PEMBERTON, N.J. — In the 22 years Italian cheesemaker and importer Chianti Cheese Co. has been in business, it has focused on foodservice and ingredients. Recently, though, the company has taken the plunge into a market segment where it had previously done little business: retail.

"We want to diversify the company and make it stronger," says Jack Salemi, director, sales and marketing, Chianti, who says the company won't be ignoring its foodservice and ingredients roots but is rather expanding into new areas of the market with branded and private label products.

"We've never really concentrated on this," says Salemi. "But nothing ventured, nothing gained.

"We're a small company that's expanding and finding our niche," he adds.

Besides wanting the company to be more equally represented in all aspects of the cheese market, the executives at Chianti believe they have the right stuff technically to make this new focus on retail a success.

The company, which operates three facilities in the United States — one in California, one Pennsylvania and one in New Jersey — has the quality product necessary to be successful at retail, says Salemi. The company operates sophisticated lab facilities at each site for both its domestically-produced and imported products and by manufacturing and grating its own products, the company can ensure high quality, Salemi says. To keep up with the demand for product that this new retail focus will bring, the company is expanding its facilities, says Salemi. Much of the company's domestically-produced cheese is used for ingredient purposes but the expansion will allow the company to pursue other opportunities, he says.

The company's quality also has been recognized by outside experts, notes Bruce Haslam, director of administration, Chianti. The company has received its sixth straight superior rating from the American Institute of Baking and its Parmesan and Romano placed first in a national taste test.

But having the technical know-how is just part of making a new focus on retail successful. After Chianti decided to expand in the retail market, it also set out to find a sales and marketing executive to head up the company's new retail division. Two months ago Maria Maggio Marfuggi, with 20 years of retail marketing experience, joined the company as national retail sales manager. She will be responsible for heading up all of the company's retail activities and building its retail presence.

Marfuggi recognizes there are challenges ahead of her as Chianti heads into a market in which other Italian cheese companies already boast a strong brand presence. But she relishes the opportunity to make Chianti's name and products known.

"Our product is top quality," she says. "Many companies coast along out there. They need someone to shake things up a bit. And I think there's always room for quality products."

Chianti is moving into the retail market with 8 and 16-ounce jars of Parmesan, Romano, a Parmesan/Romano blend and an herbal Parmesan/Romano blend. The products will be available in plastic jars instead of shaker canisters for a more upscale image that's demanded by today's consumers, Marfuggi says. The jars, labeling for which is now being finalized, will be showcased for the first time at the International Dairy-Deli-Bakery Association (IDDBA) show in Minneapolis in June.

The company also will be offering shredded Parmesan and Romano in 5-ounce cups and grated Parmesan in 8-ounce cups for the deli.

In addition, Chianti is importing several hard cheeses to sell in chunks.

"We've begun to import Parmigiano Reggiano and Grana Padano," says Marfuggi, noting the imports range in size from full wheels down to small random weight pieces that are 8 to 10 ounces.

The company also is importing Tuttocuore which translated from Italian means "all heart" of the Parmesan wheel. The product comes in two sizes — 8-ounce and 1-kilogram (roughly 2.2 pounds) — and is featured in a woven red, white and green basket.

"It's perfect for gift baskets and great for the holidays," says Marfuggi.

The company also is looking into some other imported items, although at this point Marfuggi and Salemi remain quiet on what they might be. Overall, they note, the company is looking to provide for customers' complete Italian cheese requirements. Among the company's other products are freshwater Mozzarella and Ricotta. But the company also doesn't want to try to push too much too fast as it moves into this new arena, particularly as it operates with a "lean" staff for the time being, Salemi says.

But eventually the company will have a bigger sales force focusing on its retail cheeses. Marfuggi currently is working on setting up a broker network. She also will be responsible for hiring retail sales staff within the company.

In the meantime, to take the word to potential customers, Marfuggi and Salemi are taking the Chianti booth "on tour" to a variety of trade shows. They just finished up with the Food Marketing Institute's show and besides IDDBA's show, they will be heading to the Institute of Food Technologists' show, the Fancy Food Show and the Private Label Show later this year.

Marfuggi and the brokers and other sales staff will be working to reach a broad array of customers with Chianti's retail line, including not just supermarket chains but also club stores and specialty, upscale food stores, she says.

Tuttocuore particularly will be marketed as a gift package item for the specialty food trade. But the company's products also are appropriate for club stores looking for more upscale items, she adds. The company will be offering club stores gift packages for the holidays.

Chianti, which has wide distribution for its foodservice and ingredient cheese, will be first tackling the Northeast and mid-Atlantic as it pursues the retail market. This not only is where the company is located but also an area where demand for Italian cheese is strong. The company isn't content to just stick with that area, though, Marfuggi says. The goal is to have as many placements as possible in dairy and deli cases in the Northeast and mid-Atlantic a year from now and then be heading to the Southeast.

While it hopes to develop a brand presence for itself, much of the work Chianti hopes to do is private label. It offers more exposure for the company as it is less expensive to get the product into the marketplace via private label, Salemi says.

And because Chianti is a relatively small company, he thinks customers will find that it's able to provide a high-quality product with strong customer service.
"I think we have a very competitive program for people to consider," Salemi says.

CMN