Beatrice Cream Cheese Deal Moves Forward

Beatrice Group Inc. has begun producing packaged flavored cream cheese using the Big Apple Bagel moniker under a deal with the eatery chain's parent company.

"Flavored cream cheese continues to be a rapidly growing category throughout all of Beatrice's distribution channels," Beatrice Cheese Vice President Dave Beck said this week. "This product line, with its strong brand recognition, represents an opportunity for Beatrice to leverage our strategic partnership with BAB in both the retail and foodservice segments of our business."

The previously inked deal has BAB Holdings Inc. licensing the Big Apple Bagels trademark to Beatrice for "worldwide manufacture and sale of BAB's proprietary varieties of packaged cream cheese to the retail trade."

Response so far for the extended shelf-life product has been positive, company leaders say.

"That we have exceeded the expectations of our franchisees is evidenced by the fact that over 50% of our locations have committed to this program in its first week of availability," BAB Holdings Inc. CEO Michael Evans said.

The deal is an important step in developing BAB's "non-traditional business," company leaders say, that couples its cream cheese products with Beatrice's distribution network and marks the BAB brand's entry into national retail distribution to a mass audience.

"We believe the potential for revenue and increased brand awareness provided by Beatrice's ability to bring this product to market will have a significant positive impact on the long-term value of our brand," Evans said.

Cheese manufacturer/marketer Beatrice's brands include County Line, Healthy Choice, Reddi-Wip, Promise and Fleischmann. BAB Holdings runs, franchises and licenses My Favorite Muffin and Brewster's Coffee in addition to Big Apple Bagel.

Earlier this week, Beatrice Cheese announced it was moving its corporate headquarters from Waukesha, WI, to Indianapolis, shifting 150 to 200 jobs to the new site.

The change reportedly is being initiated as a cost-cutting measure, according to the Milwaukee Journal Sentinel.

The move follows Beatrice's April sale of its Waukesha and Monroe, WI-based processed-cheese plants to Schreiber Foods Inc., Green Bay, WI, as Beatrice leaves the processed-cheese sector to emphasize natural-cheese products.

Edited by Gerry Clark