On-the-go products fit lifestyles

Dairy Field, Sep 2000 by Cook, Julie

The cream cheese category is moving as fast as consumers.

Not long ago, consumers looked upon cream cheese as a special occasion indulgence - the primary ingredient in a rich, decadent cheesecake or a sinfully tempting topping to smear on bagels over brunch with a dear friend. These days, however, cream cheese processors are working hard to change their product's perception from a once-in-a-while indulgence to an anytime, anywhere treat.

From packaging innovations such as single-serve cups and aerosol canisters to lavish, multi-million-dollar marketing campaigns, cream cheese processors have set their sights on making sure their products are top of mind - and top of shopping cart - whenever consumers hit the grocery store.

Their efforts seem to be paying off. The cream cheese category enjoyed a healthy 4.9 percent increase in dollar sales in supermarkets, convenience stores and warehouse clubs in the 52week period ending June 18, 2000, Chicago-based Information Resources Inc. reports. Unit sales rose 2.6 percent for the same period, reflecting steadying milk and butterfat prices after a year of wild fluctuation.

"Cream cheese has been lower in price than in previous times when the market was very high," says Steve Fay, vice president of sales and marketing, Berner Cheese, Dakota, Ill. "During those times, the retail remains the same, but the margin between costs and retail increases graphically when you have those low prices. So they tend to put them into more dynamic promotional programs. That's what you are seeing the fruit of now."

Filling the Pipeline

Lower prices may have helped lure consumers back to cream cheese, but innovation in both product and packaging is the key driver of category growth this past year. The underlying theme of recent introductions seems to be portability, as processors strive to take a product that consumers rarely considered an on-the-go food and turn it into a snack for the new millenium.

"Portability and convenience are critical," says Nick Merriggioli, cream cheese category business director for Kraft Foods, Northfield, Ill. "Making products that make it more convenient for consumers to enjoy cream cheese will do wonders for the category and continue to stimulate healthy growth."

To that end, Kraft introduced one of the most portable of all cream cheese products in the form of Philadelphia Snack Bars, which rolled out regionally last fall and nationally this past January. The individually-wrapped bars can be left unrefrigerated for up to five hours, making them ideal for lunchboxes or simply as an on-the-go snack. Four varieties are currently available - Chocolate Chip Cheesecake; Strawberry Cheesecake; Classic Cheesecake; and White Chocolate Raspberry Cheesecake. Merriggioli estimates the line will generate more than $150 million in incremental retail sales in 2000.

As the undisputed category leader with a whopping 68.8 percent of all cream cheese sales, Kraft has dedicated itself to continued innovation. Late this summer, the company announced regional roll-outs of Philadelphia Single Size - a line of 2-ounce containers said to be just the right amount for a bagel or as a snack with crackers or vegetables. Like Philadelphia Snack Bars, Single Size cups are stored in the refrigerator, but may be placed unrefrigerated in a lunch bag or briefcase for later consumption. Currently available in San Francisco and Los Angeles, Philadelphia SingleSize comes in two different varieties - the Sweet Pack with two cups each of Strawberry Cream Cheese and Pineapple Cream Cheese and the Savory Pack with two cups each of Chive and Onion Cream Cheese and Garden Vegetable Cream Cheese.

"We continue to fill the pipeline with new ideas as we go into the upcoming year, 11 says Merriggioli. "The opportunity is offering convenient portable, great-tasting prod that make it easier for consumers to eat cream cheese."

Meanwhile, Berner Cheese is banking on consumers' affinity for convenience with its new line of private label aerosol cream cheese. Developing the shelf-stable line required quite a bit of ingenuity from Berner's research & development department, and according to Fay, the resulting product gives consumers not only good taste, but also the ultimate in go-anywhere cream cheese.

"With a tub of cream cheese, you have to use a utensil and there's mess to clean up, whereas with the aerosol container, you just simply spray the cheese on," says Fay. "It needs no refrigeration at all, even after opening, so that opens up a lot of possibilities with picnics and camping, not to mention the export market."

In Merrill, Wis., rondele Specialty Foods has recently added two new flavors to its Hahn's Bagel Spreads, a line of pasteurized cream cheese spreads that requires no refrigeration prior to opening. Both Strawberry and Mixed Berry are available in 5-ounce, as well as 1ounce sizes. rondele Deluxe, the company's other new product, is actually a reformulation of its rondele Gourmet Wheel, originally introduced 20 years ago. The gourmet spreadable cheese is now packaged in a 6.5ounce triangular box, the preferred shape for entertaining, according to Kym Weiler, marketing specialist. Three flavors - Garlic and Herb; Four Pepper; and Mediterranean - are currently available.