instore - August 2017 - 16

specialty insights

CONSIDER

Imported cheeses

As global demand for cheese continues to rise, so do cheese exports to
the United States.

and a rouge shipped under the Belletoile label and Henri Hutin-branded brie
couronne, which the company bills as the only lactic brie on the market.

The compound annual growth rate (CAGR) of global cheese markets
should average about 4.2 percent through 2020, according to market
research specialist TechNavio.

Among Bergland's more exotic U.S. offerings is its Transylvanian Cave
Cheese, aged in salt mines in Transylvania and marketed in Halloweenthemed packs.

In the U.S., meanwhile, sales of natural and specialty cheeses now
top $17 billion annually, according to market research firm Packaged
Facts. Per-capita consumption also is on the rise - by 2025, the average
American will consume about 37 pounds annually, according to Statista.

In addition to its branded offerings for U.S. grocery store delis, Bergland
also packs in private labels for some customers, says Sebastian
Roettger, Bergland's president and CEO.

When it comes to imported cheese, both the volume and value of
cheeses exported to the U.S. rose annually from 2013 to 2015, reaching
200 million kilograms worth about $1.3 billion in 2015, according to the
U.S. Department of Agriculture's Foreign Agricultural Service.

Imported cheese sales rose to
about $1.3 billion in 2015.
The U.S. Department of Agriculture's Foreign Agricultural Service

In 2016, however, while volumes rose, to 205 million kilograms, the
value of cheese imports dropped slightly, to $1.26 billion.
At the grocery instore level, meanwhile, marketers of imported
cheese continue to see the differentiation and value imports provide
to the category.
Bergland Cheese USA LLC markets imported cheese under the Bergland
brand and other labels owned by its parent company, Hochland AG.

Other branded product imported from Bergland includes Almonta
cheese spread, packed in a container that looks like a wooden keg and
available in a variety of flavors - Original, Fine Herbs, Light Chives, Light
Yogurt, Tomato & Pesto, Apricot & Vanilla and Blueberry & Raspberry.
Bergland's French cheeses
sold in the United States
include a triple cream brie

"The demand for premium private label options is definitely growing.
And demand for new, differentiated cheeses is also up. It's a clear 'yes'
for growth."
U.S. consumers of imported cheese can look forward to high-quality
product at lower prices, Roettger says, due to significant changes in the
retail grocery industry (see ALDI and LIDL).
"I believe that the German discounters will be growing in the U.S.,
bringing in more interesting imported items at affordable prices for
everyone," Roettger says. "All other grocery stores will need to carry
differentiated items plus cover the same items."
"Our Transylvanian Cave Cheese gets great appreciation, and our
Belletoile Triple Cream Brie has been doing great in the U.S. for over 25
years," he says. "The same is true for our Brie Couronne."
Bergland also is making "good progress" in the U.S. on its Almonta line,
which was introduced in 2016, Roettger says. That's encouraging, he says, given the stiff competition.
"There is a huge amount of imported cheeses in
almost every store. Standing out, especially with
new items, is tough. Also the process of getting new

German retailers' entry to the U.S. market should
help sales of Bergland and other imports.
16 * AUGUST 2017 * instore

LEFT: BERGLAND CHEESE USA LLC. OPPOSITE PAGE: SAVENCIA CHEESE USA LLC

Lincoln Park, New Jersey-based Bergland imports Bergland-branded
Bavarian swiss, Bavarian and Greek feta and a line of grilling cheeses
from Germany.

Imported cheese sales in the U.S. are on the rise, driven by at least a
couple of factors, Roettger says.

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