June 8, 2007
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CHEESE VARIETY — Guggisberg Cheese, located in Ohio in the heart of Amish country, is known for its Baby Swiss, Swiss and related varieties of cheese.

By Kate Sander

WHITEHALL, Wis. — For companies looking to add excellent cheese flavor to their frozen entrées or other food products, Whitehall Specialties may be just the place to start.

Founded 13 years ago with two dozen employees, today Whitehall

Specialties is a leading supplier of custom analog cheese products. The company now employs 280 people, enjoys sales that topped $100 million in 2006 and just opened a new production facility ­— its third.

Whitehall Specialties’ products include cheese substitutes, imitations, alternatives and processed cheese products made with dairy and non-dairy proteins and alternative oils or dairy fat in place of milk solids. The company’s strength is in its ability to custom formulate just about anything for which a customer is looking, says Steve Fawcett, company president, who, along with private investors, acquired the former analog division of DMV International in 1994.

Whitehall Specialties can custom manufacture any cheese product to a customer’s specifications or the company’s research and development department will create a product to meet a customer’s requirements. To date, Whitehall Specialties has more than 200 operating formulas that have been designed to meet its customers’ needs. These range from completelynondairy cheese alternatives to high-end blends utilizing a combination of natural cheese and analog cheese to help control price.

Among the company’s latest developments is the introduction of its new sauce line in bags. Restaurant-style, high-quality cheese sauces represent the largest component of the new refrigerated product line, but the company has the ability to make a variety of sauces, according to Fawcett.

“We can make less expensive economy sauces and gourmet sauces and everything in between,” he says, adding that a number of flavorings are available.

The sauces are available in 2- to 15-pound bags and are targeted toward restaurant customers. Currently restaurants are only a small part of Whitehall Specialties’ business, representing only 5-10 percent of sales, but Fawcett expects that to grow with the advent of the sauce line. The company also has done the preliminary work to make available shelf-stable cheese sauces and certain sauces can be made in freeze-thaw bags.

In addition, the company has plans to slowly move into portion packs of sauces.

The sauces are made at the company’s new 74,000 square-foot facility in Whitehall, Wis., which gives the company more than 200,000 square feet between the three plants. This is the company’s second facility in Whitehall, and it is primarily going to be concentrated on the sauce business. The company’s original plant also is located in Whitehall. A second production facility was constructed in Hillsboro, Wis., in 2000.

The original Whitehall plant and the Hillsboro facility operate a number of product lines including individually-wrapped slices, shreds, dices and grated. The company makes a wide array of blends for customers; Fawcett says blends of natural Mozzarella and analog cheese are popular with frozen pizza customers.

In general, there are many benefits to analog cheese, Fawcett says. Because Whitehall Specialties is not constrained by standards of identity like natural cheese manufacturers are, the company can do a lot of different things with its products. Whitehall Specialties can custom formulate low-sodium, zero cholesterol, increased/decreased protein and lactose-free products as well as create dairy-free products. The company also can alter melt points, shred ability, taste and color in addition to improving shelf-life, stretch and body.

“We can make a low-protein product and make it tasty and still have it be in a cheese form that you couldn’t have otherwise,” Fawcett says.

Another key advantage, Fawcett says, is the ability to reduce cost and give price stability.

Fawcett says the perception of analog cheese has improved over the years and notes that it can be used in just about any food product.

“When I first started in the business, the attitude was worse than it is now,” Fawcett says, when asked if he ever encounters people who give him a hard time because his company doesn’t make “real” dairy products.

“But many companies make these products; some just hide it,” he says.

Whitehall Specialties doesn’t hide what it does. In fact, it enjoys business from a diverse customer base.

Whitehall Specialties’ customers are far-flung. Besides having customers throughout the United States, the company exports product to Mexico and Central and South America. Currently the company also is exploring opportunities to export to Africa and Europe.

While more than half of Whitehall Specialties’ business is with customers who make frozen entrées, the company also has a branded retail line, Tierra DeQueso. It also produces private label retail products.

Under the retail line, individually-wrapped slices are available in American, White American, Jalapeño, Swiss and other custom flavors. Shreds are available in Cheddar, Mozzarella, American, Muenster and other custom flavors. A number of blends are available. The products are made using a blend of natural cheese, cheese food, cheese product and cheese spreads. Natural cheese is used as a high-level ingredient in many products.

Fawcett says the company prides itself on not acting like a big company even though it has enjoyed significant growth over the past decade.

Being a larger company means the company has the resources to handle large accounts but the company also welcomes smaller customers.

With a dedicated research and development team, the company also can turn around custom-formulated products quickly.

“When we make new products, it’s not a 6-month project, it’s a 2-week project,” Fawcett says.

He estimates that about 60 percent of the company’s business comes from custom-formulated products vs. standard products.

Fawcett is quick to point out the company’s success hasn’t been an accident; it’s due to long-term relationships.

These long-term partnerships with key suppliers ensure a consistent supply of raw materials and in turn reflect in Whitehall Specialties’ finished products.

And the work force is a great asset.

“Our success is in our long-time employees, from the people in the office, to the lines, to maintenance,” he says.

Whitehall Specialties has maintained a steady core of dedicated employees over the years. This longevity of service is reflected in the company’s knowledge base, which is key to delivering consistent products to customers in a timely manner, company officials say.

CMN