Natural and Specialty Blended Cheeses: The U.S. Market and a Global Perspective

• Publication date: March 2010

With U.S. production of natural and specialty blended (N&SB) cheese at an all-time high — 10 billion-plus pounds by the end of 2009 — marketers are aggressively creating points of differentiation to better establish their brands in this highly competitive and crowded category. With more than 300 varieties of natural cheese made in the States, as well as just as many specialty blended cheeses, this is no easy feat, particularly when there are ...

With U.S. production of natural and specialty blended (N&SB) cheese at an all-time high — 10 billion-plus pounds by the end of 2009 — marketers are aggressively creating points of differentiation to better establish their brands in this highly competitive and crowded category. With more than 300 varieties of natural cheese made in the States, as well as just as many specialty blended cheeses, this is no easy feat, particularly when there are more than 200 marketers vying for the attention of consumers, retailers, chefs and even prepared foods product developers.



This first-of-its-kind report —Natural and Specialty Cheeses: The U.S. Market and a Global Perspective— will help anyone involved in the U.S. cheese market to better grasp the magnitude of the category. Natural and Specialty Cheeses: The U.S. Market and a Global Perspective contains comprehensive data on the U.S. market for fresh, semi-aged and aged natural cheeses, as well as value-added, premium blended cheeses, such as fat-modified, nutrient-fortified and flavor-enhanced products — not the slices that top a burger or fill a sub sandwich. The report covers historical (2005-2009) and forecast (2010-2014) retail sales data, as well as a lengthy analysis of foodservice and industrial use of these cheese categories. The report discusses key trends affecting the marketplace, trends driving growth and consumer demographics. In addition, the report provides insight to the activities of key cheese marketers, as well as up-and-coming players...in the States as well as globally.



Report Methodology


The information in Natural and Specialty Cheeses: The U.S. Market and a Global Perspective is based on primary and secondary research. Primary research entailed in-depth, on-site examinations of retail outlets and interviews with cheesemakers, marketers, distributors, buyers and retailers to obtain information on new product and packaging trends, marketing programs, distribution methods and technological breakthroughs. Secondary research entailed data gathering from relevant sources, including consumer and industry publications, newspapers, government reports, company literature and corporate annual reports. Sales of packaged products are based on data from the U.S. Department of Agriculture (USDA), Information Resources, Inc. and other trade sources. Consumer demographics are derived from Experian Simmons data.



What You’ll Get in This Report


Natural and Specialty Cheeses: The U.S. Market and a Global Perspective makes important predictions and recommendations regarding the future of this market, and pinpoints ways current and prospective players can capitalize on current trends and spearhead new ones. No other market research report provides both the comprehensive analysis and extensive data that Natural and Specialty Cheeses: The U.S. Market and a Global Perspective offers. No other report includes both an analysis of brands and marketers, as well as overall sales data by cheese form, variety and other descriptors. Plus, you’ll benefit from extensive data, presented in easy-to-read and practical charts, tables and graphs.


How You’ll Benefit from This Report


If your company is already involved in the cheese business, from any angle — manufacturing, marketing, distribution, packaging, ingredients, etc. — or is considering making the leap, you will find this report invaluable, as it provides a comprehensive package of information and insight not offered in any other single source. You will gain a thorough understanding of the current market for natural and specialty blended cheese, as well as projected markets and trends through 2014.


This report will help:

• Marketing managers identify market opportunities and develop targeted promotion plans for natural and specialty blended cheese.


• Research and development professionals stay on top of competitor initiatives and explore demand for natural and specialty blended cheese.


• Advertising agencies working with clients in the banking and retail industries understand the product buyer to develop messages and images that compel consumers to buy natural and specialty blended cheese.


• Business development executives understand the dynamics of the market and identify possible partnerships.


• Information and research center librarians provide market researchers, brand and product managers and other colleagues with the vital information they need to do their jobs more effectively.

Global Dairy Products And Egg Industry

Calculating Restaurant Performance Index

Recovery in 2010 Will Come in Third Quarter

Table 6-1: Top-Five U.S. Foodservice Distributors, Dollar Sales and Number of Distribution Centers, 2009

Sysco Corp

U.S. Foodservice, Inc.

Gordon Food Service, Inc.

Performance Food Group Co.

Reinhart FoodService

Table 6-2: Top-25 U.S. Restaurant Chains that Purchase Cheese, Ranked by Dollar Sales, Fiscal 2008

Table 6-3: Top-10 U.S. Contract Chains that Buy Cheese, Ranked by Dollar Sales, Fiscal 2008

The Next Big Trend in Pizza: Neapolitan

Using Locally Produced Cheese

Table 6-4: Top-10 U.S. Pizza Chains that Buy Cheese, Ranked by Dollar Sales, Fiscal 2008

Rising Cheese Prices Might Dampen Promotions

Table 6-5: Top-10 U.S. Italian Chains that Buy Cheese, Ranked by Dollar Sales, Fiscal 2008

Table 6-6: Top-10 U.S. Mexican Full-Service Chains that Buy Cheese, Ranked by Dollar Sales, Fiscal 2008

Table 6-7: Top-10 U.S. Mexican Fast-Food and Quick-Service Chains that Buy Cheese, Ranked by Dollar Sales, Fiscal 2008

Dunkin’ Donuts

McDonald’s

Potbelly

Friday’s “Three For” Deal

Applebee’s Neighborhood Grill and Bar

Rosen’s Perfect Pizza

Good-for-You Filled Pasta

DMI Believes Low-Fat Cheese Has a Home in Schools

Appeal to USDA

Old Hickory Statehouse

What’s Hot on Menus

Appetizers

Table 6-8: Trends in Appetizers, by Chef Ranking

Entrées/Main Dishes

Table 6-9: Trends in Entrées/Main Dishes, by Chef Ranking

Sides/Starches

Table 6-10: Trends in Sides/Starches, by Chef Ranking

Kids’ Meals

Table 6-11: Trends in Kids’ Meals, by Chef Ranking

Breakfast/Brunch

Table 6-12: Trends in Breakfast/Brunch, by Chef Ranking

Desserts

Table 6-13: Trends in Desserts, by Chef Ranking

Ethnic Cuisine

Table 6-14: Trends in Ethnic Cuisine, by Chef Ranking

Culinary Themes

Table 6-15: Trends in Culinary Themes, by Chef Ranking

Figure 7-1: Celeste Original Pizza

Figure 7-2: Weight Watchers Smart Ones Artisan Creations Pizza

Sargento’s Custom Melts Line

Figure 7-3: Sargento Custom Melts

Opportunities for Cheesemakers

Frozen Cheese Pizza Is So Much More than Mozzarella

Figure 7-4: Freschetta Naturally Rising 4-Cheese Pizza

The Deal

Nestlé Will Be Largest Ingredient Customer for Cheesemakers

Regional and Niche Players

Ethnic Players

Natural and Organic Marketers

Recent Introductions Including Cheese

Figure 7-5: Stouffer’s Corner Bistro Grilled Mesquite-Style Chicken Panini

Figure 7-6: Five Cheese & Spinach Flatbread Melts

Milk Made Into Cheese

Prices Rebound

Forecast for the Global Cheese Market

Figure 8-1: Global Cheese Production, by Milk Type, 2005

U.S. Leads in Global Cheese Production

Figure 8-2: Share of Global Cheese Production, by Top-10 Countries, 2009

Look at the Trend, Not the Actual Figures

Table 8-1: Cheese Production: Summary for Select Countries, 2005-2010

Table 8-2: Cheese Consumption: Summary for Select Countries, 2005-2010

Table 8-3: Cheese Imports: Summary for Select Countries, 2005-2010

Table 8-4: Cheese Exports: Summary for Select Countries, 2005-2010

Quebec Cheesemakers Celebrate

Canadians Love Cheddar

Import and Export Details

Share of World Cheese Exports

American Specialty Cheeses in Europe

Table 8-5: Top-20 U.S. Export Markets, 2008

Table 8-6: U.S. Share of World Cheese Exports, 1990-2008

Global Process Cheese Growth Keeps Cheddar Volumes Steady

More U.S. Additions

A Short 18 Months in Drummondville

Middle East: Stay Away Danes

Cheese for Asians

Figure 8-3: Chesdale Chocolate Cheese

Figure 8-4: The Perfect Grater

Figure 8-5: Weight Watchers Cheese & Cracker Snack Packs

Targeting the States

Convenience Packaging

Management Reorganization

Already Out of the Cave

Figure 8-6: Reibkäse

New Raclette

Cheese Platters

Figure 8-7: Emmi Cheese Platters

Process Cheese Lives and Livens Up

Figure 8-8: Emmi Swiss Originals Assortment

Figure 8-9: Steak de Fromage

Recent U.S. Purchases

Expanding Overseas

Specialty Cheese Line Extensions

Lactose-Free Cheese

Lactose-free Cheese

Ethnic and Combination Flavors in Process Cheese

Figure 8-10: Lactima Exclusive

Figure 8-11: Bergpracht Ethnic Spreads

Single-Serve/On-the-Go Packaging

Figure 8-12: Cheez’ Pucks

Figure 8-13: Snackateers

Convenience Packaging

Figure 8-14: Primula Deli Soft Cheese

Figure 8-15: Eru Cheese Spread

Figure 8-16: Pilgrims Choice Truckles

Addition of Functional Ingredients

Breaded, No-Melt Cheese as Meat Substitute

Figure 8-17: Saganaki

Figure 8-18: Hot Heart

Easy Fondue Kits

Figure 8-19: Knirps OfenKäse

Lactose-Free

Figure 8-20: Minus L

Lower Fat

Figure 8-21: Scottish Pride Light

Sustainable (Organic, Fair-Trade, Etc.)

Substituting Animal Fat with Vegetable Fat

Figure 8-22: Alto

Table 9-1: Total U.S. Per Capita Consumption of Natural Cheese, in Weight, by Variety, 1988, 1998 and 2008

Figure 9-1: Total U.S. Per Capita Consumption of Natural Cheese, in Weight, by Variety, 1988, 1998 and 2008

Table 9-2: Total U.S. Per Capita Consumption of Natural Cheese, Percent Share, by Variety, 1988, 1998 and 2008

Figure 9-2: Total U.S. Per Capita Consumption of Natural Cheese, Percent Share, by Variety, 2008

Table 9-3: Total U.S. Per Capita Consumption of Natural American Cheese, Percent Share, by Variety, 1988, 1998 and 2008

Figure 9-3: Total U.S. Per Capita Consumption of Natural American Cheese, Percent Share, by Variety, 2008

Table 9-4: Total U.S. Per Capita Consumption of Natural Italian Cheese, in Weight, by Variety, 19988, 1998 and 2008

Table 9-5: Total U.S. Per Capita Consumption of Natural Italian Cheese, Percent Share, by Variety, 1988, 1998 and 2008

Figure 9-4: Total U.S. Per Capita Consumption of Natural Italian Cheese, Percent Share, by Variety, 2008

Table 9-6: Total U.S. Per Capita Consumption of Other Natural Cheese, in Weight, by Variety, 1988, 1998 and 2008

Table 9-7: Total U.S. Per Capita Consumption of Other Natural Cheese, Percent Share, by Variety, 1988, 1998 and 2008

Figure 9-5: Total U.S. Per Capita Consumption of Other Natural Cheese, Percent Share, by Variety, 2008

By Fat Content

Table 9-8: U.S. Households Using Natural Cheese: Comparing Fat Contents, by Percent, 2005-2009

By Form

Table 9-9: U.S. Households Using Natural Cheese: Comparing Form, by Percent, 2005-2009

By Variety

Table 9-10: U.S. Households Using Natural Cheese: Comparing Variety, by Percent, 2005-2009

Specialty Blended Cheese

Table 9-11: U.S. Households Using Select Specialty Blended Cheeses: Comparing Form, by Percent, 2005-2009

Populations Using Any Natural Cheese

Table 9-12: U.S. Household Demographics that Favor and Resist Use of Any Natural Cheese, by Index, 2009

Fat Content as Attraction or Deterrent

Table 9-13: : U.S. Demographics that Favor and Resist Use of Natural Cheese: Comparing Fat Contents, by Index, 2009

What Forms of Cheese are Preferred by Different Demographics

Table 9-14 U.S. Demographics that Favor and Resist Use of Natural Cheese: Comparing Forms, by Index, (Wedge, Chunk or Stick; Shredded; Sliced), 2009

Table 9-15: U.S. Demographics that Favor and Resist Use of Natural Cheese: Comparing Forms, by Index, (String; Round; Miniature — Waxed or Wrapped), 2009

What Varieties of Cheese are Preferred by Different Demographics

Table 9-16: U.S. Demographics that Favor and Resist Use of Natural Cheese: Comparing Varieties, by Index, (Blue, Brie/Camembert, Cheddar and Colby), 2009

Table 9-17: U.S. Demographics that Favor and Resist Use of Natural Cheese: Comparing Varieties, by Index, (Feta, Gouda, Havarti and Jarlsberg), 2009

Table 9-18: U.S. Demographics that Favor and Resist Use of Natural Cheese: Comparing Varieties, by Index, (Monterey Jack, Mozzarella, Muenster and Parmesan/Romano), 2009

Table 9-19: U.S. Demographics that Favor and Resist Use of Natural Cheese: Comparing Varieties, by Index, (Pepper Jack, Provolone, Ricotta and Swiss), 2009

Consumer Attitudes and Opinions Favoring or Resisting Natural Cheese Use

Table 9-20: U.S. Consumer Attitudes and Opinions of Natural Cheese: Comparing Fat Contents, by Index, 2009

Healthier Options in Food and Beverage

Natural vs. Organic

Where Do They Decide to Make Purchases?

The Service Deli Cheese Shopper

What’s Important and What’s Not When Deciding on a Cheese Purchase

The Specialty Food Shopper

Figure 9-6: Projected U.S. Population and Hispanic Population Growth, Percent Growth, 2005-2015

Hispanic Population Attitudes

The Term Hispanic Is Not All-Encompassing

National Origins Are Very Diverse, But Mexico Rules

Figure 9-7: U.S. Hispanic Population Breakdown by Country of Origin, Percent Share, 2000

Who Are These “Other Hispanics” Coming to the United States?

Flavor Preferences by Country of Origin

Hispanic Spending

Phone Study Looks at Hispanics’ Attitudes Toward Private Label

Hispanics at All Income Levels Buying Private Brands

Experian Simmons Hispanic Cheese User Highlights

Table 9-21: U.S. Hispanic Households Using Natural Cheese: Comparing Fat Content, Form and Variety, by Index, 2009

Changing Habits

Giving Back

Figure 9-8: Which Salty Snack is Your Favorite, by Generation, 2009

Cheese Evokes the Most Passion Among Different Generations

The Package Variable

Milk Sourcing

Taste Rules

Better-for-You Is More About Addition than Subtraction

A&P Goes Artisan

Aldi Spreads its Signature

Giant Eagle Goes Gourmet

Kroger Adds Cheese Store Concept

Meijer Markets the Gold

Trader Joe’s Gets Baked

Figure 10-1: Trader Joe’s Fondue Brie

Other Noteworthy Private Label Introductions

Table 10-1: Noteworthy Private Label N&SB Cheese Introductions, 2008-2009

The Many Forms of Mozzarella

Brie Changes Shape, Too

Figure 10-2: Président Brie Log

Figure 10-3: Roth Käse Great American Cutting Board

Figure 10-4: Sonoma Creamy Jack Sensible Gourmet Snacks

Curds: The Original Snacking Cheese

A New Type of Jerky

Meat Marketers Now Marketing Cheese, Too

Sensational Slices

Weight Management Slices

Figure 10-5: Weight Watchers Cheese Slices

Figure 10-6: Kelly’s Kitchen Pumpkin Pie Bite-Size Cheese Balls

Figure 10-7: Sartori Bella Vitano

Made in Wisconsin Using Bold Dutch Spice

Figure 10-8: Marieke Clove/Cumin Gouda

Figure 10-9: Alouette Crumbles

Figure 10-10: Alouette Sweet & Spicy Pepper Medley Cheese Spread

Figure 10-11: Kaukauna Extremely Creamy Cheese Spread

Ethnic Spreads

Figure 10-12: Président Spreadable Feta

Figure 10-13: Collier’s Welch Cheddar

Figure 10-14: Old Amsterdam Gouda

But Organic Is Still Active…and Sometimes Raw and with Probiotics

Figure 10-15: Next Generation Organic Dairy Probiotic Cheese

Other Organic Roll Outs

Figure 10-16: Grass Point Farms Grass-fed Cheese

Figure 10-17: Borden Essentials String Cheese

With Protective Antioxidants

Figure 10-18: Cabot 50% Reduced Fat Cheddar Cheese with Omega-3

DHA

Figure 10-19: Sargento Holiday Cheese Shapes