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. Box 628254, Middleton, WI 53562 PHONE 608/831-6002 • FAX 608/831-1004
WEBSITE: www.cheesemarketnews.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.
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 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 June 8, 2012 — CHEESE MARKET NEWS® 3 MARKET INDICATORS NEWS/BUSINESS
CWT assists with exporting 1.8 million pounds of cheese to Asia, Middle East, North Africa ARLINGTON, Va. — Cooperatives In 2012, CWT has assisted member Working Together (CWT) has ac- cooperatives in making export sales cepted eight requests for export of Cheddar, Monterey Jack and Gouda assistance from Bongards, Darigold, totaling 56.6 million pounds, and but- Foremost Farms and United Dairy- ter and anhydrous milkfat totaling men of Arizona to sell a total of 879 44.3 million pounds to 27 countries on metric tons (1.94 million pounds) four continents. The butter total has of Cheddar and Monterey Jack to been adjusted due to cancellations. customers in Asia, North Africa and CWT will pay export bonuses to the the Middle East. The product will be bidders only when delivery of the prod- delivered June through November uct is verified by the submission of the 2012. required documentation. CMN
For more information please visit www.johnsonindint.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.
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 4 CHEESE MARKET NEWS® — June 8, 2012 GUEST COLUMNISTS
affair with channels like Food Network dairy category alone, with its affordable and Cooking Channel has given birth cheeses, table creams and drinkable Perspective: to a curious, creative and adventurous yogurts, offers an extraordinary op- Dairy Marketing home cook who’s looking to get their Top portunity for retailers to tap into that Chef on while at the same time keeping passion for Latin flavors by merchandis- the family budget in mind. ing those products beyond the “Mexican Dairy continues to top trend lists be- Food” section. cause it offers a unique combination of Farm-to-table means consumers attributes — value, nutritional delivery, are still interested in where their food diversity and performance. comes from. Our Real California Milk What does that mean? It’s hard to and Cheese seals are an indication that beat the value of dairy and what it deliv- products are made with 100 percent ers in one cup of milk, ounce of cheese California milk. Organizations like the or carton of yogurt. That value is more CMAB, Wisconsin Milk Marketing Board than just monetary — where else can and other dairy check off organizations you fit so much taste and nutrition into throughout the United States are doing one sip or bite? Variety-wise, dairy comes a terrific job of telling the stories behind in countless forms, flavors and even fat these farm families and tapping into levels making it a fit for every lifestyle. On social media to help deliver those mes- Tasty trends starring California dairy the retail end, that diversity means the sages directly to consumers. Retailers same specialty cheese that gave a kick can leverage those tools to populate Welcome to June — summertime things dairy and the farmers who bring to the deli sandwich of the month also their own social assets and help their AND show time for dairy. With the return this essential food to the table. Dairy is can be featured in a bulk salad or even customers be better informed. of summer vacations, celebrations of part of every day for consumers, from take-home pizza. And does dairy perform? Food has always been a social experi- brides, dads and grads and the Inter- the milk on their cereal to the cheese Just ask any chef or home cook — dairy ence — from the first meals shared over national Dairy Deli Bakery Association topping their pizza. It is an essential is a dream ingredient to work with. fire to the family dinner table. Today’s (IDDBA) show, dairy will be front and and profitable retail category. From ethnic foods to farm-to-table social media tools are making it easier center all month long as consumers, IDDBA gives attendees an oppor- to shared meal experiences, dairy fits to share than ever before. Yesterday’s retailers and anyone associated with tunity to check out the food trends them all. coffee klatch recipe exchange has been the food business puts the spotlight on consumers are talking about, sharing A recent California Milk Advisory replaced by today’s Pinterest page. this diverse category. and looking to participate in. Food is a Board (CMAB) survey indicates that Consumers want to learn and to share We enjoy June because it is also contact sport and consumers are getting the ethnic food consumers most often their own knowledge; it’s important for Dairy Month — a celebration of all involved more than ever before. Our love make at home is Mexican. The Hispanic Turn to CMAB, page 5
For more information please visit www.realcaliforniamilk.com
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 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 June 8, 2012 — CHEESE MARKET NEWS® 5 NEWS/BUSINESS
National Farmers Union expresses disappointment following House markup of 2013 ag bill WASHINGTON — The U.S. House • Food and Nutrition Programs user fees, is $3.8 billion. year’s level. This funding will support Appropriations Committee Subcom- — The bill provides $6.9 billion in • Farm Service Agency (FSA) — the delivery of certain farm, conserva- mittee on Agriculture, Rural Develop- discretionary funding for the Special The legislation provides $1.5 billion for tion, loan, and emergency programs for ment, FDA and Related Agencies on Supplemental Nutrition Program for FSA, which is $23.8 million below last American farmers and ranchers. CMN Wednesday marked up a fiscal year Women, Infants, and Children (WIC), 2013 agriculture appropriations bill, which is $303.5 million above last year’s which was approved by voice vote and level and $119 million below the presi- U.S.-EU organic trade partnership begins now moves to the House Appropriations dent’s request. It also provides for $19.7 WASHINGTON — USDA announced requirements and labeling practices were Committee. billion in required mandatory funding earlier this week that organic products compatible. Although there are slight The bill includes $19.4 billion in dis- for child nutrition programs, $1.5 bil- certified in the United States or Euro- differences, both parties individually cretionary funding, which represents lion above last year’s level and $38 pean Union now may be sold as organic in determined that their programs were a cut of $365 million from last year’s million below the president’s request, either market, as trade opened up June equivalent, allowing for the agreement. level and falls $1.7 billion short of and $80 billion in required mandatory 1 under the new U.S.-EU equivalency The exception between the two or- President Obama’s request, according spending for the Supplemental Nutri- partnership. The formal letters creating ganic programs has to do with prohibition to the National Farmers Union (NFU). tion Assistance Program (SNAP), $408 the partnership were signed in Febru- on the use of antibiotics. USDA organic “Compared to some of the propos- million below last year’s level and $2 ary (see “U.S., EU partner to recognize regulations prohibit the use of antibiotics als that this committee has produced billion below the president’s budget organic programs as equal” in the Feb. except to control invasive bacterial infec- in recent years, the fiscal year 2013 request. 17, 2012, issue of Cheese Market News). tions in organic apple and pear orchards. appropriations bill is less severe in its • Agriculture Research — The bill “Equivalency arrangements such EU regulations allow antibiotics only to percentage cuts,” says Roger Johnson, provides $2.5 billion for agriculture as this are critical to growing the U.S. treat infected animals. For all products president, NFU. research programs, including the organics industry,” says USDA Deputy traded under this partnership, certifying However, Johnson says the bill still Agricultural Research Service and Secretary Kathleen Merrigan. “They agents must verify that antibiotics are contain “unacceptable” provisions. the National Institute for Food and require careful negotiation to ensure not used for any reason. The bill cuts $25 million from the Agriculture. This is a reduction of $35 that we maintain existing U.S. trade The United States and European Commodity Futures Trading Commis- million below last year’s level. policies while ensuring that U.S. ag- Union will continue to have regular sion, the agency tasked with increased • Food Safety and Inspection Ser- ricultural products will compete on a discussions and review each other’s authority over agricultural and finan- vice — The legislation includes $996 level playing field in world markets.” programs periodically to verify that the cial markets because of the Dodd-Frank million for food safety and inspection The United States signed a similar terms of the partnership are being met. Wall Street Reform and Consumer programs, which is equal to the presi- partnership with Canada in July 2009. All products traded under the Protection Act, Johnson notes. dent’s budget request and a decrease Conversations on equivalency arrange- partnership must be shipped with “Now is not the time to be cutting of $9 million below last year’s level. ments also have begun with South an organic import certificate, which from an agency that has an important • FDA — FDA receives a total of Korea, Taiwan and Japan. shows the location where production role to play in preventing the next almost $ 2.5 billion in discretionary The U.S.-EU partnership has eliminat- occurred, identifies the organization financial meltdown,” he says. funding in the bill, a cut of $16.3 million, ed the need for producers and companies that certified the organic product and Other highlights of the bill for ag- or 0.7 percent, below last year’s level. trading organic products across the At- verifies that growers and handlers did riculture include: Total funding for the FDA, including lantic to obtain separate certifications for not use prohibited substances and the two standards, along with the double methods. The European Commission’s set of fees, inspections and paperwork. Directorate General for Agriculture Governor proclaims ‘Real Calif. Milk Month’ USDA says the elimination of these bar- and Rural Development and the USDA SOUTH SAN FRANCISCO, Calif. CEO of California Milk Advisory Board riers will especially be helpful for small National Organic Program will take on — California Gov. Jerry Brown has (CMAB). “This year we are asking dairy and medium-sized organic farmers. key oversight roles. declared June “Real California Milk fans to show their support of California During negotiations, both U.S. and EU For more information, contact Month” in recognition of the state’s dairy families by looking for the Real officials conducted thorough on-site au- the National Organic Program at 202- dairy industry and dairy-related activi- California seals when they shop. Those dits to ensure their programs’ regulations, 720-3252 or visit www.ams.usda.gov/ ties throughout the state during June seals represent real people who provide quality control measures, certification NOPTradeEuropeanUnion. CMN Dairy Month. jobs and are an integral part of our “We are thrilled Gov. Brown contin- state’s economy.” ues to show his appreciation for our CMAB is helping consumers cel- industry and the more than 1,600 dairy ebrate Dairy Month with 30 days of families that work hard every day to tips, tools and recipes designed to OPINIONS milk for our tables and the dairy prod- showcase all of the ways dairy fits into Your Total Cheese Sales & Marketing Support Team! ucts consumers love,” says Stan Andre, today’s busy and active lifestyles. CMN • Over 80 years of combined experience • Expert knowledge in all aspects and applications of marketing cheese OPINIONS • We represent quality manufacturers from all over the U.S. and World • Expertise in imported and specialty cheeses CMAB tional) and let them share it (always • Broad knowledge of club stores and feature a sharing capability). That’s general merchandising programs Continued from page 4 what IDDBA is all about: showing the incredible diversity of dairy; giving ideas RETAIL o FOODSERVICE o INDUSTRIAL retailers to be there too. of how to merchandise this diverse prod- And to continue a theme from last uct to grow business; and building the Call one of the experts on our team today... year, it needs to be personalized. Look relationships to share our dairy products • Pat Spaulding • Suzanne Spaulding beyond the floorscapes, danglers and with consumers everywhere. We look • Mike Feeney • Jay Spaulding coupon dispensers of old. Interactive forward to showcasing innovative dairy • Patrick Elkins • Michael Bauchman tools like QR codes and digital coupons flavors from our California processors • Nathan Gorang • Rodney Butcher are the biggest opportunity not being and hope to see you at the California • Michael Crandall tapped at retail today. dairy pavilion. CMN If I had any advice for retailers going The Cheese Guys into busy June season it would be to give The views expressed by CMN’s guest (800) 521-7335 • FAX (810) 227-4218 consumers variety (that means in prod- columnists are their own opinions Email: [email protected] ucts and applications), show them how and do not necessarily reflect those of to make it (use social tools to be instruc- Cheese Market News®. For more information please visit www.cheeseguys.com
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identified and watch avidly — those noted for its iconic Butterburger and lasting forces that will impact cheese frozen custard, recognizes this desire Perspective: in the retail consumer arena. for authenticity in food in its much Dairy Marketing Setting the stage for many key trends touted nationwide advertising cam- is the fact that Americans have never paign, “Welcome to Delicious” televi- been more engaged with what they eat. sion commercials. Two of these feature They want an “authentic food experi- President/Founder Craig Culver, one ence,” says Joseph Bona, president of with a Wisconsin cattleman and the Retail for CBX, a New York-based brand- second with a cheesemaker from whom ing firm, in a recent article in CSP Daily he’s sourced products over the years. News, a convenience store publication. “You’re only going to make as good of Citing variety, greater selection, fresher cheese as the quality of milk you get ingredients and healthier, tastier choic- from your farmers,” says Wisconsin es as assets consumers already expect Master Cheesemaker Gary Grossen be- in food, Bona sees the retail challenge fore touring Culver through the cheese as building a connection between their plant. In another commercial, Culver stores and offerings. chats with a cattleman who’s supplied For sure, “connection” and relation- the restaurant beef for 20 years. All are ships have been trend drivers for some the real hands-on people … no actors. It’s good business to time, defined by the desire to “know Augmenting food relationship-build- where my food comes from.” Wiscon- ing is the parallel growth in the internet make friends with trends sin cheesemakers were early leaders and social media communications. It’s in recognizing this desire, adopting estimated that some 11,300 bloggers We’re living in an age of instanta- Many sessions of the annual Inter- the now widely recognized Wisconsin write about food in the English lan- neous and overabundant information, national Dairy Deli Bakery Association Cheese logo. Close on the heels came guage, according to a blog that collects fueling an excess of predictions and conference in New Orleans will clarify the desire for more information — not such information. Countless enthusiasts forecasts. Like most evolutionary pro- major trends, and none is more eagerly only where the food originates, but who tweet on Twitter, exude on Facebook and cesses, there’s an upside and downside anticipated than the presentation of makes it — the “story” of the cheese, send Instagrams about food. Successful to the situation. The challenge for mar- IDDBA’s executive director, Carol Chris- all the more important because of the food makers and marketers must take keters is separating the real trends that tison. Wisconsin Milk Marketing Board growth of specialty and artisan cheeses advantage of this pervasive food interest can have long-term influences and be looks forward to this annual update, within the category. and modern technology to be successful. important to our business, from the fads. an important input to the trends we’ve Culver’s, the Wisconsin company Turn to WMMB, page 9 NEWS/BUSINESS
Milk producers, processors testify at CDFA hearing to consider changes to milk pricing SACRAMENTO, Calif. — Dozens of dairy Larger processors also are fighting equal. However, he says each individual the exact processes followed by each industry members turned out for a two-day the proposed Class 4b changes. Saputo manufacturing plant in California makes a manufacturer, nor should they be,” he hearing held last week by the California recently said the previous 4b revision business decision as to whether they can says. “They are simply a tool used each Department of Food and Agriculture that took effect in September negatively secure a milk supply at a price that allows month to establish a regulated minimum (CDFA) to consider proposed changes impacted its fiscal 2012 results, and the them to process that milk into a product price for the various classes of milk sold to the whey factor in California’s Class company’s USA Dairy Products Sector, that will profit in the marketplace. to manufacturers, with the mandated 4b pricing formula as well as alternative along with other cheese manufacturers, “It’s no different than the consid- standard that those prices must be in proposals. are strongly opposing the petition. erations that must be made by cheese a reasonable and sound economic rela- CDFA announced the hearing in March Dairy producer organizations stressed manufacturers around the country — tionship with what prices are paid for after proposals were submitted by the in their testimony that CDFA is required including those that operate in federal comparable milk around the country.” Western United Dairymen (WUD) and a to maintain a Class 4b formula that is order areas that pay prices at/above Class A decision from the hearing is coalition of co-ops and producer groups in a “reasonable and sound economic III minimum prices,” Vandenhuevel says. expected in late July. More informa- that includes California Dairies Inc., relationship with the national value of “The point is that the minimum tion on the proposals and updates can Dairy Farmers of America, Land O’Lakes, manufactured milk products.” price formulas established in Califor- be found at http://cdfa.ca.gov/dairy/ Security Milk Producers Association, Michael Marsh, CEO of WUD, pointed nia have not been designed to reflect dairy_hearings_matrix.html. CMN California Dairy Campaign, Milk Produc- out in the hearing that, according to CDFA ers Council and the Alliance of Western analysis, federal Class III prices were on Swiss Valley settles violations with EPA Milk Producers. average $2.18 per hundredweight higher The producer groups propose replac- than 4b prices in the last 12 months of data. KANSAS CITY, Kan. — Swiss Valley submit reports to EPA and the State ing CDFA’s current sliding scale approach, “The deviation between Class III and Farms Cooperative recently agreed to of Iowa concerning quantities of which was implemented by CDFA last year, 4b prices was caused by several factors,” pay a civil penalty of $33,880 to the toxic chemicals nitric acid and nitrate with a new sliding scale approach that Marsh says. “But the whey value is what United States to settle two violations compounds that were manufactured, results in a whey value that tracks the creates the most variance between the of environmental regulations related to processed or otherwise used at the market direction followed by the federal two class prices and this is a significant the public reporting of toxic chemicals facility during 2009. milk marketing order Class III whey value. concern to the members of WUD.” at its facility in Luana, Iowa. In the Submission of the annual toxic An alternative proposal was submit- He adds that the WUD proposal would settlement, Swiss Valley Farms also will chemical reports is a requirement of the ted by Farmdale Creamery, a small-scale achieve a much closer relationship be- complete a supplemental environmental Emergency Planning and Community cheesemaker in San Bernardino, Calif., tween Class 4b and Class III by removing project and will purchase emergency Right-to-Know Act (EPCRA). Under EP- asking that the whey factor be returned to the potential for unbearable discrepan- response equipment for the Luana fire CRA regulations, companies of a certain the fixed $0.25 per hundredweight factor cies in the whey portion of Class 4b that department valued at approximately size are required to submit annual re- in the Class 4b formula that was in place can occur if California’s whey value is $10,786. ports to EPA and state authorities listing before the formula was revised last year. not more closely tied to the end product According to an administrative the amounts of regulated chemicals that Farmdale and other processors say pricing formula used in federal orders. consent agreement and final order filed their facilities release into the environ- price increases caused by revisions in Rob Vandenhuevel, general manger, by the U.S. Environmental Protection ment through routine activities or as a the whey factor will make them less Milk Producers Council, said in his testi- Agency’s (EPA) Region 7 in Kansas result of accidents. The reports provide competitive and result in further losses, mony that a common theme in previous City, Kan., EPA requested information information for emergency planners particularly to those who are unable to hearings on this issue has been that not from Swiss Valley Farms in May 2011 and responders as well as to residents utilize their whey streams. all cheese manufacturers are created and found the company had failed to of surrounding communities. CMN 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 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 June 8, 2012 — CHEESE MARKET NEWS® 7 NEWS/BUSINESS Request to extend transportation credit payout period approved in Southeast FMMO LAWRENCEVILLE, Ga. — Sue L. Mosley, ficient to meet demand for fluid use. ized during June, Mosley notes. supplemental milk shipments for milk market administrator for the Southeast Through the first four months of 2012 “That the accumulated deficit in processors and, ultimately, consumers,” federal milk marketing order (FMMO), (data on milk production is not yet avail- 2012 is lower than past years suggests Mosley says. last week approved a request to extend the able for May), in-area milk production an encouraging trend for local milk pro- For more information, vis- order’s transportation credit balancing pooled on the Southeast order was 1.146 ducers but does not obviate the need for it www.fmmatlanta.com. CMN fund payout period to June 2012. billion pounds, while Class I use in plants Mosley had received a request on regulated by the Southeast order was 1.521 May 11 to add the month of June 2012 to billion pounds. the transportation credit balancing fund The difference, a deficit of 375.47 billion PEOPLE payout period. pounds, was met by supplemental supplies The request was made by the Southern from outside the marketing area, Mosley
Marketing Agency Inc. on behalf of its notes. This measure of the deficit does not members, which include Dairy Farm- consider the usual fluid balancing require- Comings and goings … comings and goings ers of America, Dairymen’s Marketing ments, which would necessarily increase Delkor Systems recently appoint- January 1994, succeeding Paul Halnon. Cooperative, LANCO-Pennland Quality the need for supplemental milk supplies. ed Rosalia “Rocky” Buencamino as Erik Rasmussen, Northeast market Milk Producers, Lonestar Milk Produc- In 2008, 2009, 2010 and 2011, milk marketing and communications man- administrator, has been appointed to ers, Maryland & Virginia Milk Producers production and plant utilization records ager, effective April 23. Buencamino temporarily oversee the Southeast and Cooperative, Premier Milk and Arkansas showed a “substantial shortfall” between previously was with Tetra Pak. After Florida orders until a permanent re- Dairy Cooperative Association. Class I use by regulated plants and milk working for Tetra Pak’s Phillippine placement is hired. Mosley says that after conducting an produced by farms located inside the market company office, she moved to Yamato Corp. has announced a independent investigation, she found that Southeast marketing area between Janu- its gabletop business unit operations number of promotions at its Data Weigh the inclusion of June to the 2012 transpor- ary and April of those years ranging from in the United States. Her last assign- Division, Mequon, Wis. Bill Pierce has tation credit payout period is warranted. a high of 531.49 million pounds to a low ment for Tetra Pak was in Modena, been promoted to vice president of sales, According to market administrator of 401.06 million pounds. In addition, in Italy, in 2010. United States and Canada; Mike Taylor data, milk production from farms located each of the previous years cited, there was Sue Mosley has retired from her has been promoted to vice president of inside the marketing area remains insuf- indeed a “sizable shortfall” that material- position as market administrator for sales, Latin America and new business USDA’s Southeast and Florida orders development; Bill Devlin has been pro- Speakers at U.S. Dairy Export Council after 42 years of serving the dairy in- moted to major accounts project man- dustry. Mosley became the first woman ager; and Scott Kohlmann has been meeting discuss global, soft dairy pricing appointed market administrator in promoted to service manager. CMN CHICAGO — The U.S. Dairy Export the prospect grows for the inclusion of Council’s (USDEC) spring board of direc- Japan and Canada,” Suber says. “Yet, it’s tors and membership meeting held here also gratifying that the U.S. government May 2 attracted a record turnout, which is paying close attention to our concerns USDEC says is a reflection of the broad over the unbalanced market advantage understanding of the need to operate the New Zealand government has pro- more effectively in international markets. vided to Fonterra.” Presenters at the meeting discussed Rabobank analyst Tim Hunt discussed global dairy prices, which are off 20 to the current surplus and early signs of 30 percent from their spring 2011 peaks stock accumulation of milk as the spring as rising worldwide milk production has flush builds in the European Union and turned supply deficits into surpluses. As a the United States. On the plus side, he result, analysts say rising inventories are says, import demand has held up well expected to keep downward pressure on and the import market “has shown ex- international dairy markets in the second ceptional depth.” half of 2012. Hunt says he expects market condi- Current soft conditions are “a painful tions to improve in late 2012 or early 2013 re-affirmation that market cycles will as the supply balance improves. continue, even as demand, over time, “Structural growth tends to remain outstrips supply,” says Tom Suber, USDEC intact,” he says. president. “In fact, it’s this period of USDEC members and staff also began temporary retrenchment that many of our formulating their 2013-2015 business plan work programs are intended to address.” during the spring board meeting. Among Speakers at the annual meeting also the key assumptions that will be included emphasized that although challenges to in the plan are: U.S. dairy growth remain, ongoing USDEC • Lower gross domestic product trade policy and market access efforts (GDP) and flood inflation will slow dairy continue to be successful. Examples of demand, but growth remains positive progress, they say, include the March and resilient; implementation of the U.S.-Korea free • Inventory will overhang the market trade agreement (FTA) and the upcoming into 2013; entry into force of U.S. FTAs with Colom- • A weaker euro is increasing returns bia and Panama; progress on regaining to EU suppliers in the export market (vs. market access to Russia, spurred by the internal market); Russia’s accession to the World Trade • Prices will remain under pressure, Organization; further steps to iron out and U.S. commodity trade will remain the Chinese health certificate; and the exposed; and upcoming launch of eTDE, a system for •Food and beverage companies’ inter- electronic transmittal of export docu- est in enhanced nutrition through dairy mentation. ingredients will increase. USDEC also says it is leading U.S. USDEC’s fall board of directors dairy industry efforts to extract maximum and membership meeting will be held benefit from the Trans-Pacific Partner- Oct. 18-19 in Washington, D.C., where ship (TPP) free trade agreement talks. its members will approve the roll- “USDEC supports TPP, especially as ing three-year business plan. CMN For more information please visit www.askimac.com
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 8 CHEESE MARKET NEWS® — June 8, 2012 NEWS/BUSINESS
Cabot Creamery, Montpelier, Vt., and parchment packaging for specialty calories,” he says. DELI also is seeing growth in demand for cheese bars. The cooperative also has a Schuman also notes that consumers Continued from page 1 specialty cheese, says Amy Levine, cut and wrap program with repack labels, today are going more for natural cheeses director of marketing/sales services, as well as a slicing program for the slicing vs. processed. ingredients, especially in how they use Cabot Creamery Cooperative. deli case, she adds. “We’re seeing a trend in bold flavors; cheese.” “The deli category has seen growth in “Additional flavors offered in deli Pepper Jack is doing really well,” he says. TCCA items available for deli and snack cheese,” she says. “Consumers are include specialty flavors like Garlic In addition to sliced cheeses, Sargento dairy include several sizes of Vintage showing more interest in greater varieties and Herb, and Tomato Basil,” Levine also offers a variety of shredded cheeses White Medium Cheddar and Extra Sharp of cheese than we’ve seen in a long time.” says. “We also have a specialty cheese and specialty cheese blends. Cheddar, Special Reserve Extra Sharp Levine notes there is interest in spe- program for the deli with highly aged One of its product offerings in this Cheddar, Smoked Black Pepper White cialty, domestic cheese varieties where waxed or cryovac items, such as Vintage area is Artisan Blends, featuring shred- Cheddar, Garlic White Cheddar, Smoked the cheese is connected to the farmers and Private Stock Cheddars.” ded specialty cheese varieties including Swiss and many other varieties. producing the milk. Levine notes that in the dairy case, Authentic Mexican, Double Cheddar, “Tillamook has noticed a shift in “Consumers want more variety and Cabot Creamery has seen its sharper Mozzarella and Provolone, and others. recent years,” Allison says. “The demand higher quality. The growing excitement in items performing better, showing con- Sargento also offers a line of Bistro for convenience-oriented packaging is an such competitions as the World Champi- sumer demand for high quality, highly Blends with varieties including Taco, area of strong growth.” onship Cheese Contest is evidence of this aged Cheddar. Italian Pasta, Nacho and Taco, and Moz- He notes that this area focuses mostly interest,” she says. “Consumers want to Another company with a large selec- zarella and Asiago with Roasted Garlic. on sliced and shredded cheese as well as understand where their cheese is coming tion of cheeses in the retail dairy case is Schuman notes that Sargento in July the snack category. from and how it was made. The connection Sargento Foods, Plymouth, Wis. plans to launch a new line of shredded TCCA also has a large number of of- to farmers is highly important.” “We’re in three major businesses in cheeses geared toward at-home cooking ferings in the dairy case, Allison notes. Levine notes that Cabot Creamery’s the dairy category — sliced, shreds and called Chef Blends. “This is where consumers can find slicing program now is offering a New York snack,” says Chip Schuman, vice presi- “It builds on the consumer trend of Tillamook chunk, shredded, sliced and Extra Sharp White Slice for the dairy case. dent of marketing, consumer products wanting to be a chef at home,” he says. snack cheeses in the largest selection “This item is a result of increased division, Sargento Foods. Schuman says he expects that the of varieties and sizes,” he says. demand for aged Cheddars and the growth “Our best sellers are a combination of interest in specialty cheeses among He notes that TCCA is offering a of the regional association of New York staples like Swiss, Provolone and Ched- consumers will keep growing. 12-ounce natural sliced option for its Cheddars,” she says. dar, but we’re also seeing growing interest “Consumers are becoming more worldly retailers to fill out the dairy case. Cabot Creamery offers 8-ounce bars, in Gouda and Havarti,” he says. and are interested in new flavors, and our TCCA also offers several shredded 2-pound bricks, stacked slices and shreds Schuman notes that a big product product line reflects that,” he says. CMN cheese blends for the dairy case, includ- in the dairy case, with Cheddar, Jack and launch for Sargento this year is its ultra ing Mexican 4 Cheese Blend, Italian 3 Muenster varieties as well as flavored thin cheese slices, ideal for sandwiches. Cheese Blend and others including a Cheddars such as Chipotle, Habanero The four varieties available thus far include Mac&Cheese 3 Cheese Blend that con- and Horseradish, Levine says. Provolone, Cheddar, Swiss and Colby Jack. NASS sists of Sharp Cheddar, Vintage White In the deli case, Cabot Creamery of- “Each slice is only 45 calories, so Continued from page 1 Medium Cheddar and Medium Cheddar. fers random and exact-weight, cryovac you still get the great flavor with less production was down 4.7 percent from March’s 947.0 million pounds; when adjusted for the length of the months, April production was down 1.5 percent from March on a daily average basis. Production of Italian-type cheese, the most-produced category of cheese, was down 0.8 percent in the April-to-April comparison to 381.5 million pounds. Pro- duction of Mozzarella, the most-produced cheese in the category, was up 0.1 percent from April 2011 to 299.5 million pounds. Production of American-type cheese rose 3.5 percent from April 2011 to 371.9 million pounds in April 2012. Production of Cheddar, the most-produced cheese in the category, was up 3.6 percent from a year earlier to 274.1 million pounds. Wisconsin led the nation’s total cheese production in April with 226.4 million pounds, up 3.9 percent from a year earlier. California followed with 188.8 million pounds, up 2.8 percent from its production a year earlier. The next four cheese-producing states were Idaho with 70.5 million pounds, down 0.3 percent from its production a year earlier; New Mexico with 63.0 million pounds, up 0.2 percent; New York with 60.3 million pounds, down 2.1 percent; and Minnesota with 54.0 million pounds, up 2.7 percent. According to NASS, total U.S. butter production in April was 170.2 million pounds, up 7.2 percent from April 2011. April butter production was down 3.3 percent from March 2012’s 176.0 million pounds, but when adjusted for the length of the months, production on a daily average basis was about even in March and April. CMN
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 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 June 8, 2012 — CHEESE MARKET NEWS® 9 OPINIONS
phasizing specialties and sometimes Cheese & Burger Society, is testimony store” concept with a boutique-like WMMB borrowing directly from the latest res- to the powerful interest in this iconic cheese area for special cheeses. Cheese Continued from page 6 taurantOPINIONS trends and popular promotions.” American sandwich, engaging visitors kiosks — in the dairy section or as an aid From build-your-own pizzas, to specialty for upwards of 5 minutes and attracting to cross-merchandising — are another To stand out among all this traffic is sandwiches and salads to macaroni and more than 105,000 Facebook friends. geographic sales tool. In-store classes one of the biggest challenges we face. cheese, prepared foods sections are • Private label dollar sales are forecast offer education on cheese and beverage One way to do so is by making sure your sending a welcoming message to cheese. to grow 3 to 4 percent during 2012 (Sym- pairings or cooking demonstrations. product reflects other trends. When it • Lingering tough economic times phony IRI). In fact, store brands afford All of these prognosticators are comes to cheese, these stand out: have been a boon to “retro” foods, so great opportunities for cheese as more promising developments for the future • Americans want to be socially much so that these dishes are now top chains turn to building their own brands of cheese at retail. But how success- responsible shoppers and eaters. This food trends. (Perhaps they’ve always with better packaging, promotional sup- ful a single cheese product is will concept encompasses many derivatives. been there.) Grilled cheese, macaroni port and product quality. WMMB is work- depend largely on how well it reflects The local and sustainable preference and cheese and cheeseburgers lead ing with several private label programs, the prevailing trend tradewinds. is key as are other preferences that in- the pack, often times reinterpreted in many of which display the WMMB logo, a Make trends your friends. CMN clude natural, small-batch products and foodservice to include new renditions proven incentive to purchasing, according less packaging. An appreciation of past featuring a much wider variety of chees- to recent WMMB research. The views expressed by CMN’s guest agricultural and production processes es. Home cooks will want to emulate • Supermarkets are upscaling their columnists are their own opinions continues to increase, and “heirloom” these dishes, opening the door to wider cheese merchandising in several ways. and do not necessarily reflect those of products will proliferate. cheese sales options. WMMB’s website, Some are choosing a “shop-within-the- Cheese Market News®. • Hispanic cheeses continue to ex- pand in popularity as Mexican flavors become mainstream and other Latin cuisines, such as Peruvian and Colom- bian, are discovered. • Bolder and pronounced flavors continue their appeal. Cheese choices will not only offer the jolt of chile peppers but the flavors of truffles, saffron, curry, persillade (parsley and garlic), bacon and natural smoke from a variety of woods. • Food experimentation, fostered by travel and media, will continue. Small-size packages are important to encourage consumers to try cheese varieties unfamiliar to them. • Snacking, according to the NPD Group, now comprises one of every five eating occasions in the U.S. and is grow- ing — another trend that will produce more small packaging. Cheese snacks are perennial favorite snack foods, and the salty/savory snack segment — very friendly to cheese — continues to grow. • Healthy eating is important to con- sumers, but several prestigious research firms conclude that the definition of “health” and “wellness” is changing. NPD reports that healthy eating is de- fined by characteristics such as “fresh,” “natural” and nutritious ingredients, not dominated by calorie count. This change is another positive for cheese, a minimally processed product boasting both calcium and protein, since it can meet all these new criteria. • Convenience still matters — a lot. Ready-to-use shreds remain the most popular cheese form in retail sales, accounting for 31 percent as of March 2012, according to Symphony IRI. Complementing the ease are re- sealable packages, quick to close and store. Newer shred styles include a mix of multiple cheeses or ethnically inspired combinations, such as taco or bistro cheese blends. The priority on convenience, coupled with the decline in restaurant eating in recent years, also has helped stimulate prepared food sections in retail food stores. A recent headline in Supermar- ket News reads, “Need for Convenience Fuels Growth in Prepared Food Pur- chases at Supermarket Grocery Store Delis….” In another recent article, “Prepared Foods Get Fresh Attention,” SN finds that “many grocers are em- For more information please visit www.wmmb.com
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 10 CHEESE MARKET NEWS® — June 8, 2012 NEWS/BUSINESS Dairy industry leader launches The McCully Group consulting firm for dairy, food companies By Alyssa Sowerwine linois University and a master’s degree processes, developing risk management operations, research and development, in agricultural economics from the Uni- guidelines tailored to businesses’ risk finance, policy, legal and other areas. CHICAGO — Mike McCully, a dairy versity of Illinois. Before joining Kraft profiles, recommending risk manage- “Basically, I’m positioning myself as industry stakeholder who has served Foods, he managed a grain elevator in ment coverage strategies, and developing a firm that offers strategic consulting on various dairy industry boards and western Illinois and worked in specialty and expanding use of risk management combined with subject matter expertise committees, has launched The McCully grain export. tools. on the dairy industry,” McCully says. Group, a consulting firm with dairy indus- During his time at Kraft Foods, Mc- • Dairy policy, regulatory and dairy McCully also is launching a website, try expertise that provides supply chain Cully was able to work cross-functionally industry issues management — Analyz- www.themccullygroup.com, which will solutions to dairy and food companies. with operations, research and develop- ing impacts of dairy policy changes on offer an overview of the business and The new firm, which is based in ment, finance, marketing and other industry and individual firms, developing services provided, as well as questions Chicago and launched in late April, departments on many projects, he says. long-term dairy policy and milk pricing and answers on dairy commodity pro- provides services such as dairy supply He also represented Kraft Foods on solutions and issues management. curement and other topics relevant to chain strategy, commodity procurement, dairy industry issues by serving on the In addition to himself, McCully says the firm’s services, he says. commodity risk management, and dairy International Dairy Foods Association he would like to develop a network of For more information, contact policy, regulatory and dairy industry is- (IDFA) Milk Industry Foundation board industry experts to bring in expertise McCully at 312-646-0361 or e-mail sues management. of directors, the Dairy Institute of Cali- on various subject matters including [email protected]. CMN “There are a handful of companies fornia board of directors and the Farm doing dairy risk management, but this Bill Steering and Legislative Oversight seemed like the right time to take my committees for IDFA. Leonard says she is excited that the experience and industry relationships McCully also has been a member of FARM BILL farm bill legislation contains a variety Continued from page 1 and launch this company,” says McCully, numerous industry task forces and com- of provisions to help beginning farmers who notes that through his industry mittees with IDFA, the Dairy Institute like her continue to make a living from background, which includes more than of California and the Innovation Center Sen. Debbie Stabenow, D-Mich., family farms. 15 years with Kraft Foods, he gained for U.S. Dairy, in addition to speaking at chair of the Senate Agriculture Com- “I would like to sell milk, not sell our experience in all areas of the dairy sup- meetings and conferences around the mittee, on Wednesday hosted a news land to developers,” she says. ply chain including overall strategy and United States. conference in Washington, D.C., where In a letter to senators sent this week, commodity purchasing. Over his career With this experience, The McCully lawmakers were joined by several young the American Farm Bureau Federation in dairy procurement, McCully was Group’s primary areas of focus will be farmers to discuss the importance of (AFBF) outlined its organization’s responsible for the sourcing of most of mostly U.S.-based dairy companies as the farm bill for the next generation of priorities in the farm bill. the dairy commodities Kraft Foods buys well as large multinational dairy firms, agricultural producers. According to Bob Stallman, president, in North America. McCully says. Sarah Leonard, a producer from AFBF, the bureau places a priority on “I spent my entire career involved The firm will assist companies in Midland, Va., who operates a 325-cow several of the Senate Agriculture Com- with commodity risk management and several areas including: dairy along with her parents, was one mittee’s recommendations, including us- economic analysis/price forecasting,” he • Dairy supply chain — Developing of those who spoke at Wednesday’s ing the $23 billion in savings suggested to says. “I also spent the last decade heavily long-term supply chain strategy, consult- conference. the Joint Committee on Deficit Reduction involved with dairy policy issues such as ing on new product development, plant “On our farm, we don’t focus on the last fall; protecting and strengthening the federal order reform and price discovery, siting and optimized product mix. latest polls or whose campaign is raising federal crop insurance program; develop- among others.” • Procurement of dairy commodi- the most money,” she says. “We focus ing a commodity title that attempts to McCully grew up on a grain and beef ties — Reviewing procurement policies instead on how much rain we received encourage producers to follow market cattle farm in north central Illinois and and procedures, developing purchasing last night, how much milk the cows are signals rather than make planting de- remains active in the beef cattle industry strategies, identifying optimal supply generating today and what the market cisions in anticipation of government through his partnership in a purebred base and best practices. price of corn and soybeans are. That’s payments; and refraining from basing Angus operation. He has a bachelor’s • Commodity risk management — our daily reality. But part of that reality any program on cost of production. degree in agriculture from Western Il- Reviewing commodity hedging policy and is, we need a new farm bill.” Meanwhile, following the news that the Senate was taking up the farm bill, Jerry Slominski, senior vice president for legislative and economic affairs at the International Dairy Foods Associa- tion (IDFA), issued a statement noting IDFA’s opposition to the dairy title in- cluded in the currently-proposed farm bill. The dairy title includes a supply management program. “Instead of imposing even more regulations on dairy manufacturers, we urge the Senate to support a compro- mise plan that provides a safety net for dairy farmers without also having our government intervene in dairy markets by limiting milk supplies,” he says. IDFA also notes that earlier this week Grover Norquist’s Americans for Tax Reform, Citizens Against Govern- ment Waste and the National Taxpayers Union sent a joint letter to members of the U.S. House asking them to “oppose any form of supply management in the 2012 Farm Bill.” The groups are aligned with the posi- tion of IDFA, which opposes production limits of any kind. “For the sake of taxpayers and consumers, American farm policy must be put on a path paved by free- For more information please e-mail [email protected] market principles,” the letter says. CMN
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 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 June 8, 2012 — CHEESE MARKET NEWS® 11 KEY PLAYERS 2012
definitely continues to help profitability Cabot this year also expanded its Cheddar,” Levine says. “We wanted to KEY PLAYERS on the Agri-Mark side.” New York Extra Sharp Cheddar line to try to call out on the packaging explicitly Continued from page 1 Cabot also saw a lot of activity in its include shred, slice and deli bar options, that it is safe to eat for a segment of the cheese lines this past year. The com- all made in its New York facility using population that in many cases has left pany recently added Aged Reserve to milk from New York farmers. the dairy case.” its dairy case selection, which is aged New packaging has been introduced Agri-Mark’s Cabot and McCadam longer than typical cheeses seen in the on many of Cabot’s other cheeses. At the cheeses and other dairy products re- Agri-Mark Inc. dairy case. Cabot’s Super Sharp Ched- end of 2011, the brand did a package ceived several awards in competitions Methuen, Mass. dar previously was the highest-aged change for its deli specialty cheeses, this past year. At the American Cheese cheese the company offered in the making the design more clean, crisp Society contest last summer, McCadam Key executives: Richard Stammer, dairy case, and it has been a nationwide and bright as well as adding more Muenster received a first-place award, CEO; Ed Townley, exec. VP & CFO; best seller. specific age declarations. In the dairy Cabot Tuscan Cheddar and Cabot 50 Richard Johnson, sr. VP, sales; Roberta “Typically the more aged cheese is case, Cabot modified the labels on its Percent Reduced Fat Cheddar received MacDonald, sr. VP, marketing; James sold in the deli case,” Levine says. “We Mild Cheddar to highlight that it is second-place awards and Cabot Vintage Pratt, sr. VP, manufacturing; Robert thought to allow consumers in the dairy lactose-free. Choice Cheddar, Cabot Crème Fraiche Wellington, sr. VP, economics, commu- aisle the opportunity to experience a “While all our Cheddar is lactose- and Cabot Unsalted Butter received nications & legislative affairs; Raymond more highly-aged product, so we created free, we found consumers are not always third-place awards. Dyke, VP, technology; Robert Stoddart, Aged Reserve.” aware that they can continue to eat Turn to KEY PLAYERS, page 12 VP, membership services; Peter Gutier- rez, international sales dir. Cheese plants: Chateaugay, N.Y. (Cheddar, Muenster); Cabot, Vt. (Cheddar, flavored Cheddars, cultured products, cut & wrap); Middlebury, Vt. (Cheddar, whey protein); West Spring- field, Mass. (butter, powder, condensed blends) Estimated annual cheese produced: 55 million lbs. Estimated annual cheese marketed: 55 million lbs. Estimated 2011 sales: $900 million Projected 2012 sales: $900 million Website: www.agrimark.net, www. cabotcheese.com, www.mccadam.com A look inside: Agri-Mark’s trade- mark Cabot brand, well-known for its Cheddar varieties, has made it a top priority this past year to expand its Greek yogurt line. Adding to its exist- ing 2-pound size, Cabot introduced new 1-pound and 24-ounce Greek yogurt sizes this past winter. It also expanded flavor varieties to include black cherry, blueberry, peach and honey in addition to its original strawberry, vanilla and full- and reduced-fat plain varieties. Early on, Cabot decided to focus on larger sizes for its Greek yogurts over the highly-competitive 6-ounce cup size. “We have seen consumers respond positively to the larger container for cooking, recipes and doling it out into self-serve containers as a way to save money and packaging,” says Amy Levine, director of marketing, Cabot and Mc- Cadam brands. “For some of the new flavors that are maybe less for recipes and more for snacking, we felt smaller sizes like the 1-pound container would be more advantageous. We have been very pleased with growth of Greek yogurt from Cabot.” Greek yogurt for the Cabot line as well as the Fage USA Dairy Industry Inc. yogurt plant Agri-Mark supplies has helped boost profitability for the cooperative and its farmers, particularly since about twice as much milk goes into Greek yogurt as into the same amount of regular yogurt. “Greek yogurt sales have gone through the roof,” says Doug DiMento, spokesperson for Agri-Mark. “Our No. 1 thing is still Cabot cheese, far and above any other product, but Greek yogurt For more information please visit www.mifroma.com
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 12 CHEESE MARKET NEWS® — June 8, 2012 KEY PLAYERS 2012
Awards held in Birmingham, England. as a good growth opportunity to expand Beauceville, Quebec; Granby, Quebec; KEY PLAYERS Financially, Agri-Mark had its our products,” DiMento says. Notre-Dame-du-Bon-Conseil, Quebec; Continued from page 11 second-best year ever in 2011, with $15.0 He adds that for a small farmer co- Plessisville, Quebec; Woodstock, On- million in profits. It paid $19.2 million in op in the Northeast, expanding direct tario (Bright Cheese House); Hull, Iowa At the World Dairy Expo Champion- premiums to its farmers this past year sales to other parts of the country is (Green Meadows Foods); Lethbridge, ship Dairy Product Contest, Cabot No for milk quality as well as more than $5 very exciting. Alberta (Sunnyrose Cheese); La Crosse, Fat Cottage Cheese, Cabot Vanilla Bean million in hauling subsidies. “We always were a strong regional Wis. (Main Street Ingredients); Little Greek Style Yogurt and Agri-Mark WPC- “It was a really good year, our fifth brand,” DiMento says. “Now we’re a Chute, Wis. (Trega Foods); Luxemburg, 80 percent placed second and Agri-Mark year in a row of really strong profits. This national brand. The exciting part is Wis. (Trega Foods); Weyauwega, Wis. Whey Permeate placed third in their year’s payout to our farmers is actually watching the sales go up and more of (Trega Foods); Fine Cheese Division (Al- categories. our highest ever,” DiMento says. the milk go into products. What this legro lowfat cheeses, Agropur Signature In their respective classes at the Agri-Mark has expanded its capac- ultimately results in is more money for OKA, creme, Brie, Camembert, goat’s National Milk Producers Federation ity at its Chateaugay, N.Y., plant and our farmers.” milk and other cheeses): Oka, Quebec; (NMPF) Championship Cheese Contest adapted some of its Cheddar equipment Saint-Hyacinthe, Quebec last November, Cabot Mild Vermont to make Muenster as well. Most of the Joint ventures: Ultima Foods Cheddar, Cabot Vermont Medium Ched- equipment already is in place, and more (Yoplait Canadian franchise, Olympic dar, Cabot Sharp Vermont Cheddar and will be added this year to help fine-tune organic yogurt, cream cheese, sour Cabot Tuscan Cheddar placed first; the cheesemaking process. cream, milk, Soyogurt): Delta, British Cabot Monterey Jack placed second; Last year, longtime Agri-Mark CEO Columbia, Granby, Quebec; La Lacteo and Cabot Horseradish Cheddar placed Paul P. Johnston retired after 47 years (milk, yogurt, cheese, other products): third. with the cooperative, the last 35 years Córdoba, Argentina At this spring’s World Championship as CEO. In November, Richard Stammer, 2011 sales (fiscal year ended Oct. Cheese Contest, Cabot’s Vermont Aged who previously served as COO of Agri- 29, 2011): C$3.65 billion Cheddar received best of class and was Mark and president of the Cabot and Agropur Website: www.agropur.com one of the top 16 finalists in the cham- McCadam branded business, became Longueuil, Quebec A look inside: This year Agropur pionship round. Another one of Cabot’s the new CEO. Stammer has worked for welcomed a new CEO, Robert Coallier. Vermont Aged Cheddars placed third in the cooperative since 1982. Key executives: Serge Riendeau, Coallier has close to 30 years of manage- the “Cheddar, Aged 2 Years or Longer” For 2012, the company is working chairman; Robert Coallier, CEO; Benoit ment experience in a variety of sectors category, while Cabot’s 50-percent Re- on expanding its direct sales across Gagnon, exec. VP, global development; including consumer products and retail duced Fat Cheddar and Vermont Style the country, placing sales staff in the Lorraine Bédard, corporate secretary & trade, and he has been a member of Cottage Cheese placed third in their Midwest and on the West Coast. VP, member relations; Jocelyn Lauzière, Agropur’s board of directors for the respective categories. “Some of our sales are through na- CFO; Serge Paquette, pres., Division past two years. Cabot Clothbound Cheddar, aged at tional club stores and super centers. Natrel; Louis Lefebvre, pres., Cheese “I am very enthusiastic about joining the Cellars at Jasper Hill, also took home Now that we’re in these markets, people & Ingredients Division; Robert Gour, the Agropur cooperative team,” Coal- a bronze medal at the 2011 World Cheese want more of these products. We see it pres., Fine Cheese Division; Scott Mc- lier says. “I am convinced that we will Donald, corporate VP, human resources; achieve great things together, which will Jean Brodeaur, VP, communications, allow this beacon of the dairy industry to public relations; Michel St-Louis, VP, continue in its success and its tradition legal affairs of excellence.” Cheese plants: Agropur Cheese and Coallier succeeds Pierre Claprood, Ingredients (Cheddar, Mozzarella, Feta, who retired March 1 after a 30-year Provolone, Parmesan, Romano, Havarti, career with Agropur, including eight Gouda, Monterey Jack, Swiss, Edam, years as CEO. Colby, Brick, butter, milk powder, but- Agropur has continued to focus on termilk powder, whey powder, lactose- growth, posting its best performance enriched whey powder, whey protein in its history with sales of more than concentrate, permeate whey powder): Turn to KEY PLAYERS, page 13
For more information please visit www.dcicheeseco.com For more information please visit www.wowlogistics.com
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 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 June 8, 2012 — CHEESE MARKET NEWS® 13 KEY PLAYERS 2012
Agropur Chairman Serge Riendeau thur Schuman Midwest, Elgin, Ill. KEY PLAYERS notes that 2012 is the “International (cut & wrap, shredded & grated bags, Continued from page 12 Year of Cooperatives” as declared by the party trays, slices); Lake Country Dairy, C$3.6 billion for its 2011 fiscal year United Nations. To mark the occasion, Turtle Lake, Wis. (Parmesan, Romano, ended Oct. 29, 2011. Total sales in its Agropur has developed a communica- Asiago, Mascarpone); Imperia Foods, cheese divisions grew by 17 percent in tion plan to help enhance Agropur’s Green Bay, Wis. (Bleu, Gorgonzola); 2011, with 36.3 percent of sales coming visibility, and it also plans to partici- Imperia Foods, Montfort, Wis. (Bleu, from the United States. Contributing to pate in and be a sponsor for the 2012 Gorgonzola) this increase were contributions from International Summit of Cooperatives. Arthur Schuman Inc. Estimated annual cheese produced: Main Street Ingredients, which Agropur “Agropur is proud of its roots and Fairfield, N.J. 30 million lbs. acquired in December 2010, and its Hull, its cooperative model, which favors Estimated annual cheese marketed: Iowa, plant, as well as dairy product price well-anchored principles and values Key executive: Neal Schuman, pres. 150 million lbs. increases in 2011. along with a vision for long-term de- & CEO Estimated 2011 sales: $500 million In November, Agropur opened a new velopment,” Riendeau says. “This year Cheese plants: Arthur Schuman Projected 2012 sales: $525 million distribution center in Delta, British will be very special for cooperatives Inc., Fairfield, N.J. (cut & wrap, shred- Percentage of sales from cheese: 100% Columbia. The new 26,000-square-foot around the world, and we are pleased ded & grated bags, cups, PET jars, Market segments for cheese: 25% distribution center will serve the co- to be taking part in the International cheese boards); Arthur Schuman West, retail; 35% foodservice; 40% ingredients operative’s Natrel Division and Island Summit of Cooperatives in October 2012 Vernon, Calif. (Ricotta, dehydrated Website: www.arthurschuman.com Farm brand. as a major sponsor.” cheese, shredded & grated bags); Ar- Turn to KEY PLAYERS, page 14 Agropur introduced new cheeses to the Agropur Signature Line in 2011, including the washed-rind Rondoux, Rivière Rogue and Seigneurie du Lac des Deux-Montagnes cheeses. The Agropur Signature brand is available in Canada. This past year Agropur also launched the Vaudreuil Double Cream and Gourmet Double Cream Bries and the Champfleury, OKA and Brie L’Extra spreadable fine cheese creams. Additionally, Agropur introduced new fixed-weight formats and packaging for its Havarti, OKA L’Artisan, OKA with Mushrooms and St-Paulin cheeses. Olympic Dairy, a subsidiary of Agro- pur’s joint venture Ultima Foods, recently launched its Krema Greek-style Balkan yogurt Canada-wide. The company’s Division Natrel intro- duced new Natrel Lactose Free cream and dark and milk chocolate milks into the Quebec and Ontario markets. Last winter a major rebranding was undertaken for the Natrel brand. Previously available only in Canada, the Natrel brand now has started to appear on American milk and dairy products. The Agropur logo also will soon begin to appear on product packaging in the United States, the company says. Agropur’s cheeses won several awards at contests this past year. At last summer’s American Cheese Society (ACS) contest in Montreal, the company took home first- place awards for Agropur Grand Cheddar aged for 3 years, Agropur Grand Cheddar aged for 5 years, Rondoux Double Crème and Rondoux Triple Crème. Agropur’s Chevalier Fines Herbs, OKA L’Artisan and Champfleury won second-place awards and its Chevalier Triple Crème and Ha- varti Jalapeno won third-place awards in their categories at the ACS contest. At this spring’s World Championship Cheese Contest in Madison, Wis., Agro- pur for Kraft Foods placed in the top 16 overall cheeses and won best of class for its sharp Cheddar. In individual classes, Agropur’s mild Cheddar, part-skim Moz- zarella, Rondoux Double Crème, Provi- dence, and reduced-sodium Provolone placed second, and its low-moisture whole-milk Mozzarella, Feta with Basil & Tomato, Brie Chevalier Triple Crème, reduced-sodium Provolone and Rondoux Goat placed third. For more information please visit www.arthurschuman.com
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 14 CHEESE MARKET NEWS® — June 8, 2012 KEY PLAYERS 2012
cheese each month with suggested “Our customers are always looking risen 22 percent over the last five years, KEY PLAYERS pairings,” Testa says. for something new, and innovation is and sales of cheese produced at its plant Continued from page 13 Shore adds that the company hopes really important to us,” she adds. in Portage, Wis., have increased by 43 the website and Facebook page will lead Arthur Schuman’s products contin- percent during that period. A look inside: Arthur Schuman Inc. to more consumer engagement with the ued to gain industry recognition in the “The market hasn’t grown that much within the last year launched its Cello brand, and consumers will be encour- past year. in the last five years, but we have,” Welch Riserva line of Italian and Italian-style aged to contribute their own recipes. Most recently, the company’s Cello says. “I’m pretty proud of that.” cheese offered in exact and random “It will help us to really understand Riserva line’s Copper Kettle Parmesan Continued growth in the coopera- weight wedges, and exact and random how consumers are using the products,” placed third in the Parmesan class at tive’s butter and cheese sales helped weight bags, cups and wheels with she says. the 2012 World Championship Cheese AMPI record $2 billion in sales in 2011. repacks for cut and wrap programs. Shore notes Arthur Schuman wants Contest, sponsored by the Wisconsin “Our cheese-packaging plant in “This new line has been an excit- the site to be very educational. Cheese Makers Association. Portage, Wis., and the New Ulm, Minn., ing new launch for us,” says Melissa “We don’t want the fact that these At the 2011 World Cheese Awards butter plant contributed stellar returns Shore, director of marketing, Arthur are premium products to intimidate the last fall, Arthur Schuman’s Cello Tra- to the bottom line,” says Welch. Schuman Inc. “It offers customers a consumer,” she says. ditional Italian Style Mascarpone won To meet increased sales demands, comprehensive portfolio of Italian and The company also will be updating a gold medal, its Cello Thick & Smooth AMPI has undertaken a series of capital Italian-style cheeses.” some of its packaging to showcase the Mascarpone won a silver medal and its improvement projects to help increase The Cello Riserva line offers Artisan new line, which will include adding new Cello Riserva Copper Kettle Parmesan, production. A processed cheese line Parmesan, Copper Kettle Parmesan, QR codes for consumers to link to the Cello Riserva Traditional Romano and added to its plant in Portage in 2011 Hand Crafted Asiago, Traditional Ro- company’s website and Facebook page. Montforte Gorgonzola Cheese won increased production capacity there by mano, Parmigiano Reggiano, Grana Noting that she is the “culinary voice bronze medals. about 20 percent, Welch says. Padano and Pecorino Romano in grates, for Arthur Schuman,” Testa says she At the 2011 World Dairy Expo Cham- AMPI also installed 18 new cheese shreds, shaves and wedges. also will continue to do menu concept pionship Dairy Product Contest, spon- vats at its largest cheese plants, located To coincide with the launch of the work for the company’s foodservice sored by the Wisconsin Dairy Products in Blair and Jim Falls, Wis. The $7.5 mil- new line, the company also is launch- customers. Association, the company’s Montforte lion investment is projected to increase ing a website, cellocheese.com, as “I work a lot with customers who Gorgonzola Cheese Wheel placed first cheese production at both plants by 3.6 well as a Facebook page to showcase are doing savory baked items, and I’m in the Blue Veined Cheese class, and at million pounds per year. the products and facilitate consumer talking with them about how they are the 2011 American Cheese Society com- “The noticeable boost in cheese yield dialog, says Susan Testa, vice president working these cheeses into their recipes petition, the company’s Cello Riserva and quality make this a smart invest- of innovation and product development, and how they will affect flavor profiles,” Copper Kettle Parmesan placed third in ment for the cooperative,” Welch says. Arthur Schuman Inc. she says. “A lot of times we will work with the Grating Types — Reggianito, Sardo, “Growing demand from our customers “We’ll be offering a special recipe them to do custom formulation, which Domestic Parmesan — All Milks class. reaffirms AMPI’s commitment to be a each month and featuring a different is a different level of customer service. premier cheese producer. These vats will enable us to produce more cheese from our members’ milk, increasing their returns.” According to AMPI, the dairy co-op is the first manufacturer in the United States to install the innovative vats, which feature advances in automation Associated Milk technology to produce cheese more effi- Producers Inc. ciently, with improved texture and taste. New Ulm, Minn. In March, AMPI sold its Cass-Clay Creamery brand and plant near Fargo, Key executives: Ed Welch, pres. & N.D., to Kemps LLC. Terms of the sale CEO; Jim Walsh, VP, marketing; Neil call for Kemps to acquire rights to the Gulden, VP, fluid marketing Cass-Clay brand. AMPI will continue Cheese plants: Sanborn, Iowa (Ched- to serve as the brand’s exclusive milk dar, condensed whey); Dawson, Minn. supplier. AMPI and Kemps representa- (Cheddar, whey, aseptically packaged tives say the sale is a “win-win” for both cheese sauce, aseptically packaged consumers and local dairy farmers who pudding); Paynesville, Minn. (Cheddar supply the milk. barrels, WPC); Rochester, Minn. (Ched- “This sale allows each company to dar, Colby, Colby Jack, Monterey Jack, do what it does best,” Welch says. “It ice cream mix, WPC, lactose, condensed allows the dairy farmer-owners of AMPI whey); Hoven, S.D. (Parmesan, Romano, to focus on maintaining a steady flow of Asiago); Blair, Wis. (Cheddar, whey); the quality, wholesome milk that is the Jim Falls, Wis. (Cheddar, Colby, Colby essential ingredient in making the Cass- Jack, Monterey Jack, Pepper Jack, Clay dairy products consumers crave.” whey); Portage, Wis. (cheese packaging AMPI’s goals for the coming year and processing) focus on food safety and quality assur- Estimated annual cheese produced: ance. Welch says the cooperative would 430 million lbs. like to have all 12 of its plants achieve Estimated annual cheese marketed: Safe Quality Foods (SQF) Level 2 cer- 600 million lbs. tification. The year began with three Estimated 2011 sales: $2 billion of AMPI’s plants already SQF certified. Percentage of sales from cheese: 80% Welch also notes a cooperative- Market segments for cheese: 25% wide initiative is underway to have its retail; 30% foodservice; 45% ingredients approximately 3,000 member farms Website: www.ampi.com complete on-farm assessments through A look inside: Associated Milk the National Dairy Farmers Assuring Producers Inc. (AMPI) continued to Responsible Management (FARM) see increased butter and cheese sales program. in 2011. “We’re well on the way to having all Ed Welch, president and CEO, AMPI, our dairy farmers certified,” he says. says the company’s butter sales have For more information please e-mail [email protected] Turn to KEY PLAYERS, page 15 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 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 June 8, 2012 — CHEESE MARKET NEWS® 15 KEY PLAYERS 2012
In late January 2012, the company troduced new varieties of Mini Babybel, included a new television advertising KEY PLAYERS announced plans to invest $100 mil- including White Cheddar and Sharp campaign. Continued from page 14 lion to build a new 170,000-square-foot Original; four new flavors for The Laugh- “In the past few years, as we intro- AMPI claimed a number of awards manufacturing facility in Brookings, ing Cow, including Light Queso Fresco duce new items, we want to ensure we on the contest circuit over the last S.D., to produce its Mini Babybel cheese. & Chipotle, Light Mozzarella, Sundried have adequate marketing support to year. It tallied three wins in the 2011 “This new plant is essential to ex- Tomato & Basil and Light Blue Cheese; feed the launch,” she adds. “We have World Dairy Expo Championship Dairy panding our production capacity to meet the new Boursin Gourmet Spreadable combined media advertising with na- Product Contest. The company’s Ched- the growing demand for our Mini Baby- Cheeses in Vermont White Cheddar tional digital and consumer promotions, dar, Colby Jack and American cheese bel cheeses,” says Lance Chambers, & Sage, Sundried Tomato & Basil and and other synergistic tactics. We’re entries all took top honors. The winning president and CEO, Bel Brands USA. Spinach & Artichoke; and The Laughing putting significant dollars behind our Cheddar was produced at AMPI’s facil- He adds that Bel Brands USA has Cow Smooth Sensations Cream Cheese new products.” ity in Blair using the new cheese vats. more than doubled in size over the past spread. Legan adds that Bel Brands USA “That reinforces our decision to four years. “The Laughing Cow Smooth Sen- has a dedicated innovation team in the purchase those cheese vats,” Welch says. The company’s Mini Babybel, The sations Cream Cheese was recently United States that works closely with In the National Milk Producers Fed- Laughing Cow and Boursin brands have featured on the ‘Today Show’ during Joy Bel Group’s global development and eration Championship Cheese Contest, fueled much of that growth, Chambers Bauer’s new ‘Too Good to be Healthy’ research center in France. AMPI claimed first place for its Natural says. segment,” Legan says. In addition to growing popular- Colby Jack and second place for its Milk Mini Babybel, which represents “As with our other new product ity with consumers for its brands, Bel Cheddar, Medium Cheddar and sliced close to one-third of Bel Brands’ U.S. launches, we are taking an integrated Brands USA has garnered a reputation American cheeses. sales, has almost tripled in size with marketing approach for the launch of as an attractive place to work. In the Wisconsin State Fair Cheese consistent 25 percent-plus growth, he The Laughing Cow Smooth Sensations Legan notes that for three years and Butter Contest, AMPI took first adds. To date, sales of Mini Babybel Cream Cheese,” she says. “It’s a proven running (2009, 2010 and 2011), the place for its Pasteurized Process Swiss in the United States total 17 million recipe for success. company has been named one of the American and second place for its pounds annually. In addition, the company has intro- “101 Best and Brightest Companies to Pasteurized Process White American. To meet the current demand, the duced new larger-count packages for Work for in Chicago” by the National company now imports more than 50 Mini Babybel and The Laughing Cow Association of Business Resources. percent of its Mini Babybel business, wedges, she adds. Bel Brands USA received industry Chambers says. Legan notes that with the launch recognition this year as well when its “Our goal is to attain a sales volume of Bel Brands USA’s new Boursin Merkts Sharp Cheddar Cheese Spread of 22 million pounds by next year,” he Gourmet Spreadable cheese last year, and Swiss Almond Cheese Spread says. “We look to triple our current the company expanded from regional took second and third, respectively, in capacity for Mini Babybel in the United to national marketing support that Turn to KEY PLAYERS, page 16 States once this new production facility comes on line.” Chambers adds that Bel Brands USA expects the first phase of the Brookings Bel Brands USA plant to be fully operational by 2014. Chicago Bel Brands USA last year also moved its corporate headquarters to Parent company: Fromageries Bel, 30 South Wacker in Chicago from its Paris former location in Elk Grove Village. Key executives: Lance Chambers, More than 80 employees report to the pres. & CEO; Didier Aziza, CFO; Greg company’s headquarters in Chicago, Hughes, sr. VP; Mark Bellish; VP, sales; Chambers notes. Ann Legan, VP, marketing; Vladimir The move to its new 27,000-square- Homola, dir. of operations, Leitchfield; foot West Loop headquarters was com- Ed Blascak, dir. of operations, Little pleted last spring. Chute; Francine Moudry, project dir., “Due to our phenomenal growth, Brookings we had outgrown our current space,” Cheese plants: Leitchfield, Ky. (Mini Chambers says. “We felt a move to the Babybel, The Laughing Cow wedges); West Loop area of Chicago was the Little Chute, Wis. (Merkts cold pack best option to maintain our current cheese, Kaukauna cheese balls & logs, employees and to help us attract the Boursin spreadable cheese, Price*s best possible talent to fuel our future cheese spread, WisPride cheese spread) growth.” Estimated annual cheese produced: Bel Brands USA in 2011 also con- 80 million lbs. tinued to invest several million dollars Estimated annual cheese marketed: in its Leitchfield, Ky., plant to expand 85 million lbs. production capacity of The Laughing Estimated 2011 sales: More than Cow and Mini Babybel, Chambers $300 million notes. Projected 2012 sales: Expected “Our core brands — The Laughing growth of 5-10% in volume, 15-20% in Cow, Mini Babybel and Boursin — sales started as small niche brands here Percentage of sales from cheese: 100% in the United States and now are Market segments for cheese: 90% emerging as very popular brands fit retail; 10% foodservice for people’s daily lifestyles,” he says. Websites: www.bel-group.com, www. “The Laughing Cow master brand is thelaughingcow.com, www.boursin. now America’s No. 1 branded snack- com, www.merkts.com, www.kaukauna. ing cheese.” com, www.pricescheese.com, www. Ann Legan, vice president of market- wispride.com ing, Bel Brands USA, notes that success- A look inside: Bel Brands USA over ful product innovation continues to be the past year has announced plans a driving force for the company. for growth and launched several new She notes that over the past 18 products. months or so, Bel Brands USA has in- For more information please visit www.mctdairies.com
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 16 CHEESE MARKET NEWS® — June 8, 2012 KEY PLAYERS 2012
Pepato, Peperoncino, Vegetarian Par- facility by 50 percent. At the American Cheese Society KEY PLAYERS mesan); Sherwood, Wis. (veal feed); Later this year, BelGioioso also 2011 contest, the company’s Burrata Continued from page 15 Freedom, Wis. (Burrata, Fresh Mozza- is planning to begin construction in and Fresh Mozzarella Thermoform won rella, Fresh Mozzarella curd, Fontina); Chase, Wis., to expand its table cheese first-place awards, its Fresh Mozzarella the Cold Pack Cheese Spread Class at F. Cappiello, Schenectady, N.Y. (Fresh production. Water received a second-place award the 2012 World Championship Cheese Mozzarella, hand-braided Fresh Moz- In addition to expanding its cheese and its Sharp Provolone Mandarino won Contest, sponsored by the Wisconsin zarella, Ricotta, Scamorza) manufacturing capacity, BelGioioso is a third-place award. Cheese Makers Association. Percentage of sales from cheese: 90% looking to expand its whey process- At the World Cheese Awards last Market segments for cheese: 50% ing capabilities. Earlier this year the year, BelGioioso won silver medals for its retail; 50% foodservice company started on a renovation of its Burrata, CreamyGorg and Crumbly Gor- Website: www.belgioioso.com Sherwood, Wis., whey plant, which cur- gonzola with sheep’s milk, and bronze A look inside: BelGioioso Cheese rently produces animal-grade whey for medals for its Mascarpone, Ricotta con Inc. last year acquired F. Cappiello veal feed. The improvements will allow Latte and Crumbly Gorgonzola. Dairy Products Inc., a family owned BelGioioso to make human-grade whey At the 2011 Wisconsin State Fair and operated Italian cheese company products. Cheese & Butter Contest, BelGioioso’s based in New York. BelGioioso Cheese Inc. “Whey has been very good the last CreamyGorg placed first and its Crumbly “Their main product is Fresh Moz- few years,” Auricchio says. “Eventually Gorgonzola placed third in the Blue Green Bay, Wis. zarella, and they specialize in making every whey product we produce will be Veined Cheese category, and its Parme- handmade braids,” BelGioioso Presi- human-grade.” san placed first and its Asiago placed Key executives: Errico Auricchio, dent Errico Auricchio says of Cappiello, BelGioioso has added several new third in Open Class — Hard Cheese. pres.; Mark Schleitwiler, VP; Gaetano adding that the company also was one of products to its cheese lines this past “We have had a good year, and we Auricchio, VP, sales the first in the country to make Ricotta. year. Marinated Fresh Mozzarella is one hope next year improves,” Auricchio Cheese plants: Ledgeview, Wis. (con- “We plan to keep the Cappiello brand of the newest offerings, which consists says. verting, packaging, shipping, corporate and work together with them. The of an 8-ounce package of Ciliegine balls office); Glenmore, Wis. (Provolone, Cappiello name is very well-known on marinated in extra virgin olive oil and Mascarpone, Fresh Mozzarella, Bur- the East Coast. They have been around fresh basil leaves. rata, Ricotta con Latte, Ricotta Salata); since 1929.” BelGioioso also recently introduced Langes, Wis. (CreamyGorg, Crumbly Auricchio says BelGioioso already its Mascarpone in a package of three Gorgonzola, Italico, Crescenza-Strac- has made some investments in the chino); Pulaski, Wis. (American Grana); 8-ounce cups for club stores, which Cappiello plant and plans eventually Chase, Wis. (Parmesan, Romano, provides the convenience of the small to increase production at the New York Asiago, Auribella, Kasseri, Toscanello, size with the value of buying in bulk. BelGioioso also brings convenience to the customer with its new 5-ounce Burnett Dairy Cooperative shredded Sharp Provolone cups, which Grantsburg, Wis. joins its line of shredded cheese cup varieties including American Grana, Key executives: Dan Dowling, CEO; Asiago, Parmesan, Romano and others. Earl Wilson, cheese division plant mgr.; For convenience in entertaining, John Dodds, pres. of board snacking or other applications, Bel- Cheese plants: Grantsburg, Wis., Gioioso has introduced its new Italian (Mozzarella String, flavored Mozza- Cheese Plate, a 1.75-pound variety rella String [hot pepper, smoked, onion, package of bite-sized slices of Sharp salsa], Alpha’s Morning Sun, Alpha’s Provolone, Mild Provolone, Asiago and Old World Yogurt Cheddar, Northwoods Fontina. Cheddar, aged white Cheddar, Edam, Additionally, BelGioioso has intro- reduced-fat yogurt Cheddar, Cheddar duced a new Spicy Blend of Peper- [mild, medium, aged and extra sharp], oncino, Mild Provolone and Fontina in flavored Cheddars [chives, horserad- 5-ounce cups and 5-pound bags. ish], Fancy Jac [Colby & Monterey “2012 will be a very competitive year Jack mix], Provolone, aged Provolone, and there are many players with large aged Parmesan, Mozzarella blocks, budgets,” Auricchio says. “But we are Monterey Jack, Colby, Muenster, Gouda, small enough to give attention to the pasta filata) quality of our cheeses. We make good Estimated annual cheese produced: cheeses.” 36 million lbs. Several of BelGioioso’s cheeses Estimated annual cheese marketed: have won awards again this past year 36 million lbs. at regional and national competitions. Estimated 2011 sales: $120 million BelGioioso cheesemakers took home Percentage of sales from cheese: 100% six medals at this year’s World Cham- Market segments for cheese: 5% pionship Cheese Contest, including retail; 95% foodservice Johnny Stender, who won best in class Website: www.burnettdairy.com for his Parmesan. A look inside: Burnett Dairy Co- “What an amazing feeling to know operative currently is completing the that the hard work and dedication I second part of a five-stage expansion have for my craft turned into a World project that it broke ground on last Championship win,” Stender says of fall. The full project will increase the the honor. Grantsburg, Wis., plant’s cheesemak- In addition to the Parmesan, Bel- ing capacity as well as add coolers Gioioso won best in class for its Fresh and storage for aging, and expand the Mozzarella with Prosciutto and Basil retail store. Roll. The company also received second The company is configuring new place awards for its Sharp Provolone, production machinery that recently Mild Provolone and CreamyGorg, and arrived, and its expanded retail space third place for Crumbly Gorgonzola is three times the size of the previous at the World Championship Cheese space. For more information please visit www.burnettdairy.com Contest. Turn to KEY PLAYERS, page 17
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 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 June 8, 2012 — CHEESE MARKET NEWS® 17 KEY PLAYERS 2012
the help of its two Wisconsin Master David Seal, business development growth: expand knowledge of traditional KEY PLAYERS Cheesemakers, Steve Tollers and Bruce mgr., Walmart Hispanic cheese among the non-Hispan- Continued from page 16 Willis. Cheese plant: City of Industry, ic consumer population while at the Several cheeses from Burnett Dairy Calif. (Asadero, Cotija, Enchilado, same time generating more excitement “The store is going to be far more received awards at contests this past Manchego, Monterey Jack, Mozzarella, to its broadest base of consumers — of a destination,” says Tasha Burilini- year. At the 2011 American Cheese So- Oaxaca, Panela, Queso Blanco Fresco, first-and second-generation Hispanic Olson, market and retail manager, ciety contest, Burnett Dairy received a Queso Fresco, Queso Poblano, Queso consumers in the United States. Burnett Dairy Cooperative. “The retail first-place award for its Monterey Jack Quesadilla, Queso Quesadilla Jala- Gil de Cardenas, vice president aspect is huge. It will be the same and third-place awards for its Cheddar peño, Queso Seco para Freir) and chief operating officer, Cacique, store and products, but so dramati- with Spice Blend and its Smoked String Website: www.caciqueusa.com says the company strives each day cally changed by how valuable the Cheese. At the 2011 World Dairy Expo, A look inside: In 2012-2013, Cacique to make the highest quality cheese, retail space is, where people can stop Burnett Dairy received both a second USA will continue to introduce items cream, chorizo and yogurt products and sit down. We will have a custom and third place for its String Cheese that are in high demand by various in the marketplace. grilled cheese shop with only Wiscon- entries as well as a second and third segments of Hispanic consumers and “We are proud of the fact that we sin cheeses where you can build your place for Provolone entries. segments interested in authentic now have several generations of col- own. The greatest parts won’t change This coming year, Burnett Dairy is Hispanic meal solutions, says Tirso leagues working at the company, and — that’s our cheese and ice cream.” excited to launch some new products Iglesias, director of sales and market- many of our best customers have been With its new “user-friendly” retail that it has not offered at retail in the ing, Cacique USA. with us since the early days,” he says. space, Burnett Dairy aims to give a taste past, including a new line of shredded Cacique continues to build on its 2012 marks the third year of the of what makes the Wisconsin agricul- cheeses that will be available in reseal- market position with several initia- “Go Auténtico” foodie-focused cam- ture community tick. It will include able bags in the dairy case. tives aimed at growing its categories’ paign featuring Food Network Celeb- historical information and feature Also this year, Burnett Dairy plans to consumer base and introducing inno- rity Chef Aarón Sánchez as its main farms around northwest Wisconsin to focus on its new nonprofit, BDC Cares, vation into the marketplace, company spokesperson. give visitors a better idea of what life which was launched at the end of 2011 officials say. According to Iglesias, the “Go in this region is like. to help provide fundraising and support Iglesias notes that the company’s Auténtico” campaign continues to In addition to the expanded retail to area communities. BDC Cares has four pillars — authenticity, family, qual- focus on educating consumers on the space, the company plans to have its developed a program called “Fueling ity and integrity — anchor this effort authentic Mexican meal solutions that new offices and training rooms com- for Hunger.” Every time one of its pro- by communicating to the marketplace Cacique provides via the wide array plete by the end of the year. Burilini- pane or fuel tanks makes a delivery, the commitment of excellence that goes of products featuring Queso Fresco, Olson says the training rooms will be BDC Cares will donate a percentage into every unit of product and messaging Crema Mexicana and Chorizos. used by its sales teams to educate to local food shelves. in Cacique’s campaigns. Iglesias says that to better reach its Burnett Dairy’s end users as well as “Our first initiative is gathering He adds that the company contin- customers, Cacique has redesigned its provide a space to educate the public. funds for food shelves in our area,” ues to take a two-pronged approach to Turn to KEY PLAYERS, page 18 “We do not have a current space Burilini-Olson says. “This area tends to we can use for that,” she says. “I be one of the poorer areas in Wisconsin, sometimes would go to schools, and we with a high hunger rate.” gave limited tours to customers. With BDC Cares has launched a website, the new space, we’re really hoping to www.bdccares.org, which offers up- ramp that up.” dates on its programs as well as an op- By the end of the expansion, portunity for anyone who is interested Burilini-Olson says the biggest in- to donate to its causes. Burilini-Olson crease probably will be in Burnett says BDC Cares will continue to look Dairy’s packaging capabilities as well for other initiatives to support in the as providing more space to age its future as well with the resources it has. Cheddars and other custom cheeses. “Burnett Dairy Cooperative has These improvements, she says, will always done what we could to sup- allow overall increased production. port the needs of the communities we Burnett Dairy this past year has serve,” she says. “We have a talented introduced new packaging for some of staff and an infrastructure that we can its products that it currently is testing creatively use to support the needs of in different markets. With help from our communities.” the Wisconsin Milk Marketing Board, it also has branched out this past year in the number of national trade shows it has attended. “It’s been very successful,” Burilini- Olson says of the increased exposure Cacique USA GRATING U SHREDDING U DICING U DRYING from trade shows. “Seeing customers City of Industry, Calif. from across the country really has With over 150 years of combined experience in the helped to stabilize and increase sales.” Key executives: Gil de Cardenas, cheese and dairy industries, we can accommodate Burnett Dairy also has worked VP & COO; Tirso Iglesias, dir., sales all of our customer’s needs. this past year to expand and solidify s 3PECIALIZING IN "OTH 3UBSTITUTES AND "LENDS OF & marketing; Enrique Botello, dir., 2EAL #HEESE its retail presence in Minneapolis-St. marketing; Christopher Iglesias, in- s #AN %FlCIENTLY 3HIP -OST /RDERS 7ITHIN (OURS Paul, continuing to “grow leaps and novation mgr.; Bob Cashen, dir., mass s #USTOM &ORMULATIONS