International dairy processor Saputo Inc. says American appetites for specialty cheeses are much lighter than Canadian and therein lies an opportunity to fill the gap and grow.
In March, Montreal-based Saputo, one of the top three U.S. dairy processors, paid $277 million for DCI Cheese Co., a major distributor of imported specialty cheeses from bases in Wisconsin and New Jersey. Its 2010 annual sales were $470 million and it was profitable, employing 475.
"DCI would be a great platform for our marketing a much wider range of products in the U.S.," CEO Lino Saputo Jr. told analysts Wednesday. "We'd consider building a U.S. fine cheese manufacturing plant … and DCI may open the way for new acquisitions."
Overall, Lino Saputo characterized the North American market for cheese and grocery products as "challenging" because of higher fuel and other input costs. Retail markets felt the impact of slow economic recovery, though the food service sector was stronger.
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