MONTREAL —The average consumer doesn’t know much, if anything, about World Trade Organization (WTO) dairy decisions and the nuances of trade agreements such as NAFTA. However, consumers on both sides of the U.S.-Canadian border can thank recent years’ trade rules for playing a role in new cheeses being introduced to the retail market by M. Larivée International Inc.

M. Larivée International Inc. was founded in 1999 by Montreal-born Marcel Larivée, who previously had headed up the international trading division of Ault Foods and then Parmalat Canada. An expert in international dairy trade, Larivée didn’t see Parmalat wanting to grow in the international business, so he set out on his own.

He created M. Larivée International, an international trading house specializing in dairy products. Today, the company imports and exports dairy products to and from 20 countries around the world. Some of the products physically come through Canada, while other products’ trade he facilitates as a third party. Trade primarily is in cheeses for industrial and foodservice customers.

International dairy trade has been the foundation of Larivée’s career and also has been the bedrock of M. Larivée Inc. But as any good businessman knows, sometimes one must adapt with the times.

Larivée knew a few years ago when the WTO was reviewing a major case on dairy subsidies that the decision could go either way. Ultimately, the WTO determined that what Canada was claiming was unsubsidized product was actually being subsidized. While the decision meant that Canadian product still could be exported, it wasn’t nearly as price competitive as it once had been.

Larivée took the decision in stride. Even while the Canadian government was still arguing its case, Larivée began developing a domestic retail division in 2001 to market Canadian cheeses and replace the loss of some international sales for cheeses such as La Fromagerie Perron, one of the oldest aged Cheddar producers in North America.

The first task was to hire someone to run the domestic division that would be targeted toward North America. Larivée selected Denys Murphy as his national sales manager.

Today, the company has a growing domestic retail business in Canada, with goat’s milk cheese as its rising star. The company has contracted with Canadian goat cheese producer La Fromagerie Tournevent to create Chèvre du Nord, M. Larivée International Inc.’s trademarked line of goat’s milk cheeses.

The goat cheese line, first introduced to the public in 2003 at the SIAL show in Montreal, particularly has been gaining in momentum, according to Murphy.
Chèvre du Nord is an artisanal goat’s milk cheese, handcrafted, wrapped and manually labeled. Several flavors were introduced at SIAL, and then the company went back after the show and analyzed the comments it received, ultimately leading it to settle on the major flavors it would market.

The company’s first sales of a fresh goat cheese pyramid were in 2003 during the holidays. Small handcrafted pyramids in vine leaves, the cheese went to retail outlets in the Midwest and western United States.

Yes, the United States. It seems that the domestic cheese business Larivée envisioned developing also has found an export market in Canada’s southern neighbor, which now accounts for about 15 percent of the company’s retail business.

There are no trade licenses required to import certain cheeses such as goat’s milk cheese, Brie and Camembert into the United States. And because of NAFTA, there are no tariffs. Thus, with specialty cheeses, on which there is already a naturally higher price, Canadian cheeses can be competitive, according to Larivée.

However, he is quick to point out that the company is competing on much more than price.

“We want products with a different value, a different look. Not me-too products,” he says.

If a product has some special component — such as the fact that Chèvre du Nord is handcrafted and comes in specialty flavors — it really helps make the sale.

“If it’s something different, people usually go for it,” Larivée says.

The company markets the cheese throughout both the United States and Canada using a number of marketing tools including incentive programs, in-store promotions, demos and advertising in specialty magazines. And of course there are the trade shows at which the company launches new lines of products.

Murphy says he spends a lot of time meeting with buyers and making sure that everyone agrees on presentation strategies. He is full of suggestions on how the cheese can be used, too.

For example, the Cranberries & Maple variety of Chèvre du Nord is excellent on breakfast bagels or warm French bread, says Murphy, who has posted several uses for the cheese on the brand’s website, www.chevredunord.com. Star Anise & Pepper goes well with crackers or bread. Black Olives & Basil has a flavor that works well in recipes.

M. Larivée’s retail business also goes well beyond Chèvre du Nord. The retail business actually started with the Perron brand, which includes aged white and yellow Cheddar. More recently, the company has introduced a raw-milk Swiss under the Perron brand. In addition, the company offers French-style Brie and Camembert made in Quebec under the Ste. Martine brand.

Quality, taste, originality and consumer price point are the keys, Murphy says. In a cheese platter the consumer wants value, a different look and five or six unique cheeses, the types of which the company carries, Larivée says. The company also offers organic cheeses.

The company will continue to expand its retail offerings over time, Larivée says. The key is teaming up with the best manufacturer possible for a particular product, he adds.

In fact, a Canadian soft-ripened raw cow’s milk cheese called Victor et Berthold already sold in Quebec soon will be introduced in other parts of Canada as well as the United States. The classic version is aged 75 to 90 days, and the reserved select is aged 100 to 150 days.

Also already sold in Quebec, blue Le Ciel de Charlevoix will be introduced yet this spring. Le Migneron de Charlevoix, a semi-soft cheese with a ripened surface, also will be introduced.

The company also is introducing Cheddar and Swiss slices and shreds for foodservice and retail.

Larivée and Murphy say the company plans to continue introducing new products.

“Our own branding is very important for the future,” Murphy says. “With brand names on the market, we build relationships directly with the consumer.”

“We want people to know that even though we are known as an international trader, we are building a retail market with niche products,” Larivée adds. “We’re not leaving aside the business we already have, but we are building on a business we believe will hold in the future.”

Murphy also notes that the company isn’t just about selling its existing cheese, either. The company can find particular products that a customer or potential customer needs and also performs market evaluations for clients.

Overall, Larivée would like to see the business double in size in the next five years, with the majority of that growth being in the retail business. Right now, the three-year-old retail business accounts for 10-15 percent of company sales, but eventually Larivée would like to see it at about 50 percent.

CMN