REESEVILLE, Wis. — Paul and David Scharfman are accustomed to saying yes when asked if they can make a certain kind of cheese. This mindset has helped create a niche repertoire of international cheeses for Specialty Cheese Company Inc.
The Reeseville cheesemaker is known for making private-label, specialty ethnic cheeses for minority consumers in the U.S.
The company makes paneer, a traditional Indian cheese; queso fresco, a traditional Mexican cheese; and Ackawi, a cheese with origins in the Middle East.
“All of these ethnic groups have cheese from back home they want to eat in the U.S.,” David Scharfman said. “Most countries around the world see cheese as a protein source and flavoring that is used in recipes. Sometimes, it’s also a table cheese.”
Specialty Cheese Company does not make more commonly known cheeses such as cheddar and mozzarella, instead making cheeses unique to many American palettes.
When Scharfman’s parents, Paul and Vicki, bought Heim Cheese from Fred Heim in 1991, they chose to move beyond the Muenster the company was known for.
“My parents quickly saw this was a competitive and fairly saturated market,” Scharfman said. “The (Hispanic community) has a cheese called queso quesadilla that’s basically the same, and there was way less of that in the market. They thought, why not brand label it queso quesadilla and sell it for a higher margin?”
The Scharfmans renamed the business Specialty Cheese Company, which included the original cheese plant that was a mile down the road from the current factory, as well as several cheese plants scattered around Dodge County.
Once the Scharfmans began selling one Hispanic cheese, customers asked if they could make other types of Hispanic cheese.
“Entrepreneurs say yes and then figure it out later,” Scharfman said. “My parents never heard of queso blanco, but they were still going to say yes. … You just listen, and the market will tell you what to do. Underpinning all of this is a lineage of incredibly talented cheesemakers at Specialty Cheese Company.”
Specialty Cheese Company has approximately 400 employees, including 11 cheesemakers on staff. Known for its authentic, premium cheeses, the company makes 70 flavors, a dozen of which are core offerings.
“Paneer is our most popular cheese,” Scharfman said. “It’s used exclusively for cooking. You’re not going to slice it and eat it.”
The firm, white cheese does not melt and has a bland, milky taste.
Queso fresco is their next most popular cheese followed by Ackawi and tvarog.
“Our operations team makes it happen,” Scharfman said. “They make amazing cheese. All these great ideas or weird things we’re saying yes to doesn’t mean squat unless they make it.”
Queso fresco is primarily a table cheese with more flavor than paneer. Scharfman said the cheese is stored in plastic containers with no vacuum seal.
On the other hand, queso cotija is primarily an ingredient noted for its strong flavor, dryness and saltiness. Scharfman said it is typically crumbled on other foods.
“I tell customers, ‘My job isn’t to sell you the cheese we make; it’s to sell you the cheese you want,’” he said.
Specialty Cheese Company makes eight paneer recipes to create the cheeses their customers are looking for.
“Selling one thing is not what we do,” Scharfman said. “We have watched a lot of other paneer manufacturers get out of this space. … Some of our competitors have become our customers.”
From the custom shop to the big-box retailer, Specialty Cheese Company customers come in all sizes. Their cheeses are popular in traditional ethnic stores and groceries, and due to their short shelf life, are shipped only in the U.S.
“We have customers who sell in Costco, Albertsons, Kroger, etc.,” Scharfman said.
Specialty Cheese Company has taken on projects other cheese manufacturers were not interested in Scharfman said. When asked if they could make organic cheese in a 6-ounce square and package it in a sleeve, the Scharfmans said yes.
“It’s a packaging nightmare, and this guy had gotten turned down by basically every company,” Scharfman said. “We said, ‘Yeah we can do it. It will cost you, but we can do it.’ He has been our fastest-growing customer for the past two years. He took this little, expensive organic product and got into Whole Foods, Sprouts, Kroger, everywhere.”
Scharfman said if he says no, he loses out on opportunities.
A trend in the American food space Scharfman said is global flavors, with Indian food dominating the current decade.
“We happen to make a staple ingredient in Indian cuisine,” he said. “It’s a cheese that contains milk and acid. There’s no salt, no culture. … The ingredient soaks up the strong spices and flavors in Indian food.”
Specialty Cheese Company is located in the city’s former high school, which the Scharfmans bought in 2003. In 2011, they consolidated their remaining plants and brought all production to the Reeseville location.
They make 50 vats of cheese per day and have doubled production in four years.
Specialty Cheese Company uses approximately 200 million pounds of milk per year to make about 26 million pounds of cheese. They buy local milk from FarmFirst Dairy Cooperative.
“Everyone asks why our paneer is better,” Scharfman said. “We have better cheesemakers, and Wisconsin milk is better. There’s nothing to hide it. I can’t salt it or put culture in it. This milk better taste really good otherwise your cheese is going to taste bad.”
The Scharfmans have been approached about making paneer in other states, but Scharfman said he tells people it would not be the same.
“Paneer made in California, Texas, or New York does not taste as good as the paneer we make,” he said. “You have to tip the cap for the milk.”
Specialty Cheese Company won world champion for its paneer in 2018 at the World Championship Cheese Contest.
Similarities in their cheeses have made it easier to tweak existing recipes and gain new flavor profiles Scharfman said.
“Queso blanco and Ackawi are not that different,” Scharfman said. “Ackawi is brined, and queso blanco is hand salted. That’s the only difference. You could use them interchangeably.”
Since 2018, Specialty Cheese Company has grown from $35 million in revenue to more than $90 million. The business is in the middle of its second plant expansion in six years.
“This expansion will only get us to 62 vats per day, and I feel pretty good I’m going to use that pretty quick,” Scharfman said. “We are maxed out right now, and I’m turning away business.”
The Scharfmans and their team at Specialty Cheese Company continue to fulfill opportunities and fuel growth in the ethnic cheese market.
“We are very proud to be where we are and do what we do,” Scharfman said.
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