The back-to-school time period has long been linked with cheese. Whether included as slices in a homemade sandwich, added to a lunchbox as a stick or other fun shape, or enjoyed after school to tide a hungry young belly over until dinner, cheese evokes warm, nourishing memories of our younger days.
Today, this is probably truer than ever. With the economy in a longterm funk, consumers are increasingly preparing their own lunches to save bucks, but this activity is just part of a sandwich-making trend that’s been going on for some time, even before the current recession.
“According to the NPD Group, sandwich consumption has risen 4.6 percent the past four years, and more people are packing their own lunches,” notes Erica Jones, spokeswoman for Kansas City, Mo.-based Dairy Farmers of America (DFA), a cooperative boasting over 18,000 members and owner of the famous Borden cheese brand. Obviously, those habitual brown-baggers include kids, too.
According to Nielsen figures for the 52 weeks ended March 21, 2009, thanks to such home-preparation practices, many cheese segments are managing to weather the economic storm, with natural American cheddar, natural mozzarella, natural Swiss, processed American slices and processed loaves showing sales dollar increases of 8.4 percent, 8.2 percent, 8.0 percent, 4.4 percent and 3.6 percent, respectively, in food retailers with $2 million or more in sales (excluding supercenters), although unit volume for most of these segments (except processed cheese slices) was down from last year. (Nielsen defines “natural” cheese as “what is notidentified as processed cheese.”) This combination of higher dollar sales and lower unit volume is attributable to fewer exports since the economic downturn began and plentiful domestic cheese stocks, industry publication Dairy Herd Management noted early this year.
Processed cheese snacks, meanwhile, showed a 0.4 percent decrease in dollar sales, and a 7.4 slide in unit volume, perhaps indicating that their novelty is beginning to wear off and the segment needs a kick-start of innovation. The overall cheese category’s sales dollars grew 7.6 percent during the same time period.
Natural Progression
Given the concerns many parents have regarding additives in their families’ food, the rise in popularity of unprocessed cheeses comes as no surprise to Barbara Gannon, VP-corporate communications & government relations at Sargento Foods, Inc. in Plymouth, Wis. “Natural cheese is a much more wholesome alternative to other snacks – it provides calcium and protein, and is a satisfying snack that still tastes great,” she says. “Most parents prefer that their kids eat cheese as a snack vs. chips or cookies or other alternatives. Sargento has a flavour for every set of taste buds, too – string cheese, mild cheddar shapes and bars, Colby jack sticks, and even pepper jack and sharp cheddar items for more adventurous tastes.”
As a matter of fact, back-to-school has proved to be a bonanza for the natural cheese company. “Back-toschool is always a good consumption period for us, and last year was not an exception to the rule,” notes Gannon. “This year, with the marketing support we kicked off in 2009 (first TV advertising on natural cheese snacks in nearly a decade), we expect sales to be even better.”
Still, natural or not, cheese offers a nutritious – and appealing – boost for youngsters. “Parents are always concerned about sending the right mix of healthy foods so that their children won’t drag through the school day,” observes Lynne Meredith Schreiber, director of communications at Southfield, Mich.-based Hiller’s Markets, a family-owned chain of seven storesin the southeastern part of the state, with an eighth slated to open this year. “Cheese holds its consistency and flavour in a packed lunch, and provides a relatively low-fat protein, as well as a much-needed dairy serving for growing children.”
Describing the current crop of cheese products on the market as “very kid-friendly,” Schreiber notes that at Hiller’s, “[a]ll brands of string cheese sell like crazy, because it is healthy and a ‘play-with’ type of snack. This coming [school] year, Hiller’s will tie in cheese, lunchmeat and bread products together for easy back-to-school lunches and cross-department promotions. We merchandise via end cap and special signage where appropriate. Sliced cheese, cheese cubes and cheese sticks are all very popular at Hiller’s for back-toschool.”
The grocer holds year-round cheese sales, which Schreiber describes as being “even better for back-to-school, when we promote sliced cheeses, cheese sticks/string cheese and Laughing Cow Bonbels. We expect the same this year. Cheese is a perennial favorite for back-toschool. Last year, sales were excellent, and our expectations are the same for this year, largely because cheese prices have come down, and it is proving to be a great value.”
New Sensations
Back-to-school is also a time for publicising new products such as Borden’s Singles Sensations, which launched this spring and is being heavily promoted through the fallvia a 15-second commercial tag, social media outreach, an online contest and in-store demonstrations.
“While in the past, we have not focused specifically on the back-toschool time frame, our new Singles Sensations cheese singles help moms make school lunches more sensational because they are packed with yummy ingredients such as Applewood Bacon Cheddar, Sun-dried Tomato Basil and Pepperjack,” says the DFA’s Jones. “Adding zesty flavours to sandwiches, entrees or side dishes can make a big difference for families that are choosing to prepare more meals at home. Borden Singles Sensations add creativity and flavour that appeals to younger consumers; plus, they won’t pinch Mom’s pocketbook.” A 10-count package retails for a suggested $1.88 to $2.99, depending on the markets and retailers, according to Jones.
The Deli Difference
Of course, cheese is also sold in the deli section, and CPG companies and retailers alike are eager to make that connection in the minds of parents buying items from which to make lunches and snacks for their school-age children.
“We expect Land O’Lakes Premium Deli Cheese sales to be strong this fall because moms are looking to prepare more meals and snacks – for both in-home and out-of-home consumption,” notes Erin Gislason, marketing manager at St. Paul, Minn.-based Land O’Lakes, Inc. To lead parents to the deli counter for their cheese purchases, “[w]e are working on the third installment of our ‘Memorable Moments’ instore campaign for back-to-school,” says Gislason. “The focus of the campaign is to help moms create meals that are made memorable with certain ingredients, like Land O’Lakes Premium Deli Cheese. We will feature a delicious after-school snack recipe as part of our in-store creative.”
The program, which was developed by MarketingLab of Minneapolis and launched earlier this year, offers a counter card, static cling, high-value coupons, and cross-category signage linked to the specific meal occasion. Memorable Moments “draws on deli shopper insight and the idea that what we eat can define a season, a time and an occasion,” explains John Tieszen, account director at MarketingLab.
At Lincoln, Neb.-based B&R Stores, which operates 18 locations in Nebraska and Iowa, an ongoing partnership with a cheese supplier is the driver of a winning back-toschool strategy. The company has already seen “great success” with the Kretschmar line of cheeses in its deli sections, and will use the product in the stores’ newly designed sandwich program, according to B&R director of marketing Marty Jarvis.
“From a deli perspective, we will again be working with Kretschmar to have a back-to-school campaign for the deli,” says Jarvis. “This year, we are working with them on a sandwich contest that will bring attention to recipes that add creativity to kids’ lunches. This contest will focus on moms creating creative and healthy lunches and snacks for both schools and the office.”
Adds Jarvis: “Packing lunches and snacks is not only economical, but is [also] a great way to control the nutrition. Cheese can be a big part of that nutritional balance, and B&R hopes to use this deli contest to demonstrate that..”
The grocer’s overall view of the back-to-school time period is that it’s “great for promoting cheese, as it is a lead-in to all the important holiday entertaining times, when the more gourmet cheese sales pick up,” notes Jarvis. “B&R plans on working with Kretschmar in the October and holiday time frame to further increase our cheese sales.”
Armed with actionable plans, B&R is optimistic about its deli case cheese promotions for back-toschool and beyond. “We expect to see some growth in cheese this backto- school,” says Jarvis. “Syndicated data shows that there is still positive growth to be had in both the selfservice and service portions of deli cheese. Additionally, there are some great programs and sampling opportunities we are working on with our suppliers for the post-back-to-school time frame, [and] combined with our back-to-school program and our sandwich programs, we expect this to be a great year for cheese at B&R.”
