Dive Brief:
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Land O' Lakes purchased artisanal cheese maker Vermont Creamery this week, gaining its first access to the specialty dairy market, according to an article in Project NOSH. Terms of the sale were not disclosed.
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Under the purchase agreement, Vermont Creamery's co-founders are staying on as advisers and brand ambassadors. Its sales team also stays in place, and all employees have been given the option to stay, too.
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Vermont Creamery founder Allison Hooper told Project NOSH that the plans for the company to either be acquired or seek private equity investment have been in the works for years. The creamery saw sales of $30 million last year, and has been expanding in both artisanal and conventional retail channels.
Dive Insight:
Americans' cheese consumption has been dramatically rising, climbing 42% between 1989 and 2014, the Wisconsin Milk Marketing Board reported at the end of the latter year. And from 2005 to 2015, the share of specialty cheeses produced in Wisconsin alone rose from 15% to 23.5%.
That alone paints a pretty clear picture of why Land O' Lakes, a member-owned agricultural co-op based in Minnesota, was interested in obtaining Vermont Creamery, a specialty cheese producer in the eastern U.S.'s dairy capital.
With specialty cheese sales rising nationwide like warm yeast, and Vermont Creamery's supply chain that is as robust and stable as that of Land O' Lakes, Vermont Creamery was the perfect acquisition target. Almost a marriage made in a creamery, you could say.
One of the largest advantages of the deal for Vermont Creamery is its access to Land O' Lakes distribution system, and its “in” with larger numbers of supermarket companies, wholesalers and independent stores. Land O'Lakes, with its extensive agricultural services, more than likely will be able to help Vermont Creamery's farmers perform more efficiently.