Presentaci

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The Specialty Cheese Market in the United States
presented by Paul Savello, Ph.D. Ministerio de
Ganadería, Agricultura y Pesca
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Gracias a los expertos en lácteos visitantes por
su tiempo e interés en ayudar el sector lácteo
del Uruguay!
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Summary

• Cheese consumption in U.S. increased during past
  30 years
• Specialty cheese market helping to drive the per
  capita consumption
• Specialty cheese retail sales US 2.4 billion
  in 2000 with growth to US 2.9 billion in 2005
• Four Ps (Product, Promotion, Place, Price) of
  marketing used to describe the specialty cheese
  market
• Need to uncover a niche product

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Summary

• Most rapidly growing niche market is ethnic
  cheese market
• Hispanic style cheese is fastest growing sector
• Farmstead/artisan cheese market rapidly
  growing in specific geographic areas
• Opportunities exist for international
  manufacturers of specialty cheeses in the U.S.
  market

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Cheese Consumption Increase

• Consumer desire for new cheese varieties in
  convenient forms and packages
• Consumers willing to try new varieties of cheese
• Consumer willing to pay premium for the new
  varieties
• Dairy Management Inc. (Rosemont, Illinois) 74
  of consumers love the taste of cheese and 78
  want to try new and different varieties

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Cheese Consumption Increase

• Health conscious consumer calcium and protein
  in cheese
• New cheese varieties (imported or manufactured by
  artisan cheesemakers) turn non-cheese consumers
  into users or occasional cheese users
• Farmstead/artisan cheeses represent small portion
  of total cheese market, but these cheeses show
  significant opportunity for market growth

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Cheese Consumption Increase

• Jim Path (University of Wisconsin Center for
  Dairy Research) defines specialty cheese as
• cheese that is low in production volume
• less than 40 million pounds annuallylabor
• intensiveperception of value added product
• may have ethnic backgroundspecial
• manufacturing process or packaging

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Specialty Cheese Market Overview

• Nature of specialty cheese derived from one or
  more unique qualities
• Exotic origin
• Particular processing
• Design
• Limited supply
• Unusual application or use
• Extraordinary packaging or channel of sale

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Specialty Cheese Market Overview

• Why is specialty cheese market increasing?
• Subtle variations in textures, flavors
• Ethnic heritages
• Perfect match for todays adventurous and
  flavor-seeking consumer
• Quality and variety of specialty cheeses advances
  due to
• innovation, research, global migrations of
  cheesemakers, craftsmanship programs

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Specialty Cheese Market Overview

• Artisan cheeses have great reception in market
• Goat cheese one of the most popular specialty
  cheeses
• Retailers can carry as many as 50 varieties of
  goat cheese

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Specialty Cheeses Retail Growth

• Fastest growing at retail Asiago cheese
• Next Gorgonzola, Provolone, Muenster, Colby
  Jack, Brie, Goat, Blue, Havarti, Swiss
• Ten years ago, consumers not even aware of
  cheeses such as Asiago, Gorgonzola, or Havarti

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Specialty Cheeses Retail Growth

• Specialty cheeses sold in deli departments of
  supermarkets
• Commodity cheeses sold in pre-packaged, set
  weight varieties in the dairy case
• Research of Fromartharie (New Jersey)
• most shoppers purchase commodity cheese for
  cooking and baking, while they shop the deli case
  for entertaining

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Specialty Cheeses Retail Growth

• Packaged Facts report U.S. Gourmet Specialty
  Foods Market
• Supermarkets 55 of specialty cheese sales
• Specialty cheese stores 30 of sales
• Health/natural food stores 5 of sales
• Warehouse clubs 4 of sales
• Other retail outlets 6 of sales

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Specialty Cheeses Retail Growth

• Supermarket Business 2000 Expenditure Survey
• Cheese category at 35.5 gross profit margin
  compared to 29.8 gross profit margin for entire
  dairy department

• International Dairy-Deli-Bakery Association
  (IDDBA) 2001annual foodservice trend report
• Cheese has highest gross profit margin of any
  product sold in dairy department of grocery
  stores

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Specialty Cheeses Retail Growth

• Supermarket consumers choosing more
  farmstead/artisan and ethnic cheeses due to
  rebirth of cheese course at restaurants
• Greek feta cheese (including flavored feta
  cheeses) increased 30 in retail sales last year
• Other Italian cheeses and Hispanic varieties
  significantly increasing in retail sales

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Specialty Cheeses Retail Growth

• Consumer data important in specialty cheese
  market
• Consumers with household income gt250,000 more
  than 4x likely to purchase Brie cheese over other
  cheeses
• Professionals and consumers with incomes
  gt100,000 more likely to choose Camembert cheese
• Havarti cheese has high appeal to middle income
  consumers earning 50,000 to 59,000

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Specialty Cheeses Retail Promotion

• Gourmet Retailer report
• 60 of retailers offer full-service cheese
  counter
• 1/3 of supermarkets offer up to 300 individual
  specialty cheeses
• 60 said that artisan cheese makes up more than
  50 of the cheese case
• Most effective ways to promote specialty cheese
  are sampling/demonstrations and staff
  recommendations

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Specialty Cheeses Retail Promotion

• Gourmet Retailer report
• Educational signage important
• Type, age, taste profile, country of origin,
  serving suggestions, care instructions
• A cheese-wine pairing guide helps promote cheese
  sales

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Specialty Cheeses Education

• University of Wisconsin Center for Dairy Research
• Dutch Cheese Artisan Course
• Wisconsin Cheese Grading Short Course
• Applied Dairy Chemistry Short Course
• Quality Assurance Short Course
• Wisconsin Cheese Technology Short Course
• Wisconsin Master Cheesemaker Program

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Specialty Cheeses Education

• American Cheese Society
• Special attention to specialty and farmstead
  cheeses from cows, goats, sheep milk
• Farmstead cheese handmade in small quantities
  produced on the farm using only milk from the
  herd located on that farm
• Farmstead producer can direct cheesemaking
  process from determining the animals feed
  through the final aging of the cheese

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Ethnic/Niche Markets

• By 2010 ethnic food sales in U.S. will reach
  US75 billion per year
• Fastest growing ethnic market is Hispanic
  community
• US 421 billion spending power
• Hispanic food sales to grow 5.5 per year over
  the next 50 years
• U.S. is worlds fifth largest Hispanic marketplace

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Ethnic/Niche Markets

• Other ethnic/niche cheese markets
• Greek feta cheese
• Kosher cheeses
• English style cheeses
• Farmstead cheeses

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Farmstead/Artisan Cheeses

• Wisconsins Full Circle Farm current interest
  in naturally-occurring fatty acid found in dairy
  products that may have cancer-fighting abilities
• Introduced artisan cheese produced from milk of
  grass-fed cows to promote these health benefits
• Takes advantage of the higher than normal level
  of conjugated linoleic acid (CLA) in the
  milk/cheese
• Web site (www.fullcirclefarm.net) provides
  detailed description of farm including quietness,
  humane treatment of animals, fresh grass and
  clove, farms family history

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Special niche markets (with sub-niches) for
Specialty Cheeses

• Supermarket chain Whole Foods Market of United
  States and Canada provides an interesting and
  opportunistic example/possibility for Uruguays
  dairy industry in the niche and sub-niche
  markets
• Uruguays cheese sector (industry and artisan)
  can provide value-added cheese varieties to the
  Whole Foods Market chain for the chains local,
  regional, and national markets

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Summary

• Cheese consumption in U.S. increased during past
  30 years
• Specialty cheese market helping to drive the per
  capita consumption
• Specialty cheese retail sales US 2.4 billion
  in 2000
• Four Ps (Product, Promotion, Place, Price) of
  marketing used to describe the specialty cheese
  market
• Need to uncover a niche product

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Summary

• Most rapidly growing niche market is ethnic
  cheese market
• Hispanic style cheese is fastest growing sector
• Farmstead cheese market rapidly growing in
  specific geographic areas
• Opportunities exist for international
  manufacturers of specialty cheeses in the U.S.
  market