WELCOMEWELCOME

What are we doing here today?What are we doing here today?

We are going to:

Talk about Wisconsin Cheese

Look at current trends in Cheese

Discuss the world of Cheese

Look at variables such as

Varieties / Styles / Rinds / …

Day Parts – It fits them all!

Cold / Hot Functionality

Why Wisconsin Cheese?Why Wisconsin Cheese?

It can be clearly stated that the state of Wisconsin is truly the DAIRYLAND state!

Wisconsin has approximately 15,000 family dairy farmers producing 22 billion pounds of milk per year

This translates to 2 billion pounds of Wisconsin cheese per year

This translates into about 26% of nations total production

What sets Wisconsin Cheese apart?What sets Wisconsin Cheese apart?

500 plus varieties of cheese

State licensed cheese makers

Board Certified “Master” cheese makers

Over 110 cheese production plants

Wisconsin set the standards for the national standards of identity

American consumers trust Wisconsin Cheese is the best domestic cheese

The State of the Art / The Art of the StateThe State of the Art / The Art of the State

Wisconsin Cheesemaking is an art: Deeply-rooted heritage – multi generations

Passion for artisan quality

Innovation – on going

Master Cheesemaker Program

Only Master programavailable outside Europe

46 "active" Wisconsin Master Cheesemakersrepresenting 30 Wisconsin Cheese Companies representing 29 cheese varieties plus style variations

WISCONSIN: America’s DairylandWISCONSIN: America’s Dairyland

STRONG HERITAGESTRONG HERITAGE

First cheese First cheese made in the made in the

1830’s1830’s

In 1871 the Wisconsin In 1871 the Wisconsin Dairymen’s Association Dairymen’s Association

is formedis formed

In 1874 In 1874 Colby Colby

cheese is cheese is inventedinvented

In 1890 the In 1890 the nation's first dairy nation's first dairy

school – UWschool – UW

In 1921 – 1st state In 1921 – 1st state to establish grade to establish grade

standardsstandards

CheeseCheese

The "Art" & Science of GradingThe "Art" & Science of Grading

Some General Taste "grading" Concepts

Abilities increases with experience, sensitivity decreases with age

Hunger potentiates sensitivity, satiety attenuates

Threshold

Detection

Identification

Innate ability

Fatigue

Habituation error

Expectation error

Adaptation error

IntroductionWhy Sensory Evaluation?

• “Only test of eating quality” -F.W. Bodyfelt

• Requires training/familiarization

• Repeatable under controlled circumstances

• Involves all five senses

• Many products have defined “scorecards”

- Lexicon?

- Grading Standard?

• Objectivity?

The anatomy of flavorThe anatomy of flavor

first

The anatomy of flavorThe anatomy of flavor

second

Modern Score sheet

What do you seeWhat do you see

Now what do you seeNow what do you see

“ART” of Cheese Making in Wisconsin Video

“ART” of Cheese Making in Wisconsin Video

Any Questions ?

Cheese Sales InformationCheese Sales Information

Cheese Sells well all year long!

According to AC Nielsen 97.6% of all households buy cheese

second only to milk

Category performance is strong in all months

Month Penetration:

100 = all households

0

20

40

60

80

100

120

Jan. Mar. May Jul. Sep. Nov.

Cheese ConsumptionCheese Consumption

21.5

31.2

0

5

10

15

20

25

30

35

(Pou

nds)

1984 1986 1988 1990 1992 1994 1996 1998 2000 2002 2004

* Preliminary estimate.

Source: USDA/ERS, Livestock, Dairy, and Poultry Outlook.

U.S. Per Capita Cheese Consumption, 1984-2004*

Cheese ConsumptionCheese Consumption

* Preliminary estimate.

Source: USDA/ERS, Livestock, Dairy, and Poultry Outlook.

U.S. Per Capita Cheese Consumption by Variety, 2004*

Other American2.6 lbs.

Cheddar10.3 lbs.

Brick & Muenster0.3 lbs. Mozzarella

9.9 lbs.Other Italian

3.0 lbs.

Blue0.2 lbs.

Swiss1.2 lbs.

Cream Cheese2.4 lbs.

All Others1.4 lbs. 2004* Total

31.2 lbs.

Cheese ConsumptionCheese Consumption

63.1

53.952.8

48.243.6

39.631.2

27.126.4

22.018.2

Greece

France

Iceland

Germany

Italy

Netherlands

United States

Australia

Canada

Argentina

New Zealand

(Pounds)

Source: International Dairy Federation, The World Market for Cheese, Sixth Edition; USDA/ERS, Livestock, Dairy and Poultry Outlook.

Per Capita Cheese Consumption, Selected Countries, 2004

Cheese ConsumptionCheese Consumption

31.632.8 33.1

33.6 34.0 34.4

24

26

28

30

32

34

36

(Po

un

ds)

2005 2007 2009 2011 2013 2015

Source: FAPRI, 2006 Agricultural Outlook.

Projected U.S. Per Capita Cheese Consumption, 2005-2015

Trends in CheeseTrends in Cheese

Farm-friendly foods are very attractive to today's premium product consumers

Consumers are seeking out and eating "local" foods

Fresh, all-natural foods, such as cheese, are tied to a healthy lifestyle

Cheese-enhanced sandwiches continue to gain popularity

Entertaining with food at home has become increasingly popular

Sandwiches ... Sandwiches ...

Sandwiches rule as America's favorite meal, at home or out, at lunch or dinner, we love our Cheeseburgers, Ham and Cheese, Corned Beef and Swiss, etc.

Any sliced meat should be paired with a cheese option

Promote the meat and cheese together

Suggest something new in a sandwich recipe

Suggest two cheeses on top of that meat

Entertaining …Entertaining …

Wine sales have grown very nicely over the past several years, have you paired your cheese sales with that growth?

Suggest some pairing combinations

It does not need to be Wine – Beer and/or fruit juice can work as well

Often two or more cheese can be paired very nicely with a single beverage

Don't let them forget the crackers and other accompanying items

WISCONSIN = CheeseWISCONSIN = Cheese

The world of cheese can be simple or overwhelming:

Simple when you treat it like a condiment – nothing special

Overwhelming, but profitable, when you dig deep!

Lifestyles = opportunityLifestyles = opportunity

What does all this mean?

Open your eyes and be aware of the life around you and how it impacts your work!

Take advantage of those naturally occurring opportunities, when they appear.

Do what you always do – market/merchandise, but have reason for how you do that marketing/merchandising.

Have fun with it!

The NPD Group’s 18th Annual Report on:

Home77%

Foodservice21%

Unknown2%

Make no mistake, Home is still the source of most meals! Make no mistake, Home is still the source of most meals!

Distribution of All Meals by Where Obtained

(Main Meals and Snacks)(Excludes Skipping)

Home includes: Prepared and consumed in home, carried from home and eaten at somebody else's home.Restaurants include Commercial, Supermarkets and C-StoresNon-Commercial includes Work/School/Vending

Are Americans tiring of Cheese?Are Americans tiring of Cheese?

Annual Eating Of Cheese and Cheese Host FoodsIn-Home and Restaurants

141

150.8

153.4154.7

156.2 155.8156.9

157.6

155.1

157.8

1994 1995 1996 1997 1998 1999 2000 2001 2002 2003

Source: NPD Estimate

How Cheese is consumed In-HomeHow Cheese is consumed In-Home

50

55

60

65

70

75Ingredient

0

5

10

15

20

25

84/85

90/91 94 95 96 97 98 99 '00 '01 '02 '03

Additive

0

5

10

15

20

25

84/85

90/91 94 95 96 97 98 99 '00 '01 '02 '03

Base Dish

Annual Eating Patterns per Person

Percent of Sandwiches that Include Cheese

Percent of Sandwiches that Include Cheese

29.5

30.0

30.5

31.0

31.5

32.0

32.5

33.0

33.5

34.0

94/95 95/96 96/97 97/98 98/99 99/00 00/01 '01/02 '02/03

WISCONSIN = CheeseWISCONSIN = Cheese

To simplify the overwhelming, we at WMMB have segregated cheese into eight basic categories.

Soft Fresh Soft Ripened

Blue Veined Semi Soft

Semi Hard Pasta Filata

Hard Pasteurized Processed

The Varieties of Wisconsin Cheese

The Varieties of Wisconsin Cheese

Soft and Fresh CheesesSoft and Fresh Cheeses

Rich, indulgent cheeses, perfect for blending applications and authentic flavors.

This category is aged little to not at all, hence the flavor of the milkor cream can reallycome through.

Soft Ripened CheesesSoft Ripened Cheeses

Classic, sophisticated favorites used in cheese courses or to upscale any item. Famous for it’s bloomy rind these cheeses ripen from the outside in very quickly.

Blue Veined CheesesBlue Veined Cheeses

The HOT trend of Blue on today’s menus is on-going. Wisconsin Blue cheese is made in the time-honored tradition while the quality of Wisconsin Gorgonzola retains its unwavering faithfulness to the cheese’s heritage.

Semi-Soft CheesesSemi-Soft Cheeses

Wisconsin is the recognized expert in semi-soft cheese. This category of cheeses are made from whole milk; hence they melt and flow very well. Provides opportunity for differentiation with flavor-infused cheeses.

Pasta Filata CheesesPasta Filata Cheeses

Wisconsin a leader in the nation on production of Italian style cheeses

Wisconsin cheesemakers consistently win awards in both national and international competitions because of their respect for Old World tradition and attention to quality

Semi-Hard CheeseSemi-Hard Cheese

Wisconsin Cheddar has truly achieved brand status and commands a premium price on the menu. Not only does the state produce the best quality, it is also the leader in US production. Don't forget about the wonderful flavor of Gouda and the traditional items that can drive Swiss sales.

Hard CheesesHard Cheeses

Wisconsin cheesemakers have been making these traditional cheeses ever since they emigrated to the US and continue to remain faithful to the rich, Mediterranean heritage.

Pasteurized Process CheesesPasteurized Process Cheeses

Wisconsin cheesemakers recognize the need for this commodity driven area for cheese sales. The variety and quality is always high when comes from Wisconsin.

Cheese Use Increasing On MenusCheese Use Increasing On Menus

Since 2001, Cheese was the Number 1 ingredient added to the menus at the top 200 chains:

Appetizers

Entrees

Salads

Sandwiches

Wisconsin CheeseWisconsin Cheese

Menu-Making Difference

The Facts…The Facts…

Cheese has extremely positive consumer associations

89%

91%

95%

97%

97%

98%

0% 20% 40% 60% 80% 100%

Describing cheese on menu makesthe dish sound more appealing

Cheese is a delicious indulgence

Cheese is a nutritious food

Cheese is a great source of calcium

Adding cheese to a dish gives moreflavor

I love the taste of cheese

The Facts…The Facts…

Consumers are willing to pay more at breakfast for items with cheese

36%

32%

38%

32%

43%

38%

40%

39%

45%

32%

23%

32%

27%

40%

30%

38%

37%

41%

36%

51%

0% 20% 40% 60% 80% 100%

Danish

Grits

Toast

Breakfast pizza

Breakfast Burrito

Breakfast sandwich

Huevos Rancheros

Skillet

Bagel

Omelet

Somewhatwilling

Extremely/very willing

The Facts…The Facts…

Lunch and dinner items

27%

25%

30%

34%

41%

39%

44%

35%

35%

34%

47%

49%

47%

44%

40%

42%

38%

48%

49%

54%

0% 20% 40% 60% 80% 100%

Burrito

Taco

Pasta

Fajitas

French Fries

Chili

Chicken Sandwich

Sandwich

Hot Meat Sandwich

Burger

Somewhatwilling

Extremely/very willing

Stop the Press – So WhatStop the Press – So What

We can share all kinds of great attributes and specific styles and varieties of Wisconsin Cheese – but what needs to happen before you start using cheese?

"Providing" in the world of Cheese"Providing" in the world of Cheese

WMMB can help the foodservice person provide:

www.wisdairy.com

PROVIDES recipes by variety or day part or type

They can even register as a user and build their own "recipe box"

PROVIDES product descriptions

"Providing" in the world of Cheese"Providing" in the world of Cheese

Need to make that special Wisconsin Statement in a presentation:

Available tools for those that really want to know the ability of Wisconsin Cheese & WMMB:

Website based information

Idea starter information pamphlets

Why Wisconsin

Cheese Course

Pairing Information

Recipes

Sourcing help

Cheesecyclopedia

"Providing" in the world of Cheese"Providing" in the world of Cheese

Thank you for your time and attentionThank you for your time and attention

Please let the Wisconsin Milk Marketing Board help you!

Please let the Wisconsin Milk Marketing Board help you!