The U.S. Cheese Market : Packaged Facts

The U.S. Cheese Market

May 1, 1999
237 Pages - Pub ID: LA548

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Abstract

Table of Contents

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Executive Summary
- The Products.
- Cheese and the 20 th Century
- The "American" Tradition.
- Cheese Manufacturing: Still Curds and Whey.
- Four Primary Categories
- Classification by Process
- Taking the Cure.
- Diverse Regulatory Market
- Controversy Surrounds Growth Hormone rBGH
- Packaging Basics
- The Market
- Retail Market Tops $9.5 Billion in 1998
- Natural Cheese Leads in Volume and Growth
- Cheese a Mature Market
- Retail Sales to Reach $12 Billion by 2003
- Supermarket Sales Growth by Category
- U.S. Cheese Production Up
- Wisconsin, the King of American Cheesemaking
- The Marketers
- Three Levels of Marketers
- Kraft and Private Label Claim Two-Thirds of Market
- Consolidation Flattens the Landscape
- Specialty Cheesemakers on the Rise.
- 300 New Product Introductions in 1998
- Cheese Advertising Approaches $55 Million
- Kraft Dominates Advertising Spending
- Cheese Associations Outspend Most Marketers
- Cheese Ads a Feast for the Eyes
- Distribution and Retail
- Leaving the Manufacturer
- Two Distribution Networks
- Full-Line Distributors
- Distributor Margins
- Grocery Stores Claim 88% of Market
- Block/Sliced Natural Cheese Leads in Supermarket Sales
- The Name Brand vs. Private-Label Battle
- Supermarket Margins at 37%-50%
- The Case for Specialty Retailers
- Basic Consumer Patterns
- Patterns by Cheese Type
- American vs. Natural Cheese
- Patterns for Cream, Grated, and Cottage Cheese
- 20%-25% Purchase Low-Fat or Spreadable Cheese
- Scope and Methodology
- Scope of Report.
- Report Methodology
The Products.
- Introduction
- Scope of Market
- The Discovery of Cheese
- Cheese and the Continent
- Cheese in America
- Cheese and the 20 th Century
- Cheese Manufacturing: Still Curds and Whey.
- Variables in Manufacturing
- Classifications of Cheese
- Four Primary Categories
- Natural or Specialty Cheese
- Processed Cheese
- Reduced-Fat Cheese: Labels Required by Government
- Imitation Cheese
- The "American" Tradition.
- South of the Border Influence
- Old Country Tradition
- Classification by Process
- Taking the Cure.
- The Regulatory Environment
- Diverse Regulatory Market
- Two Federal Regulatory Agencies
- The FDA and Food Standards
- USDA Grade Standards
- USDA Equipment Standards.
- Food Labeling and the NLEA
- Dairy Price Support Programs
- Falling Prices.
- The Commodity Credit Corporation
- End of the NCE
- Trade Practices Affect U.S. Market
- Bananas vs. Pecorino.
- Soft Cheese Threats
- Controversy Surrounds Growth Hormone rBGH
- Packaging and Labeling
- Packaging Basics
- Added Convenience
- Downsizing
- Most Cheese Requires Refrigeration.
- Extra Freshness
The Market
- Market Size and Growth
- es on Methodology
- Retail Market Tops $9.5 Billion in 1998
- Natural Cheese Leads in Volume and Growth
- Processed Cheese Products Second Tier
- "Light" Cheese Still Scant on Sales
- Imitation Cheese Sales on the Up
- Market Composition.
- Most Cheese Sold Is Domestic
- Imports and Exports
- U.S. Cheese Production Up
- Wisconsin the King of American Cheesemaking
- Natural Cheese Share of Supermarket Sales Rises
- Grocery Stores Claim 88% of Market
- West Leads in Natural, Lags in American
- Purchasing Patterns by Age Bracket
- Purchasers and Planners
- Factors to Market Growth
- Cheese a Mature Market
- Something for Everyone
- Supermarkets Contribute to Growth
- Beholding the Power
- Changing Palates
- Shredded Cheese Still Adds Up
- Hispanic Cheese Stakes a Claim
- Mediterranean Cheeses Make a Splash.
- Flavored Cheese Continues to Grow.
- A Place at the Table for Fat
- Reduced-Fat Cheese Down But Out
- Help on the Way
- Good-for-You Cheese
- Organic Cheese Gains in Popularity …
- … as Growth Hormone Controversy Increases.
- Soy Cheese a Segment with Potential
- Cheese Shortage a Cloud on the Horizon?
- Projected Market Growth
- Retail Sales to Reach $12 Billion by 2003
- Supermarket Sales Growth by Category
The Marketers
- The Marketers
- Marketers Widely Varied
- Three Levels of Marketers
- Kraft and Private Label Dominate Cheese Market
- Other Top Marketers
- Lower-Tier Marketers
- Marketer and Brand Shares
- e on Methodology
- Cheese Market Highly Competitive
- Kraft Leads with 39% Share
- Private Label a Strong Second
- Sargento Foods a Distant Third.
- Private Label Top Seller of Block and Shredded Natural Cheese
- Kraft Top Marketer of Processed Cheese
- Private Label First in American Cheese Segment.
- Private Label Also Leads Shredded Segment
- Galaxy Foods the Imitation Leader
- The Competitive Situation
- Kraft Sets the Tone
- The Pulse of Private Label
- Consolidation Flattens the Landscape
- Specialty Cheesemakers on the Rise.
- Going Ethnic to Grab Share
- Growth in Hispanic and Goat's Milk Cheeses
- Giving Up—Or Giving Room—on Reduced-Fat
- Organic Takes Root in Supermarkets
- Hickory Farms and Swiss Colony: A New Lease?
- The Wholesale Price Rollercoaster
- Competitive Profile: Alpine Lace Brands, Inc. (Land O'Lakes, Inc.)
- Corporate Overview
- The History of Land O'Lakes
- Purchase of Alpine Lace
- The Future of Alpine Lace
- Land O'Lakes Cheese Products.
- Competitive Profile: Beatrice Cheese (ConAgra, Inc.).
- Corporate Overview
- The Beginnings of Beatrice
- Cost-Effective Production and Strong Distribution Efforts
- Diverse Line of Cheese Products
- Offering a -Quite-So Healthy Choice
- Competitive Profile: Cacique, Inc.
- Corporate Overview
- From Humble Beginnings to Techno Gurus
- Distribution Concentrated to Hispanic Population
- The Hispanic Cheese Leader.
- Competitive Profile: California Cooperative Creamery.
- Corporate Overview
- Distribution Limited to Five Western States.
- Cheese Products Strictly Natural
- Members Vote to Merge with DFA
- Focus on Dairy Ingredient Market
- Competitive Profile: Dairy Farmers of America (DFA)
- Corporate Overview
- DFA Holds Top Brand Names
- Borden Unburdens Dairy Division
- Processed Cheese Products Strongest
- Competitive Profile: Heluva Good Cheese, Inc. (Koninklijke Wessanen nv)
- Corporate Overview
- Wessanen in the U.S
- History of Heluva Good
- Cheese Line Keeps Growing.
- Convenience Trend Hits Heluva
- Competitive Profile: Kraft Cheese Division (Kraft Foods, Inc./Philip Morris
- Cos., Inc.)
- Corporate Overview
- Cross-Country Production Centers
- Marketing Over 70 Brands
- Expanding the Product Lines
- The Kosher Kraft
- Kraft Employs Competitive Strategies to Keep the Top Spot
- Competitive Profile: Sargento Foods, Inc.
- Corporate Overview
- Sargento Stakes a Claim with Shredded
- Outsourcing the Modes of Production
- The Wheel of Invention.
- A Line for Kids
- The Future for Sargento
- Hoping that More Is More.
- Competitive Profile: Stella Foods, Inc. (Saputo Group, Inc.)
- Corporate Overview
- The Big Sale
- The Rise and Fall of Estrella
- Retail, Foodservice, and Industrial Distributors
- Competitive Briefs
- Authentic Specialty Foods, Inc.
- Bel/Kaukauna USA (Fromageries Bel S.A.).
- Bongrain Cheese S.A.
- Cabot Creamery, Inc.
- Galaxy Foods Co
- Major Farm
- Sorrento Cheese Co, Inc. (Lactalis USA, Inc.)
- Specialty Cheese Co
- Suprema Specialties, Inc.
- Tillamook County Creamery Association.
- Marketing and New Product Trends
- Number of New Product Introductions Widely Varied
- Behold the Power
- It's the Cheese
- Room to Grow at Tulare
- Family Farm Defenders Enter the Scene
- New Product Round-Up
- Changing the Look
- Convenience Is Key
- Beatrice, Kraft Respond to Waning Fat-Free Craze
- Newfangled Better-for-You Cheese
- Better Formulations
- Ethnic Products Still Strong
- Flavored Cheeses All the Rage
- Bring on the Brie
- Cheese as a Topping
- Consumer Advertising and Promotion
- Cheese Advertising Approaches $55 Million
- Marketers Concentrate on Broadcast Media
- Kraft Dominates Advertising Spending
- Sargento Trails as Second-Place Advertiser
- Sorrento Takes Third.
- $1-Million-and-Under Advertisers
- Cheese Associations Outspend Most Marketers
- Cheese Ads a Feast for the Eyes
- Reduced-Fat Cheese Ads Tilt Toward Moderation
- Recipes Included
- All Together Now
- Sweepstakes and Giveaways
- Cheese in the Eye of the Beholder
- For Her Eyes Only.
- Samples of Consumer Advertising
- Trade Advertising and Promotion
- Trade Ads: Products on Parade
- Trade Promotions
- The Trade Show Battleground
Distribution and Retail
- At the Distribution Level
- Leaving the Manufacturer
- Two Distribution Networks
- Distributors vs. Direct Distribution
- Warehousing vs. Direct Store Delivery.
- Advantages of Warehouse Delivery
- Disadvantages of Warehouse Delivery
- Advantages of Direct Store Delivery
- Disadvantages of Direct Store Delivery
- Full-Line Distributors
- Specialty Distributors
- Regional Distribution
- Distributors Often Package Specialty Cheese
- Specialized Distributors for Health/Natural Food Retailers
- Distributor Buying Groups
- Distributor Margins
- Working Through Brokers
- Associations for Cheese Distribution
- At the Retail Level
- The Retail Channels
- Grocery Stores Claim 88% of Market
- Block/Sliced Natural Cheese Leads in Supermarket Sales
- The Name Brand vs. Private-Label Battle
- Prices Per Pound Vary
- Supermarket Margins at 37%-50%
- Supermarkets and Specialty Cheese
- The Supermarket Deli Counter
- The Case for Specialty Retailers
- Beyond Brie at the Specialty Shops
- Focus a Two-Edged Sword at Cheese Stores
- Natural Food Stores Also Expanding Line-Ups
- Cheese Critical to Deli Sales.
- Warehouse Clubs Claim Slice of Market
- Price the Appeal in Warehouse Clubs
- Convenience Stores Stick to Basics
- Mail Order Seasonal
- Retailing Trends
- Tastes Changing, But Shopping Preferences
- Consumers Want Variety
- Meeting the Demand
- Shelf-Life a Factor for Natural Cheese
- Marketers Seek Improved Merchandising
- Making it Look Good
- Cross-Marketing
- The Lure of Signs
The Consumer
- Consumer Overview.
- e on Simmons Market Research Bureau Data.
- Range of Data
- Basic Consumer Patterns
- Patterns by Cheese Type
- American vs. Natural Cheese
- Patterns for Cream, Grated, and Cottage Cheese
- 20%-25% Purchase Low-Fat or Spreadable Cheese
- Consumer Focus: American Cheese
- Users of Pre-Sliced American Cheese
- Users of Non-Sliced American Cheese.
- Demographics for Purchasers of Kraft
- Demographics for Purchasers of Velveeta
- Demographics for Purchasers of Borden, Land O'Lakes
- Demographics for Purchasers of Store Brands and Other Brands
- Consumer Focus: Natural Cheese
- Users of Domestic and Imported Natural Cheese
- Users of Mild or Sharp Natural Cheese
- Users of Cheddar Varieties: Monterey Jack vs. Colby
- Users of Italian Natural Cheese.
- Users of Swiss, Muenster, and Blue
- Users of Brie, Brick, and Edam/Gouda.
- Users of Shredded, Sliced, or Chunk Natural Cheese
- Users of Bulk, String, or Ball/Log Natural Cheese
- Consumer Focus: Cream Cheese
- Users of Regular and Flavored Cream Cheese
- Users of Light/Low-Calorie and Fat-Free Cream Cheese
- Users of Brick, Whipped, and Soft Cream Cheese
- Consumer Focus: Grated Cheese
- Users of Grated Cheese
- Parmesan vs. Romano
- Consumer Focus: Cottage Cheese
- Users of Large Curd and Small Curd Cottage Cheese
- Users of Low-Fat, Light/Lite, and Non-Fat Cottage Cheese
- Consumer Focus: Low-Fat/Calorie/Cholesterol Cheese
- Users of Low-Fat Slices
- Users of Low-Fat Cheese by Type
- Users of Low-Fat Mozzarella or Cheddar Cheese
- Demographics for Kraft Low-Fat Cheese
- Demographics for Purchasers of Alpine Lace, Healthy Choice, and Sargento Light
- Demographics for Purchasers of Store Brands and Other Brands
- Consumer Focus: Spreadable Cheese
- Users of Spreadable Cheese in Aerosol, Tub, or Jar
- Users of Spreadable Cheese in Crock, Ball, or Tube
Appendix I: Examples of consumer and trade advertising and promotions
Appendix II: Addresses of selected marketers and cheese and dairy organizations

800.298.5294

Int'l: +1.240.747.3095

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