Hungry for more

AMPI products align with cheese consumption trends

Product innovations, convenience-driven lifestyles and healthier eating habits are giving Americans more reasons to continue their love affair with natural cheese. AMPI is ready to respond, helping customers fill grocery dairy cases and supply restaurant kitchens with the cheese cuts, blends and flavors that perfectly align with consumers’ cravings. 

Cheese consumption in the U.S. is at an all-time high of nearly 42 pounds per person, according to U.S. Department of Agriculture data. The wide variety of flavors and forms of natural cheeses continue to draw consumers. 

“We are experiencing a ‘real dairy renaissance’ as more consumers are taking note of dairy’s simple ingredient list and nutrient benefits,” said Sarah Schmidt, AMPI’s vice president of marketing. “AMPI is on point, working with customers to create on-trend products, including new cheese flavors, and producing cheese that can work in a variety of ways — slices, sticks, shreds and chunks.” 

Retail revival 

In the first six months of the year, the U.S. retail cheese market experienced volume increases of 2.6% over the previous year. Natural cheese outpaced the average, with most flavors recording increases of nearly 3%. Meanwhile, imitation “cheese” sales continue to decline, according to market research firm Circana. 

Continuing to increase sales volume within the cheese category is not an easy thing, reminds Maureen Windisch, senior manager, business insights and data analytics for Midwest Dairy. 

“Ninety-seven percent of households in the U.S. purchase cheese,” she said. “It’s difficult to grow cheese with this household penetration level, but we are doing it.” 

A rise in cheese purchase frequency by grocery shoppers is a chief contributing factor for overall cheese pound sales increases. New product launches are the key driver. 

Cheese accounts for more than half of all new product launches in dairy. Cheddar is the star in nearly a quarter of new cheese products this year. 

Processed cheese innovations have also spiked. Its share of cheese launches in the first half of 2024 is double the footprint for the subcategory in 2021 and up a full 10% over 2023, Innova Database reports. 

Choosing cheese

Product innovations that pair with consumer lifestyle trends are motivating shoppers to wheel their carts to the natural cheese aisle more this year. 

• Health. Low-calorie, protein-packed dips and spreads that feature cheese with other ingredients such as vegetables are appealing to health-conscious consumers. Cheddar barrels are typically melted down to make these products. AMPI makes 500-pound barrels of cheese at its plants in Paynesville, Minn., and Sanborn, Iowa. 

• Snacking. Two-thirds of consumers eat cheese as a snack, so many new products focus on snacking. Individually wrapped wedges, bars and sticks in a variety of natural cheese flavors are newcomers. Protein snack packs that include natural cheese are debuting new flavor combinations. 

• Flavor. Home cooks are experimenting with adventurous flavors, leading to purchases of pepper-infused cheeses like AMPI’s award-winning Ghost Pepper Jack and the ultra-hot Carolina Reaper Jack. Consumers are embracing “swicy” (sweet and spicy) cheeses blended with peppers, fruit or herbs to add bite-size variety to charcuterie boards. 

Leveraging labels 

Consumers are also being lured by the increased availability of attractively priced natural cheese products packaged under private labels (store brands). This year, store-branded cheese surpassed milk as No. 1 among dairy categories in private-label dollar sales, reports Dairy Foods Magazine. 

Cheddar, the top type of cheese for private labels in the U.S., is gaining market share. AMPI sells its 700- pound blocks of Cheddar and other varieties to co-packers that cut and wrap the cheese under a variety of retail private labels. It’s estimated that AMPI-made cheese appears in a vast majority of major U.S. chain grocery stores, much of it under store brand labels. 

Expanding menus

Product innovations within the foodservice sector are featuring more natural cheese, too. 

• Cheese for breakfast. “Morning occasions for cheese and cheese product consumption have increased, especially among Millennials,” Melissa Abbott, vice president for Hartman Retainer Services, said. Fast-food outlets like Wendy’s, Taco Bell and Burger King are doubling down on the trend, offering protein-laced savory options such as breakfast burritos made with Cheddar and Monterey Jack shreds. 

• Hot stuff. Hotter flavor formats are trending throughout the restaurant industry. AMPI-made classic natural cheeses blended with fiery, hot Carolina Reaper, ghost peppers, jalapenos and habanero are helping to turn up the heat in dishes. National chain Marco’s Pizza is among those recently introducing spicier menu items. (See Snapshot on page 5.) 

• New choices. Restaurants are hoping dishes featuring natural cheese flavors will improve their sales. In September, longtime AMPI customer Domino’s expanded its pasta lineup, debuting mac & cheese dishes.

“We wouldn’t be able to launch great, new products without awesome suppliers like AMPI. Thanks for supporting Domino’s. We are hungry for more!” said Dave Butler, Domino’s director–strategic procurement and foodservice distributors. 

Through strategic planning, AMPI has steadily invested in manufacturing flexibility and capacity to take advantage of shifting winds in both the retail and foodservice sectors. 

“We’ve diversified the type of cheese we’re making and have invested in the technology to make good cheese,” AMPI President and CEO Sheryl Meshke said. “As the appetite for cheese increases again, customers are looking to us — the nation’s largest cheese co-op — to supply what they’re hungry for.”