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Demand for Specialty Cheeses Grows in Deli, Dairy Retail Case

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Demand for Specialty Cheeses Grows in Deli, Dairy Retail Case Scan this code for breaking Demand for specialty cheeses news and the latest markets! grows in deli, dairy retail case A By Alyssa Sowerwine ingly well,” she says. “There’s es. These varieties represent 73 and/or begin offering specialty always new and exciting cheeses percent of category sales,while cheeses in formats for the deli INSIDE MADISON, Wis. — As consum- entering the market. More than the remaining 23 varieties ac- and dairy case. ers look to add new flavor variety ever, customers are willing to ex- count for 3.3 percent or less of Jay Allison, vice president of Producers, processors to even once-basic meals such as periment with food and stretch category sales, NPG says. sales and marketing, Tillamook testify at CDFA milk sandwiches and salads, demand beyond the basics.” Within the specialty cheese County Creamery Association for specialty cheese in the deli A sales review released June category, other flavored cheese, (TCCA), Tillamook, Ore., notes pricing hearing. and dairy sections of grocery 1 from Nielsen Perishables including cheese spreads with that TCCA offers a wide variety For details, see page 6. stores continues to grow. Group (NPG), Chicago, notes flavoring and snack cheese, of options for its retail partners, McCully Group to provide Melissa Bunch, director of that between 2007 and 2011, deli accounted for 14.5 percent of such as specialty cheese in consulting services prepared foods, deli, cheese, at cheese dollar sales increased category sales, NPG notes. 8-ounce chunk sizes as well as Schnucks — a privately-held 12.5 percent on a per-store, per- Patrick Tinder, deli manager 8-ounce slices. for dairy companies. chain of more than 90 supermar- week basis (results are compiled at Hy-Vee, Madison, Wis., says TCCA also produces 5-pound For details, see page 10. kets in St. Louis and the Midwest from grocery stores nationwide). the deli offers several varieties and 40-pound chunk items for — says that cheese selection During the 52 weeks ended of cheese such as Cheddar, Colby cut-to-order deli programs, he Exclusive: CMN’s annual varies by store location, but it Feb. 25, 2012, deli cheese Jack, Provolone and Swiss, as adds. ‘Key Players’ profiles: is not uncommon to find more represented 12.7 percent of well as specialty varieties in- “By offering more Tillamook For details, see pages 11-54. than 300 varieties of cheese in deli department sales as dollar cluding Smoked Gouda, Smoked products in the deli case, retail- Darigold to close Salt Lake Schnucks’ specialty section. sales increased 6.6 percent from Havarti, Pepper Colby Jack and ers can give their customers City processing plant. “Specialty cheese is a strong the prior year, demonstrating a very popular Chipotle Cheddar. what they want by providing a category that weathered the cheese’s importance to the deli He notes that there is a strong natural, healthy, high quality For details, see page 58. economic downturn surpris- department, NPG says. demand for specialty cheeses cheese option,” Allison says. Weekly sales for specialty at the store, and Hy-Vee runs a Allison notes that more peo- cheese remained fairly steady lot of programs in the store to ple are continuing to eat at home throughout the year, with sales grow that trend, such as offer- but are not willing to sacrifice Key Players 2012 spiking at the Easter, Thanksgiv- ing customers who buy a pound the quality of their ingredients ing and Christmas holidays, with of lunch meat a free half-pound or their finished product. By the staff of Cheese Market News the highest sales for specialty of cheese. “For example, a traditional cheese occurring the week of “Consumers are getting grilled cheese sandwich may The U.S. dairy industry may not agree on pricing and policy issues, Dec. 24, NPG says. more adventurous with tastes, now include aged Cheddar, fla- but one thing is for certain: Despite ups and downs and bumps in the NPG notes that the specialty so I think the specialty cheese vored cheese, pesto, prosciutto, road, the cheese industry is growing. cheese category contains 33 category will keep growing,” kale or other non-traditional U.S. cheese production in 2011 totaled 10.6 billion pounds, up varieties of cheese, though sales Tinder says. ingredients,” he says. “With 1.5 percent over a year earlier, and U.S. cheese exports in 2011 grew are dominated by the top 10 va- While a positive area of a more diverse population of 29 percent to a record 224,306 metric tons. Driving that growth was rieties, which include Cheddar, growth for retailers, specialty consumers, people are creat- a healthy milk supply from dairymen and cheese plants focused on Parmesan, Mozzarella, Feta, cheese growth also offers an ing more unique recipes and expanding production and pursuing new products and new markets. Hispanic, Swiss, Brie, Blue and opportunity for cheesemakers dishes with a modern twist on This year’s “Key Players,” Cheese Market News’ exclusive profile of Gouda and other flavored chees- to expand their flavor offerings Turn to DELI, page 8 who’s who in the North American cheese business, looks at 50 companies who are an important part of driving industry growth. Each year “Key Players” highlights an array of companies — co-op and privately-held, small and large — all with one thing in common: they are newsmakers, companies that are changing the cheese industry Senate votes to bring 2012 Production of U.S. landscape one pound of cheese at a time. cheese increases While each profile provides insight into a specific company, in its Farm Bill to floor for debate entirety “Key Players” provides you with a snapshot of the industry in 2 percent in April 2012. This year, you will read about both new plants and expansion WASHINGTON — The U.S. Senate began consideration of the 2012 Farm Bill this week, and on Thursday, 90 senators voted in WASHINGTON — Total projects, new leadership at the helm of several companies, and ongo- U.S. cheese production, ing product development. You will learn what companies are doing favor of bringing the bill to the floor for further consideration, as dairy and agriculture industry groups continue to reinforce their excluding cottage cheese, to improve food safety and how companies are blending a variety of was 902.6 million pounds marketing techniques to reach consumers. positions in the debate to reform federal dairy policy. The measure now proceeds to the full Senate floor for debate in April, 2.1 percent above Whenever possible, we have provided sales and production data and amendments, a process that could take several weeks before April 2011, according to data because we know that having an understanding of a company’s size a final vote is taken, says the National Milk Producers Federation recently released by USDA’s and scope is helpful in understanding a company’s positioning in the (NMPF). The House Agriculture Committee is expected to mark National Agricultural Sta- industry. However, you will notice we have not ranked the companies up its version of the farm bill later this month. tistics Service (NASS). (All by size. This is because they each are making an important and unique Jerry Kozak, president and CEO of NMPF, says that Thursday’s figures are rounded. Please contribution to the growth of the industry. action “greatly increases the chances that we can get our dairy see CMN’s Dairy Production To find out more about the profiled companies’ past year and where reform proposal through the Senate, as well as the House, and chart on page 8.) they are headed, please read on … passed into law this year.” April 2012 cheese Turn to KEY PLAYERS, page 11 Turn to FARM BILL, page 10 Turn to NASS, page 8 Reprinted with permission from the June 8, 2012, edition of CHEESE MARKET NEWS® © Copyright 2012 Quarne Publishing LLC; PH: (509) 962-4026; www.cheesemarketnews.com 2 CHEESE MARKET NEWS® — June 8, 2012 MARKET INDICATORS CLASS III PRICE (Dollars per hundredweight, 3.5% butterfat test) YEAR JAN FEB MAR APR MAY JUN JUL AUG SEP OCT NOV DEC 2006 13.39 12.20 11.11 10.93 10.83 11.29 10.92 11.06 12.29 12.32 12.84 13.47 2007 13.56 14.18 15.09 16.09 17.60 20.17 21.38 19.83 20.07 18.70 19.22 20.60 2008 19.32 17.03 18.00 16.76 18.18 20.25 18.24 17.32 16.28 17.06 15.51 15.28 2009 10.78 9.31 10.44 10.78 9.84 9.97 9.97 11.20 12.11 12.82 14.08 14.98 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 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 2012 17.05 16.06 15.72 15.72 15.23 STAFF SUBSCRIPTION INFORMATION Susan Quarne, (PH 608/831-6002; FAX 608/831-1004) e-mail: [email protected] Kate Sander, (PH 509/962-4026; FAX 509/962-4027) POSTMASTER: e-mail: [email protected] Send address changes to Cheese Market News®, Subscriber Alyssa Sowerwine, Services, P. O. Box 628254, Middleton, WI 53562; Form (PH 608/288-9090; FAX 608/288-9093) 3579 requested; or call direct at 608/831-6002. e-mail: [email protected] Rena Archwamety, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] Aaron Martin, (PH 608/288-9090; FAX 608/288-9093) e-mail: [email protected] REGULAR CONTRIBUTORS John Umhoefer, Downes-O'Neill LLC, International Dairy Foods Association, National Milk Producers Federation SUBSCRIPTIONS & BUSINESS STAFF Subscription/advertising rates available upon request Contact: Susan Quarne - Publisher Subscriptions: P.O.
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