Cheese and ice cream

To put Tillamook into perspective, it is competing with much larger cheesemakers. The co-op ranks 45 on the Dairy 100, Dairy Foods’ annual ranking of North America’s largest processors of dairy foods and beverages. Tillamook reported sales of $477 million in 2011. No. 5 Kraft had revenues of $4 billion and No. 32 Sargento rang up $1 billion.

Despite its size, Tillamook competes very well with the big boys, according to data from SymphonyIRI Group, a Chicago-based market research firm. Kraft is the No. 1 brand in the natural chunk category and Tillamook is No. 2. In the shredded cheese segment, SymphonyIRI counts Tillamook among the Top 10, behind products from Kraft, Sargento and other national brands. Measured by volume, medium cheddar is Tillamook’s best-selling product, Allison said.

Besides cheeses, the company processes ice cream and sweet dry whey at the Tillamook plant. The ice cream is one of the top 15 brands in the country, according to SymphonyIRI Group. Sales are smaller than the likes of Unilever’s Breyers, Nestlé’s Dreyer’s/Edy’s slow-churned SKUs and independent Blue Bell Creameries. But the Oregon company holds its own against Mayfield (a unit of Dean Foods Co.), Talenti and other SKUs from Dreyer’s/Edy’s. Tillamook’s dollar sales and unit sales increased more than the category average in the 52-week period ending June 10, 2012, according to SymphonyIRI.

In January, Tillamook launched a 10-flavor line of light yogurt sweetened with stevia. The company said it spent two years to find a natural substitute for sugar as a sweetener. The yogurt is licensed, as is sour cream and butter is co-packed.