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Dairy is more than our business.
It’s our passion.
402-372-5551
info@westpointdairy.com
September 2013
September 2013
THE MANY FAST FOOD USES FOR BUTTER
Back in the 1970’s fast food exploded in American culture.
Led by McDonald’s, many fast food chains proliferated
from chicken to tacos to pizza. Fast food, or Quick Service
Restaurants (QSR’s), became deeply rooted, especially among
young people.
Fast forward to today and those people are now grown and
many have families.
With all of the focus on healthier food and
natural eating, Americans have demanded
higher quality and less chemicals in their food.
The QSR’s have paid attention and each month
offer new and better products. Once unheard of
in chains, higher quality dairy, including butter
usage is now an option.
The Better Burger Trend
The simple hamburger is not so simple
anymore. In the past five years, the foodservice
market is flooded with “better burger” chains, with a serious
effort to upgrade the lowly meat patty to gourmet cuisine.
Consumers are willing to pay and processed yellow American
cheese is no longer the only option for dairy. After the beef,
it’s all about the toppings and nothing says gourmet burger,
like cheese. The market is now set for consumers to pay more
for higher quality dairy ingredients.
For decades, McDonald’s has crushed Wendy’s and Burger
King. Two years ago, McDonald’s introduction of premium
coffees, using real milk, dominated the burger war press.
Today, the PR is all about Five Guys, The Counter, The Habit,
Smashburgers and In-N-Out.
This is the growth of the burger industry and the top three are
looking over their shoulders. How do you become the “Hot off
the Grill” concept?
Lesson 1 – Use Better Ingredients
Not one of today’s trendy burger chains looks to slash food
cost by purchasing cheaper ingredients. Of course, they care
about food cost and the rising cost of commodities, but they
entice consumers by offering better ingredients that cost
MORE than what is available at the Big Three.
Kobe beef, Gruyere cheese, focaccia bread all cost more than
80/20 ground beef, processed American and white bread buns.
For example, Wendy’s adds better flavor by offering butter
toasted buns on their Dave’s Classic. And Culver’s serves fresh,
never frozen, 100 percent Midwest beef burgers that are cooked
to perfection with a lightly buttered, toasted bun.
A great headline for a burger menu would be onions grilled
in butter. Operationally, grill a quantity of buttered onions
and reserve for re-heating at the time of order. Simple. The
incremental cost of butter versus frying oil is minimal for this
single ingredient. If the food cost still seems frightening, offer
grilled onions standard and buttered onions as a
premium.
Butter is a relatively rare commodity in many
quick-serve establishments in 2013, primarily
because of its price: Frying in oil is almost
invariably less expensive than using dairy fat.
Think less about butter’s utility as a frying medium
and more about its appeal as a flavor enhancer.
High-end restaurateurs prepare their own butters,
incorporating everything from herbs, wine and
spices into their spreads. Because butter’s flavor is quite
intense, it is an incredibly efficient vehicle for delivering a big
burst of flavor.
Lesson 2 – Sell Food for What it’s Worth
Smashburger sells burgers for $6.50 and up, The Counter
offers $12 burgers. McDonald’s and Burger King Franchisees
routinely complain and push back on the 99-cent price point.
Consumers know that a McDonald’s burger is not the same as
the gourmet burgers. They know the price is higher, yet fill the
drive-through lines. Not every day, but enough times a month
to create huge growth in the “better burger” category.
Think of the options to use butter in QSR:
•
Fries finished in butter
•
Grilled vegetables
•
Fish sandwich grilled in butter
•
Hot buttered rolls or biscuits
•
Fish tacos grilled in butter
•
Pizza crust made with butter vs. oil
•
Butter based cupcakes
Do not be afraid to offer high-quality menu items at a high
price-point; it could be a “limited-time-offer” item. Push up
your highest price point; people tend to buy in the middle, so
it is easier for them to rationalize a higher-mid price point if
the top-end is considered exorbitant.
…Continued
Lesson 3 – Promote Food not Price
800-4BUTTER
Think of great ingredients: Kobe beef, Asiago cheese, and
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focaccia
bread. Makes your mouth water doesn’t it? Most
foodservice promotions focus on price like $2 off, kind of
makes your wallet water, doesn’t it?
The point is simple – use your promotional muscle to engage
consumers in your PRODUCT, not your price. Advertising
price animates consumers to search for coupons, not great
food. Butter is a proven ingredient to signal consumers
402-372-5551
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regarding quality. Promote it in order to stand out.
Operators that compete on price with the giants without
properly differentiating their productSeptember
lose the war.2013
Believe
that consumers are smart enough to tell the difference and
use butter to help sell that difference. Seek better ingredients,
describe the experience, charge what your product is worth
and let consumers decide. That strategy works for hot burger
concepts and can work for you, too.
BUTTER MARKET UPDATE: SUMMER 2013
Butter, butter everywhere and not a pound to export!!! Well,
almost none.
At the end of June 2013, there were more than 324 million
pounds of butter sitting in coolers and freezers in the U.S.
Meanwhile, there were relatively tight supplies in
Europe, where the butter price was approaching
two dollars a pound.
With the abundance of U.S. butter, why weren’t
ports busy loading containers for shipment to
Europe? You’ve heard of the 80/20 rule. Well butter suffers under the 80/82 rule.
inventories on hand at the end of June are equal to just 50
days of usage.
Meanwhile, the European butter price has reached nearly
$2.50 per pound. USA butter makers heard the call
and are making some 82% butter for export. On the
other hand, the cream supply is tightening up seasonally as the flow of milk from the farm slows.
Marketers and end-users of butter are starting to
think about the seasonal increase in demand as yearend holidays near.
Generally speaking: American butter is 80% butterfat and salted; European butter is 82% butterfat
and unsalted. USA coolers were full of 80% butter.
The supply and demand situations are tilting: A reduced supply of 80% butter and a greater demand for
butter, both 80% and 82%. Lower butter prices of this
summer are not here to stay.
In early June, the U.S. butter price brushed up against $1.55,
by mid-August (as of this writing) the price had slumped to
$1.37. Where will the price go from here?
U.S. dairy companies are now participating in the worldwide
marketplace, and worldwide demand points toward higher
butter prices in the not-too-distant future.
Near-term, there may still be some downside to the butter price. I’m almost certain that the soon-to-be-announced
inventories, at the end of July, were also very high. End-ofJune stocks were equal to a 65-day supply. Typically, the
Jerry Dryer, Editor & Publisher, Dairy & Food Market Analyst
www.DairyMarketAnalyst.com
JDryer@DairyMarketAnalyst.com
Grassland Dairy Products and West Point Dairy Products use sources that are
believed to be reliable, but it cannot warrant the accuracy of any of the data or
forecasts included in this report.
DIFFERENT DISTRIBUTION MODEL DELIVERS FRESH DAIRY QUICKLY
Describing himself as more of a “computer guy” than a “food
guy,” Scott Eithun is nonetheless enthusiastic about and vital
to the movement of about one million pounds of cheese,
butter-related products, and dairy items daily.
President of IPAP, an innovative membership foodservice redistribution model, he
is responsible for creating the in-house
programs that track orders and product inventory as well as
providing the detail for billing.
Founded in 1991 by three buying groups, in the 13 years
Eithun has been with IPAP it has grown to handle $2.5
billion in refrigerated dairy product for its buying groups,
now numbering five.
IPAP aggregates the buying power of its groups under one
purchase order to make purchases from about 100 food
producers and manufacturers for about 450 distributormembers. When the product is made and shipped to the IPAP
consolidations facility, it is broken down for each customer’s
order. Consolidation of all categories is done for the member
distributors located throughout the U.S. and Caribbean –
distributors that sell to restaurants, hospitals and schools.
With just 25 employees, IPAP is considered one of the largest
alliances handling refrigerated dairy products in the country.
The five venture partners and their members do about $60
billion in total procurement, more than distribution giant
Sysco. “It is a completely different business model than a
…Continued
traditional distributor because we are owned by five competing entities and sell only to their customers,” Eithun explains.
his business bring the product to market successfully.
“There are a lot of companies the size of Grassland that are
more corporate in structure and it can be complicated to get
things done. Grassland executives are approachable and it’s
more of a win-win relationship in working through issues and
programs to benefit the supply chain than I’ve experienced
elsewhere,” he says.
When comparing the amount of beef to butter in a typical
entrée, it is easy to see why butter is normally a very small
commodity category. Even so, Grassland Dairy Products
has become a significant partner to IPAP, providing cheese
in addition to butter. Eithun admires Grassland’s innovative
approach to business, too.
At IPAP’s 200,000 sq. ft. consolidation facility in Appleton,
WI, cheese is the main product. Inbound orders from suppliers are consolidated for distribution on consolidated outbound
orders. “From a supply chain perspective, we are building the
average order size so it will be most competitive – adding one
pallet of butter to a ten pallet cheese order, for example,” he
says.
Eithun says the organization handles an average of one million
pounds of Grassland butter monthly, a relationship that dates
back to 2002. Grassland is not the only source for USDA AA
butter, but Eithun says the relationship with Grassland helps
Product Showcase
WÜTHRICH 83% EUROPEAN–STYLE BUTTER
Wüthrich 83% European-Style
Butter offers the best for both
the foodservice and consumer
worlds: It’s a preferred choice of
professional chefs who covet its
higher melting and smoke points;
in addition, it’s regarded as an
excellent table butter, winning
numerous awards.
The approach to service at Grassland is a good fit for IPAP.
“Our reps at Grassland have been fabulous to work with
because timing and efficiency are a big deal to our customers.
It’s all about customer service and Grassland is a true partner
in that regard.”
Additionally, its higher plasticity makes it perfect for
lamination and puff in pastry products. Pastry chefs also
appreciate that it’s flexible and easily sheeted over dough.
Made from a century-old family recipe, the European-Style
Butter starts with fresh cream from the farm, which is enhanced
with natural flavorings and a culture. The resulting butter is
smooth and creamy, offering superior flavor, performance,
quality and versatility in the kitchen.
Because the Wüthrich 83% European-Style Butter has three
percent higher butter fat than domestic butter, less product can
be supplemented for the higher fat and it can be used at higher
temperatures. This lower water content makes it an ideal
ingredient, allowing chefs to use nearly 25 percent less butter
in recipes and achieve the same premium results.
WÜTHRICH 83% EUROPEAN–
STYLE BUTTER WINS ACS AWARD
2013 American Cheese Society (ACS)
Judging and Competition
Results Held in Madison, WI on
August 2, 2013
As for quality, Eithun describes Grassland butter as superior
to California butter, saying that Grassland offers an assortment of packaging options, along with private label. “We only
order the product lines and amounts our customer request, so
we don’t hold any inventory on about 5,000 items we sell on
a regular basis. Grassland is our sole supplier of butter and a
very significant partner.”
“The balance of flavor in this butter is exceptional, making it
an excellent choice for sauces. It is delicate yet full of body,
as it does not take away from the real flavor of the sauce,”
said Antonio Cinicola, Executive Chef at the New York
Yacht Club. “Finishing a “buere blanc” sauce … it is delicate
in taste and fresh on the palate. This butter also glazes
vegetables exceptionally well.”
Consumers love the bold aroma of the European-Style butter
as well as its rich, full-flavored taste. The Wüthrich 83%
European-Style Butter has won numerous awards, including
gold medals at the U.S. and World Butter Competitions. It
was recognized earlier this month with a first place award
from the American Cheese Society in the category: Unsalted
Butter with or without Cultures from Cow’s Milk.
The Wüthrich 83% European-Style Butter is available in
cases of 36, 1-pound solids, as well as 25 kilogram packages.
Category:
UNSALTED BUTTER MADE FROM COW’S MILK
1st Place: West Point Dairy Products LLC, NE • Wüthrich 83% European-Style Unsalted Butter
2nd Place: Cabot Creamery Cooperative, VT• Cabot 83 Butter
3rd Place: Rumiano Cheese Company, NJ • Rumiano Unsalted Butter
BUTTER TIPS – CLARIFIED BUTTER AND SEAFOOD
Americans are eating more seafood. Shellfish and finfish are
important parts of healthy diets and the flavor attracts many
people as well. Nothing makes seafood flavor burst as much
as clarified butter.
Clarified butter is the result of removing the
milk solids and water from the butter. Most
dairies and chefs produce it by melting butter
and allowing the components to separate.
Ideally, when butter is melted it forms three
layers: a white foam top, a golden fat layer and
the milk solids that settle on the bottom. In
clarifying butter, the foam is to be skimmed
off and the golden fat layer is poured off.
In house clarification costs extra money in
wasted product and time, in addition to the
extra training.
Grassland and WestPoint Dairy Products
use a commercial centrifuge that eliminates
evaporation, producing a product that’s 99.9 percent fat
– compared to 76 percent fat yield using the evaporation
and pour method. Wüthrich Clarified Butter is packed
in an attractive black tub, eliminating light penetration,
therefore keeping the peroxide levels lower. The convenient
five-pound tub can be kept grill side as the product is shelf
stable.
A primary reason to use clarified butter is to increase
the smoke point, allowing the chefs to cook at higher
temperatures without burning or scorching the
dish or sauce.
Chefs love to use clarified butter for sauces,
because it shortens the cooking time to reduce
the water than regular butter. Longer cook
times extend labor hours and caramelize
sugars, which changes the flavors chefs
designed. Every lobster tail dinner features a bit of
clarified butter for dipping – consumers expect
it and love it. Consider the addition of this
super premium side to crab, shrimp and scallop
service. Another idea for seafood and clarified
butter is to add lemon zest or lemon juice to the butter.
Premium seafood demands premium condiments. Source
and sell the best you can and top it with clarified butter to
keep consumers coming back, time and time again.
About Us
A PASSION FOR DAIRY 100 YEARS STRONG
Grassland Dairy Products
and West Point Dairy
Products are leading
manufacturers of highquality butter and dairy
products, serving the
retail, foodservice and
industrial markets.
We offer refreshing
innovation while maintaining the traditions that have made
us a family favorite for more than one hundred years. Our
success is built on a fundamental commitment to delivering
unsurpassed quality and value in everything we do.
For more than a century, we have been delighting our
customers with the finest butter and dairy products, crafted
with care and developed with innovation. We insist upon
uncompromising quality and exceptional value in every item
we produce, always striving to exceed expectations.
Dairy is our passion at Grassland and West Point, and we
recognize that it all begins with the milk cow in the barn.
Verna, a Holstein cow bred in Clark County, Wisconsin,
the home of Grassland, was a 4-H project of our founder’s
great-granddaughter and won Grand Champion honors at
the Wisconsin State Fair Junior Show in 1978. Our newly
re-designed butter packaging now includes the image of
Verna in the hope that our customers around the country
will understand the important role the dairy cow plays in our
daily nutrition.
N8790 Fairground Avenue, Greenwood, WI 54437
Phone: 800-4BUTTER • Fax: 715-267-6044
email@grassland.com
West Point Dairy: 1715 E. Road, West Point, NE 68788
402-372-5551
info@westpointdairy.com