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    Dairy Foods & BeveragesButterCheeseCultured Dairy

    Crystal Farms: Aiming to be the Midwest’s No. 1 dairy brand

    Minnesota processor sources local and gives back to the communities it serves.

    By Brian Berk, Editor-in-chief
    cheese platters, pretzels, and crackers

    Article photos by Crystal Farms and Brian Berk.

    February 16, 2024

    Edina, Minn.-based Crystal Farms Dairy Co., producer of high-quality cheese and butter with dairy sourced from Midwest farms, is known for its commitment to “Farm and Family” by recognizing the hard work of farmers to put food on families’ tables. 

    Some of Crystal Farms products can be found nationwide, although its products have the heaviest penetration in the upper Midwest, including Minnesota, Wisconsin, Iowa, North Dakota, and South Dakota, as well as a strong reach into Missouri. Its products are sold at most major retailers in the upper Midwest, including Walmart, Target, and many regional grocery retailers. 

    When factoring in its Edina location, as well as its Lake Mills, Wis., processing plant, Crystal Farms employs a staff of more than 200 people. In the Minnesota location, situated in a corporate building a stone’s throw away from a prominent shopping mall and just 15 minutes from the world-famous Mall of America, marketing, sales, information technology, and human resources services are performed, with the rest of the business — including the processing of course — taking place about 250 miles away in a Wisconsin town on Interstate 94 between Madison and Milwaukee. 

    “We want to be the No. 1 brand in the Midwest,” says Tim Bratland, who has been the president of Crystal Farms for two years, and previously worked for parent company Post Holdings for nine years. “We want to really expand across the Midwest. We are focusing on becoming a very strong regional brand.”

    “We are a great brand. We are a great company. But like a lot of companies, we've had to bring ourselves into the 21st century.”

    — Tim Bratland. president of Crystal Farms Dairy

    Crystal Farms focuses on serving independent retailers. “We are in Target and Walmart. We love that business,” he says. “But we focus on serving 40- to 50-store chains, who are often privately owned, third- or fourth-generation grocers. We want to focus on the businesses and people who brought us to the dance.”

    Specifically, the company processes shredded cheese, sliced natural cheese, chunk cheese, processed cheese, specialty cheeses like feta and ricotta, blue cheese crumbles, cream cheese products in block, spreadable and whipped, as well as standard stick butter in salted and unsalted varieties and spreadable butter. Crystal Farms even offers refrigerated bagels and English muffins. 

    Crystal Farms offers many SKUs, something that can be a challenge for some processors. However, it has expanded as grocers have asked the company to provide more products, so it knew demand was in place, Bratland stresses. 

    “Our goal is to be a one-stop shop for regional retailers. That means we have a broad selection, which can be good and bad at times,” Bratland acknowledges. “It is a lot of SKUs to keep track of, but Andrew (Cannon’s) team is doing a great job of keeping track of not only everything customers need, but everything that can be profitable. 

    “We are a great brand. We are a great company,” he continues. “But like a lot of companies, we’ve had to bring ourselves into the 21st century.”

    Nearing the century mark

    In the 1920s, Nathan Friedell migrated from Russia and started Nathan’s Produce Co. Julius Rosenberg followed in the 1930s, starting his own egg business. Both companies thrived and eventually merged in the 1970s, selling eggs, cheese and other dairy products under the Crystal Farms brand.

    One of Crystal Farms' goal is to help consumers understand it is a Midwest born and bred company that sources 99% of its dairy from the region, states Andrew Cannon (right).
    One of Crystal Farms' goal is to help consumers understand it is a Midwest born and bred company that sources 99% of its dairy from the region, states Andrew Cannon (right).

    “We started as an egg business. In the 1980s, some retailers came to the owners of the business and said they were looking for cheese products that can compete with national brands. That is when our cheese business was born,” says Cannon, associate director of marketing, who leads the four-person marketing staff, and joined Crystal Farms two years ago.

    The company was first acquired by Michael Foods, which itself was purchased by Post Holdings Inc. in 2014. Crystal Farms today operates as one of Post Holdings’ family of businesses. 

    In March 2023, Crystal Farms launched two new cheese stick flavors geared toward an adult taste palate after listening to consumer feedback; gouda and sharp cheddar. In September, Crystal Farms launched a two-pack of its classic cream cheese. As more consumers and families navigate inflation at the grocery store, this is a way to provide value without sacrificing quality or taste, the company states.

    Midwest roots

    “Our goal is to help consumers understand we are a Midwest born and bred company. The Midwest is really important to who we are, and we live that,” Cannon relays. “We source 99% of our dairy from the Midwest. We also support Midwest organizations that help the next generation of agricultural producers and leaders.”

    These efforts include Midwest Farms Forever, formally launched in 2022, which is the philanthropic effort to continue supporting farmers across the heartland. Along with its sourcing mission, Crystal Farms has established a relationship with FFA’s national, Minnesota, and Wisconsin chapters to provide financial support to help them lift up the next generation of agricultural leaders. “To date, almost $40,000 has been donated by Crystal Farms to support FFA’s efforts. FFA’s services help to support and recruit agriculture teachers, fund alumni programming, and provide the necessary and often expensive equipment required for students to get the most out of their education,” the company states.

    Future marketing efforts include helping more consumers become aware of the Crystal Farms brand. Social media and advertising are the main methods the Minnesota company uses to achieve these goals. 

    “We find a lot of consumers in the Midwest are familiar with us, but we have a lot of room to grow. We have a lot of opportunities,” Cannon says.

    In terms of what new products we may see from Crystal Farms, the company realizes nearly every U.S. household stocks cheese in their refrigerator. “But that is really just out of habit,” Cannon stresses. “There are opportunities for us to include bold and new flavors in the cheese category. We are looking to pair cheese with interesting flavors that are on-trend and we are looking at new forms of cheese in terms of on-the-go snacking. So, it is about bold flavors and convenience in snacking.”

    cheedar cheese salted butter original cream cheese
    Crystal Farms processes shredded cheese, sliced natural cheese, chunk cheese, processed cheese, specialty cheeses like feta and ricotta, cream cheese products and more.

    Specifically, consumers are looking for hot and exciting flavors, Cannon reveals. “There is a lot of growth in bold, spicy-type flavors. It is not just about having Pepper Jack. It is about how you amp up the heat on the Pepper Jack. You see that happening in the salty snack aisle at the grocery store. We want to bring more of that flavor profile and heat and excitement to cheese.”

    In terms of portability, cheese is a great source for on-the-go snacking because it’s packed with protein and is nutritious, Cannon adds. “Consumers really want protein right now,” he said. “Cheese also retains shape, meaning it will not get gooey or messy, which is really important for kids. And it tastes great too.”

    Dairy trends

    Crystal Farms executives are optimistic about the future. Like many in the industry, the company has seen strong cheese sales, as well as excellent sales in butter on a dollar sales basis. “Consumers are eating out less right now due to pocketbook pressures they have. More meal consumption at home means more purchases of staple products we sell,” Cannon says. “Cheese goes great with every meal and is a snack option. That is why we are excited about bold flavors. Consumers are looking for flavors they might normally get outside the home.”

    What consumers are buying and where has shifted, Bratland adds. “With inflation at 40-year highs, we have seen consumers shift to private label. We have also seen consumers shift to value. That has impacted us,” Bratland relays. “But the total demand for cheese has been really good. The in-home consumption has been good for us. A lot of people are using cheese to make pizzas, tacos or casseroles. The biggest challenge is pricing, in terms of providing value for consumers, our customers and our business.”

    Even if inflation lessens in the future, Cannon still expects that lessons learned during the COVID-19 pandemic will continue, namely consumers looking to save money and will want new flavor options when making food at home. “The cheese aisle is a great place to help consumers do that,” he says. “We will continue to help consumers find products that are relevant to their lives.”

    If the inflationary environment changes, Crystal Farms will continue to deliver its message as a high-quality, Midwest cheese brand, Bratland adds. “As we get the message out, and as people have more money in their wallets, we can see new customers who will say, ‘I really want to buy Crystal Farms now. I was watching my pennies, but I want to support a company that supports the Midwest and the community.’ We are excited about that.”

    Company motto

    Above all, Crystal Farms wants to be known as a company that aims to always do the right thing and be a great steward for the communities in which it serves. “A few years ago, we purposely changed all of our sourcing of milk — which we use to make all of our cheese — to the Midwest. It cost us more money to do so. But we decided if we are truly aim to be the No. 1 Midwest brand, it was the right thing to do. Shoppers want to know where their food is coming from. We are our supporting our local community. That is where we feel we are different than our competitors,” Bratland affirms. 

    Crystal Farms president Tim Bratland speaks to Dairy Foods Editor Brian Berk (left).
    Crystal Farms president Tim Bratland speaks to Dairy Foods Editor Brian Berk (left).

    Food stability is another problem Crystal Farms cares about. Crystal Farms supports the great work of local Twin Cities food banks through volunteer work by employees at its charities where they happily pack boxes and tackle other tasks. 

    Beyond charitable efforts, Crystal Farms also focuses on being a great employer. “People in Minnesota love the flexibility they have to work out of home on Mondays and Fridays. But our team loves coming in to the office on Tuesdays, Wednesdays and Thursdays,” Bratland notes. “On Thursdays, we have Breakfast Huddles, where we bring in breakfast for employees and always celebrate birthdays. People are looking for a sense of community.”

    In 2026, expect Crystal Farms to have an even bigger celebration for its 100th anniversary. “We have already been talking about that,” Bratland concludes. “It really enforces we are a very viable brand and are not going anywhere. We plan to have another 100 years in the Midwest.”

    KEYWORDS: blue cheese feta food standards gouda protein ricotta sharp cheddar

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    Brian

    Brian Berk has been a writer and editor for 25 years. He has served as editor-in-chief of the Music & Sound Retailer and managing editor of Convenience Store News, both the top-circulated magazines in their respective fields. Berk has also held editing and writing roles in drug store retail, photography, and natural health products. Holding a bachelor’s degree from SUNY Cortland and a master’s degree from Quinnipiac University, Berk lives in Port Washington, N.Y., with his wife and two children.

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