MERRILL, Wis. — If there were to be just one word to describe what Rondelé Specialty Foods executives want consumers to understand about the company's products, it would be "value."

"And that doesn't mean cheap," company CEO Bob Constantino quickly adds.

Over the course of the past few years, Rondelé executives have worked to position the company as the value leader in the gourmet spreadable cheese category, bringing to consumers quality, upscale products at a reasonable price.

This has included giving the company's dairy box of spreadable cheese a consumer-friendly face lift, switching from the black background the box had had under previous ownership and returning to a white box. It also has included giving consumers more for their money — with the price unchanged, the boxes contain 5 ounces of cheese, 25 percent more than the 4 ounces in competitors' boxes.

The value message is a simple one that resonates with consumers, Constantino says.

"Consumers didn't want another me-too product," he says. "We held focus groups to find out what consumers want. Value is important to consumers. They want more for their shopping dollar."

The strategy is working according to Infoscan data, as well. Rondelé is the No. 1 gourmet spreadable cheese in the dairy category and the No. 2 in the deli category, Constantino says.

The various products, though all are spreadable, are designed to be differentiated from each other and meet an assortment of consumer needs, Constantino says. For example, the dairy box formulation is a curdy, Old World-style spreadable cheese for entertaining while the cups are whipped cheeses more often used for dipping and spreading when snacking. In addition, Rondelé offers a 60 percent double cream product in 5.6-ounce wedges which are for more upscale entertaining.

Part of the way the company gives consumers the value they desire also is by creating flavors they seek. The dairy box and wedge range of flavors includes Garlic & Herbs, Lite Garlic & Herbs, Four Pepper, Tomato Basil Olive, Garden Vegetable and French Onion. The deli cup flavors include Garlic & Herbs, Lite Garlic & Herbs, Garden Vegetable, Roasted Garlic & Artichoke, French Onion, Classic Feta and Tomato Basil Feta. Also soon to be in deli cups will be Rondelé's newest flavors: a gourmet spreadable goat cheese and a salsa flavor.

Company executives carefully research what new flavors will be launched under the Rondelé name.

"We're not coming up with crazy funky flavors that sound sexy but don't necessarily sell," Constantino says. "Salsa is a growing flavor profile. Goat cheese is known for being upscale and its popularity is growing rapidly."

Garlic & Herbs continues to be the most popular flavor across the category, Constantino adds, noting that that flavor represents more than 60 percent of the spreadable cheese category. To reach the particularly cost-conscious consumer, Rondelé Specialty Foods also offers Pub brand cheese in Garlic & Herbs. The Pub brand comes in a 4-ounce dairy box and 8-ounce deli cups as well as 12-ounce club store packs.

Rondelé Specialty Foods' cheese are especially popular for snacking. But the company also strives to develop recipe and serving suggestions for the cheese beyond traditional snacking, Constantino says.

"We're trying to say, 'Here's more for your shopping dollar and new ways to use the product,'" he says. "More for less works only if you show them how to use it."

The company uses a wide variety of vehicles to reach consumers in both the dairy case and the specialty cheese deli area of the store. But the company hasn't limited itself to just the traditional areas of the store.

Constantino, who along with Bill Davis and the Facilitator Capital Fund, a Madison, Wis.-based investor group, owns the company, says that it's his goal to one day see Rondelé products around the entire store perimeter. The company already has begun accomplishing this via its extended shelf-life (ESL) products.

The company has for awhile now been producing the Rondelé and Pub Garlic & Herbs dairy boxes in an ESL format and selling them in display shippers so they can be merchandised out of refrigeration. But the company has taken that a few steps further with Rondelé Bread Essentials, Rondelé Bagel Temptations and Rondelé Snack Pack.

Introduced just earlier this year, Rondelé Bread Essentials are the newest products in Rondelé's ESL line-up. The spreadable cream-cheese based products, designed to partner with crusty breads, come in four flavors: Peppercorn Parmesan, Classic Garlic, Goat Cheese and Mediterranean Feta.

One of the most exciting things about this product line is that it can be cross-merchandised without refrigeration in the bakery, somewhere dairy products haven't traditionally been sold, Constantino says. The products, according to Rondelé, have an ESL of 150 days, 60 days of which the product can be merchandised out of refrigeration. The product is shipped and stored through the cold chain until it is ready to be displayed, Constantino says.

Rondelé also offers ESL Bagel Temptations, cream cheese that can be merchandised in bakeries and bagel shops. The line comes in six flavors: Original Plain, Garden Vegetable, Mixed Berry, Garlic & Herbs, Apple Cinnamon and Strawberry. They also have the same 150-day shelf-life, 60 days of which can be out of refrigeration.

Acclimating bakeries to this new concept of cross-merchandising with dairy has been the company's biggest challenge because bakeries just aren't used to the idea, Constantino says. But once they try it, they quickly find it's a way to drive sales, he says.

"Bakery and dairy have always gone well together — it wasn't a stretch for consumers," Constantino says.

Rondelé heavily supports its products with FSIs and other merchandising geared toward the consumer. One promotion was for $1 off Bread Essentials with the purchase of a crusty bread. The company also sponsors several theme-based Rondelé brand promotions throughout the year, such as a "Host A Hit" theme for holiday parties and "Spread the Flavor of Paris."

In addition, Rondelé has teamed up with national companies like E&J Gallo Winery, Robert Mondavi and Carr's Crackers and is an active participant in the Wisconsin Milk Marketing Board's numerous national coupon and demo programs.

The idea of the promotions, particularly those aimed directly toward the bakery department, Constantino says, is to show bakeries that Rondelé products partner with the bakery and can help generate more sales for the department. The company offers customized merchandising as well.

For Rondelé, the beauty of working with the bakery is that it doesn't only generate additional sales, it's a yearlong profit center. While Rondelé's products in the dairy case and deli tend to sell most heavily during the holidays of the fourth quarter, "bread and bagels sell 52 weeks a year," Constantino says.

In addition, Rondelé has worked to reach on-the-go snacking consumers with its ESL Snack Pack, which contains 2 ounces of Garlic & Herbs cheese, 1 ounce of Stone Wheat crackers and a spreading knife. Besides being a convenient item to throw into a back pack or purse, the Snack Pack is popular in honor bars at hotels, Constantino says.

And while the Rondelé business is particularly focused on retail and the consumer, the company also provides its spreadable cheeses for foodservice under the Rondelé Kitchens brand, Constantino says. The company also does private label business.

Rondelé can meet a variety of needs because of the company's "cow to cup" technology, Constantino says. The company's product is made at its highly technical Merrill, Wis., facility which is kosher and AIB superior-rated.

Constantino expects the company to continue growing in the years to come because of both the company's innovation and it's focus on value for consumers as well as retailers.

"There's no downside," Constantino says. "Nobody loses when they buy Rondelé."

CMN