All In The Family

All In The Family
by James Dudlicek
Devotion to kin and employees provides bedrock for
Gossner Foods’ success in the cheese industry.
Interested in
buying Gossner Foods? Save yourself the trouble. “We
have opportunities constantly to sell the company, and I don’t even
return the phone calls,” says Dolores Gossner Wheeler, president and
chief executive officer of the Logan, Utah-based manufacturer of cheese,
aseptic milk and whey products. “The family doesn’t have any
desire to sell, because we’ve seen what happens when some of these
companies sell out — it is not the same.”
The company — started four decades ago by
Wheeler’s parents, already in the autumn of their years at the time
— sees family as the root of its strength, not only blood relations,
but the dedicated employees who have entrusted their futures to it.
“Our supervisors all started from the ground
floor, so they have a great knowledge of what they’re doing,”
Wheeler says. “I think we are unique in the great people we have who
work for us. The amount of pride they take in their work is remarkable to
me.”
That pride is warranted, what with a growing list of
branded, private label and foodservice customers here and abroad,
generating $150 million in sales last year, placing Gossner Foods at No. 62
in Dairy Field’s Top 100 ranking of dairy processors in 2005. To meet
the growing demand for its products, Gossner opened a new cheese factory in
southern Idaho last fall, barely a year after breaking ground. The Magic
Valley plant joins the flagship plant in Logan and a facility in El Centro,
Calif., that opened in 1999.
“We do move very quickly when opportunities come
up,” Wheeler says. “If someone comes to us with an idea,
it’s very seldom we’ve totally walked away from it without
investigating to see if it’s something viable that we can do. And we
do move very quickly — that’s one thing the big customers have
appreciated.”
Service and Quality
About 80 percent of Gossner’s output is for
customers’ labels; the rest is sold under the company’s own
brand in Utah, California and the Pacific Northwest. Much of that reaches
the throngs of people who flock to the retail store at Gossner’s
Logan headquarters, some traveling hundreds of miles to get their fill of
Swiss cheese and shelf-stable flavored milk, along with fresh cheddar curds
and ice cream that are only available at the plant. (A similar store is
planned at the new Idaho plant.)
Total products made encompass a couple of thousand
SKUs, which also include aseptically packaged broth products that were a
good fit for Gossner’s low-acid processing lines. Newest products
include mini horns, reclosable packaging for the fresh curds and a variety
of sliced cheeses, a convenience product that Wheeler says is a key growth
area for cheese. Gossner is also making a new line of flavored milk and a
reduced-fat Swiss cheese, both for major national brands.
“It’s been our philosophy to move quickly
if an opportunity’s there, and to try to do things for the larger
companies that have the sales force to sell a product we want to
produce,” Wheeler says. “We have tried to specialize in doing
products for someone else.”
But whether under its own brand or others,
Gossner’s cheese has found its place. “It’s been exciting
to see how people are accepting natural sliced cheese and the growth
that’s taking place,” Wheeler says. “We’ve always
specialized in a very mild Swiss cheese —we call it the Western
flavor. Maybe someone who’s a real Swiss connoisseur will say it
doesn’t have enough flavor, but the majority of people like the
milder Swiss cheese, and it doesn’t overwhelm the flavors of a
sandwich.”
Such growth made the Idaho plant a necessity. “We
had customers who wanted more product than we were able to produce,”
Wheeler says, noting the new plant will allow Gossner to double its Swiss
cheese output. “With the aseptic products, I see a natural steady
growth as more people look at the convenience of it and understand what
it’s all about. It just continues to grow.”
Gossner got into the fluid milk business in 1982
“because we felt the need to pay a Grade A price to our
farmers,” Wheeler says. But the company didn’t want to compete
against existing fluid processors in sparsely populated Utah.
Wheeler’s father, company founder Edwin Gossner, came across aseptic
milk in Canada and decided to have a go at selling it, since it’s
easily transported to faraway markets that present increased sales
opportunities. Today, Gossner milk — the oldest UHT fluid brand in
the United States — can be found around the country as well as the
Far East.
“When Hurricane Katrina hit, we sent several
truckloads of milk down to Texas and New Orleans,” Wheeler says.
“Since them, we are getting significantly more hits on our Web site
and as many as 30 phone calls a day from people wanting to know where they
can find our milk.”
Wheeler sees growth opportunities for aseptic milk due
to the product’s ability to be transported and stored for months
without refrigeration. And she hopes the convenience factor and an
extensive selection of flavors — including chocolate, strawberry,
vanilla, banana, root beer and the new cookies and cream — will get
more children drinking the healthful beverage both at home and in school.
“It’s been very difficult to educate the
people in the United States, but [aseptic milk] has been accepted pretty
much all over the world except the United States,” she says.
“Especially since they’re talking about there being too much
soda pop in schools, you can’t beat it. When children have had the
choice, they have preferred our milk over pasteurized milk, [which often]
takes on the flavor of the carton. Ours has aluminum foil on the inside, so
it doesn’t get that flavor.”
At the Logan retail store, Gossner explains, children
visiting with their parents rush for their favorite flavored milk on
arrival, and grandparents have been known to purchase cases of the milk for
their grandchildren for birthdays and Christmas. The company is also
working to provide its milk to daycare centers and Meals on Wheels
programs.
Most companies would covet this kind of demand for
their products, especially on the kind of marketing budget Gossner Foods
has, which is practically nil.
“We really don’t advertise,” Wheeler
says. “Our name is known in the state, where we sell cheese in local
stores. But so much of our product goes outside the state, and it goes
under other names, so we’ve never really invested a lot of money in
advertising.”
Supporting the local community is money better spent,
Wheeler says. “I think that’s the best advertising we can do.
Particularly anything our employees or producers are involved in,
we’ve tried to support. That means we support a lot of FFA and 4-H
activities, as well as high school sports, rodeos, fairs and livestock
sales in six counties, along with community fund raisers in Utah and
Idaho,” she says. “Up at the university [Utah State in Logan],
we put on the Gossner Classic, a holiday basketball tournament.
That’s where we’ve really spent what I would call advertising
money. I think the money we invest in that comes back tenfold, from people
knowing we care about the community.”
It also hasn’t hurt that Gossner milk was
featured prominently in “Napoleon Dynamite,” the 2004 movie
filmed in Preston, Idaho, that has become something of a cult hit. Wheeler
says the filmmaker offered to put the milk in his movie if the company
would give him some for his cast and crew. She then forgot about it until
about a year later when she started getting phone calls from people telling
her about “the funniest movie I ever saw and your milk is in
it.” Some movie-related souvenirs are now for sale in the Logan
retail store.
But the limelight certainly isn’t what has given
Gossner its strength in the dairy industry.
“It’s the service we give and the quality
of our products,” Wheeler says, “and we’ve always had a
competitive price.”
Part of the Community
Strength, too, comes from the family’s commitment
to the business and the dedicated employees who give their all to make it
work.
Wheeler took the reins of the company in 1984
“with really no experience when it came to running a factory,”
she says. “I had been working on our farm with my husband and doing
the payroll here. But the one advantage I had was that I knew all the
people, working with what they now call ‘human resources.’ The
one advantage I had that most women don’t is the fact that the men
wanted me to take it over. They said, ‘You’re like your dad,
and we don’t need someone to tell us how to do our job. We just need
someone to pull us together.’
“We stepped into something that was very
difficult but worked together to meet the challenges. Because I
didn’t know what I was doing, I wanted everyone to work together as a
team. It worked, and that’s still our philosophy now. We don’t
buy a piece of equipment in the plant unless the people who are going to be
running it have an opportunity to help decide what we’re going to
get.”
And just like Wheeler herself started in the plant, on
the packaging line, the current managers all started on the ground floor.
“Whatever job was available when they walked in the door,
that’s the job they got. You talk about cream rising to the
top,” she says.
It also helps that management and employees all live
and work in the same community, encouraging a feeling of togetherness.
“It makes you a lot more appreciative of what the people do, and
makes you want to do a good job for them, because I see them every
place,” Wheeler says. “If you go to the rodeo or the 4-H show
or to buy groceries or to the restaurant, we run into employees and
producers. It’s surely a lot better if they can smile at you. I think
it’s made us a lot more understanding of the people who’ve made
it all possible.”
That extends to the farming community as well, of
which Wheeler and her family have long been a part. “My dad always
told me, ‘You can’t make cheese out of water. Take care of your
producers.’ I’ve never forgotten that,” she says.
“When the milk price goes down, we’re very concerned, because
we know it hurts our farmers. When I go home at night — I
haven’t really counted how many dairies that ship milk to us that I
drive by, but there’s got to be about 10 or 12. You see them out
working. They’re special people. The biggest strength we have in
America is that we can feed our people. Nobody does the job the American
farmer does.”
Executive vice president Greg Rowley adds: “We
try to take care of the producers, the employees and the customers. If you
do those three things, I think you’re going to be successful.
It’s worked here.”
The Road Ahead
Environmental issues are among the biggest challenges
facing the U.S. dairy industry, Wheeler says, “starting on the farm,
on through to processing. We’ve spent a lot of money to take care of
our wastewater, and I know our farmers have, too. It is a huge issue, and I
think it’s probably the thing we worry the most about. We do worry in
this area about losing farmers, and that’s the main reason you lose
them. A subdivision moves in next to them, and it’s not worth
fighting.”
But Wheeler is still optimistic about growth in her
company’s segment of the industry.
“Natural cheeses are a huge thing; people are
trying different types of cheese,” she says. “I don’t
think we’ve even come close in teaching the people of America what
the Europeans already know about all the different types of cheeses. If an
opportunity comes for a different type of cheese, we certainly would be
looking at doing something different.”
However, the company is hesitant to look too far ahead.
“People talk about their five-year plan or 10-year plan. We’ve
always laughed and said ours is a five-minute plan,” Wheeler says.
“If an opportunity comes along, we jump on it.”
Still, the long-term outlook is good. “I see
growth, especially with the plant in Idaho. It’s certainly going to
open up a lot of opportunities because we made the make room large enough
that there’s a lot of different ways we can go with it,”
Wheeler says. “We see more growth coming with the UHT plant. I think
we’re versatile enough that there’s a lot of different ways we
can go in the dairy industry, particularly with three different locations.
I think in the next five years we’ll grow faster than we’ve
ever grown before.”
Family Ties
What makes Gossner Foods unique? Certainly the family
ownership is a big part of it. Management and longtime employees both have
family members working in the company.
“Our daughters have worked here from the time
they were young,” Wheeler says. “Dixie [Udy] has worked here
since she was 16 years old. She is now the human resource director, and her
husband Alan is responsible for the milk quality from all the dairy farms
in Utah and Idaho. Trish [Gibbs] worked here and is on the board of
directors. Now Trish’s daughter works here, and Dixie has two
children working here.” That includes a granddaughter in the main
office, plus one grandson in the milk lab and another who works at the
Magic Valley plant. Also serving on the board of directors is niece Dawn
Jones, daughter of Dolores’ late brother, Edwin Gossner Jr.
“I think we’ve been able to keep people and
the family has stayed because everybody loves this area and they
don’t want to leave,” Wheeler says. “All of our key
people have had opportunities to go work for bigger companies. I think they
know we will take care of them.
“There’s a real interest to keep this
business [in the family]. They all respected Dad and Mother so much. They
fought terrible obstacles, and the children have grown up learning that,
how important it was to them. So there’s a lot of loyalty, a lot of
history and a lot of pride here.”
Pride, too, in that Gossner Foods is about the last
local family-owned business left in the Cache Valley. “We’ve
made an investment in the business every year, a major investment of some
sort, either equipment or buildings, or a combination,” Wheeler says.
“That’s another reason why a lot of these good people have
stayed, because they’ve watched the company grow, so they think
there’s a future here.”
The company has indeed come a long way since its start
40 years ago, when the first cheese plant rose from a lonely alfalfa field
amid snow-capped mountains, and all the milk came from the family’s
own dairy farm.
“We went through some really tough times when I
first starting managing,” Wheeler recalls. “We were in a
meeting here and I said, ‘We’ve been to hell and back
together.’ And Greg [Rowley] says, ‘I didn’t know we got
out.’ But we did. We’re secure now and everyone has faith in
one another about what the future is. There are so many people who truly
care.”
With such a deep connection to one’s calling,
you’d probably want it to last forever.
“People ask me when I’m going to
retire,” Wheeler says, “and I always say I’m having too
much fun.”
GOSSNER FOODS: A BRIEF HISTORY
Edwin Gossner Sr. was born in 1909 into a farming family in
Switzerland. He came to the United States in 1930 and went to work in a
Wisconsin cheese factory owned by his older brother, Ernest, who came to
the States seven years earlier after graduating from the Swiss Cheesemaking
School of Switzerland. Edwin Gossner spent the next three years learning to
make Swiss cheese following the traditional methods of the old country. In
1933, he married Josephine Oechslin; they had two children, Edwin Jr. and
Dolores.
The Gossners eventually moved to California, where
Edwin accepted a position with the Rumiano family whose plant he converted
from a dry Monterey jack to a Swiss cheese facility.
Looking for a place to make his own Swiss cheese,
Edwin discovered Northern Utah’s Cache Valley while on vacation to
Yellowstone National Park with his family in 1941. The Cache Valley had a
climate and elevation closely resembling that of Switzerland, and offered
an abundant supply of milk. Gossner soon moved to Utah and within five
years he had built what was at the time the largest Swiss cheese-making
factory in the world, producing 120 200-pound wheels of cheese a day.
In the ensuing years, Gossner was the guiding force in
upgrading Cache Valley milk production to Grade A market status. Gossner
also made important innovations such as introducing to the area the means
of making processed cheese and a more efficient recovery method of whey
by-products.
In 1966, Edwin Gossner and his family began anew by
establishing the Gossner Foods operation people know today. Starting with a
half vat of milk (12,500 pounds) every other day, Gossner Foods now uses a
million pounds of milk a day for cheese production. Eventually more than 30
varieties of manufactured and packaged cheeses carried the Gossner name.
In 1973, Edwin Gossner helped establish Swiss Village,
a cheese manufacturing plant in Nampa, Idaho; this plant was later sold to
J.R. Simplot and is currently owned by Sorrento Lactalis. In 1982, Gossner
launched a line of aseptically packaged fluid milk products, which allowed
the company to open up new marketing avenues rather than compete with the
local Grade A milk market. Today, Gossner milk travels all over the world
with U.S. troops, and it is sold in Latin America, Asia and other places
where milk supplies and refrigeration are limited.
The mainstay of Gossner Foods continues to be Swiss
cheese, made using the same formula that Edwin Gossner developed years ago
to yield cheese with a milder flavor and softer body than other Swiss
cheeses. Gossner Foods utilizes state-of-the-art equipment for cheesemaking
and aseptic packaging, and continues to explore new ideas to expand
offerings for the Gossner brand as well as a long list of branded, private
label and foodservice customers.
In 1984, with her father in ill health and her brother
having left the company, Dolores Gossner Wheeler became president, chief
executive officer and chairman of the board of Gossner Foods. Her husband,
Allen Wheeler, and their daughters serve as directors of the company.
Edwin Gossner died in 1987, leaving behind a corps of
caring, knowledgeable and well-trained employees that the family credits
for making Gossner Foods the successful family business that it continues
to be today.
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