.8954 per pound), up City health department from enforcing ASSOCIATION • Butter: US$2,811 per metric ton FAS 5.5 percent. the law, which went into effect Dec. 1 ($1.2751 per pound), down 0.5 percent. The next trading event will be but was scheduled to begin enforcement • Buttermilk powder: US$1,452 per held March 15. For more information, March 1. (See “National Restaurant City’s sodium mandate” in the Dec. 4, metric ton FAS ($0.6586 per pound), visit www.globaldairytrade.info. CMN Association fi les suit against New York 2015, issue of Cheese Market News.) “The association is pleased by today’s decision to grant emergency relief from this unlawful and unprecedented sodium mandate to the men and women who own and operate chain restaurants in New Are You Really Cutting It? York City,” says Angelo Amador, regula- FAM DEVILLE Shredders and Dicers produce a perfect cut quality; tory counsel for the National Restaurant are cleaner, smarter and more efficient. Association. A panel of appellate court judges will next decide whether or not to grant the as- Less waste sociation’s motion for a preliminary injunc- Impeccable hygiene tion of the mandate’s enforcement, after Better cut quality which an appeal of the case will be heard. Assured employee safety In its original Dec. 3 fi ling, the Na- tional Restaurant Association claimed Increased capacity that the health board’s mandate was “arbitrary and capricious” and “fi lled with irrational exclusions and non- sensical loopholes.” It also argued that under New York state law, only the city council had proper authority to impose such a regulations. CMN

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