April 12, 2012

High Meadow Dairy Market Analysis

Ann Wilkinson Origin Farms

Table of Contents

Overview of Market Feasibility Study ...... 2

Production Base ...... 4

Determination of Product Mix ...... 6

Domestic Production Base ...... 13

Demand for Dairy Products ...... 17

Informational Interview with Dairy Buyers ...... 21

Competition...... 23

Appendix A: Conversation Summaries ...... 40

Appendix B: Directory of Other Potential Contacts ...... 49

High Meadow Dairy, Market Feasibility 1 | Page

Overview of Market Feasibility Study

Sustain Floyd intends to develop a dairy processing facility in Floyd, Virginia. The dairy processing facility will utilize milk that is sourced from nearby farms, and process that milk into an array of dairy products.

This study evaluates the feasibility of moving forward with that project, and what the best mix of products is for the processing facility to manufacture.

Review of Production Base

First, we briefly review the production base for the cows’ milk to be processed in the facility. The region has a long history of dairy production, with approximately 121 farms in the six county region providing an estimated 95.6 million pounds per milk annually. It is understood that milk for the facility will be purchased through one of three cooperatives pulling milk from the area.

Assessment of Product Demand

The market feasibility study assesses the local, regional and market demand for various products to determine the categories of products to produce. Information is gleaned from conversations with dairy buyers and distributors. This information includes pricing, overall category volume, growth potential, flavor preference, packaging specifications and delivery requirements.

Information from the informational interviews was combined with market research for dairy categories and production factors on milk balancing and product yield to determine the “best case” product mix.

Proposed Product Mix

The market research determined that the best product mix would be a combination of fresh and aged dairy products, sold through both foodservice and retail channels. Product specifications are included later in this document. This product line includes: 1. Fresh Low Fat Ricotta Cheese (net weight, foodservice & retail). 2. Fresh Whole Milk Ricotta Cheese (net weight, foodservice & retail). 3. Flavored Cheese Spread Processed from Low Fat Milk Quark (for further processing into flavored cheese spreads). 4. Bloomy Rind Cheese (foodservice & retail). 5. Six-Month Aged Specialty Cheese (foodservice, deli & retail).

The proposed product mix includes a combination of both fresh, short aged and medium aged products. This combination is important to insure that the processing venture has

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adequate cash flow throughout the operation. While per unit pricing for aged cheese is significantly greater than fresh dairy products, aged products require significantly more cash to maintain the inventory.

The majority of the product mix will be manufactured at the cheese processing facility. The product mix includes cheese spreads and further processed bloomy rind cheese that will be manufactured at the proposed adjacent certified kitchen.

Competition

Once the product line was determined, further research was done on reviewing the competition for specific products. Information from the competitor profiles was used to fine tune the product mix and product specifications and to determine the expected prices of the various products.

Conclusion

From a market perspective, this project is feasible. There is strong increasing demand for cheese in the United States, and extremely strong demand in the region for locally made cheese. Unlike other food distribution channels, retailers and restaurants like to carry a wide selection of cheese products. Because of this, gaining access to the market is viable.

Next Steps

In the next phase, we will develop a launch strategy which determines the raw material requirements, make schedules, and expected volume. This information is required for determining equipment sizing and other technical requirements.

This information will be used to develop the Technical Feasibility Study. In this phase of the project, the costs of acquiring the land, constructing the facility and operating the facility will be determined. Food safety regulations will be reviewed before the start of this phase to insure that the facility meets federal, state and local requirements.

During this phase of the process, the product specifications and costing will be further refined and finalized. Further informational interviews will be held with buyers to verify potential volume requirements and pricing.

High Meadow Dairy

When launching a project it is often convenient to have a proposed name for the venture. This project has been referred to as High Meadow Dairy in this document. This name is only intended for use during the planning phase.

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Production Base

The proposed facility, High Meadow Dairy, will be able to produce products manufactured from cows’ milk sourced from the region. The overall milk quality used to make the dairy products plays an important role in determining the final product attributes and processing yield.

Overview of Production Base

The purpose of this project is to develop a stable market for cow milk produced in Floyd County and in the region around it. It is understood that milk will most likely be sourced through one of three cooperatives operating in the area: MDVA, Piedmont and DFA. These cooperatives are currently purchasing an estimated 15.6 million pounds of milk per year from Floyd County dairy producers, and about 95.7 million pounds from producers in the region. At this point, no one cooperative source has been solidified. Over time, it may be possible to use milk from a combination of the cooperatives as the facility’s needs expand.

Milk Supply

The type and variety of milk plays a determining factor in defining the product mix. The milk will be sourced from multiple farms and pooled into a common supply stream. Currently, the dairy production base is geared towards fluid or beverage milk production. It is understood that many of the producers in the production base have Holstein based herds and use a combination of pasture based and conventional production techniques. The composition of Holstein milk in approximate terms is 87.7 percent water, 3.7 percent milkfat, and 8.6 percent skim solids.1 The milk supply typically drops off in the summer months and can be as much as 50% less than in the high season from April to May. The production base however does have a continual year-round supply of milk.

Further processed dairy products, including ice cream, yogurt and cheese, have higher processing yields if the milks components have a higher proportion of butter fat and proteins. High Meadow Dairy may be able give producers incentives to produce milk with a higher processing yield by offering monetary incentives for butter fat and protein content.

Milk Balancing

The High Meadow Dairy project has the potential advantage of being able to source milk from one of three cooperatives. Working with a cooperative will allow High Meadow Dairy the opportunity to balance milk supplies, allowing the operation to only pull milk

1 Source, USDA Economic Research Service, Dairy Briefing Room, March 30, 2012.

High Meadow Dairy, Market Feasibility 4 | Page when it is needed. Conversations with two of the coops, however, revealed a reluctance to deliver less than 50,000 pounds or a full load of raw milk. Therefore, before the scope of the project is finalized, further exploration of delivery options will be explored. The project team will initiate more formal discussions with the potential milk suppliers. It is understood that it is critical that a source of milk can be supplied to the plant.

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Determination of Product Mix

It is suggested that the proposed processing facility process a mixture of fresh and aged cheese products. Cheese, beverage milk, and yogurt all require separate storage areas, because of differing temperature requirements, and separate make areas. Designing, building, equipping and operating a “multi-purpose” facility is very expensive.

The decision to focus on fresh and aged cheese was based on the following information.

1. Domestic Demand for Dairy Products. 2. Informational Interviews with Potential Buyers. 3. Review of Competition. 4. Production Considerations.

Summary of Categories

Cheese

It is proposed that the operation be launched as a cheese processing facility. This decision was based on several key factors that are reviewed in this document.

1. Growing Demand for Cheese. Cheese demand is increasing in the U.S. and is expected to continue to increase in the next decade. Much of the growth will come from the specialty cheese sectors. 2. Favorable Trade Dynamics. Currently, the U.S. imports about $1.08 billion of cheese per year, with the majority of cheese coming from France, Italy, Switzerland, United Kingdom and Austria. Because of the European Debt Crisis, the EU is expected to curtail many of their dairy subsidies, thereby increasing the domestic (U.S.) price of European cheese. U.S. consumers are expected to replace their consumption of imported cheeses with specialty domestic cheese. 3. Favorable Industry Structure. With many grocery products, a retail or foodservice purveyor can only carry a few brands of a certain item. However, cheese retailers and distributors like to offer their customers a broad product line of cheeses. Specialty retailers, such as Whole Foods, offer as many as 200 different brands. Therefore, there are no practices in the industry that prohibit market entry such as slotting fees, buy-back programs, or deep discounting. Indeed, the market interviews reflect a “willingness to try” on the part of all buyers surveyed. 4. Demand for Local. Retailers and foodservice establishments are in most cases willing to feature local products. Cheese is an easy-to-handle product that is well received by most consumers.

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Beverage Milk

Bottling and processing beverage milk is a difficult and risky operation for the proposed start up operation. 1. Entrenched Competition. Regionally, independently operated Duchess Dairy and Homestead Creamery have a solid base of business. Homestead sells products both through retailers as well as larger-scale institutional foodservice accounts, including Virginia Tech. 2. Shelf Life and Give Away Problems. Wholesale grocery buyers will not support a new brand on the shelf and will typically require milk companies to pick up remaining milk, so that they do not incur losses on the product. This “give away” can be significant for start up operations. 3. Declining Demand for Beverage Milk. U.S. per-capita milk consumption is decreasing and is expected to continue to decrease in the next decade.

Yogurt

Yogurt purchases at the retail level are handled through the dairy case. 1. Entrenched Competition. A new yogurt faces considerable competition from existing brands, including national and regional brands. The yogurt industry is dominated by national brands including Danon and Yoplait, which dominate the market shelves. A new yogurt product that is highly differentiated (organic, goat/sheep, special fermentation, etc…) can have a chance of penetrating the market, but it is an uphill battle. 2. Shelf Life. As with beverage milk, yogurt typically has about a 40 day shelf life from day of pack. Typically, yogurt is handled through distributors and not delivered to retailers directly. So, to launch a new product it is necessary to have a coordinated marketing program with a distributor, including allowances for picking up unused products.

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Review of Product Line

Information from various sources (interviews, competition, processing and cash flow requirements) was used to determine the product line. It is important that the operation processes both fresh and aged products to generate a steady stream of cash flow. Further, it is important for the facility to balance milk requirements within the operation. Therefore, higher fat cheeses necessitate the production of low-fat cheese products. A detailed description of the products is included on the following pages.

Bloomy Rind Cheese

The product lines’ driver will be a soft bloomy rind cheese, sold in 10 oz. wheels. The cheese will be aged on-site and sold at two weeks of age. This product will be sold in a net weight format, and therefore should be easily picked up by retailers as well as other specialty shops. This product will be a high fat content cheese, and will require additional cream, balanced by the proposed cheese spreads. This product will realize approximately 25% gross margin2.

Specialty Cheese Spreads

The specialty cheese spreads will be manufactured in a proposed adjacent commercial kitchen. They will be manufactured from a low-fat quark product, a creamy fresh cheese, made in the cheese processing facility. This quark will be blended with specialty herbs and spices to create a creamy cheese spread. Like the Bloomy Rind Cheese, this will be sold in a net weight format, and have broad appeal to retail and specialty shops. This product will realize approximately 25% gross margin.

Fresh Low Fat and Whole Milk Ricotta

High Meadow Dairy will also produce Low Fat and Whole Milk Ricotta cheese. This product will be developed for sale through retailers, restaurants and institutional food sales. The product will utilize whey, a byproduct of the cheese making operation. The product will be sold fresh, within one week of processing. This product will realize approximately 10% gross margin.

Aged Cheese Once the operation is cash flowing, and the glitches are out of the production cycle, High Meadow Dairy will start manufacturing an aged specialty cheese. This product will realize approximately 45% gross margin.

2 Gross margin is defined as the difference between sales revenue and the cost of manufacturing that product. Estimates are included to give the reader a relative scale of profitability between the products.

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Bloomy Rind Cheese

1. Product Description. Product is a soft surface ripened, mold ripened cheese, which has a flat cylindrical shape. The body has a near white to creamy white color and a soft texture, but not a crumbly texture. Product is ripened from the surface to the center of the cheese. Product is free of gas holes. The rind is soft and entirely covered with white mold. Product will have a minimum milk fat content of 30%.

2. Flavor. Product will have a firm texture, and not crumble when cut. Mature cheese will have a nutty flavor with a distinctive bite.

3. Packaging. Product will be wrapped in white moisture resistant food safe paper. Product will then be placed in balsa wood round carton and labeled. Label Size: 5” round label with multiple colors. Label should be laminated.

4. Label Features. a. Company Name: High Meadow Dairy. b. Address: To Be Determined. c. Ingredient Statement: Milk, Culture, Salt. d. Brand Identifier: High Meadow Dairy. e. Variety: Buffalo Mountain Bloomy (or some other fanciful name). f. Claims: Handmade with Milk from Floyd County (or other regional identifier). g. Keep Refrigerated. h. 10 oz. net weight, use gram conversion as well.

5. Milk Requirements. Cheese is made with pasteurized milk sourced from MDVA (or other supplier), a Grade A Dairy. Milk is batch pasteurized at 162o for 15 seconds, and then cooled to 86-90o before making.

6. Culture. Product will be made with specialty cultures, to be specified later.

7. Rennet. Product will be made with rennet, to be determined at a later time.

8. Aging. Product is ripened at 45-50o for 2 weeks before sale

9. Size. Product will be sold in a round format, 6” round wheel, with an approximate 10 oz. net weight.

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Specialty Cheese Spreads

1. Spreads are a creamy, fresh cheese packed in a 6 oz. cylindrical container, without rind.

2. Flavors. The product comes in four flavors: Black Pepper, Garlic & Herbs, Sun Dried Tomato Basil, and Sweet Curry. It is a fresh cheese.

3. Ingredient Statement. To be determined based on final selection of flavor profile.

4. Refrigeration. Product must be refrigerated at all times between 40o - 45o.

5. Shelf life. Product has a 12 week shelf life from the date of pack.

6. Packaging. Product is packaged in 6 oz. tub, with printed cardboard cover sleeve. Tub has tamper resistant film seal.

7. Specialty Cheese Label Features. a. Company Name: High Meadow Dairy. b. Address: To Be Determined. c. Ingredient Statement: Milk, Culture, Salt. d. Brand Identifier: High Meadow Dairy. e. Variety: Blue Ridge Spread (or some other fanciful name). f. Claims: Handmade with Milk from Floyd County (or other regional identifier). g. Keep Refrigerated. h. Weight applied by retailer, depending, or using net weight sticker.

8. Make Procedures. a. Milk Requirements. Cheese is made with pasteurized milk sourced from MDVA (or other supplier), a Grade A Dairy. Milk is batch pasteurized at 162o for 15 seconds, and then cooled to 86-90o before making. b. Culture. Product will be made with Chris Hansen cultures, to be specified. c. Rennet. Product will be made with Chris Hansen rennet, to be determined d. Raw Material Requirements. Product is made from fresh cheese and processed within one week of cheese making.

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Whole Milk Ricotta Product Specification

1. Product Description. Ricotta is a soft and creamy cheese product that can be used in baking as well as ready-to-eat application.

2. Ingredient Statement. Whey, Pasteurized Whole Milk, Salt, Vinegar.

3. Packaging Description. Product is packed in plastic tub, with clear film tamper seal on top. Product is gas flushed to retain shelf life.

4. Shelf Life. 40 days from day of pack.

5. Storage Temperature. Store between 40o and 45o Fahrenheit.

6. Pack Sizes. 1. 16 oz. Tub, Net Weight. 8 units to a case. 2. 32 oz. Tub, Net Weight. 4 units to a case.

Skim Milk Ricotta Product Specification

1. Product Description. Ricotta is a soft and creamy cheese product that can be used in baking as well as ready to eat application.

2. Ingredient Statement: Whey, Pasteurized Skim Milk, Salt, Vinegar.

3. Packaging Description. Product is packed in plastic tub, with clear film tamper seal on top. Product is gas flushed to retain shelf life.

4. Shelf Life. 40 days from day of pack.

5. Storage Temperature. Store between 40o and 45o Fahrenheit.

6. Pack Sizes. 1. 16 oz. Tub, Net Weight. 8 units to a case. 2. 32 oz. Tub, Net Weight. 4 units to a case.

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Six Month Aged Cheese

Aged Cheese Product Specification Notes

1. Product Color. Finished cheese will be about the color of butter. Product will have smooth uniform surface, with minimal holes.

2. Flavor. Product will have a firm texture, and not crumble when cut. Mature cheese will have a nutty flavor with a distinctive bite.

3. Aged Cheese Label Features. a. Company Name: High Meadow Dairy. b. Address: To Be Determined. c. Ingredient Statement: Milk, Culture, Salt. d. Brand Identifier: High Meadow Dairy. e. Variety: Little River Delight (or some other fanciful name). f. Claims: Handmade with Milk from Floyd County (or other regional identifier). g. Keep Refrigerated. h. Weight applied by retailer, depending, or using net weight sticker.

Label Size: 4” x 3” label with multiple colors. Label should be laminated.

4. Ingredient Statement: Milk, Salt, Cultures, Rennet

5. Milk Requirements. Cheese is made with pasteurized milk sourced from MDVA (or other supplier), a Grade A Dairy. Milk is batch pasteurized at 162o for 15 seconds, and then cooled to 86-90o before making.

6. Culture. Product will be made with Chris Hansen cultures, to be specified.

7. Rennet. Product will be made with Chris Hansen Naturen Plus 175, liquid rennet.

8. Product is ripened at 45-50o for 6 months.

9. Size. Product will be cut into rectangular shapes and packed in a cryovac bag.

10. Cheese will vary slightly in size and weight. Typical pieces will be 5” x 6”. Cheese will also be sold in 5 pound stick.

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Domestic Production Base

In 2010, the USDA reported that there were 9.1 million cows in the U.S. producing approximately 192.8 billion pounds of milk. Of this, about one-third went into processing beverage milk and cream. The remaining milk - almost two-thirds of the milk supply - was used to produce a wide array of manufactured dairy products. Almost half of the milk supply was used to turn out about 10.4 billion pounds of cheese each year. Mozzarella has recently moved past Cheddar to become the most popular variety. Output of most varieties has grown steadily for many years, as cheese has become a staple in the American diet.

Production of ice cream and other frozen dairy products totals about 1.5 billion gallons, about two-thirds of which is regular ice cream. Frozen dairy products are commonly made by fluid milk processors, although specialized plants are well established.

Butter and nonfat dry milk traditionally were joint products. The cream from milk was churned for butter, and the remaining skim milk was dried for nonfat dry milk. About a tenth of the milk supply is still used this way, although more than half of the butter produced now comes from cream not needed when milk is used for fluid milk products or cheese. Production of these products has been roughly constant for many years, although their relative share of dairy product output has declined. The following table was taken from USDA, AMS data and shows the pounds of final dairy products produced.

Utilization of Milk, 2010 Dairy Products Pounds Percent Butter 1,565 1.69% Cheese 10,427 11.23% Whey 2,683 2.89% Evaporated & Condensed 2,362 2.54% Dry Products 1,871 2.02% Yogurt 4,181 4.50% Sour Cream 1,227 1.32% Cottage Cheese 389 0.42% Frozen Products 6,538 7.04% Other 3,075 3.31% Used on Farm 990 1.07% Fluid Milk & Cream 57,520 61.96%

92,828 100.00%

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Dairy Plants

The USDA reports that there were 1,273 commercial dairy processing plants in the United States processing one or more dairy products. Wisconsin, California, and New York had 444 combined processing plants.

Virginia has seven commercial dairy processing facilities including: HP Hood, LLC in Winchester; Richfood, Inc. in Richmond; Shenandoah’s Pride, LLC in Springfield; Westover Dairy in Lynchburg; Whitewave Foods Company in Mount Crawford; Duchess in Rural Retreat; and Homestead Creamery in Gills Creek.

The number of dairy processing plants has declined significantly in the past thirty years as a result of industry consolidation in product, processing and distribution sectors.

Table 2: Number of dairy manufacturing plants in U.S. and Virginia, 1970 to 2009

Number of dairy manufacturing plants in the U.S. and Virginia, 1970- 45 2009 4,500 40 4,000 35 Virginia 3,500 30 3,000 25 2,500 20 2,000 15 1,500 10 1,000 5 500 0 - Number of dairy manufacturing plants (U.S.) manufacturing Number of dairy 1970 1972 1974 1976 1978 1980 1982 1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004 2006 2008 Number of dairy manufacturing plants (Virginia) manufacturing Number of dairy Source: National Agricultural Statistical Service (USDA)

Cheese Plants

In 2007, the U.S. Census of Manufacturers reported that there were 341 cheese companies in the United States, with 483 different facilities. In that year, these facilities shipped a total of $33 billion dollars worth of cheese.

The U.S. Census of Manufacturers figures do not include many smaller scale processing facilities that are farmstead and may be classified as “farms.” Industry sources report that

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the number of cheese processors in the United States may be as high as 1,300 operations, with many of these processing less than one million pounds of cheese a year.

The number of cheese processors in the United States has increased over the last ten years because of the growth in demand for specialty cheese. Small scale cheese processors can sell their specialty cheese at a significant markup over the cost of production.

Price Differentials in Large vs. Small Plants

Small scale specialty cheese plants have been able to command a premium in the market place because of their superior flavor in comparison to commodity cheese. Often times, this relatively greater wholesale price for cheese more than offsets the greater production cost of cheese for smaller scale facilities.

The following example compares price/cost differentials for a larger scale facility with a small scale specialty plant. The information for the large scale facility was based on cheese manufacturing costs for 2010 as reported by the California Department of Agriculture. That report is included in the appendix to this document.

Comparison of Cheddar Cheese Returns per Pound

Large Small Scale Scale Plant Plant Wholesale Price $ 1.50 $ 6.25

Cheese Production Cost Milk Costs $ 1.06 $ 1.33

Processing Labor $ 0.05 $ 0.76 Processing Non-Labor $ 0.08 $ 0.21

Packaging $ 0.02 $ 0.35 Other Ingredients $ 0.02 $ 0.11 General & Administrative $ 0.02 $ 1.55 ROI $ 0.00 $ 0.05 Total Cost $ 1.25 $ 4.36

Net Return $ 0.25 $ 1.89

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Small Scale Plant Summary

The information for the small scale plant was based on production costs for three plants producing an average 400,000 pounds of cheese per year. This information is benchmarking data sourced from industry participants.

Small scale specialty plants can typically receive about $6.25 per pound wholesale for specialty cheddar style cheese. However, it should be noted that prices for this type of product can differ dramatically, depending upon the flavor profile and overall brand awareness in the market place. Prices for U.S. specialty cheese can be as high as $18.00 wholesale for cow milk cheese.

The milk cost for both the specialty cheese and the large scale operation was assumed to be $14.59 per hundred weight, which was the U.S. average manufacturing class price for 2010. Small scale facilities typically have a lower manufacturing yield. In this model it was assumed that the small scale plant processed 11 pounds of cheese for every 100 pounds of milk, resulting in a yielded milk cost of $1.33 per pound. In contrast, the California Department of Agriculture reports that the cheddar cheese yield for 2010 was 13.70 pounds of cheese per hundred weight of milk.

One of the options that will be explored in the economic modeling phase of the project is developing a level payment plan for milk. One of the general criticisms of the existing dairy industry is milk price volatility at the farm gate. It may benefit the manufacturing operation, as well as the farmer suppliers to the venture, to have a fixed price payment system. This will be further explored.

Smaller plants typically have greater labor cost per pound because the cheese is processed in smaller scale vats and moved by hand through the cheese making process. Small scale plants will have higher packaging costs as they typically market their product in retail packaging, as opposed to the 40 pound blocks which are typical of large scale cheddar plants.

Margins for Specialty Cheese

The price/cost differential is typically greater for specialty cheese, compared to other sectors of the dairy industry including yogurt, ice cream and beverage milk.

1. Consumers are willing to pay more per pound for cheese relative to other dairy products. 2. Specialty cheese can move through several types of distribution channels, including restaurant, retailers, specialty cheese shops and farmers’ markets. Prices received in the specialty sectors are often greater than for like products sold through traditional retailers.

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Demand for Dairy Products

It is suggested that High Meadow Creamery focus their effort within a growing segment of the dairy industry.

U.S. consumption of dairy products has been increasing over the past twenty years. The following table illustrates per capita consumption of dairy products on a milk equivalent, milk fat basis.

While the overall per-capita consumption of dairy products has been expanding, per- capita consumption of beverage milk has been declining. Beverage milk includes whole milk, low-fat milk, non-fat milk and flavored milk. Most of the decline in beverage milk consumption can be attributed to a dramatic decrease in the consumption of whole milk. The mix of light, skim and reduced fat milk products saw an increase in their consumption but not enough to offset the overall downward trend in all beverage milk. Changes in relative pricing, advertising and overall consumer education programs have largely shaped this trend.

The trend of food consumption away from home is also shaping this decrease in milk consumption. Although the percentage of Americans eating breakfast has remained steady, the use of cereal with fluid milk as a breakfast food is declining because fewer people now eat breakfast at home. At the same time, there is an exploding soft drink and juice drink industry with major breakthroughs in easy-to-use packaging. Sports drinks,

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juice, bottled water, and more options in the beverage market are creating greater competition and are offering more choices for consumers.

Per-capita consumption of frozen dairy products has been declining in the last ten years. The category includes ice cream, frozen yogurt and sherbet. In 2009, the USDA reported that the production of ice cream and other frozen dairy products totaled about 1.5 billion gallons, about two-thirds of which was regular ice cream. Frozen dairy products are commonly made by fluid milk processors, although specialized plants are well established.

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Growing cheese demand has been one of the most important forces shaping the U.S. dairy industry. Per capita cheese use is twice the level of 25 years ago and shows no signs of leveling. Growth is expected to reach 38 pounds per person by 2020. Most of the cheese consumed in the United States fits into two broad categories: “American” types and “other-than-American” types. The American category comprises four varieties of cheese: Cheddar, Colby, Monterey and Jack. The other-than-American types are primarily Italian varieties such as Mozzarella, Parmesan, Provolone, Ricotta, Romano and others) but also includes Hispanic, Swiss and other varieties.

Cheese sales and consumption are influenced by many factors. Among them are: the availability of more cheese varieties, expanded cheese use by fast-food and pizza restaurants, increased use of cheese as an ingredient by both food manufacturers and home cooks, and increased consumption of “cheese rich” ethnic foods such as Italian and Mexican dishes.

Per-capita consumption of butter has been increasing steadily in the last eight years. Growth in demand has been fueled by increasing sales of specialty butters and an increased acceptance of butter as a source of fat in the diet. Since the late 1990’s, an increased consumer awareness of the health concerns connected to trans-fats present in margarine and shortenings has increased consumer’s acceptance of butter as an alternative.

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Per-capita yogurt consumption is about 9 pounds a year. Yogurt consumption has continued to increase in recent years because of the growth of high-protein Greek-style yogurt.

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Informational Interviews with Dairy Buyers

Interviews were held with dairy buyers involved in the purchase of beverage milk, yogurt, ice cream and cheese. Conversation summaries are included in Appendix A, on page 40 of this document.

Informational interviews were held over a three week time period with buyers from several retail and foodservice distribution companies that have a presence in the Southeastern trade area. These buyers included: Kiva Shogren, the lead dairy and buyer with UNFI, a retail distributer servicing 23,000 retailers nation-wide; John McHugh, Cornucopia Cheese, a cheese distributor servicing 500 retail and restaurant accounts in Virginia and North Carolina; Bradley Hunter, the cheese buyer for EarthFare, a chain of 16 natural food stores in North Carolina, Tennessee and Kentucky; and Kimberly Triplett, the lead regional buyer for Bon Appetit Management Company, a foodservice distributor providing product into area colleges and institutions, including American University, Gallaudet University, Oracle Corporation, Duke University and University of Maryland, Baltimore.

Overall, all of the buyers were enthusiastic about supporting a Virginia-made cheese product. Most stated that their final decision to purchase the product would be based on the products’ overall flavor, price and availability.

Cheese Style. Several of the retail buyers noted a preference for soft cheeses, including bloomy rind cheeses. They noted that these cheeses moved quickly off the shelves and there were not many local offerings of this type of product. When prompted about a brie style vs. a camembert, many of the buyers had no preference, although some suggested that they already had enough brie style varieties.

Several of the foodservice distributors, unprompted, mentioned a need for a high-quality ricotta cheese product. This product was also popular with restaurants and specialty retailers.

A few of the chefs servicing institutional foodservice operations mentioned that it is easier to source local products that can be used as ingredients in entrees, as opposed to specialty cheese, that will typically only be used on catering menus or on feature entrees that are used intermittently. They mentioned that they were held to a quota on locally sourced product because of pricing, and that it was easier to bring in something that they would use consistently as an ingredient.

A few of the retail distributors indicated a desire for a locally made Mozzarella, but were reluctant to pay significantly more for a locally produced product.

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Some of the distributors, unprompted, indicated that they did not need another goat cheese in any format.

Many of the buyers noted that they would try anything, as long as it had a great flavor, and were open to both aged and fresh cheeses.

Shelf Life. Shelf life will be an issue with carrying any fresh product. Several of the buyers noted that the longer the shelf life of the product, the easier it was to gain distribution.

Tamper Resistant Packaging. Several indicated a requirement for tamper resistant packaging for tub-pack product. This would include a barrier film inner seal.

Focused Product Line. Several of the buyers advised to focus on a limited product line and do two or three products very well. They noted the importance of consistent delivery of each type of product over the year.

Bulk Sales. Many of the distributors carry bulk product for delivery to retail, for cutting and wrapping at the location. They mentioned the need for small label inserts with this type of product that could be place on the product at the time of cutting and wrapping on location.

Food Safety. Several of the institutional buyers (Bon Appétit, Atlanta Foods) geared to local sourcing on a larger scale indicated the need to have food safety programs, including an HACCP plan and GMP’s in place prior to approaching them.

Estimated Volume. It was difficult to get quality information from any of the buyers on “total dairy category,” or “total cheese” or “total milk” volume used, as this is considered proprietary information.

Next Steps on Interviewing. The next step will be to develop sell sheets, or specification sheets for each of the proposed products. These sheets will include the company contact information, preliminary logo and the product specification information made into an attractive sell sheet in pdf format. These sell sheets will be emailed to potential buyers with proposed pricing information, and follow up interviews will be scheduled to discuss volume, pricing and other issues.

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Competition

High Meadow Dairy will sell its cheeses to restaurants and retailers, through a distributor relationship. The cheese will move from the processing facility, to a distributor, who will take possession of the cheese and ship it to individual retailers and restaurants. As the business expands, additional distributors will be added.

The cheese industry is competitive, with purchases made on the basis of price, flavor and other factors. However, the degree of competitiveness is much less than other sectors of the food industry. The venture should be able to market and distribute its cheese with minimal project risk.

None the less, it is important to monitor other cheesemakers’ activities (prices, type of cheeses produced, labels, suppliers, distributors, etc.) to keep up with competition in the marketplace. In addition to the local suppliers, there are regional, national and international cheeses that are usually present in the same marketplace, making it a challenge for a cheese to compete. Of course, quality is the key for success; quality ultimately being defined by the consumer.

Review of Potential Distribution Outlets

There is a large amount of direct competition for High Meadow Dairy. Cheese-making is an international business with many potential competitors. The fact that High Meadow Dairy is a local cheese facility with the specialized culture of central Virginia helps distinguish it from the global competition.

The market for cheese sales remains a fragmented, multi-national, and information- intensive market. The cheese industry globally contains both large cheese companies and small family farmstead creameries. No single cheese marketer has more than one percent of the world cheese market. This is different from other food products and beverages, which are dominated by a few extremely large firms.

Whole Foods. The only local cheeses present are two from Meadow Creek Dairy (see next sub-section for more details on the cheeses and the creamery). The buyers for the cheese section at Whole Foods are open to receive more local cheeses. They also mentioned that there will be a local seasonal goat cheese from Caromont Farm.

Food of All Nations. Amy Worrell is the cheese buyer. There is a section for U.S. cheeses and another for foreign cheeses. The U.S. section is smaller than the foreign one. The local cheeses present are from Mountain View Farms, Meadow Creek Dairy, Oaks Spring Dairy and Marshall Farms Corner. The minimum sale per month required for a cheese to be present at this store is 20 pounds. They are open to receive local cheeses and offer to do tastings and participate in promotional events with other foods. They are

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interested in cheeses that taste and look different. Conner can sell directly to the store or via a distributor (Food of All Nations operates with the distributor Euro U.S.A.). The cheese buyer said that if a cheese at their store retails for $16.00 per pound, then the wholesale price would need to be between $8 to $10, including delivery. A classic specialty cheese present is Pleasant Ridge Reserve which is sold wholesale between $15.00 - 18.00 per pound.

Feast. Feast is a restaurant and specialty grocery store. Dave Kostelnik is the Purchasing Manager. They offer nine farmstead local cheeses of which three are cow milk cheeses including Meadow Creek Dairy’s Mountaineer made with raw cow's milk at $18.80 per pound. They also sell a Gouda cheese for $22.50 per pound. Inventories are kept small and work with weekly deliveries from suppliers.

Tavola. Tavola is an Italian restaurant that indicated interest in local cheeses, though prices are of concern. The cheeses they buy are mozzarella, parmesan and ricotta. The owners consider imported cheeses cheaper than locals.

Market Street Market. Their best selling cheese is a Tillamook extra sharp cheddar cheese at $12.00 per pound. Another example is Kerrygold Dubliner imported from Ireland at $1.99 per pound. They are open to trying new cheeses including local varieties. They mention consistency and guaranteed sales as requirements.

C'ville Market. Located in Charlottesville, C’ville Market is managed by Ed Morton. They stock some local cheeses, though their customer demographics lean towards lower income, less discerning and more price-conscious consumers. They offered cream cheese in plastic tubs at $4.99 per pound as well as an 8 ounce Organic Valley cream cheese retailing at $3.79. An imported brie retails at $9.99 per pound and sells very well according to the manager; a double/triple cream imported brie retails at $13.00 per pound. The manager mentioned that if a cheese retails at $10.00 then it wholesales around $6.00

Review of Virginia Cheese Companies

The local cheese industry in Virginia is thriving. The State has approximately 25 local cheese makers, who distribute their product through a variety of channels. Leading local competitors include:  Mountain View Farms; Fairfield, Virginia  Meadow Creek Dairy; Galax, Virginia  Everonna Dairy; Rappidan, Virginia  Simply Cheddar; Waynesboro, Virginia  Caromont Farm; Esmont, Virginia  Goats-R-Us; Blackstone, Virginia

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 Monastery Country Cheeses; Crozet, Virginia  Lovers Retreat Dairy; Saluda, Virginia  Blue Ridge Dairy; Leesburg, Virginia  Green Haven Farm Cheeses; Woodstock, Virginia  Sterling Bridge Dairy Farm; Willis,Virginia

Mountain View Farm (www.mountainviewfarmproducts.com/). Located about 20 miles southwest of High Meadow Dairy, their slogan is "fresh from the fields." It is a 250 acre dairy farm with 120 Holstein, Jersey and cross-bred cows. There are no added hormones or antibiotics.

They produce farmstead cheese and make raw milk aged cheeses, fresh cheeses, butter and a variety of other dairy products.

The webpage is basic and the email address does not have the same domain as the webpage. There is an order form option for internet sales. The web-page has a list of outlets for their products with some detail.

All of their farmstead cheeses are made using raw milk from their dairy herd, cultures, rennet, sea salt as well as various herbs, spices, and peppers.

The current retail price of Mountain View "Lusk- Gouda Semi Soft - Raw Milk" cheese at Foods of All Nations is $16.00 per pound and the product is sold by the pound. Approximately half pound cuts are packaged in clear plastic wrap (see picture). The Cheese Buyer, Amy Worrell indicated that the wholesale price would be approximately $8 to $10, including delivery at Foods of All Nations. There is also "Mountain View McClure Raw Milk - Baby Swiss" at the same retailer at $15.00 per pound, also sold by the pound in cuts of approximately 0.7 pounds.

Meadow Creek Dairy (www.meadowcreekdairy.com). This operation is a family farm in the mountains of southwest Virginia about 170 miles from High Meadow Dairy. The firm has been farming since 1980 and uses, as a distinct element, their location being "at

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an elevation of 2800 ft, the combination of pure water, clean air and deep soils produce an ideal environment for growing diverse, mineral-rich pastures."

With their Jersey herd, they produce flavored, healthy, ecologically friendly cheese. As an example, the creamery produces Grayson which is a washed rind cheese made with raw milk. This cheese is based on the soft Italian cheese Taleggio. Grayson is robust in aroma with distinct earthy, meaty, and rich flavors. The price for half a pound is $11.00 at a cheese and wine store in Arlington, Virginia (www.arrowine.com).

Cheeses from this creamery were found at Whole Foods and Foods of All Nations, both in Charlottesville. At Whole Foods there are currently two cheeses, one of which is "Meadow Creek Grayson" made with raw cow's milk, cultures, salt and rennet. The price is $21.99 per pound. The product was sold by the pound in cuts of approximately 0.20 pounds packaged in clear plastic wrap (see picture). The other cheese is "Meadow Creek Appalachian Tomme" made with unpasteurized cow's milk, cultures, salt and rennet. The price is $19.99 per pound. This cheese was presented in cuts of approximately 0.20 pounds packaged in clear plastic wrap.

The webpage is not updated. However it provides a list of stores and wholesale information. They are on Facebook as well, with 225 fans. They present their products in competitions such as the Good Food Awards.

Everona Dairy (www.everonadairy.com). Established in 1998, this operation is located about 80 miles northeast of High Meadow Dairy. Their presentation uses elements that refer to its location: "We make several aged sheep's milk cheeses in the Piedmont of Virginia. The Piedmont region of Virginia is in the foothills of the ancient and beautiful Blue Ridge Mountains. Everona is atop a limestone ridge with its delicious sweet water, and is

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covered by the rich red Piedmont soil that grows lush and tender grasses."

The webpage is simple and it is possible to order product. They have a newsletter that requires subscription. They have clear information on the farmers’ market locations that sell their products. The creamery is open to visitors.

At farmers’ markets, wedges are priced by weight and tend to run in the $12 to $18 range for 1/4 to 1/3 of a pound. According to an internet article, (www.dcfoodies.com) "Dr. Elliott's passion and the story behind her entry into the world of cheese making stand out and make Everona Dairy a local producer I'm happy to support." The key words passion and story are used for this venture.

Their Piedmont raw sheep’s milk cheese is a best seller and award winner for Everona. Also, the creamery just launched Blue Ridge cheese which is a soft, spreadable, almost liquid center inside and is ideal for eating on bread or crackers. It is highly perishable and only available in limited quantities.

Simply Cheddar (www.simplycheddar.com). Simply Cheddar operates a retail store front located in Waynesboro about 10 miles north from High Meadow Dairy. According to the owners, Simply Cheddar sells a cheese ball made with only the finest aged extra sharp cheddar cheeses without using any processed or cream cheese. It has only a little onion for bite and fresh chopped pecans on the outside for crunch. It is possible to order by email or buy at 20 different outlets in Virginia. Simply Cheddar sells its cheese in several sizes: 8 oz, 12 oz and 16 oz sizes which retail for $8, $12 and $16 respectively. These prices do not include shipping costs. They freeze well, so ordering several and freezing what is not used immediately is advisable. Source: email communication with the owner Linda Weaver.

Caramont Farm (www.caromontfarm.com) is located in Esmont, Virginia, approximately 45 miles east of Stuarts Draft. Cheesemaker Gail Hobbs Page produces artisanal goat’s and cow’s milk cheeses from locally sourced milk. Fresh cheeses are sold through December and aged cheeses are sold year round. Their cheese is widely available in the Virginia area—their website lists 25 restaurants, 6 wineries, as well as eight retailers including Whole Foods in Charlottesville as sales locations. Caramont also sells at farmers markets and through CSA’s.

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Caramont’s “Farmstead Fresh” is a pasteurized fresh chevre in the style of Fromage Blanc that sells for $6.95 per 6 ounce container. Their “Esmontonian” is a raw goat’s milk cheese which has been aged 2-4 months. The curd for this cheese is poured into an Italian Basket mold for draining which makes its characteristic shape.

Cow’s milk cheeses from Caramont include “Fromage Frais,” a pasteurized fresh cream cheese made with no additives; and “Bloomsbury,” a bloomy rind cheese, aged 2 – 3 weeks with a shelf life of approximately one month. Caramont also sells an aged cheese called “Red Row” which is made from raw cow’s milk.

Goats-R-Us Cheese (www.ruralvirginiamarket.com/partners/goatsrus/) is located in Blacksburg, about 140 miles from High Meadow Dairy. They are an all natural dairy goat farm, and cheeses are made onsite. They do not have their own website but have a page on the Rural Virginia Market site and a Facebook page with 86 followers.

They offer many varieties of flavored chevre including Chives and Garlic, Dill and Garlic, Natural, Pineapple and Walnut, Roasted Red Pepper, Hot Pepper, Peppercorn and seasonal flavors (Orange Cranberry and Pumpkin), all in 4 ounce containers. Occasionally, they produce some raw aged cheeses, feta and ice cream.

Goats R-Us Cheese is sold at Whole Foods, at area farmers markets in the Richmond and Fredericksburg areas and through local wine stores and co-ops. They enjoy a large word-of-mouth business, and they state that they do not advertise.

Monastery Country Cheese (www.olamonastery.org/cheese-making/) is produced by the Trappist nuns at Our Lady of the Angels Monastery in Crozet, Virginia, approximately 32 miles north of Stuarts Draft. The monastery’s cheese industry was started in 1990 as a means of self-support using milk delivered from local area grass fed cows.

The cheese is a semi-soft, mild and mellow Dutch-style Gouda available in 2 pound wheels with a bright red wax coating and black-and-gold foil label. Monastery Country Cheese is sold only at the monastery or through the mail.

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They do not have an online store but have a down-loadable order form on the website.

Lovers Retreat Dairy (www.loversretreatfarm.com) is a small farmstead goat diary and cheese operation near Saluda, VA on the Middle Peninsula area of eastern Virginia (approximately 150 miles east of Stuarts Draft.) Their goats graze on pesticide and herbicide-free pastures and receive no antibiotics or hormones. The dairy has a small herd of Nubian and Alpine goats on the farm that are milked twice per day. They produce a gallon of milk each per day, which makes a pound of cheese.

Lovers Retreat makes several different types of chevre, several flavored Fromage Blancs, and several varieties of award-winning Feta. Their cheeses are sold at Norman’s Produce in Saluda, VA, at Real Food Co-op in Williamsburg, at several local gourmet shops, and at four local farmers markets in eastern Virginia. Their Flavored Fromage Blancs (Cranberry and Garlic-Chive) sell for $6.50 for a 6 oz. container through Off the Vine Market, an online shopping site (www.offthevinemarket.com) dedicated to bringing Virginia’s local foods to market. Lovers Retreat Feta sells for $9.15 in a 4 oz. container.

Blue Ridge Dairy (www.brdairy.com) is a small artisanal producer in Leesburg, VA, located approximately 135 miles northeast of Stuarts Draft. Paul Stephan is the owner and head cheesemaker. Blue Ridge Dairy specializes in fresh ricotta, flavored mozzarellas and aged feta all made from fresh jersey cow’s milk sourced locally. Their website reports that they use approximately 1,500 gallons of milk weekly.

Blue Ridge Dairy products are sold through Whole Foods stores in Pennsylvania, Virginia, Maryland, New Jersey, Ohio, Kentucky and the Washington DC area. Their website lists nine farmers markets and eight restaurants where they sell or serve their cheese and yogurt products. All are in the D.C area and surrounding suburbs.

Green Haven Farm does not appear to have a website as of yet. The farm is owned by Pamela Green and is located in Woodstock, VA, approximately 70 miles north of Stuarts Draft. Green Haven produces a variety of goat cheeses included several flavored chevres, a feta, a cheddar style and a Jalapeno cheddar style.

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Green Haven sells their cheeses at the Harrisonburg Farmers Market, The Market in Woodstock, and at North Mountain Vineyard.

Sterling Bridge Dairy Farm is a farmstead cow and goat’s milk cheese operation located in Willis, (Floyd County) VA, approximately 130 miles southwest of Stuarts Draft. They do not appear to have an operational website. Their Facebook page is limited to private friends. The farm is owned by Randy and Nancy Compton.

They are a small operation producing farmstead cheeses from Jersey cow and dairy goat milk. Cheeses include fresh cheeses (Feta, Chevre, Cheddar curd and Mozzarella) and raw milk aged cheeses including Pepper Jack, Cheddar, Brick and Colby. Sterling Bridge Cheeses are at The Blacksburg Farmers Market (year round), Floyd Farmers Market (May-October), Salem Farmers Market (June-September) and at the Harvest Moon Food Store in Floyd, VA.

Other Dairy Operations in the Virginia Area

Two notable dairy operations are also located in Virginia. Although they do not make cheese, they are interesting artisan dairies that will be operating within the same market as High Meadow Dairy.

Duchess Dairy Products (http://jerseysites.usjersey.com/duchessdairy/) is located at 439 Gienow Road, in Rural Retreat, Virginia. Duchess produces a line of whole, reduced fat, chocolate and strawberry milk from 100% Jersey cow’s milk from their own farms. The website outlines the ‘Jersey advantage’ and details the nutritional advantages of Jersey versus Holstein milk with its higher protein and calcium content. The site also outlines Duchess’ natural and sustainable production methods. Duchess Dairy was established as a joint venture between Huffard Dairy Farms and Sugar Grove Jerseys, to bottle milk from the two Registered Jersey herds. Huffard Dairy

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Farms is owned by brothers James "Jim" and John Huffard. Sugar Grove Jerseys is owned by Joey Blankenship and Danny Slemp. The partners purchased the dairy processing plant in December 2009 and began bottling their own milk a month later. Today, the dairy is operated by the Huffard, Blankenship and Slemp families, a plant manager and another full-time employee. Duchess Dairy products are found across southern Virginia in local natural, convenience and grocery stores including ten Food Lion outlets.

Homestead Creamery (no website) is a small dairy, locally owned by Donnie Montgomery and David Bower and located at 7254 Booker T Washington Highway, Gills Creek, VA 24184. All the milk at Homestead Creamery comes from the owners’ two farms, both in their third and fourth generations of family ownership. The creamery currently processes 500,000 gallons of milk annually. The milk is free of hormones and antibiotics. The farm is not certified organic but they do follow organic practices and no pesticides are used. The animals are grass fed and all feed is grown on the farm. The herd is closed (meaning the animals are from within the herd). The creamery uses the term “All Natural” on their products. They produces three product lines: glass-bottled milks and cream, fresh-churned butter, and fresh churned ice cream which comes in 20 flavors.

One large differentiating feature of Homestead Creamery’s milk is that it is sold in recyclable glass bottles. They claim that the glass bottles allow the milk to taste fresher longer. The milk is available at Whole Foods Stores in the Virginia area as well as Kroger stores and Fresh Markets in surrounding areas.

In 2005, the Creamery introduced a home delivery service which now consists of four delivery trucks serving 1,200 customers. With on-board freezers, refrigerators and dry goods areas, Homestead Creamery delivers its own and up to 150 other staple products, from eggs and bread to packaged meat and frozen pizzas. Homestead Creamery also has an on-farm market where they offer tours of the creamery plant and the farm.

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Other Cheese Operations in the Southeast

Artisan cheese making is enjoying strong growth throughout the rest of the Southeast as well as in Virginia. Leading competitors from the Southeast include:

 Yellow Branch Farm – Robbinsville, NC  Chapel Hill Creamery – Chapel Hill, NC  Sweet Grass Dairy – Thomasville, GA  Sweetwater Valley Farm – Philadelphia, TN  Flat Creek Lodge Dairy – Swainsboro, GA  Locust Grove Farm – Knoxville, TN  Ashe County Cheese – West Jefferson, NC  Looking Glass Creamery - Fairview, NC  Celebrity Dairy – Siler City, NC  Goat Lady Dairy - Climax, NC  Sleepy Goat Farm – Pelham, NC  Split Creek Farm – Anderson, SC  Greendale Farm – Madison, GA  Kenny's Farmhouse Cheese – Austin, KY  Sequatchie Cove Creamery – Sequatchie, TN  Locust Grove Farm, LLC – Knoxville, TN  Bonnie Blue Farm – Waynesboro, TN  FireFly Farms – Accident, MD  Cherry Glen Farm – Boyds, MD

The following is additional detailed information on the most well-recognized of the southeastern competitors. Information on other producer/farms is available on their websites.

Yellow Branch Farm and Pottery (www.yellowbranch.com). This family-run dairy is in Robbinsville, North Carolina approximately 400 miles southwest of Stuarts Draft. With Jersey cows, they produce Yellow Branch Farmstead cheese made from unpasteurized milk. The dairy is pasture-based, and the pastures and hay fields are managed using sustainable, organic practices. No herbicides, pesticides or chemical fertilizers are used. Growth hormones are not used and antibiotics are used therapeutically and only as a last option. Yellow Branch is the name of the small creek that flows down the valley and empties into Fontana Lake.

The webpage is simple, and the pictures are good indicators of the characteristics of the place. The dairy is open to visitors and they offer mail orders through the webpage. The prices of the farmstead cheese is $11.25 per

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pound, pepper cheese $11.75 per pound, basil cheese $12.25 per pound, tomato basil cheese $12.75, natural rind cheese $13.75. They accept major credit cards and there is a 2% food tax for shipments within North Carolina. Cheeses are shipped Mondays and Tuesdays. They sell in North Carolina and Virginia (Mountain Run Farm). The cheese is served at restaurants and inns in North Carolina, South Carolina, Georgia and Florida. The creamery is a member of the American Raw Milk Farmstead Cheese Consortium and Slow Food USA.

Chapel Hill Creamery (www.southerncheese.com/Pages/chapelhill.html) processes cow milk into specialty cheese on their 37-acre farm on the outskirts of Chapel Hill, North Carolina. The operation was launched in 2001, by Portia McKnight and Flo Hawley, who began the operation after retiring from management positions at Whole Foods Market. Chapel Hill Creamery milks 27 Jersey cows and processes this milk on the farm into seven different varieties of cheese. They sold 32,400 pounds of cheese in 2010 through farmers markets, distributors and restaurants.

About 60% of Chapel Hill’s cheese is sold through three local farmers’ markets. They also distribute through Cornucopia, a regional distributor, who delivers cheese to over 100 different retail and food service accounts throughout North Carolina.

Chapel Hill processes seven different varieties of cheese, including both fresh and aged cheeses. Fresh cheeses including mozzarella, camembert and farmers’ style cheese are sold within two weeks of manufacture. Chapel Hill also markets aged cheeses including an alpine style Swiss and a washed rind Trappist style cheese.

Chapel Hill’s aged cheeses include: Hickory Grove which is aged for six months. This cheese is a Trappist style cheese made with unique cultures that give it a mild, yet sophisticated flavor. Calvander is an Italian-style cow milk cheese, with a nutty flavor reminiscent of aged parmesan. Danziger is a washed rind cheese. The cheese is aged for one month and has a creamy center when finished. Thunder Mountain Swiss is an alpine style cheese. This cheese is aged for six months, and has delicate flavors of the pasture.

Chapel Hill’s fresh cheeses include: Mozzarella, an unflavored fresh cheese noted for its unique flavor and texture, and Carolina Moon, a bloomy rind camembert-style. Feta is their Greek style cheese which is brined and aged for two weeks.

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Sweet Grass Dairy (www.sweetgrassdairy.com) of Thomasville, Georgia has garnered a strong following for their handcrafted cheeses since their founding in 2000. Made from grassfed cow’s and goat’s milk, Sweet Grass dairy’s cheeses are now available in retail grocery stores, specialty stores and restaurants in 40 states. They also have an extensive online store.

Sweet Grass sells eight varieties of cheese, plus gift boxes and pantry items on their website.

The cheeses include: Thomasville Tomme, a raw grass-based cow's milk cheese made in the style of a French mountain Pyreneese Tomme, which sells for $7.50 per ½ lb. Green Hill is a double-cream bloomy rind cheese made from pasteurized cow's milk. This soft- ripened Camembert-style cheese won a silver medal at the 2010 World Cheese Awards. It sells for $9.00 per ½ lb. wheel. Georgia Gouda is made in the style of a Dutch Gouda from the milk of Jersey cows. It is semi-soft with a buttery, creamy texture. Georgia Gouda sells for $8.00 per ½ lb. wheel.

Sweetwater Valley Farm (www.sweetwatervalley.com) runs a farmstead cheese operation along with an agri- tourism operation with a state-of-the-art facility in Philadelphia, Tennessee. Owners John and Celia Harrison have grown the operation to include a 1,000- cow dairy (soon to be 1,350), a small cheese factory, a retail store, and a 5,000-sq.-ft. event center called "The Udder Story.

Sweetwater Valley Farm’s website lists 25 different varieties of cow’s milk cheeses including Colby, Gouda, and several varieties of cheddars and smoked cheeses. Large varieties of flavored cheddars are sold as 10 oz bars. Their Buttermilk Cheddar is sold in 10 oz. cuts for $5.00 each.

Sweetwater Valley Farm’s on-site farm store last year sold more than 100,000 pounds of cheese to farm visitors from nearby Knoxville and Chattanooga. Farm tours were offered to 12,000 to 13,000 visitors in 2011. The online store has an extensive list of cheese varieties, packaging options, and ancillary products such as gift baskets. About half of the farm’s cheese production is sold through its store. The other half is sold either wholesale under the Sweetwater Valley Farm label or corporately. The Harrisons also package several thousand cheese boxes each year for companies to use as Christmas gifts.

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The bulk of the Harrisons’ milk, some 80%, is still sold for fluid milk through Dean Foods. In fact, all of their milk is sold to Dean and pooled on the Appalachian Federal Order. The Harrisons then buy back the 2 million pounds of milk they need for cheese making.

Flat Creek Lodge Dairy (www.flatcreeklodge.com) began as an upscale hunting and fishing lodge located three hours southeast of Atlanta. In 2007, owners Steve and Caroline Harless opened the dairy, which was then only the second licensed artisanal cheese dairy in Georgia. Cheeses like the signature Farmhouse, Farmhouse Blue and spicy Aztec Cheddar have now made their way to restaurants and retail spaces in Atlanta as well as Savannah and North Georgia; Highlands, North Carolina and Murray’s, a renowned retailer of cheeses in New York City.

The Flat Creek Lodge Dairy now produces a full line of artisanal cheeses including: Cheddars – Aged, Horseradish, Aztec and Thai Chili; Onion Mustard Kase; smoked cheeses such as Smokin’ Jack; the original Flat Creek Farmhouse and Farmhouse Blue; Dutch–style Leiden and cheeses flavored with herbs and other produce from the Flat Creek Lodge greenhouses. All of the cheeses are made from raw milk except the Flat Creek Feta, which is pasteurized. New varieties ready soon will include the Aged Stir Curd, Grana Kalamata Olive and White Wine Feta and Vidalia Onion Kase.

Flat Creek Lodge cheeses are distributed by Destiny Organics and are sold at Atlanta area and southeastern Whole Foods stores, farmers markets, and many Atlanta-area destination restaurants. Additionally, the line of cheeses is available onsite at Flat Creek Lodge or through the website. Aztec Cheddar sells for $29.99/lb while the ‘Dragon’s Breath’ Irish cheese sells for $34.00/lb.

Cheese Operations Outside the Southern U.S.

The Midwestern U.S. is home to a large number of cheese dairies that have become well- known in the industry. Small-scale, artisanal and large-scale industrial dairies operate in the area. Several have been highlighted here to offer a perspective on the cheese industry in this part of the U.S.

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Milton Creamery (www.miltoncreamery.com). Located in Milton, IA (890 miles from Stuarts Draft), the creamery was started in 2005 as a joint venture between the local Amish dairy farmers and the Musser family. The dairy is now solely owned by the Musser family, but they continue to source their milk locally. Milton Creamery uses between 18,000 to 20,000 pounds of milk per week purchased from five area Amish farms for their cheese production.

The Creamery makes two varieties of signature cheeses: Prairie Breeze, continental-style aged cheddar sold in blocks and Prairie Rose, a mild Swiss-style washed-rind cheese which is aged and sold in ten to twenty pound wheels. In December, 2010, Milton Creamery’s Prairie Breeze cheddar won a gold medal at the World Cheese Awards in London, the world’s largest international cheese competition. The Milton Creamery entry was the only American winner along with 11 British cheddars which were honored with gold, silver or bronze medals in the category. Prairie Breeze Cheddar sells for $8.99 per ½ pound at the Marion Street Cheese Market just outside Chicago. Milton Creamery Cheese is also widely available at farmers markets, specialty retailers, and distributed by wholesalers such as Classic Provisions, Inc. of Minneapolis, MN.

Caves of Faribault (www.faribaultdairy.com) was founded in 2001 to revitalize the original cheese-making facility in the sandstone caves of Faribault, Minnesota, approximately 890 miles from Stuarts Draft. Originally, the caves were used from the 1930’s until the 1990’s to produce the first blue cheese made in America. Through a series of business transactions, the caves were enlarged, then later closed and the cheese processing facilities moved elsewhere. The Faribault Dairy Company re- opened the caves in 2001 and began making the traditional AmaBlu premium French-style blue cheese aged in the caves. Today, Caves of Faribault is a subsidiary of Swiss Valley Farms, a $400 million dairy cooperative owned and controlled by 900 dairy producers.

Caves of Faribault produces a gorgonzola and a high-end premium blue cheese called St. Pete’s Select which round out the company’s blue cheese offerings. Both the gorgonzola and

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the St. Pete’s Select sell for $9.00 for a 9 ounce wedge from their online store. The Caves of Faribault’s latest cheese offering is an aged Gouda-style cheese called St. Mary’s Grass Fed Gouda. This gouda, made of milk produced from grass fed cows, originates from Edelweiss Creamery in Wisconsin. While still young, the wheels of gouda are sent into the sandstone caves where they mature for two years. St. Mary's Grass Fed Gouda was featured at The Fancy Food Show in San Francisco January, 2012. It sells for $14.99 for a 16 oz. wedge.

All Caves of Faribault cheeses are now widely available through various distributors, retailers, and through their company’s retail shop, The Cheese Cave, Faribault and via their on-line store at www.cheesecave.com.

Uplands Cheese Company (www.uplandscheese.com). Located in Wisconsin approximately 900 miles northwest of Stuarts Draft, the venture began in 1994. The creamery is owned and operated by two families: Mike and Carol Gingrich and Dan and Jeanne Patenaude. They created the company to produce and distribute a unique cheese that they developed using century old techniques. The herd is made of ten breeds. Their cheese is called Pleasant Ridge Reserve, a farmstead artisan cheese made in the tradition of Alpine cheeses like Gruyere and Beaufort. Like the Alpage versions of these cheeses, they only make Pleasant Ridge Reserve from May through October when their cows are eating fresh pasture. According to the owners this grass-fed, raw milk produces flavors in the cheese that can't be replicated by "ordinary" milk.

They age all of the cheese in ripening rooms built into the creamery. There, the cheeses are washed several times a week in a brine solution, which encourages the development of certain bacteria on the cheese rinds. These bacteria, along with the micro-flora indigenous to the raw milk, develop flavors in the cheese over time. As the cheeses age, their flavors become more complex and concentrated.

The owners explain that each batch develops its flavors at a different pace, and an important part of the work in the ripening rooms is to taste each batch again and again to determine when they are ready to sell. They age a small percentage of the cheese produced for over a year, and these "Extra Aged" batches of Pleasant Ridge Reserve are available only in the fall and early winter.

Their Extra Aged Pleasant Ridge Reserve won the American Cheese Society's annual competition award Best of Show amongst 1,400 of the nation's finest cheeses. It is the third time that the firm has been awarded this distinction which

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makes it a record in the U.S. Labor Day is the traditional release date for their limited stock of Extra Aged wheels, which have been selected from the previous summer's production for the depth and complexity of their flavor, and have been aged at least 15 months.

It is possible to order Pleasant Ridge Reserve Cheese via internet: $200 whole wheel 10 lbs, $100 half wheel 5 lbs, $50 a quarter wheel 2.5 lbs and $25 one eighth wheel 1.25 lbs. Pleasant Ridge Reserve-Extra-Aged (18-24 months) retails half a pound at $19.00, one pound at $38.00. Source: www.fromagination.com

Recently, besides Pleasant Ridge Reserve, Uplands and their cheese maker, Andy Hatch, have introduced Rush Creek Reserve, a soft-ripened, washed-rind cheese that highlights the rich milk characteristic of only the fall season. The small wheels are wrapped in spruce bark and aged for 60 days, giving the cheese a piney, smoky flavor that Hatch likens to cured meat. “It’s a runny, luscious, oozing type of cheese,” Andy Hatch says. He suggests pairing it with a Riesling or hoppy IPA to cut the richness. This indulgent cheese will be available in limited quantities through mid-February and has a three-week shelf life. It is available in 12-oz. wheels.

Bleu Mont Dairy Co. The firm does not have a website yet. There is a Facebook page available at www.facebook.com/pages/Bleu-Mont-Dairy/220994607228. The cheese- maturing facility is under the direction of Willi Lehner in Madison, Wisconsin approximately 860 miles northwest of Stuarts Draft.

There are no cows and no cheese-making room in this venture; only a curing (maturing) room that the owner claims is the smallest in Wisconsin. Lehner’s parents were first generation immigrants and his father is also a cheese maker. Lehner worked for many years with his father making cheese. In addition, he practiced in Switzerland and visited Europe learning about aging or maturing cheeses, particularly clothbound cheddar.

Bleu Mont purchases cow milk from local, certified organic dairies practicing rotational grazing.

Cheeses: Bandaged-wrapped cheddar and various styles of washed rind cheeses. Some are aged just 60 days while others are aged out over a couple of years. Source: www.cheesebyhand.com.

Bleu Mont Bandaged Cheddar retails half a pound at $15.00 and one pound at $30.00. This cheese is a cow's milk, English-style farmhouse cheddar, cloth-bound and cave-aged

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less than one year. Paired with a lager or off-dry riesling (as per Wine Spectator’s recommendation), the cheese makes a wonderful addition to a salad course or even dessert. Source: www.fromagination.com

Roth Käse USA Ltd. (www.rothkaseusa.com) Located in Monroe, Wisconsin about 830 miles northwest of Stuarts Draft. The company processes cheese for the specialty cheeses category. The venture started in Switzerland in 1863 and expanded into the U.S. in 1911. By the 1980s the enterprise became the largest importer of European specialty cheeses in North America and it laid the foundation for the company that came to be known as Roth Käse USA. Recognizing that there was an opportunity to craft excellent specialty cheeses in America, Fermo Jaeckle, a former executive with Otto Roth & Co., joined with his cousins, Felix and Ulrich Roth, to found Roth Käse USA, Ltd in 1991. Instead of importing cheese, the focus became crafting and curing European-style specialty cheeses in the U.S. The company began by focusing on crafting traditional alpine cheeses, and as they have grown, they have added other outstanding cheeses from across the world to their range of products.

The brands include: Grand Cru, Buttermilk Blue, Jean LaFitte, Mezzaluna, Landhaus, Ostenborg, Van Gogh, Kronenost, Sole and "4 ounce Mix & Match." The latter offer is a consequence of the weak economy and consumers who were looking for value for their dollar. The company developed this pre-cut/pre-sliced 4-ounce American Artisanal Cheese Program. The cuts and slices are available in several varieties including Ostenbørg Havarti, Van Gogh Bouda and Gran Cru Gruyere.

The price for Grand Cru Raclette (Rindless), made in Wisconsin with pasteurized cow milk, half wheel is $52.00 and the deli cut of 16 oz. is $8.49. Jean Lafitte Brie, from pasteurized cow milk, sells the deli cut of 16 oz. at $7.49, 8 oz. cut at $3.99 and wheel at $10.00. Vintage Van Gogh, from pasteurized cow milk, sells the deli cut of 16 oz. at $8.49, the 8 oz. is $4.69 and the wheel at $79.00. The mini cheeseboards kit includes three cheeses from raw cow milk, a table board and cheese knife, retailing at $9.95. The Party wheel includes six cheeses from pasteurized cow milk and retails at $12.00. Other cheeses at the store where Roth Käse products include: Bleu Affinée made in Wisconsin with raw cow milk, half wheel is $45.00 and deli cuts of 16 oz at. $7.89, and 8 oz. at $4.99. Limburger spread, made in Wisconsin, has the deli cut 8oz. at $3.99.

The webpage is complete and gives an indication of the size of the company. The webpage includes pictures and descriptions of their products, recipes and stores. The company presents its cheeses to competitions and has won over 100 awards in regional, national and international contests.

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Appendix A: Conversation Summaries

The Fresh Market Mrs. Diane Cleven, Deli Coordinator Greensboro, NC 27408 Phone: 336. 272.1338 ext. 4057 Email: [email protected]

1. Bring in cheese and then cut and wrap in house. 2. Purchase by the whole, not by the piece. 3. Soft cheeses seem to sell better than hard cheeses. 4. Currently buy through cheese distributors. 5. Not a lot of cheese sales through independent locals.

Atlanta Foods International Mr. Todd Druhot, Cheese and Dairy Specialist Atlanta, GA 30303 Phone: 404.954.7641 Email: [email protected] Website: http://www.atlantafoods.com

1. Deliver through both retailers and foodservice channels. 2. Will be willing to try cheese. 3. Product, like the ricotta, packed in tubs needs to include a tamper resistant feature or the retailers will not pick it up. 4. Have a history of working with emerging local companies.

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Billy Seay, Local Food Specialist d/b/a/ Southern Foods 3500 Old Battleground Road Greensboro, North Carolina 27410 Cell: 336.669.4353 Email: [email protected] Website: www.southernfoods.com

1. Will be willing to look at local cheese 2. Trying to grow Southern Cheese line. 3. May also want to talk with:

Sasha Shedders, [email protected] Southern Foods Cheese Buyer

John McHugh, Buyer Cornucopia Cheese & Specialty Food Company 8756 Highway 87 South Graham, NC 27253 Phone: 1.800.322.9626 Email: [email protected]

1. Cornucopia’s primary customers are high end retailers (Whole Foods Market, Earth Fare, Weaver Street Market) and white tablecloth restaurants. They deliver to 300- 500 outlets per week. Also distribute to gourmet cheese shops, wine shops that sell cheese and other fancy food stores. 2. John was very nice, and interested in helping the project. He would be happy to come up and do a cheese tasting. 3. Quark and Fresh Farmers’ Cheese are difficult because of limited shelf life. Product needs to have at least 45 days shelf life to work through their distribution system, otherwise they will be tossed out.

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Cowgirl Creamery, Distributor in Washington DC Janet Conley 919 F Street NW Penn Quarter Washington, D.C. 20004 Phone: 202. 393.6880 Fax: 202. 393.6883

1. Cowgirl operates distribution centers in California and Washington, DC. 2. Have own line of Hawk soft triple crème. Don’t need another brie. 3. Cary Grayson. 4. Need a local Gouda. Used to do well with Old Man Hightower from Pennsylvania, then it went out of business. 5. Could use a fresh mozzarella and a ricotta.

Star Provisions Mr. Timothy Gaddis, Cheese Monger Atlanta, GA 30318 Phone: 404. 365.0410 Email: [email protected] Website: http://www.starprovisions.com.

1. Sell cheese locally through shop. 2. Also distribute to number of restaurants, etc…. 3. Most local varieties will move as long as they taste good.

Earth Fare Bradley Hunter, Cheese Category Manager Fletcher, NC 28732 Phone: 828.281.4800 Email: [email protected] Website: http://www.earthfare.com

1. Would like a locally produced brie; used to buy a product from Pennsylvania and have been unable to get it. 2. Don’t need another camembert. 3. Cream cheese is not a great market, as market is dominated by commodity product. 4. Would be open for flavored cheeses and spreads. 5. Would be willing to start a local cheese out at a few locations. 6. Operates 16 Stores in the Southeast. 7. Some purchase cheese through UPS drop shipments direct to stores. 8. Larger volumes can go through a distributor or Earthfare’s warehouse

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UNFI Kiva Shogren, Category Manager, Dairy, Yogurt, Cheese Phone: 1.800.451.2525. Ext. 21191

1. UNFI delivers to over 23,000 independent and natural foods stores across the U.S. 2. Business is through conventional retailers, independent retailers, and natural food stores, spread evenly across those channels. 3. Operates 12 distribution centers across the U.S. 4. Deliver into major chains including Safeway, Whole Foods, Costco and Wegmans. 5. Safeway does a good job with cheese purchases. 6. Kiva handles all dairy, yogurt, cheese. 7. They do a good job distributing cheese into Safeway. 8. Some of their accounts utilize specialty cheese distributors including European imports. 9. UNFI requires that the company moves 15 cases per week of product, at a minimum. 10. They require that they sign up for an advertising contract. 11. UNFI does not handle sales or setting up accounts. This needs to be done by the company or a broker contracted with the company. 12. Note: Reluctant to discuss individual varieties of product. 13. Note: Willing to look at actual samples.

Food Innovations, U.S. Foodservice Z. Ziakis 3845 Beck Blvd, Suite 805 Naples Florida 34114 Phone: 1.888.352.3663

1. Food Innovations is the specialty food’s program established by U.S. Foodservice. 2. Food Innovations products can be ordered by any U.S. foodservice account in the U.S. 3. Product has been led by Ziakis for 5 years. 4. Initially, operation started out with primarily high-end seafood. Now, they sell specialty meats, cheeses and other hard to source ingredients. 5. Current cheese product line is primarily European cheeses. Have not put much focus into domestic cheeses, but want to grow brand. Would be willing to try most any product. 6. Do a stronger business with soft, shorter shelflife products.

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Ms. Carolyn Stromberg Washington, DC 20010 Phone: 202.236.3044 E-mail: [email protected] Website: http://www.cheese-course.com

1. Works as independent consultant on start ups. 2. Does not have a lot of contacts directly with buyers.

A Southern Season Alexander Kast, Cheese Monger Chapel Hill, NC 27514 Phone: 919. 929.7133 Email: [email protected] Website: http://www.southernseason.com

1. Large scale gourmet retailer. Carry 275 different varieties. Will be selling 32 varieties online. Feature southeastern cheese and domestic American. 2. Support local cheese companies. Have direct relationship with Meadow Creek, Goat Lady, Sweet Grass Dairy: They make great blue cheese. Only one person doing blue cheese Asher Blue. 3. Suggests a blue cheese. Cool to have a southern blue. Stilton Blue style. Discussed difficulty with manufacturing blue. 4. No ones doing the cloth bound varieties. Carrying plenty of conventional cheddars already. 5. Bloomy rind cow milk is another opportunity. Have been approached by Caramont Farms (Virginia company). Don’t purchase anything from them because of sporadic delivery. 6. Prefer to purchase direct from cheese company and use UPS drop ship. Appreciate freshness of product from direct ship. Use Cornucopia and other distributors. 7. Regional Yogurt and Butter would be good. No existing regional yogurt. 8. Fresh specialty cheeses (Fromage Blanc and Crème Fresh) are difficult categories because customers expect consistency. 9. Would suggest a smear washed ripened. 10. Big suggestion is to offer 3 cheeses. Have limited product line. 11. No one needs another goat cheese. Too many on market.

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Virginia Tech Dining Services Elena Dulys-Nusbaum Phone: 540.231.1139 Email: [email protected] 1. Purchase Homestead milk on contract through U.S. Foodservice. 2. Annual bid handled by U.S. Foodservice of Mountain View. 3. Not interested in another milk provider. 4. Other products including cheese and dairy are purchased on a bid basis, with price a key factor in the decision making process.

Bon Appetit Management Company Kimberly Triplett Phone: 202.253.4510 Email: [email protected]

1. Manages purchasing for Bon Appétit. Company is subsidiary of Compass Group of North America, one of the leading foodservice distributors in the country. 2. Bon Appétit distributes to institutions in the U.S, including American University, Gallaudet University, University of Maryland, Duke University, and The Oracle Corporation. 3. Company can spend a portion of their budget on local products. All of this is chef driven, and has to go through chefs at the individual institutions. All product has to be distributed through an area distributor, and cannot be delivered direct to the operation. 4. Chefs will want information about the company including product specs, food safety information and delivery requirements, at the time they are approached. 5. Cheese would be easier than yogurt or milk to source locally because of shelf life and pricing issues. Large volume products, like milk, are typically purchased on a competitive bid basis.

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Other Industry Conversations

Terry Brett, Kimberton Whole Foods Phone: 610.935.1444 Email: [email protected]

1. Had good conversation with Terry. Will follow up with him and his wife Patricia to get feed-back on proposed product lines, with price points, etc…. 2. Very open to helping project. 3. Patricia Brett is the cheese buyer for Kimberton. She can provide further information. 4. Terry started Seven Stars Yogurt. Owns land in Floyd County. 5. Started company several years ago, making small batches of yogurt, product is certified organic. 6. Kimberton is near Lancaster County with about 90 organic dairies in the area. 7. Kimberton is dedicated to providing grass-fed dairy products. By this they mean No gmo alfalfa, No Corn, No Soy.

Carl Privett, MDVA Milk Phone: 336.429.9648

Carl Privett is the area rep for MDVA Milk. He does not make decisions regarding new customer accounts. He deals primarily with the producers. He suggested we contact Mike John at the corporate office. His number is 1.800.552.1976. Or, we could contact Mike Asbury at the same number. Carl mentioned that they have had some difficulty in the past working with start ups, primarily in terms of credit, and groups being late on milk payments.

The amount of milk from Floyd County would fit well with processing 10,000 pounds of milk 3x per week for the start up. Over time, more milk can be pulled from the Renner area. He noted that all producers could improve their components if we gave them an incentive to do so….i.e. pay on a component basis.

Carl provided details for the 3 farms they pull from in Floyd County. These are: John Blackwell: Currently ships 4,000 pounds every other day. Fat 4%, Protein 3.08% Billy Brammer: Ships 2,000 pounds every other day. Fat 3.8%, Protein 3.2% Jimmy Conner: Ships 5,000 pounds every other day. Fat 3.2%, Protein 2.8%

From the Renner area: Harly Collins: Ships 4,000 pounds every other day. Fat 3.5%, Protein 3.8% Joseph Bishop: Ships 3,000 pounds every other day. Fat 4.0%. Protein 3.4%.

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Jim Byington Piedmont Milk Sales Phone: 423.323.9817 Email: [email protected]

1. Fairly complicated milk supply system in area. Buy based on Federal Milk Marketing order #5. 2. Class 1 goes into beverage, Class 2 into yogurt, and Class 3 into hard cheeses. 3. Bill is the CFO. 4. Pulls milk out of area on 41,000 to 50,000 pound trailers. 5. Utilizes Durham Trucking. 6. Deliver milk from area to High Point, North Carolina. 7. Ann to follow up with CFO

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Chains and Distributors Not Reached or Short Calls

GreenLife Grocery / Whole Foods Market - Mr. Chad Underwood Asheville, NC 28801 Phone: 828. 254.5440 Email: [email protected] Website: http://www.greenlifegrocery.com

Whole Foods Market - Elizabeth, Cheese Buyer Louisville, KY 40207 Phone: 502. 899.5545 Email: [email protected]

.GreenLife Grocery / Whole Foods Market - Mr. Josef Rudat Cheese Monger/Specialty Chattanooga, TN 37405 Phone: 423.322.2966 Email: [email protected]

Safeway, Inc - Ms. Angela Faith Martin, Fromager, Pairing Specialist Washington, DC 20002 Phone: 617.407.5998 Email: [email protected]

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Appendix B: Directory of Other Potential Contacts

Cheese Industry Connections

American Cheese Society 2696 S. Colorado Blvd Suite 570 Denver, CO 80222-5954 Phone: 720.328.2788 Fax: 720.328.2786 Email: [email protected]

The Southern Cheesemakers’ Guild Phone: 877.881.4073 Email: [email protected]

Institutional Buyers

John Scherer, Executive Chef Owens Dining Center (0223) Blacksburg VA 24061 Phone: 540.231.5274 Email: [email protected]

Michael A. Martin, Food Services Operations Manager Ferrum College Dining Hall Phone: 540.365.4458 Email: [email protected]

Julio Stephens, Sustainability Coordinator 801 East Main Street David E Armstrong Complex Box 6909 Radford, VA 24142 Phone: 540.831.7206 Email: [email protected]

Christopher Carpenter, Special Projects Coordinator Washington and Lee University Lexington, VA 24450 Phone: 540.458.8636 Email: [email protected]

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Rebecca Ellis, Senior Director Dining and Nutrition Services 1906 Belleview Avenue Roanoke VA 24014 Phone: 540.981.7061 Cell: 540.521. 7298 Email: [email protected]

Franklin M Holland, Business Development Manager USF CRS Sustainable Coordinator 40 Fort Lewis Boulevard PO Box 40 Salem, VA 24153 Phone: 540.375.8738 Cell: 540.520.7234 Email: [email protected]

Local Specialty Shops

Roanoke Natural Foods Co-op Bruce Phlegar, General Manager 1319 Grandin Road Roanoke, VA 24015 Phone: 540.343.5652 Fax: 540.343.5711 Email: [email protected] - x9 Website: www.roanokenaturalfoods.coop

Harvest Moon Food Store Margie Redditt 227 N Locust Street Floyd, VA 24091 Phone: 540.745.4366 Email: [email protected] Website: harvestmoonfoods.com

The Floyd Country Store David Wood, Store Manager Phone: 540.745.4563 Website: www.floydcountrystore.com

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Hethwood Market Scott Sink 307 Chowning Place Blacksburg, VA 24060 Phone: 540.493.5531 Email: [email protected] Website: www.virginiaharvest.com

Annie Kay's Main Street Market Heather 1531 South Main Street Blacksburg, VA 24060 Phone: 540.552.6870 Email: [email protected] Website: www.anniekays.com

Oasis World Market Whitney Scheutz 1411 S Main Street Blacksburg, VA 24060 Phone: 540.953.3950 Email: [email protected] Website: oasiswm.com

Eats Natural Foods Stan Davis 708 North Main Street Blacksburg, VA 24060 Phone: 540.552.2279 Email: [email protected] Website: www.eatsnaturalfoods.com

Sweetwater Market Jared Mizraki 1101 Floyd Hwy North Floyd, VA 24091 Phone: 540.745.5000 Email: [email protected] Websites: www.sweetwatermarket.com www.rawbakery.com

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Regional Cheese & Specialty Shops

Alon's Bakery and Market - Mr. Alon Balshan, Owner Atlanta, GA 30306 Phone: 404.872.6000 Email: [email protected] Website: http://www.alons.com

Erick's Cheese & Wine - Ms. Mary Ray Banner Elk, NC 28604 Phone: 828.733.4968 Email: [email protected] WebsSite: http://www.erickscheeseandwine.com

The Gourmet Shop - Linda Hiltner, General Manager/VP Columbia, SC 29205 Phone: 803.799.3705 Email: [email protected] Website: http://www.thegourmetshop.net

WINES Etc., Inc. - Claude Auerbach, Owner Savannah, GA 31401 Phone: 912. 236.7642 Email: [email protected]

The Bloomy Rind - Ms. Kathleen Cotter, Cheesemonger Nashville, TN 37212 Phone: 615.429.9648 Email: [email protected]

Tastings Gourmet Market - Ms. Stacey Adams, President Annapolis, MD 21403 Phone: 410.263.1324 Email: [email protected]

The Wine Source - Mr. Adam Engle, Terry Hammonds, Ms. Jamie Kemp, Cheesemonger Baltimore, MD 21211 Phone: 410.467.7777 Email: [email protected] [email protected]

Arcady Vineyard Crozet Great Value 1376 Sutler's Road PO Box 175 Charlottesville, VA 22902 Crozet, VA 22932

Chrysalis Vineyards Feast! 23876 Champe Ford Road 416 West Main Street Middleburg, VA 20117 Charlottesville, VA 22903

Cross Keys Winery Foods of All Nations 6011 E Timber Ridge Road 2121 Ivy Road Mt Crawford, VA 22841 Charlottesville, VA 22903

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Greenwood Market Unicorn Winery 6701 RockFish Gap Turnpike 489 Old Bridge Road Crozet, VA 22932 Amissville, VA 20106

In Vino Veritas Virginia Wine Experience 33015 Louisa Road 826 Caroline Street Keswick, VA 22947 Fredericksburg, VA 22401

Jefferson Vineyards 3CUPS 1353 Thomas Jefferson Parkway Chapel Hill, NC Charlottesville, VA 22902 3cups.net

Keswick Vineyards A Bowl of Good 1575 Keswick Winery Drive Harrisonburg, VA Keswick, VA 22947 abowlofgood.com

King Family Vineyard A Southern Season 6550 Roseland Farm Lane Chapel Hill, NC Crozet, VA 22932 southernseason.com

Milk House Market Antonelli's Cheese Shop 22 Old Dairy Road Austin, TX Warm Springs, VA 24484 antonellischeese.com

Arrowine Opera House Gourmet Arlington, VA 9126 Center Street arrowine.com Manassas, VA 20110 Atwater's Paradise Springs Winery Baltimore, MD 13219 Yates Ford Road atwaters.biz Clifton, VA 20124 Avondale Wine & Cheese Rockbridge Vineyard and Winery Charleston, SC 35 Hill View Lane Raphine, VA 24472 Balducci's (7 locations) VA, MD, CT, NY Tastefully Yours balduccis.com 406 Mill Street Occoquan, VA 22125 Barren Ridge Vineyards Staunton, VA Tinnell's Finer Foods barrenridgevineyards.com 2205 Crystal Spring Avenue Roanoke, VA 24014

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Bella the Corner Gourmet Cheese Plus Lewisburg, WV San Francisco, CA bellathecornergourmet.com cheeseplus.com

Binny's Beverage Depot The Cheese Store of Silverlake Chicago, IL Los Angeles, CA binnys.com cheesestoresl.com

Blenheim Vineyards Cheesetique Charlottesville, VA Alexandria, VA blenheimvineyards.com cheesetique.com

Bowers Fancy Dairy Product Chef & the Farmer Washington, DC Kinston, NC bowerscheese.com chefandthefarmer.com

C'est Cheese Citarella Sarasota, FL various locations in New York and cestcheese.net Hampton, NY citarella.com C’ville Market Charlottesville, VA City Beverage cvillemarket.com Winston-Salem, NC citybeverage.com The Calf & Kid Seattle, WA Complete Catering calfandkid.com Richmond, VA completecateringonline.com Calvert Woodley Washington, DC Cork Market & Tasting Room calvertwoodley.com Washington, DC corkdc.com Cardinal Point Vineyard and Winery Afton, VA Cowgirl Creamery (3 locations) cardinalpointwinery.com Washington, DC cowgirlcreamery.com Cavaniola's Cheese Shop Sag Harbor, NY Cranberry’s Staunton, VA Central Bottle gocranberrys.com Cambridge, MA centralbottle.com Curds and Whey Columbus, OH northmarket.com

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Darien Cheese Shop Fleurie Darien, CT Charlottesville, VA dariencheese.com Food of All Nations David's Natural Market (3 locations) Charlottesville, VA MD davidsnaturalmarket.com Foster & Dobbs Authentic Foods Portland, OR Dean and Deluca (2 locations) fosteranddobbs.com NYC, Charlotte, NC deandeluca.com Fresh Organics Christiana, PA Dorothy Lane Market (2 locations) Ohio Greenlife Grocery (2 locations) dorothylane.com NC , TN greenlifegrocery.com Eats Natural Foods Blacksburg, VA Greenwood Gourmet Grocery eatsnaturalfoods.com Crozet, VA greenwoodgourmet.com Ellwood Thompson's Richmond, VA Harvest Moon Food Store elwoodthompsons.com Floyd, VA harvestmoonfoodstore.com Eric's Cheese and Wine Banner Elk, NC Healthy Foods Co-op ericscheeseandwine.com Rockbridge, VA healthyfoodcoop.org Fairfield Cheese Company Fairfield, CT Houston Dairy Maids fairfieldcheese.com Houston, TX houstondairymaids.com Farmstead Fine Cheeses and Unique Edibles Ideal Cheese Shop Providence, RI New York, NY farmsteadinc.com idealcheese.com

Fat Cat Pie Company igourmet.com Norwalk, CT online storefront, fatcatpie.com igourmet.com

Feast! J. Emerson, Inc. Charlottesville, VA Richmond, VA feastvirginia.com jemersonfinewine.com

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Java Depot Marion Street Cheese Market Lincoln City, OR Oak Park, IL marionstreetcheesemarket.com Keswick Hall Charlottesville, VA Market Basket Franklin Lakes, NJ Kybecca Wine Bar & Shop marketbasket.com Fredericksburg, VA kybeccawinebar.com Market of Choice Eugene, OR La Fromagerie marketofchoice.com Alexandria, VA lafromagerieonline.com Metropolitan Bakery Philadelphia, PA Lee's Farm metropolitanbakery.com Murrells Inlet, SC Metropolitan Market - Sand Point Liberty Heights Fresh Seattle, WA Salt Lake City, UT metropolitan-market.com libertyheightsfresh.com Metropulos Fine Foods Merchant Linden Vineyards Santa Barbara, CA Linden, VA metrofinefoods.com lindenvineyards.com Milk House Market Living Earth Warm Springs, VA Worcester, MA lefoods.com Mirabelle Cheese Shop Westport, CT Locke Store mirabellecheeseshop.com Millwood, VA lockestore.com Mom's Apple Pie Bakery Occoquan, VA Lucy's Whey (2 locations) momsapplepieco.com NY, NY lucyswhey.com Murray's Cheese (2 locations) New York, NY Madison Market murrayscheese.com Seattle, WA madisonmarket.com My Organic Market (5 outlets) Northern VA & MD Magnolia Foods myorganicmarket.com Lynchburg, VA magnoliafoods.com

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Nala's Fromagerie Purple Feet Green Bay, WI Galax, VA nalascheese.com purplefeetgalax.com

Natural Mercantile of Hamilton Rainbow Grocery Hamilton, VA San Francisco, CA naturalmercantile.com rainbowgrocery.org

New Market House Real Goods Meadville, PA Matthews, VA realgoodsva.com New Seasons Market (5 Outlets) Portland, OR Rebecca’s Charlottesville, VA Newport Avenue Market rebeccasnaturalfood.com Bend, OR newportavemarket.com River City Cellars Richmond, VA Old Beach Farmers' Market rivercitycellars.com Virginia Beach, VA oldbeachfarmersmarket.com Roanoke Natural Foods Co-op Roanoke, VA Pastaworks NW roanokenaturalfoods.coop Portland, OR pastaworks.com Saxelby Cheesemongers New York, NY Pastaworks SE saxelbycheese.com Portland, OR pastaworks.com Scardello Dallas, TX Pastoral scardellocheese.com Chicago, IL pastoralartisan.com Seabreeze Organic Farm Fort Pierce, FL Piazza Italian Market Easton, MD South End Formaggio piazzaitalianmarket.com Boston, MA southendformaggio.com Plum Pure Foods Cos Cob, CT St. James Cheese Company plumpurefoods.com New Orleans, LA stjamescheese.com

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Steve's Cheese The Cheese Store Portland, OR Hoboken, NJ stevescheese.biz thecheesestorehoboken.com

Stinky Brooklyn The Common Market Brooklyn, NY Fredrick, MD stinkybklyn.com commonmarket.coop

Stonyman Gourmet Farmer (2 outlets) The Curious Grape Bethesda,MD Washington, DC Arlington, VA curiousgrape.com Strawberry St. Vineyard Richmond, VA The Great Ciao Minneapolis, MN Stribling Orchard greatciao.com Markham, VA virginiaorchard.com The Iron Bridge Wine Company Columbia, MD Surdyk's Cheese Shop ironbridgewines.com Minneapolis, MN surdyks.com The Local Charlottesville, VA Sweetgreens (7 locations) DC, MD, VA The Orlean Store sweetgreens.com Orlean, VA

Symons General Store The Village Bakery & Cafe Petoskey, MI Athens, OH lakeandhoward.com thevillagebakerycafe.com

Ted's Butcher Block The Village Cheese Shop Charleston, SC Mattituck, NY tedsbutcherblock.com thevillagecheeseshop.com

The Chatham Marketplace The Wine Source Pittsboro, NC Baltimore, MD chathammarketplace.com the-wine-source.com

The Cheese Cellar Valley Cheese and Wine Seattle, WA Henderson, NV thecheesecellar.com valleycheeseandwine.com

The Cheese Shop of Virginia Williamsburg, VA

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Venissimo Cheese Whitneyville Food Center San Diego, CA Hamden, CT venissimo.com whitneyvillefood.com

Villa Appalaccia Winery The Wine and Cheese Cask Floyd, VA Somerville, MA villaappalaccia.com thewineandcheesecask.com

Warwick Cheese Shoppe The Wine and Cheese Place Newport News, VA St. Louis, MO warwickcheese.com wineandcheeseplace.com

Weaver Street Market (3 outlets) Wine Sense Chapel Hill, Carrboro, Hillsborough, NC Rochester, NY weaverstreetmarket.coop wedefinewine.com

Wedge Community Coop Grocery Zabars Minneapolis, MN New York, NY wedge.coop zabars.com

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