September 11, 2009
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OVERHEAD VIEW — DCI Cheese Co. operates a large facility in Green Bay, Wis., where it continually is enhancing its packaging and warehousing capabilities.

QUALITY CHEESE — DCI Cheese Co. offers an array of specialty cheese for its customers. The company handles both domestic and imported cheese, working in some way with approximately 200 cheese companies.

By Kate Sander

RICHFIELD, Wis. — In an economy where consumers are more carefully watching their spending, many still consider specialty cheese an affordable indulgence.

“Consumers are eating out less, but they are looking for more upscale experiences in their homes,” says Tim Omer, CEO, DCI Cheese Co. “The desire for bold-flavored cheeses continues to grow.”

Still, buying a specialty cheese can be intimidating for a consumer.

Sometimes the price point for an unknown cheese can be off-putting. And sometimes, consumers simply have no idea how to cook with a particular cheese or what to pair with it.

That’s why packaging is such a critical part of the cheese business, Omer says, and why DCI Cheese Co., which handles specialty cheese from around the globe, is investing in its packaging capabilities.

DCI Cheese Co., headquartered in Richfield, Wis., was founded as a brand-building consulting firm in 1975 by Dan Carter, who since has retired but still works in the cheese industry to promote and grow the specialty cheese category. The company has grown over the years from being a marketer to being a company that wears a number of hats, and today the company offers a unique and balanced set of capabilities for customers.

One of those hats is that of packager, a role DCI assumed in 2006 when it purchased Green Bay Cheese Co., Green Bay, Wis., a leader in custom cheese packaging and procurement for the consumer, foodservice and industrial markets. DCI already was Green Bay Cheese Co.’s largest customer, and the synergies created by the acquisition made a lot of sense, says Tim Preuninger, general manager of the Green Bay Division of DCI Cheese Co.

Since the acquisition three-and-a-half years ago, DCI Cheese and DCI’s owner, Fairmount Food Group LLC of Dallas, have heavily invested in the capabilities in the Green Bay Division, more than doubling the company’s conversion capacity, introducing bar code scanning capabilities and adding a cupping line, in addition to implementing a general expansion of its slicing, cubing and shredding capabilities. The company also smokes and grades cheese for customers desiring these services.

“Investing internally made it easier for us to get sufficient scale to effectively service our customers,” Omer says.

It also gives the company greater control over quality and consistency of the products it represents.

“Just about anything you can do to cheese, we can do,” Preuninger adds.

Even so, the company continues to actively study new areas of packaging in which it can invest. At a time when many companies are looking for ways to simply survive, Preuninger says, “We’re 180 degrees different. We’re looking at expanding.”

“We’re a new products innovator,” Omer adds. “We’re not just a me-too converter.”

Omer notes that many of the company’s cheeses are impulse buys ­— or at least start that way until consumers are hooked. That’s why having cheese available in a variety of formats and sizes, including small, convenience-oriented packages, is so important.

“There are really great cheeses out there, and we want to make it so consumers want to try them,” Preuninger adds.

The variety that DCI provides consumers also is helpful for the companies it directly supplies, who can buy an array of specialty cheese from one source.

Consolidating cheese in Green Bay and at other points allows DCI to provide a high level of customer service, variety and convenience. In 2006, DCI Cheese also acquired Swissrose International Inc., Moonachie, N.J., and in 2007, DCI acquired Advantage International Foods Corp., which imports, markets and distributes more than 1,000 products nationwide.

DCI since has consolidated some of its import warehouses into one East Coast facility to better serve its customers.

In addition to its variety of packaging, the company’s cheese offerings continue to grow. After representing several small and medium-sized cheese companies during its first years in business, in 1991, DCI launched its first company-owned brand, Salemville Cheese. Today, DCI owns or licenses several brands, including Black Diamond, Joan of Arc, Salemville, Organic Creamery, Nikos, and King’s Choice. Six U.S. cheese companies manufacture solely for DCI, and DCI is the sole U.S. importer for 11 international firms, according to Omer.

Many of the cheeses are award winners — most recently, Meister Cheese Great Midwest Roasted Red Pepper Mozzarella Cheese won first in its class at the American Cheese Society’s (ACS) competition in August. Low Fat Feta from Klondike Cheese Co. — another cheese company that DCI represents — also won first in its class at ACS.

Ultimately, with all of its licensing agreements, partnerships, joint ventures and other business relationships, DCI works in some way with approximately 200 cheese companies. While somewhat of a unique business model, Omer says the broad core of business allows DCI to provide one-stop shopping in increasingly beneficial ways for customers. The company currently markets about 115 million pounds of cheese annually, with about 60 percent going into the retail channel and about 20 percent going into foodservice. The remainder of the business is bulk commodity cheese.

Among the company’s latest unique cheese offerings is its joint venture with renowned chef Mario Batali. In conjunction with Batali, in 2008 DCI launched Mario Batali-branded cheese with a three-cheese blend and a five-cheese blend. The cheese blends combine traditional shredded cheeses — featuring Parmesan and Mozzarella — with more adventurous flavors to create two exciting new products. Cinque Formaggi is a bold five-cheese blend featuring Mozzarella, Provolone Picante, Fontina, Asiago and Grana Padano. Batali’s Tre Formaggi, a zesty three cheese blend, combines Mozzarella, Fontina and Parmesan.

Following the launch, in 2009 the company added to the Mario Batali line with three new Spanish cheese varieties — Iberico, Valdeon and Etxegarai — as well as three new Italian cheeses — Mountain Gorgonzola, Organic Parmigiano-Reggiano and a Mandarini-shaped Provolone Picante.

In addition, DCI is offering increasingly aged Black Diamond Cheddar, expanding from its 4-year-old Cheddar to even offering a 6-year-old Cheddar. The company may introduce a 7-year-old Cheddar in the future.

Omer says he also sees growth in the flavored Jack categories with introductions such as Bruschetta Jack and a Spring Onion Jack. With the Green Bay Division’s smoking capabilities, the company also is looking at offering some unique smoked cheeses.

And although the organic category currently is a tough segment to be in, the company is seeing growth there as well, Omer says.

Overall, DCI sees many opportunities in the specialty cheese business, and the company’s executives continue to seek ways to make it easily accessible.

Preuninger notes that sustainability is increasingly important to consumers today, and the company is looking at ways to enhance the sustainability of its packaging without adding to costs. He expects the company to make inroads in this area over the next 12 to 24 months.

DCI also will be kicking off a LEAN manufacturing initiative soon, and Preuninger is excited about what the program will mean for the company in increasing operational excellence.

CMN