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Meal Kits, Food Delivery Offer New Opportunities for Cheese

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Meal Kits, Food Delivery Offer New Opportunities for Cheese Volume 38 June 8, 2018 Number 21 Meal kits, food delivery offer Like us on Facebook and follow us on Twitter! new opportunities for cheese A By Mallory Adamson Fresh, notes that some of suppliers must be adaptable Hello Fresh follows other the company’s most popular and able to produce a variety of meal kit companies who also INSIDE MADISON, Wis. — Meal recipes include cheese, and styles and products for private are embracing the omnichan- kits and grocery delivery are the company knows cheese label. The company’s surveys nel strategy. Blue Apron, origi- changing the way Americans is important to its customers also play a role in supplier nally only a subscription meal- ✦ Producers approve buy and prepare their food, based on survey responses. requirements. kit service, now is producing California FMMO. which is creating new oppor- To satisfy its customers’ de- “We get feedback from con- an expanded line of meal kits For details, see page 5. tunities and challenges for mand for freshness and quality, sumers on our cheese, so we for Costco. Plated recently the cheese and dairy industry. Hello Fresh operates with a may want to change our orders was acquired by Albertsons, ✦ Lawmakers urge protection Hello Fresh, a Berlin-based just-in-time sourcing model. based on that feedback,” Voss and now Plated meal kits are of common names in meal-kit delivery company Ingredients are produced and says. “We require our suppliers sold in grocery stores includ- Mexico-EU trade deal. with operations in the United packaged specifi cally for each to be agile and willing to tweak ing Safeway and Jewel-Osco. For details, see page 8. States, Canada, Western Eu- menu. Hello Fresh does not the product, whether it be the Chef’d is another meal kit rope and Australia, offers its buy in bulk or retain inventory; recipe or the packaging, until company that is embracing ✦ Wisconsin Aging & Grading subscribing customers a selec- the company sources only the it is perfect.” the omnichannel strategy, yet launches 724 Wisconsin tion of approximately 15 meals ingredients in the amounts For the supplier who can be Chef’d has a business model Select cheese brand. per week, and cheese always necessary for the week. This successful meeting the needs that is very different from its For details, see page 11. is an ingredient in multiple requires speed and fl exibility of meal-kit delivery, Voss adds, competitors in the way it offers ✦ CMN Exclusive: options. Other dairy SKUs are from its suppliers. there is a lot of opportunity in direct-to-consumer and retail 2018 Key Players. frequently present in Hello “If you’re supplying to a big this emerging market. products. For details, see pages 17-61. Fresh meals as well. grocery store, you get used to For those consumers who Unlike Hello Fresh’s weekly Uwe Voss, COO of Hello doing things a certain way. do not prefer the subscription menu and just-in-time in- How we source ultimately is models, Hello Fresh and other ventory, Chef’d stocks bulk very different. The product is companies are branching into inventory and offers custom- not different, but the process the retail market. ers a selection of hundreds is. Everything for us must be Hello Fresh now offers of prepackaged meals on its pre-portioned, which means retail meal kits, including website. suppliers must be willing to recipes such as Peppercorn Co-founder and Chief Cu- Our Exclusive Annual Profile of Who’s Who in the Cheese Business package product in 1- and Steak, Mediterranean Style linary Offi cer of Chef’d Jason 2-ounce sizes. They also must Chicken, Homestyle Meatloaf, Triail explains how the com- be willing to work with our Chickpea Couscous and Pa- pany is able to serve customers By the staff of Cheese Market News just-in-time model,” Voss says. prika Chicken, which range in this way. Because Hello Fresh’s from $14.99 to $19.99 MSRP “Essentially, we are just one The prevalence of snacking and convenience trends. A smaller menu changes weekly, a prod- with a cook time of less than big grocery store, managing environmental footprint. Increased focus on animal comfort and care. uct may be needed one week 30 minutes, at 581 stores un- more than 3,000 SKUs. People Improved food safety practices. These are just some of the areas of but not the next, or for sev- der the Ahold Delhaize U.S.A. think it’s super challenging, focus by this year’s “Key Players,” 50 cheese companies selected eral weeks or never again. brand’s Giant Food (Landover) but it’s actually not because by Cheese Market News that make up a unique “who’s who” in the Therefore, cheese and dairy and Stop & Shop. Turn to KITS, page 10 a dairy industry. Whether big or small or somewhere in between, the industry lead- ers profi led in Cheese Market News’ “2018 Key Players” are making a difference in the future and direction of the U.S. cheese industry. Individually, each profi le within “Key Players” provides insight into a Mexico announces codes Saxon, La Clare, specifi c company. In its entirety, “Key Players” provides a snapshot Lamanga create of the dairy industry at present and a better understanding of the for cheese tariffs in dispute Mosaic Meadows creativity and effort that went into the production of a record 12.66 billion pounds of cheese in the United States in 2017. WASHINGTON — Following last week’s announcement from Mexico that it would fi ght back against newly-imposed U.S. steel KAUKAUNA, Wisconsin “Key Players” is not a ranking of the nation’s largest cheese compa- — Three family-owned nies, but we do provide production and sales data whenever possible tariffs by levying duties on several products, including cheese, Mexican President Enrique Peña Nieto on Tuesday signed a decree cheese companies — because we know these are important to a full understanding of a Wisconsin-based La Clare company. In “Key Players” you will learn about the latest in industry imposing new duties. The order lists four tariff codes — for fresh cheese, powder/grated cheese, European styles and other cheese Family Creamery and Sax- acquisitions, plant expansions, food safety certifi cations and contest on Creamery, along with awards. Improved techniques to engage with consumers, new uses for — with initial levels in effect June 5 and increases set for July 5. According to a Special Report from Blimling and Associates, Verona, Pennsylvania- dairy ingredients and efforts to improve employee satisfaction are just based Lamanga Cheese Co. some of the initiatives covered in the following pages. Madison, Wisconsin, the measure impacts most of the cheese shipped from the United States into Mexico. — announced yesterday Beyond the past year, “Key Players” also delves into these com- they have combined to panies’ future plans and aspirations. Please read on for an exclusive The Trump administration previously had exempted Mexico and Canada from Section 232 tariffs in hopes of achieving a suc- create a new cheese mar- inside look into where the cheese industry is heading and what new keting company, Mosaic trends are developing. cessful outcome in the NAFTA negotiations. Section 232 of the Trade Expansion Act of 1962 gives the executive branch the ability Meadows. a Turn to KEY PLAYERS, page 17 Turn to TARIFFS, page 15 a Turn to MOSAIC, page 16 a © 2018 CHEESE MARKET NEWS® — This is Cheese Market News’ e-subscription and may not be forwarded to anyone other than the intended paid subscriber without the express permission of Cheese Market News (For more information, contact [email protected]) 2 CHEESE MARKET NEWS® — June 8, 2018 MARKET INDICATORS Chicago Mercantile Exchange Cash prices for the week ended June 8, 2018 CHEESE FUTURES for the week ending June 7, 2018 (Listings for each day by month, settling price and open interest) Monday Tuesday Wednesday Thursday Friday June 4 June 5 June 6 June 7 June 8 Fri., June 1 Mon., June 4 Tues., June 5 Wed., June 6 Thurs., June 7 JUN18 1.648 3,111 1.635 3,128 1.625 3,125 1.628 3,127 1.637 3,135 Cheese Barrels JUL18 1.698 3,041 1.680 3,132 1.655 3,159 1.667 3,170 1.680 3,170 Price $1.5200 $1.5050 $1.5050 $1.5175 $1.5650 AUG18 1.747 2,911 1.738 2,908 1.702 2,937 1.714 2,965 1.729 2,990 Change NC -1 1/2 NC +1 1/4 +4 3/4 SEP18 1.761 2,746 1.755 2,754 1.727 2,802 1.738 2,830 1.751 2,850 OCT18 1.750 2,622 1.746 2,627 1.725 2,723 1.734 2,740 1.746 2,766 Cheese 40-lb. Blocks NOV18 1.732 2,726 1.727 2,730 1.711 2,795 1.720 2,805 1.730 2,825 Price $1.5925 $1.5750 $1.5800 $1.6000 $1.6350 DEC18 1.719 2,553 1.712 2,569 1.701 2,622 1.707 2,624 1.718 2,641 JAN19 1.698 548 1.694 552 1.693 632 1.694 631 1.701 659 Change -1/2 -1 3/4 +1/2 +2 +3 1/2 FEB 19 1.695 458 1.694 462 1.695 544 1.697 546 1.701 576 MAR 19 1.696 456 1.693 458 1.698 474 1.699 476 1.704 485 Weekly average (June 4-8): Barrels: $1.5225(-.0219); 40-lb.
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