Sargento views snacking as a chance for development.
Chicago Sargento Foods Inc., a cheese manufacturer located in Plymouth, Wisconsin, is commemorating its 70th anniversary while adhering to its primary business plan. Sargento is a third-generation family business that has never sold processed cheese and has no intention of breaking into the plant-based cheese industry. Its main goal is to keep real cheese relevant for today’s consumers by focusing on natural cheese and developing marketing strategies and formats. Sargento is giving snacking priority because of this.
Speaking to Sally Lyons Wyatt, executive vice president and practice leader for market research firm Circana, Chicago, she stated, “Snacking is still a lifestyle in the US, with younger generations fueling future sales potential with an uptick of three-plus snacks per day.” “Bold flavors, convenience, satiety, fun, and indulgence are key themes.”
According to the Circana 2023 Snacking Survey, two out of every three consumers snack to fuel their day, an increase of six percentage points from two years prior. Of those surveyed, 54% stated that snacks play a significant role in their daily healthy eating regimen. Compared to two years ago, the percentage has increased by seven points.
Customers are now more conscious of their choices as a result of all these snacking occasions. Choosing healthier foods as mini-meals is the goal of mindful snacking, as opposed to the high-fat, high-carb, nutrient-void snacks of the past. Higher-protein diets are popular among conscientious snackers, which makes cheese snacks appealing..
In 2015, Sargento improved its standing in the snack market with the launch of Balanced Breaks. Cheese pieces are placed on one side of the dual compartment packages, while different accompaniments, like chocolates, dried fruits and nuts, or small crackers, are placed on the other side. The latter is a joint venture that uses Ritz, Triscuit, and Wheat Thin crackers from Mondelez International, a snack food company based in Chicago.
Executive vice president of innovation Kristi Jankowski stated, “We have seen solid growth in our snacking portfolio as consumer demand for healthy snacking options has grown.” A third of the market for chilled cheese snack kits is held by Sargento. Together, all store brands hold a mere 7% market share.
String cheese made from mozzarella is one of the few cheeses that Sargento makes on site. The Baker Cheese Factory Inc., located in St. Cloud, Wisconsin, is where manufacturing is done. Sargento purchased this facility in May 2022. At a time when there is a growing demand for cheese snacks, Sargento now has control over what is produced at Baker Cheese thanks to the acquisition. The situation gives the privately held company room to innovate going forward, which could be difficult given the natural cheese market.
This is due to the fact that the Code of Federal Regulations’ identity standards generally place restrictions on natural cheese innovation. Sargento has never been deterred by such rules. Since its founding in 1953, the company has achieved numerous firsts, such as the provision of packaged cheese shreds, shingled natural slices, and zippered packaging for both its slices and shreds.
Although the company purchases the majority of its natural cheeses from other cheesemakers, it exercises caution when making purchases. In order to ensure that all cheeses satisfy Sargento’s requirements—including standard varieties like cheddar, mozzarella, and Swiss as well as proprietary formulations created by the in-house innovations team—at least ten cheese graders collaborate with approved suppliers.
Sargento Creamery is one brand that exemplifies this; it offers a range of 100% sliced natural cheeses that are enhanced in melt quality through the use of cream.
“We closely collaborate with our supplier to ensure that the product meets specifications, and we own intellectual property related to Creamery,” Ms. Jankowski stated. It seems simple enough. However, it isn’t. It must be able to be sliced in addition to having the perfect flavor.
The company’s Ultra Thin Slices, which are half as thick as conventional natural slices, are comparable in this regard. According to Ms. Janowski, this translates to half the calories and half the fat but all the flavor. Dairy cheese remains relevant for consumers who prioritize their health.
Private label is Sargento’s biggest rival in all retail cheese formats, including chunks, shreds, slices, and snacks. The company operates unbranded companies that supply cheese to food manufacturing and foodservice operators.
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Additionally, Sargento operates a frozen breaded cheese appetizer company that makes mozzarella sticks and curds for foodservice using facilities owned by the company in Kiel, Wisconsin.
Sargento produced “girl dinner” TikTok videos in an effort to maintain cheese’s position as a popular snack among younger consumers, particularly female consumers. This elegant evening meal is all the rage and consists of a plate of finger foods like grapes, cheese cubes, olives, and baguette.
“We’re heading where the attention is,” Ms. Jankowski declared. “In order to effectively reach consumers, we must plan our marketing investments in light of the changes in consumer media viewing habits, omnichannel shopping habits, and new technologies that have emerged in recent years. We are adjusting in a big way to focus on retailer media, social media, and digital video in response.