Specialty cheesemakers team with supply chain to drive sales
Cheese Market News
By Alyssa Mitchell
MADISON, Wis. — As consumer shopping habits and supply chain channels have shifted in the wake of the coronavirus pandemic, specialty cheesemakers have collaborated with key members of the supply chain to continue to get their products in front of consumers and ultimately into their shopping carts.
Cheesemakers’ distribution channels, particularly for foodservice, have been heavily impacted by closures in the early stages of the COVID-19 pandemic. As some restaurants and foodservice channels look to reopen in certain states, the supply chain shakeup continues to present challenges for steady sales and distribution.
A recent survey conducted by the American Cheese Society (ACS), “COVID-19 Pandemic Impact on the American Cheese Industry,” found that in May, cheese industry survey respondents reported a 50% or more decline in overall sales. Managing cash flow, obtaining financial support and managing staff all are challenges that resulted in 71% of respondents saying they have applied for debt relief or financial assistance to stay afloat in this new reality. Some 30% either have laid off or furloughed employees, and 4% have reduced employee hours.
However, ACS says many of its members are using this as an opportunity to pause and improve business models as well as explore new methods to package and distribute products directly to consumers. The survey says 57.5% of respondents have identified new distribution methods for their products, with 51% seeing an increase in overall e-commerce sales.
“Our team was quick to respond to the changing needs in both retail and foodservice channels,” says Tim Omer, president and managing director of Emmi Roth USA, Monroe, Wisconsin. “We immediately focused on implementing additional safety measures at our production facilities and prioritized flexibility and service. We have continued to work with our customers to shift products and quantities to meet our customer needs, and altered our production schedules to meet them.”
For example, due to the slowdown of the airline industry, Emmi Roth partnered with other customers to sell airline cheese trays directly to consumers, Omer notes.
“The biggest challenges we have been facing are in the foodservice and airline industries, and reacting to their changing needs. Our sales and marketing teams have been challenged to think outside the box on product development and formats for the new ways people will consume food products at restaurants and during air travel,” he says. “On the other side, we also saw increased demand in products from our retail customers, where we needed to increase production or shift products from the foodservice channel to meet changing needs.”
Omer adds Emmi Roth has had a focus on e-commerce for the past several years, and the company’s work in that area has set it up for success during this time.
“Since we do not sell direct to consumer through our own e-commerce site, we are using platforms like Instacart to promote our cheeses at the grocery retailers who sell them,” he says. “The sales we are generating on the online grocery sites we work with are incredible, and we are investing in the growth we’re having.”
Sheana Davis, award-winning chef, cheesemaker, caterer, culinary educator and owner of The Epicurean Connection, Sonoma, California, has been supporting the artisan and farmstead cheese movement for more than 20 years. She notes the company’s restaurant wholesale business has dropped by 80% since COVID-19 hit the market.
“We are seeing it gradually build back up, as we had our first orders two weeks ago,” Davis says.
“We are lucky we self-distribute our cheeses,” she adds, noting the company had to cease cheese production in March and April and just restarted production earlier this month.
For its own cheese sales, Davis says the company currently is repacking its 5-pound tubs to 8- and 16-ounce tubs for consumers. As far as purchasing cheese, the company has gone to all pre-cut and wrap for the time being.
The Epicurean Connection also offers a home delivery service.
“We deliver weekly between 25-50 boxes of prepared foods and artisan cheeses,” Davis says. “We sell our own cheeses along with guest cheeses in the box. Each week we feature a selection of cheeses, with information on how to serve them, and they are paired with a wine, beer or cider.”
For retail, Davis says partnerships are key.
“It can really help sustain a small cheesemaker by having a retailer step up and sell their cheeses. In these times, no samples are offered, so really the trust is in the cheese departments and their staff. Relationships in this business go a long way; cheesemakers that have taken the time to get to know the retailers over time have the advantage of good sales. If a retailer has a story to tell, then that ultimately sells cheese,” she says.
New York City-based specialty shop Murray’s Cheese says its staff is looking for ways to bring more focus to independent cheesemakers who need help as their businesses grapple with COVID-related supply chain challenges.
“A lot of our artisan producers have been hard hit by the drop in restaurant business. Those sales have not translated 1:1 to retail,” says Nick Tranchina, president, Murray’s Cheese. “Giving focus and visibility to these producers and finding ways to help them connect with customers is important at this time and something we are very focused on at Murray’s.”
He adds as consumers have shifted to cooking at home more, Murray’s has seen big spikes in demand for classic cooking cheeses like Parmigiano, Mozzarella and others.
Schuman Cheese, Fairfield, New Jersey, says due to the increase in home cooking the company has seen a great increase in larger cheese package formats because consumers are buying more cheese in bulk.
“Our value blends are a great example of this pivot,” says Neil Cox, chief customer officer, Schuman Cheese. “We developed three varieties of shredded cheese, sold in pillow packs or twist ties, in a variety of sizes. This is quality product, following our True Cheese guarantee, at a value price.”
Cox notes that during the pandemic, the demand for cheese in retail and club stores has been unprecedented and caused Schuman Cheese to shift its process some to accommodate.
“Luckily, we have a broad portfolio of prepacked cheese to meet the needs of the retailers and therefore the consumers during this time,” he says.
Omer says Emmi Roth also has adapted to the increased demand for bulk purchases.
“As consumers stock up at club stores in particular, we are seeing more demand for some bulk consumer items such as our Emmi Triple Source Gruyere and Roth 4 Variety Pack Cheese Slices, both sold at Costco,” he says. “Cheeses that have a longer shelf life and are versatile are also selling well right now. In addition, we have seen a large increase in demand for our imported Emmi Gruyere cheese as people prepare more home-cooked meals.
“To be relevant from a marketing perspective right now, we are focusing much of our budget on e-commerce and digital marketing promotions to support these items,” he adds.
In the months ahead, the specialty cheese community wants to make sure that its products continue to reach consumers and that the makers of these products continue to survive.
“While we are aware that specialty cheese is not a crucial everyday food item, many consumers rely on our cheeses for snacking, increased cooking at home and treating themselves during the mental toll the pandemic is having on many people,” Omer says.
Cox agrees.
“For our customers, truly for everyone, there is comfort in being able to access food items that they love and enjoy,” Cox says. “As shoppers hit the stores, we saw that they were looking for items that were comforting, nostalgic and even a little fancy to help keep spirits up and bellies full. Having Copper Kettle with a glass of wine after home-schooling kids, working from home and all of the other changes that COVID brought is a nice treat.”
Tranchina notes in addition to being delicious and joyful, specialty cheese also supports a broad community of mongers, distributors and agricultural businesses.
“Many of these businesses are not guaranteed to exist in the future if we don’t support them today,” he says.