September 13, 2002
For a listing of previous Retail Watch stories, please see our Retail Watch Archive.

Bel / Kaukauna adds to spreadable cheese lineup with Connoisseur
By Kate Sander

LITTLE CHUTE, Wis. — Bel / Kaukauna Cheese U.S.A., a leader in the refrigerated cheese spreads category, is adding to its stable of spreadable cheeses with Connoisseur, an upscale line of spreadable European-style cheeses.

Company president Bob Gilbert says Connoisseur, which is not processed, capitalizes on the increasing sophistication of American consumers and their interest in European-style cheese. The cheeses are easy to spread and carry the distinctive flavors of the cheeses they're made of — Asiago, aged English Cheddar, creamy Feta and Swiss.

The company has been introducing the product in a series of test markets including the Northeast, Florida and Southern California for the past eight weeks. The product is sold in 5-ounce tubs.


A SPREAD OF CHEESES — Bel / Kaukauna carries an array of cheeses, including its most recent introduction, Connoisseur (far left).

"Reaction from customers has been very favorable," Gilbert says.

The product line was inspired by market research that showed consumers were looking for a spreadable cheese that was a bit more upscale than other spreadable cheeses on the market and which captured European taste. After consumers tried the product, ratings for the concept went up even more, Gilbert says.

"The major objective with any new product is to stimulate consumer trial. We want devices that trigger that trial so we're using product demonstrations and free-standing inserts (FSIs)," he says.

It's a formula that's tried and true for a company that Gilbert says holds about 50 percent of the refrigerated spreads market.

Connoisseur joins well-known Bel / Kaukauna cold pack brands Kaukauna and WisPride, which have been under the same roof since 1997 after Bel Cheese USA, part of Fromageries Bel, purchased Kaukauna Cheese. Both of these brands have strong market penetration throughout the nation, though they tend to be in different markets. Both lines got a boost in 1999 when Bel / Kaukauna purchased the Churny cheese ball business from Kraft Foods' Churny Co. Inc. subsidiary and transitioned those customers to either Kaukauna or WisPride.

Bel / Kaukauna uses an array of marketing techniques for these lines which, in addition to cold pack spreads, also include cheese balls and logs. One of its pronounced marketing activities is its use of television in selected markets. This fall, the advertising will feature the tagline, "Cheddar made better."

"TV is expensive but it's also the most persuasive medium. It's got it all — sight, sound and motion," Gilbert says.

The company has used television advertising for the past few years for various products, Gilbert says, noting that the company continues to study how to best use this medium while it also continues to extensively use FSIs and sampling programs.

In addition, to keep the category fresh, Bel / Kaukauna has introduced new flavors of cheese balls and logs for the fourth quarter. This season consumers can add Cheddar and cream cheese and extra sharp balls and logs to their grocery carts.

Meanwhile, Bel / Kaukauna also is preparing to launch promotion programs for additional brands it purchased from Lakeview Farms earlier this year. Those brands include Merkt's and Owl's Nest refrigerated cheese spreads as well as various private label brands.

The past several months have involved transferring production of the cheeses into the company's Little Chute, Wis., plant (the company only purchased the brands, not capital) and integrating the brands into the company's distribution system. With that mostly completed, the company plans to devote some attention to increasing their market share, particularly that of Owl's Nest.

While Merkt's is popular in the Midwest as a cold pack with a familiar taste, the Owl's Nest brand is segmented from other cold packs in that it is creamier and less sharp, Gilbert says. The product, which like Merkt's has been sold predominately in the Midwest, is now beginning to be introduced in Northeast markets.

These cold pack products — and the marketing campaign behind them — are enough to keep any company busy, but they are only part of the story at Bel / Kaukauna.

In addition to its Little Chute, Wis., operation, the company also operates a plant in Leitchfield, Ky. There, the company is making new and improved light versions of its Laughing Cow cheeses.

The Laughing Cow brand, best known as a French-style processed cheese with Swiss and imported Gruyere, is sold in round boxes with eight wedges in a package. It is a worldwide brand that is particularly popular in France where it has 100 percent unaided awareness among consumers, says Becky Ryan, director of marketing, Bel / Kaukauna. Both Laughing Cow, as well as the company's mini Babybel — individually-molded 3/4-ounce pieces of semi-soft cheese packaged in bags of six pieces — are produced domestically for U.S. consumers as well as produced in Europe for consumers in other parts of the world. The brands, Ryan says, are much smaller in the United States than they are in Europe but continue to have great growth potential in the United States.

Part of that growth will come from what Ryan anticipates will be the highly popular relaunch of the Laughing Cow light cheeses in three flavors — original, French onion and garlic and herb. The flavors only come in the light varieties.

The launch, which begins this month, will include FSIs and sampling in local stores. The brand has enjoyed a great deal of success, particularly on both coasts, Ryan says. The biggest challenge has been helping consumers know how to use the product, which can be eaten by itself or spread. The sampling and FSIs will help with that ongoing education, Ryan says. The company also will be working with Weight Watchers to promote the product, she adds, explaining that the cheese, only 35 calories per wedge, has a strong following among those who participate in Weight Watchers programs.

Meanwhile, the mini Babybels will be the focus of another flight of television advertising on both coasts this fall. Ryan also believes in television advertising and thinks that it, combined with the use of FSIs, has aided in more than doubling the product line's sales in the United States in the past six years.

"We're pretty well known on the coasts, and Costco is a particularly good chain for us. We still have a lot of growth potential," Ryan says.

In keeping with the brand's focus as an all-family snack that kids enjoy, the company also is in the midst of a promotion featuring pieces of cheese in a net with a mini sports ball. Soccer balls, basketballs and footballs in different colors are featured. In addition, the company will soon begin shipping product in special holiday packaging. In addition to the St. Paulin-style French cheese sold in red wax which constitutes the Babybel original variety, the cheese also comes in Cheddar and light flavors as well as Gouda for foodservice. There also is Bonbel, which is the French cheese in yellow wax.

In addition, Bel / Kaukauna will emphasize this fall that its Price's Pimiento Spread, a spread of shredded cheese, salad dressing and pimientos that is popular in the Southeast, is made with real cheese.

CMN


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