How Pizza Partnerships Are Propelling U.S. Cheese Sales Worldwide
As pizza and other limited/quick-service restaurants account for almost half the volume of U.S. cheese sold in the foodservice segment, the U.S. dairy checkoff has been working with major players in this segment to help boost incremental cheese sales both domestically and overseas.
Dairy Management Inc. (DMI), which manages the national dairy checkoff, maintains strategic partnerships with global pizza leaders Domino’s and Pizza Hut to help bring menu innovation, consumer engagement and increased sales and demand for U.S.-made cheese.
Menu Innovations With Domino’s
DMI’s work with Domino’s dates back to 2009 and includes both U.S. and international partnerships. More recently, DMI has forged partnerships with Domino’s in Japan, Taiwan and the Middle East/North Africa (MENA, primarily focused on the United Arab Emirates and Saudi Arabia).
“Where we find our greatest success as a checkoff is when our partnership efforts enable Domino’s to do what they do best — make and sell delicious pizzas using U.S. cheese,” says Rebecca MacKay, senior vice president, global growth platforms and partnerships, DMI. “We add fuel to their fire, filling resource gaps where they would like to explore something but they might be focused on something else. We can use our brains and co-investment to help accelerate projects that may have been sitting on the shelf.”
Driving Cheese Innovation With Domino’s U.S. And Abroad
In the United States, DMI has worked with Domino’s on its Smart Slice school lunch program as well as cheese-centric menu items and promotions including Loaded Tots, 5-Cheese Mac & Cheese, and the relaunch of its New York Style Pizza. Additionally, DMI will partner in other ways to increase cheese utilization at Domino’s through its app and loyalty program.
Globally, DMI has worked with Domino’s on items such as a 1-kilogram cheese pizza in Asian markets (half-kilogram in the MENA region), and the Cheese Volcano with cheese dipping sauce positioned in the middle of a pizza, which has been extremely successful in Japan and Taiwan.
“They have brought that volcano platform back many times, with a Halloween version this last fall, and a Valentine’s
Day version,” MacKay notes.
Parmesan Stuffed Crust Launch In The U.S.
Most recently in the United States, DMI has assisted Domino’s in launching its very first Parmesan Stuffed Crust. The new permanent crust option on Domino’s menu, which rolled out two weeks ago across U.S. stores, is stuffed with 100% real Mozzarella and topped with Parmesan and Domino’s garlic seasoning baked on the premium crust. Each stuffed crust pizza uses approximately 2.5 times the volume of cheese as a regular pizza, MacKay notes.
While Domino’s has had stuffed crust options in other countries, this is the first time it has been available in the United States, to the surprise of many Domino’s fans.
“Some consumers, when asked, said, ‘Of course I’ve had Domino’s Stuffed Crust’ and assumed it had been on menus, but that was not the case. So Domino’s is leaning into that in its promotion, and it’s all the more reason to highlight what makes it different. It’s an elevated experience. They’ve changed the box to add golden lettering to show it’s new, different and distinctly Domino’s,” MacKay says.
Stuffed Crust Promotion And Consumer Response
As part of its promotion, Domino’s is giving away $250,000 worth of free Parmesan Stuffed Crust Pizzas through “Cheat Receipts.” Through March 23, customers can upload a photo of a receipt showing they ordered stuffed crust elsewhere and be entered into a drawing to be selected to receive a code for a free Domino’s Parmesan Stuffed Crust Pizza.
Domino’s also declared March 3-9 as National Stuffed Crust Week, offering a one-topping Parmesan Stuffed Crust Pizza for $9.99 each through Domino’s Carryout Deal during National Stuffed Crust Week and beyond.
MacKay says Domino’s Parmesan Stuffed Crust has been met with strong digital consumer engagement on social networks, and DMI will continue to work with Domino’s on projects that could lead to future product or marketing innovations.
“They’re the master marketers, and we’re the dairy experts. That’s where the match is made in heaven,” she says. “We’re excited about what’s coming this year and next as we continue to explore opportunities to grow our partnership with Domino’s.”
Expanding U.S. Pizza Cheese Use Abroad
While the United States remains by far the No. 1 market for selling U.S. pizza cheese, there are great opportunities to grow sales in international markets where pizza has been growing steadily in popularity.
Pizza Hut Partnerships In Asia
DMI’s partnership with Pizza Hut is now focused exclusively on overseas markets, primarily in Japan and Indonesia, where DMI has partnered with Pizza Hut in local markets for more than two years.
“Today our primary goal is to grow demand overseas,” says Nancy Gannon, vice president of global growth platforms and partnerships, DMI. “We’re on the brink of ‘Cheesemageddon’ — there’s so much great cheese being made in the United States, we want to balance international growth with domestic growth and find markets to help keep farmers finding a home for their milk.”
One of those outlets, Gannon says, is in partnerships with those who are really interested in quality and a continuous supply of U.S. cheese.
“We asked, ‘What are some of the great brands we’ve had relationships with, and how do we expand outside of our borders?’ One of the very first successes was Pizza Hut,” she says. “We started in the Asia Pacific region with good success and worked with our partners at Pizza Hut to make our shared results even stronger and more tangible for farmers by partnering with local markets. We wanted to be as close as possible to the franchisees in the market.”
Tailored Cheese Innovation For International Tastes
Pizza Hut in Japan prides itself on providing the highest possible quality of cheese that it can, using U.S. cheese because of its quality, flavor and taste profile. U.S. suppliers work closely with Pizza Hut Japan and DMI’s support to develop cheese with a milder profile to appeal to consumer palates in Japan.
During last year’s fourth quarter, reviewing feedback to guide innovation of its base pizza line, Pizza Hut Japan found out from its consumers, “the more cheese the better,” so it has invested heavily in upgrading its product, Gannon says.
“Every single pizza item, starting in Q4, had 30% more cheese on it. It was a huge win for our farmers,” she says. “One way to evaluate what’s great for our farmers or not is asking, ‘Are we adding value in a way that, if we didn’t have a partnership, it would be challenging to do on their own?’”
In addition to adding more cheese in general, Gannon says DMI has been working with Pizza Hut in Japan to find out what other cheeses used in their pizza blend U.S. suppliers could help with. DMI partnered with dairy centers across the United States to develop an optimal Gouda for the Japanese palate, which led to the addition of U.S. Gouda being available throughout Pizza Hut Japan’s supply chain.
New Product Concepts And Cultural Promotions
DMI also has worked with Pizza Hut in Japan to develop new products and promotions to drive excitement around permanent and limited-time menu offerings. One of these is the “Melt,” a kind of pizza sandwich with the crust on the top and bottom, and cheese and other toppings in between.
“We do different promotions around eating the Melt. It’s attractive from a cultural perspective — people are really busy and on-the-go. They may not be eating big, full meals, but they can experience Pizza Hut in a new, to-go method that really extends the day part of pizza into new occasions,” Gannon says.
Pizza Hut in Japan also will use the Melt as a platform for promotions during festival periods, such as during the Tsukimi Festival that centers around viewing of the moon and the changing seasons. The Moon Viewing Tsukimi Melt featured traditional toppings and cheese with the addition of an egg.
“As it cooked, the yolk represented the moon,” Gannon says. “It was a great way to meld pizza and culture. What Pizza Hut Japan does very well is maintaining cultural relevancy no matter what is happening.”
Hutto Day And Frequency-Driving Promotions
To help increase the frequency of consumers buying pizzas, Pizza Hut in Japan also has introduced an ongoing “Hutto Day” promotion, which lands around the eighth day of each month and offers discounts on pizza, similar to “Taco Tuesdays” in the United States.
A Dual Focus: Farmer Value And Global Growth
Gannon notes that DMI always enters into its partnerships with two primary intents: first, asking how they can drive volume for farmers through their partnerships, and second, looking to develop longer-term relationships to positively influence and build trust in U.S. cheese.
“In Asia, the runway for growth is significant,” Gannon says. “We’re always looking for new investment opportunities with Pizza Hut, as well as other foodservice partners. In Asia, Latin America or the Middle East, how do we work with our farmers to continue to show their value and drive cheese — not only domestically, but also internationally — as one of the most nutritious foods on the planet, and get the milk to where it needs to be.”
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Source: Cheese Market News
