[CHEESE]

Natural, Ethnic and Artisan

Trends in cheeese merchandising in 2008 from IDDBA.

ONSUMERS HAVE A GROWrNG interest in cheeses with a sense of history and tradition, according to "What's In Store 2008," the annual trends report from the International Dairy-Deli-Bakery Association (IDDBA), Madison, Wis. This trend manifests itself in a variety of ways, from reduced interest in modem processed cheeses to an Increased appetite for products unique to a particular region or even a single farm. Natural, organic, artisan, and local cheeses, as well as cheeses made from various blends of milk, are all part of this trend. But convenience is also an important factor Manufacturers have begun to capitalize on both trends by offering pre-shredded organic cheeses and specialty cheeses in snack stick form, but opportunities abound for further innovation. The following is a sampling of some of the trends and opportunities detailed in "What's In Store 2008." ! Increasing Interest in Natural and Artisan Cheeses: Between 2001 and 2006, sales of natural cheese increased 10% after adjusting for inflation, according to consumer.

media and market research firm Mintel International, Chicago. 1 1 During the same time period, interest in 1. processed cheeses declined, with sales dropping 9.\%. Specialty cheese sales at supermarkets grossing $2 million or more per year rose 8.6% in the year ending March 24, 2007, according to Nielsen Co., New York. Locally produced cheeses are gaining in importance as cheese marketing begins to follow long-standing and successful practices in the wine industry. ' Convenience Is Key: Cheeses that cut down on kitchen prep time are popular with consumers, and manufacturers have responded by introducing a number of cheese products that offer convenience and lessen cooking time, including pre-seasoned shredded cheeses. Sales of grated and crumbled cheese, string and stick cheese, cubed cheese, and natural cheese slices continue their substantial annual growth, which is as much as 17% in some cases. [ Ethnic Cheeses on the Rise: Italian cheeses continue to be the most popular of ethnic cheeses available in the United States, in 2006, manufacturing of Italian cheeses in the U.S. surpassed that of American natural cheeses for the first time. Latin American and Spanish cheeses are no longer a niche market, as an increasing number of non-Hispanic consumers have begun to incorporate them into their cooking. Half of the top 10 fastest growing specialty cheeses at retail are Hispanic varieties. ' A Healthy Alternative to Sweet Snacks: As people get a larger share of their daily calories from snacking, they're looking for alternatives to sweet, empty-calorie snacks like chips and cookies. According to Mintel International, two-thirds of consumers like the convenience of natural cheese snacks in single-serving packages. Many people who are trying to eat more healthful snacks see cheese as a sensible, protein-and calcium-rich option. Dieters eat more cheese on average than non-dieters. Cheese Shopper Profile: Per capita cheese consumption reached 32.3 lbs. in 2007 and is likely to continue climbing during the next decade. Some ambitious projections estimate that by 201 i, per capita cheese consumption will increase to 42 lbs., while more conservative estimates predict only a minor increase to 33 lbs.

FROZEN FOOD AGE JANUARY 2008 2 5