Natural cheese sales grow 2% to $21B

Although year-over-year (YoY) cheese sales growth is not the highest in the dairy category, they continue to plug away and see solid gains. The overall natural cheese category exhibited both dollar and unit sales YoY growth of 2% for the 52 weeks ending Jan. 25 to $21 billion and 5.2 billion, respectively, according to Chicago-based market research firm Circana. However, processed cheese had a down year compared to the prior 52-week period.

Let’s start with the natural cheese category, which saw several subcategories perform well, while some authored mixed results. On the positive side of the ledger is natural cheese-chunks, whose dollar sales advanced 7% YoY to $6.2 billion, as well as a 5% unit-sales rise to 1.3 billion. Private label leads the way, accounting for both a 6% YoY dollar and unit climb to $2.2 billion and 639 million, respectively, per Circana data. A standout in this subcategory was Irving, Texas-based Cacique Foods. The No. 8 seller in the subcategory saw dollar sales rocket higher by 21% YoY to $186 million, joined by an 18% unit-sales rise to 41 million.

Natural cheese-string/stick generated dollar sales growth of 5% YoY to $1.9 billion, along with a 1% unit-sales increase to 396 million. The No. 1 seller in this subcategory was again private label, generating dollar sales of nearly $684 million, good for a 9% YoY advancement, as well as a 4% unit-sales rise to 158 million. Posting big gains in this subcategory was Irish-based Ornua, now the No. 10 seller. Its dollar sales advanced by a stellar 174% YoY to $12.6 million, along with a similar 173% unit-sales jump to 1.5 million.

Also netting positive results were the natural cheese-all other forms subcategory, whose dollar sales for the year ending Jan. 25 came in at $583 million, good for a 9% YoY increase, Circana reports. Unit sales were also strong, gaining 7% YoY to 112 million. The No. 1 seller in this subcategory was Belgioioso. The Green Bay, Wis.-based company’s dollar and unit sales both gained 6% YoY to $217 million and 38 million, respectively. Chicago-based Bel Brands, the Now. 4 seller, enjoyed a 72% YoY rise to $26 million, paired well with a 58% unit-sales jump to 2.3 million.

Ricotta cheese was another winner for the cheese category. Dollar sales picked up 5% YoY to nearly $339 million for the 52 weeks ending Jan. 25, while unit sales climbed 3% to nearly 80 million. Private label leads this subcategory with $145 million in dollar sales, a 7% YoY advancement, as well as a unit sales rise of 4% to 41 million. But nipping at private label’s heels was Buffalo, N.Y.-based Lactalis American Group, whose dollar sales gained 6% YoY to $123 million, while unit sales picked up 5% YoY to 25 million, Circana reports.

Generating double-digit growth, refrigerated grated cheese sales skyrocketed by 12% YoY to $233 million, paired nicely with an 11% unit-sales jump to 44 million. Once again, private label was the leader in this subcategory, gaining 7% YoY in both dollar and unit sales to $78 million and 16 million, respectively. Belgioioso also had a standout year in this subcategory. The No. 2 seller enjoyed both a 25% YoY dollar sales and unit sales rise to $54 million and 11 million, respectively.

The other subcategories — natural cheese-shredded, natural cheese-slices, natural cheese-crumbled and natural cheese-cubed — had more muted results for the period ending Jan. 25. The natural cheese-shredded subcategory lost 2% YoY in dollar sales to $7.3 billion while managing to eke out a 0.3% YoY unit-sales climb to just shy of 2 billion, according to Circana. Generating a large majority of sales in natural cheese-shredded was private label, accounting for $5 billion in dollar sales, a 3% YoY loss, but gained 1% in unit sales YoY to 1.4 billion. V&V Supremo Foods stood out in the subcategory, as dollar sales jumped 32% YoY to $120 million, good enough for the Chicago-based company to be the No. 5 seller in the subcategory. Unit sales picked up an even stronger 33% YoY to 13 million.

Natural cheese-slices posted small YoY gains, as dollar sales improved by 0.4% to $3.7 million, while unit sales authored a 2% YoY gain to slightly more than 1 billion. Private label was again the category leader, posting $1.9 billion in sales, a 0.3% YoY gain. Its unit sales fared better, gaining 3% YoY to 668 million. Cabot Creamery, the No. 7 seller in the subcategory, is one to spotlight. The Waitsfield, Vt..-based company’s dollar sales jumped 24% YoY to $74 million, paired with an even stronger 26% unit-sales rise to 20 million.

Natural cheese-crumbled didn’t fare as well. The subcategory’s dollar sales dipped 0.3% YoY to $638 million, while unit sales dropped 0.7% YoY to 134 million, Circana data reports. This subcategory’s top seller for the period ending Jan. 25 was Emmi Roth USA. The Stoughton, Wis.-based company’s dollar sales suffered a small 1% YoY dollar sales loss to $164 million, while unit sales declined by 0.4% YoY to 30 million. Once again, Belgioioso had a strong year, delivering dollar sales growth of 13% YoY to $17.5 million, bested by unit sales growth of 17% to 3.7 million, good for the No. 6 seller in the subcategory.

Lastly, under the natural cheese category is natural cheese-cubed. The subcategory’s dollar sales had a small loss of 0.1% YoY to $229 million, but unit sales gained 2% YoY to 63 million. Private label again took the top spot, generating $146 million in dollar sales, a 0.2% YoY improvement, as well as a 3% unit-sales rise to 45 million. Natural cheese-cubed had two huge standouts for the year ending Jan. 25: Upper Cut Brands, the No. 4 seller, and Land O’Lakes, the No. 9 seller, both posted triple-digit YoY gains. Phoenix-based Upper Cut’s dollar sales rose 259% YoY to $5.4 million along with a 211% rise in unit sales to 956,860. Arden Hills, Minn.-based Land O’Lakes enjoyed a 280% YoY dollar sales jump to $2.5 million, paired with a 301% unit-sales increase to 748,318.

Processed cheese struggles

The processed cheese category saw both dollar and unit sales decline by 4% YoY to $3.3 billion and 694 million, respectively, Circana data reveals. Among its five subcategories, only one, cheese balls/spreads, saw a YoY dollar sales increase. The subcategory’s dollar sales picked up 3% YoY to $703 million, but unit sales declined by 0.1% to 133 million. Bel Brands, the No. 1 seller in the subcategory, posted a dollar sales advancement of 6% to $377 million, paired with a 4% unit-sales gain to 71 million. Another highlight of this subcategory was Ballards Farm Sausage. The Wayne, W.Va.-based company’s dollar sales lifted higher by 13% YoY to $7.2 million, good enough for the No. 7 seller in the subcategory. However, its unit sales dropped by 4% YoY to 1.46 million.

Other processed cheese subcategories suffered both dollar and unit sales drops for the period ending Jan. 25. Processed/imitation cheese-slices saw dollar sales decline by 7% YoY to $1.89 billion, while unit sales plummeted 5% to 440 million. Topping the sales list was Kraft Heinz, whose sales more than doubled compared to its closest competitor. The Chicago and Pittsburgh-based company’s dollar sales came in at $1.1 billion, a 7% YoY loss, as well as unit sales of 219 million, a 4% YoY loss. Among the top sellers in this subcategory, all suffered both dollar and unit sales YoY losses with one exception: Bongards Creameries. The Chanhassen, Minn.-based company enjoyed a YoY dollar sales increase of 4% to $11 million, while unit sales rose 2% YoY to 1.2 million, good enough to finish as the No. 8 seller in the subcategory.

Turning our attention to processed/imitation cheese-loaf, dollar and unit sales both dipped by 3% YoY to $374 million and 48 million, respectively. Kraft Heinz was again the top seller, with its dollar sales declining by 3% YoY to $361 million, as well as a 2% unit-sales drop to 46 million. Among the other top 10 sellers in this subcategory, all suffered both dollar and unit sales decreases.

The story was similar in the processed/imitation cheese-all other subcategory, which saw YoY dollar sales dip by 4% to $260 million. Unit sales dropped by 3% YoY to 48 million. Kraft Heinz again led the pack, bucking the subcategory trend by seeing its dollar sales rise by 1% YoY to $138 million. Its unit sales picked up 2% YoY to 24 million, per Circana data. A standout in this subcategory was No. 6 seller DCI Cheese Co. The Richfield, Wis.-based company’s dollar sales ascended by 28% YoY to $6.4 million, paired with a similar 27% unit-sales jump to 1.6 million.

Lastly, processed/imitation cheese-shredded had tough sledding for the year ending Jan. 25. The subcategory’s dollar and unit sales both dropped to the tune of 6% YoY to $107 million and 26 million, respectively. Flora Food Group was the top seller in the subcategory. The company, whose U.S. headquarters are located in Hackensack, N.J., suffered a 5% YoY dollar sales decline to just shy of $30 million. Meanwhile, its unit sales dipped by 3% YoY to 6 million. Private label did have a good year in this subcategory, however, as its dollar sales increased by 12% YoY to $17 million, good enough to place fourth. Its unit sales also rose by 6% YoY to 4.8 million. DF