Supermarket deli cheese displays are becoming increasingly crowded—and prominent.

Spurred by shoppers’ growing interest in more diverse, flavorful and healthier offerings, retailers of all sizes are expanding their arrays of foreign and domestic selections and giving the products added merchandising muscle.

It is resulting in greater sales and the continued dominance of natural—or unprocessed—products.

Mintel International Group Ltd., a London-based research firm, reports that between 2001 and 2006, natural cheese revenues were up 10 percent after adjusting for inflation.

Meanwhile, Chicago-based Euromonitor International Inc. forecasts that the natural cheese category will continue to expand and account for almost three quarters of cheese revenues by 2011.

The popularity of natural products contrasts sharply with the declining interest in processed cheeses. Mintel notes that sales of processed items fell 9.1 percent from 2001 to 2006, citing “consumer wariness toward the segment’s reliance on chemical emulsifiers, coupled with limited fl avor and texture availability.” That drop in processed revenues is holding down total sector income. Euromonitor International reports that U.S. cheese sales reached $15.21 billion in 2006, a 1-percent decline from 2005.

Nevertheless, cheese still can be a strong category for deli operators, analysts say. The key, they note, is merchandising items in accordance with the demands of shoppers in different outlets.

“Each store needs to look at its expected profit margin and its clientele,” says Alan Hiebert, education information specialist for the Madison, Wis.-based International Dairy-Deli-Bakery Association.

“But sales may improve as shoppers also try new products.” And such products are likely to be additional types of natural cheese that are produced overseas and in the States.

Faye Greenberg, vice president of deli for Coppell, Texas-based Minyard Food Stores Inc., which operates 61 supermarkets in the Dallas/Fort Worth area under the Minyard, Sack’n Save and Carnival Food Store banners, says U.S. consumers are becoming acquainted with new varieties of cheeses during their travels; through cooking programs on the Food Network and other channels; and by reading culinary magazines.

That is leading more mainstream supermarkets to carry items that previously were only available at specialty stores.

Many of the retailers, she adds, also are enhancing their cheese promotions. reenberg notes that some are partnering with producers to stage samplings in stores and everaging signage and other marketing vehicles.

Minyards-owned outlets, for instance, which are increasing their offerings of international and domestic cheeses, use signs and shelf talkers to educate customers on where the products were produced and the product attributes.

“Shoppers want to know they are buying authentic items and why they might cost more,” Greenberg states.

Stores with the Minyards banner typically carry about 50 types of cheeses that are rotated in accordance with the season. Greenberg notes, for instance, that outlets will market more sliced items for summer grilling and sandwiches, while adding imported and “celebration” cheeses in the fourth quarter for the holidays.

The retailer’s best-selling items include Colby, Longhorn, American, Muenster, Crumbled Feta and Gorgonzola Blue Cheese (click here to view The Top-Selling Cheeses). Shredded and crumbled cheeses, meanwhile, also are popular yearround for use in salads and are available in such newer fl avors as Peppercorn and Basil, she notes.

Cheeses are even more prevalent at Minyards’ Hispanic-oriented Carnival stores. Outlets carry more than 100 varieties—including different tiers of the same flavor—and the items are prominently featured in the weekly advertising circular, Greenberg states.

“Hispanics cook a lot more with cheese than the typical customer, she notes.

Deli operators base their selections on such factors as the demographics of shoppers in each store and the products being offered by competitors.

Outlets also will carry new items, “just to see if they will catch on,” Greenberg says.

A key for success, she states, is educating deli associates so they can accurately describe the products to shoppers and answer questions.

“Employees need to know, for instance, if an item is a dessert, or a semi-soft or sharp cheese,” she says.

The biggest cheese merchandising challenge is enticing consumers to try different products. That is particularly important because delis often compete with the dairy section and other departments within a store for cheese business, Greenberg states.

She notes that delis are more likely to spur trial by selling cheeses in smaller portions so shoppers don’t have to spend much to taste a novel item.

Cheese displays that contain crackers, jams and other spreads can spark interest by providing shoppers with serving ideas. And added types of gourmet quality domestic items also will attract attention, she states. “Domestic makers, because of increased competition, are producing more artisan-type cheeses that are of equal or higher quality than foreign selections,” Greenberg notes.

Among the U.S. suppliers expanding their selections is Denmark, Wis.-based BelGioioso Cheese Inc., which merchandises 24 types of items, including artisan and specialty products.

Francesca Elfner, BelGioioso operations manager, says the company’s cheeses are aimed at a broad range of shoppers, including upscale buyers and Hispanics.

“Our typical cheese customer is seeking more flavorful options to expand their horizons,” she states.

Among BelGioioso’s more popular products are varieties of Provolone that are sold at full-service deli counters and on pegboards, and presliced Mozzarella, she notes.

The company typically releases an additional product annually in accordance with customer requests.

Elfner says more consumers are learning about new types of cheese through word of mouth, as well as during their overseas travels and from television.

She concurs that it is crucial for retail associates to be able to answer all shopper questions about the products.

“The large number of cheese choices can be intimidating,” she says. “It makes a store more credible when it can take the guesswork away from the customer and enable the shopper to make sense of the options.” Elfner adds that it also is important for deli staffers to be passionate about cheese, “because their enthusiasm will come across during the merchandising.” BelGioioso helps educate retail associates and consumers on its cheeses by including detailed product data on labels and distributing recipe pads and information sheets.

Such details are vital as cheese sections become larger and more sophisticated. Menlo Park, Calif.- based Draeger’s Supermarkets, for instance, a chain of three stores in Northern California, merchandisers more than 200 types of cheese in each outlet. The retailer marks every selection with an information card.

The Draeger’s location in San Mateo, for instance, has international products from Holland, Norway, Denmark, Switzerland, Spain, England, Canada, Ireland, Italy, Germany and France, along with domestic cheeses that are produced in California, Ohio, Vermont and Wisconsin.

Signage in the self-service case lists the origin and attributes of all choices. For instance, a card for St. Marcellin notes that the French product is a traditional farmhouse cheese that is creamy and unpasteurized with a mild slightly salty flavor and can be paired with oaked Chardonnay.

A card for Sapsago states that it is a fat-free Swiss grating cheese with a sharp, herbal taste and undertones of sage.

Idiazabal, meanwhile, is listed as being an unpasteurized, aged sheep’s milk from the Basque Region of Spain with a lightwood, smoked flavor.

Hiebert notes that the information is important because “customer intimidation is probably the biggest obstacle to cheese merchandising.

Casual cheese shoppers may be reluctant to step outside their comfort zones and try something new.” He adds that “great” cheese merchandising includes the use of appealing visuals and data that enables customers to make intelligent choices.

Astute marketers, he states, also “keep in mind that different consumers prefer to gather information in different ways. Some may like to read taste, usage and nutrition information from printed materials; some may prefer an information kiosk; and others will prefer to talk to associates about their needs.” In addition to a greater interest in different cheese flavors, more shoppers over the next few years also will seek out products that are locally produced using sustainable methods, Hiebert adds.

“Consumers are proving that they are increasingly willing to pay more for ‘green’ products,” he states.