Bolstered by private-label sales, cheese continues to rise to the top

Cheese continues its run as perhaps the strongest segment of the dairy industry. For the year ending Jan. 28, there were very few kinks in its armor.

According to Chicago-based market research firm Circana, most subcategories enjoyed year-over-year (YoY) dollar sales and unit gains for the 52-week period.

It is hard to find something better than cheese at a party, and the “party” for cheese sales starts with overall natural cheese dollar sales, which reached $18.5 billion for the period ending Jan. 28, a 3% YoY gain. Unit sales increased by 2% YoY to 4.78 billion.

Under the natural cheese category, natural cheese-shredded also enjoyed a strong year, with dollar sales jumping 3% YoY to $6.95 billion, and unit sales lifting 2% to 1.9 billion. Private label provides a majority of these sales. Its sales figures basically tracked that of the entire subcategory, with dollar sales and unit sales rising 3% to $4.8 billion and $1.343 billion, respectively, Circana states.

Among the top 10 manufacturers in the natural cheese-shredded subcategory, four enjoyed both YoY dollar sales and unit sales gains. These achievements belong to Tillamook County Creamery Association (dollar sales up 11% to $191 million; unit sales up 10% to 46.6 million); Kansas City, Kan.-based Dairy Farmers of America’s Borden (dollar sales up 17% to $74 million; unit sales up 9% to 24 million); Marietta, Ga.-based V&V Supremo (dollar sales up 12% to $53 million; unit sales rising 16% to 5.5 million); and Montréal-based Saputo’s Frigo (dollar sales up 17% to $51 million; unit sales rising 15% to 13 million).

Natural cheese-chunks had an even slightly better year. According to Circana, this subcategory’s dollar sales rose 4% YoY to $4.8 billion, paired with a unit sales gain of 3% to 1.1 billion. Private label also leads this category, which produced a 6% increase in both dollar sales and unit sales to $1.8 billion and 529 million, respectively.

In this subcategory, Perth Amboy-based Tropical Cheese was the sole double-digit gainer, with dollar sales jumping 19% to nearly $90 million, paired nicely with a 15% unit sales rise to 13.6 million.

Natural cheese-slices was a third subcategory producing solid YoY results. Its dollar sales and unit sales both improved by 3% YoY to $3.3 billion and 977 million, respectively, Circana reveals. Private label was again the top seller, with dollar sales and unit sales both up 5% to $1.77 billion and 597 million, respectively.

Tillamook, the No. 3 seller, enjoyed one of the strongest years in the natural cheese-slices subcategory. The Tillamook, Ore.-based company’s dollar sales increased 13% YoY to $169 million. Unit sales rocketed higher by 16% to 38.7 million.

Yet another subcategory with a strong year was natural cheese-crumbled. Its dollar sales jumped 7% YoY to $607 million, along with a 4% unit sales gain to 135 million. Private label didn’t lead in dollar sales but was No. 2. Placing first on the list was Stoughton, Wis.-based Emmi Roth’s Athenos, whose dollar sales increased by 9% to $158 million, while unit sales rose 7% to 29 million, Circana states.

In the natural cheese-crumbled subcategory, there were four big winners. Enjoying double-digit YoY increases were Wisconsin Cheese Group’s La Morenita (dollar sales up 27% to $37 million; unit sales up 14% to 4.9 million), San Jose, Calif.-based Marquez Brothers’ El Mexicano (dollar sales up 27% to $34 million; unit sales up 28% to 9.5 million); Frigo (dollar sales up 36% to $24.3 million; unit sales up 24% to 7.8 million) and Norcross, Ga.-based Ole Mexican Foods’ Verole (dollar sales up 56% to $13.6 million; unit sales up a whopping 101% to 3.14 million).

Refrigerated grated cheese had a fantastic year ending Jan. 28. Its dollar sales skyrocketed by 14% YoY to $169 million, along with a unit sales pop of 7% to 34 million. Private label led this category in terms of sales but produced mixed results. Its dollar sales rose 4% to $60 million, but unit sales dropped 7% to 12.5 million, as per Circana data.

However, many other manufacturers in this subcategory produced both dollar sales and unit sales gains. These companies include Green Bay, Wis.-based Belgioioso (dollar sales up 23% to $34 million; unit sales up 18% to 7 million); Plymouth, Wis.-based Sartori (dollar sales up 17% to $14 million; unit sales rose 11% to 2.5 million); Darlington, Wis.-based Mexican Cheese Producers’ La Chona (dollar sales up 19% to nearly $12 million; unit sales up 17% to 2.17 million); Chicago-based Lactalis Heritage Dairy’s Kraft (dollar sales up 21% to $6 million; unit sales up 18% to 1.6 million); and Sarasota, Fla.-based Boars Head (dollar sales up 40% to $4.6 million; unit sales expanded 30% to 617,409).

Under the natural cheese category, one subcategory exhibited mixed results: natural cheese-slices, whose dollar sales increased 3% YoY to $3.3 billion, but unit sales dipped by 3% to 977 million. Private label led this subcategory, accounting for $1.78 billion in dollar sales, good for a 5% YoY increase to $1.77 billion, as well as a 5% jump in unit sales to 597 million, Circana reports.

Tillamook was again a standout in this subcategory, enjoying a 13% YoY dollar sales increase to $169 million, bettered by a 16% unit sales gain to 38.7 million.

Although many cheese subcategories had tremendous 52-week growth, processed cheese experienced mixed results. Its dollar sales declined a miniscule 0.1% to $3.5 billion, while unit sales dipped by 3% to 740 million, Circana data reports.

The processed/imitation cheese-slices subcategory eked out a 1% YoY dollar sales gain to $2 billion, but unit sales dropped 2% to 461 million. Kraft Heinz Co.’s Kraft led the way in terms of sales. The Pittsburgh-based company’s dollar sales dropped by 1% YoY to $1.1 billion, while its unit sales decreased 7% to 191 million.

Borden was a star in the processed/imitation cheese-slices subcategory, enjoying a dollar sales rise of 21% YoY to $90 million, and unit sales jumped 16% to 29 million, Circana notes.

Cheese spreads/balls saw dollar sales and unit sales decline YoY. However, the dollar sales decline was small, to the tune of 0.4% YoY to $605 million. Unit sales dropped 4% to 124 million. Topping this category in terms of sales for the 52 weeks ending Jan. 28 was Chicago-based Bel Brands USA’s The Laughing Cow, whose dollar sales dropped 5% YoY to $103 million, as well as an 11% unit sales decline to 25 million.

The biggest standout in this category was another Bel Brands USA product, Boursin. No. 2 in sales in the cheese spreads/balls subcategory, its sales rocketed higher by 22% to $80 million, pairing nicely with a 19% unit sales gain to 13 million. DF