September 8, 2006
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Cacique offers its customers a wide range of Hispanic-style dairy products
By Kate Sander

CITY OF INDUSTRY, Calif. — Technology and tradition. At first glance the words may seem like they don’t go together, but more and more dairy companies are using advanced technology to produce traditional-type products that are safer and perhaps even more flavorful than their earlier counterparts.

Cacique USA was one of the pioneers in this arena. At its facility, cutting-edge manufacturing methods and computerization create authentic Hispanic-style dairy products that are well-known throughout the country.


FULL LINE-UP — Cacique USA manufactures a full line-up of cheeses and other Hispanic-style dairy products.

The company was founded in 1973 when Gilbert and Jennie de Cardenas, natives of Cuba, moved to the West Coast and discovered that there were few high-quality, authentic Hispanic dairy products available. They decided they could do something better, and began making their own cheese in a tiny, previously abandoned facility. The couple would start at 2 a.m. to make about 100 pounds of cheese per day; then Gilbert de Cardenas marketed the cheese while Jennie cared for their four children — Ana, Maria, Gilbert Jr. and Tony — all of whom are involved in the business today.

Today the company operates a 200,000-square-foot, state-of-the-art facility just outside of Los Angeles and produces a wide array of products. There, quality and cleanliness aren’t just things that plant employees strive for — they are a way of life.

“I cannot but marvel at the exquisite conditions … you can literally eat off the floor, it’s that clean,” says Luis de la Mata, executive vice president and chief operating officer, who joined the company this past May.

This focus on quality isn’t inexpensive. Price always is a consideration, of course, but Cacique is a market leader — it’s the No. 1 selling brand of Mexican-type cheeses and creams in the nation — and won’t skimp on quality or safety, de la Mata says.

“We’re not about price. We’re about high quality and service and taking care of what our customers need,” he says.

Cacique’s main lineup consists of a wide array of Hispanic-style cheese including its Ranchero Queso Fresco and Cacique label Queso Fresco, as well as ­Asadero, Cotija, Oaxaca, Monterey Jack, Queso Quesadilla and many others. Complementing the cheeses, Cacique produces several Hispanic-style creams and yogurts. In addition, Jim Taylor, director of special projects, Cacique, says the company was one of the first in the United States to offer a drinkable yogurt. Yonique, Cacique’s Hispanic-style drinkable yogurt, continues to grow in popularity, he says.

The company also offers horchata, a rice drink, and a variety of chorizos, Mexican-style sausages, which the company produces in its own plant in Utah. The company built a new plant there a couple of years ago because its previous plant could not keep up with the demand for chorizos, Taylor says.

Like the cheese category, the term “Hispanic” covers a number of countries and people of varying tastes. But with such a broad range of products, de la Mata says Cacique offers products for anyone.

“We have different types of cheese that will address the palates of many different Hispanics,” de lata Mata says. Queso Blanco Fresco, for example, is a fresh white cheese that’s a bit creamy and favored by Hispanics of Caribbean descent, while Queso Fresco, a crumblier and saltier cheese, is favored by Mexicans. The company also makes some smaller quantities of some types of cheeses that appeal to specific regions, as well as cheeses like Mozzarella that are broad-spectrum in their popularity and renown. De la Mata notes that consumers’ backgrounds have a lot to do with how they use the company’s products as well as how they are marketed.

Cacique has customers throughout the country and believes that the best way to manage and maintain the quality of its products is by being hands-on. This has resulted in the company operating a network of its own distribution centers around the country as well as its own trucking fleet. At present, there are 12 such distribution centers, and the company is considering adding at least one more in the next year.

The company’s direct store delivery network also helps the company when it is sampling product, which is an important component of Cacique’s overall marketing plan. Cacique partners with retailers, and nearly every weekend is spent in sampling promotions, de la Mata says.

“We have a merchandising force that follows our truck deliveries,” he says. “We support our products at the case level.”

In addition, the company utilizes television, radio and print advertising, and consumer promotions to reach its target audience.

Cacique sells its products to small retailers as well as to mass marketers including Wal-Mart, Costco and Sam’s Club. Depending on the clientele, the product is packaged in different ways. Some customers prefer prepackaged, exact weight cheeses while some more traditional Hispanic customers in small shops prefer to display the cheese in bulk presentations, de la Mata says.

The company’s customer base is primarily Hispanics — about 70 percent of consumers purchasing Cacique products are Hispanic or of Hispanic ancestry. However, the percentage of Anglos purchasing the cheese is increasing as the company, which previously has concentrated the majority of its marketing efforts on the coasts, pushes into middle America.

There is increasing interest in ethnic cooking among Anglos, de la Mata says, adding that he sees the Anglo population as a potential area for strong growth in the future. He notes that Cacique’s website, www.caciqueusa.com, receives about 11,000 hits a day and research has shown that up to 80 percent of those site visitors are Anglo.

“We’re changing as a society,” he says. “We’re picking up new trends, new products.”

While declining to say what annual sales are, de la Mata says the company is experiencing “double-digit growth.” He adds that the company’s consumer base also is experiencing particular growth among middle- to upper-income households.

To meet the needs of consumers, Cacique always is working on line extensions and new cheeses, de la Mata says. It also strives to stay relevant to younger customers with new generation products like Yonique, which comes in flavors like piña colada, strawberry-banana and peach, he says.

In addition, Cacique, whose owners always have believed in philanthropy, is very involved in the communities where its products are most popular.

“We’re a socially responsible manufacturer,” de la Mata says. “We participate in events related to the community we serve. We’re there with our products. We’re there at community events. We try to give back to the community.”

Over the years, for example, Cacique has worked closely with diabetes research and education programs, donating millions of dollars.

Some of the company’s marketing and community involvement is more lighthearted, though. For example, the company presently is using Vincente Fernández, the “King of Ranchera Music,” the most popular music in Mexico. Fernández has sold more than 40 million albums, earned multiple Grammy nominations, a Latin Grammy “Man of the Year” award and a star on the Hollywood Walk of Fame.

“He is huge among our consumers,” Taylor says, noting that because Fernández values his image, Cacique is the first product he has endorsed. This makes his partnership with Cacique extra special, Taylor adds.

As part of the promotions, Cacique is the sponsor of about 20 of Fernández’s performances around the United States. Cacique is utilizing Fernández’s likeness on all of its promotional materials throughout the country.

CMN


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