Author: Jessica Ehrenberg
Hilmar's 2025 Sustainability Report
Advancing Responsible Dairy Production
From water stewardship to community impact, see how Hilmar is putting The Hilmar Way into practice across California, Texas and Kansas.
At Hilmar, sustainability is an integral part of our everyday operations and decision-making. It shapes everyday decisions at all our sites and offices and guides how we support and create lasting value for our customers, dairy farm families, communities and the environment.
Our 2025 Corporate Sustainability Report, now in its 16th year, shares how we are advancing dairy sustainability step by step – from water stewardship and energy efficiency to greenhouse gas reduction and community impact – and offers a transparent look at how we are caring for natural resources, supporting people and communities and strengthening the future of dairy.
Making Meaningful Progress in Dairy Sustainability
Over the past year, we continued investing in practical, incremental improvements across our operations because we know lasting change in sustainable dairy production happens one project, one site and one team at a time.
Key achievements from 2025 include:
- The formal opening of Hilmar’s new processing facility in Dodge City, Kansas, designed with advanced water reuse and energy-efficient systems to help lower our greenhouse gas intensity over time.
- Continued water and energy efficient projects at our Dalhart, Texas, operations, including initiatives that build on our long-standing efforts to recover and reuse water multiple times in our processes.
- Upgrading equipment in California to reduce natural gas consumption and lower greenhouse gas emissions by approximately 1%, while maintaining the high quality our customers expect.
These efforts are all part of a broader approach: integrating environmental responsibility into everyday operations while continuing to reliably deliver high-quality cheese and whey ingredients to customers around the world.
Supporting a More Sustainable Food System
As one of the world’s largest producers of American-style cheese and high-quality whey ingredients, we understand both the essential role dairy plays in nutrition and feeding a growing population and the responsibility we share to help reduce its environmental footprint.
In 2025, we continued to:
- Advance water stewardship and water circularity through conservation, reuse and reclamation projects.
- Strengthen energy management practices and pursue opportunities to increase efficiency and lower emissions.
- Collaborate with dairy farm families to support responsible agriculture and align with industry effort to achieve Net Zero by 2050.
By partnering across the value chain, we can help make sustainable dairy production more achievable and scalable for the future.
Investing in People and Communities
Sustainability also means investing in the people and communities behind our products.
Across Hilmar, our teams continued to improve safety, quality and operational performance while fostering a culture rooted in teamwork, integrity, excellence and continuous improvement, the values at heart of The Hilmar Way
In the communities where we live and work, we continued to support education, charitable giving, employee volunteerism and community partnerships. These efforts reflect our purpose of Improving Lives Together, both inside and outside our facilities.
A Shared Commitment to Continuous Improvement
As our Chief Executive Officer, Greg Schlafer, shares in this year’s report, sustainability is not a separate initiative, but a core component of how Hilmar operates and creates value.
Guided by our purpose, vision and values, our teams look for better ways to run our operations, support customers, partner with dairy farm families and contribute to local communities every day.
We’re encouraged by the progress we’ve made and acknowledge that the journey is ongoing. Our focus remains on continuous improvement, transparency and innovation as it works toward a more sustainable future for dairy production and food manufacturing.
Explore Hilmar’s 2025 Sustainability Report
This overview only scratches the surface of the work happening across our network. In the full 2025 Corporate Sustainability Report, you’ll find deeper detail on:
- Water stewardship and water use
- Renewable energy and energy efficiency
- Greenhouse gas reduction and climate goals
- Employee safety, engagement and culture
- Community partnerships and impact
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Hilmar Celebrates America’s 250th Anniversary
HILMAR, Calif. July 1, 2026. Hilmar Cheese Company, Inc., a global leader in dairy products and ingredients, is honoring America’s 250th anniversary by living its purpose of Improving Lives Together with more than 7,500 pounds of cheese donations to food banks and community organizations in California, Texas and Kansas. This effort supports food security and expands access to high-quality protein for families facing food insecurity.
“As we celebrate this historic milestone for our country, we are proud to live our purpose by supporting the communities where we operate,” said Greg Schlafer, president and CEO of Hilmar Cheese Company. “We see firsthand the dedication of organizations working to serve families in need, and we are honored to contribute to ensuring nutritious protein is accessible to more people.”
As part of this nationwide effort, Hilmar donated 250 pounds of cheese to ten local organizations in the communities where Hilmar calls home and 5,000 pounds to the regional Merced County Food Bank to help expand access to nutritious dairy protein for families in need.
The ten organizations receiving 250-pound cheese donations include:
- Hilmar Helping Hands (Hilmar, Calif.)
- The Salvation Army (Turlock, Calif.)
- Ministerio Mana (Turlock, Calif.)
- Turlock Gospel Mission (Turlock, Calif.)
- Westside Ministries (Turlock, Calif..)
- United Samaritans Foundation (Stanislaus County, Calif.)
- Merced County Rescue Mission (Merced County, Calif.)
- Good Samaritan (Dalhart, Texas)
- Dumas Education and Social Ministries (Dumas, Texas)
- Manna House (Dodge City, Kansas)
These organizations collectively serve thousands of families each week through food distribution, daily meals, housing support, and outreach services.
Investing in Long-Term Solutions to Close the Protein Gap
In addition to local giving, Hilmar is strengthening its national impact through partnerships aimed at addressing hunger and nutrition:
- HATCH for Hunger: The nation’s largest nonprofit focused on increasing access to animal protein in the charitable food system
- Coalition to Close the Protein Gap: A public-private partnership advancing solutions to improve access to nutritious protein across the U.S.
Through a planned three-year commitment of cheese donations and financial support, Hilmar will help expand access to high-quality dairy protein while supporting a sustainable, collaborative model connecting farmers, processors, and food banks.
Honoring America’s 250th Anniversary Through Action
As the United States marks its 250th year, Hilmar’s efforts reflect a commitment to strengthen communities and ensure that access to protein is not a privilege, but a foundation for a healthier future.
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About Hilmar®
Hilmar Cheese Company, Inc. uses the power and promise of dairy to improve lives together. We provide health and nutrition for consumers, contribute to brand success for our customers, create opportunities for employees, support independent milk producers and improve the communities where we live and work. With a focus on collaborative product innovation, real-time scalability and a progressive approach to sustainability, Hilmar TM is a global leader in efficiently producing functional cheese and whey ingredients at scale. We deliver high-quality products to customers in more than 50 countries. Founded in 1984, Hilmar operates manufacturing plants in Hilmar, California; Dalhart, Texas; and Dodge City, Kansas. For more information, visit www.hilmar.com and Linked In @Hilmar.
Jeremy McLeod
Leading Technical Services and R&D with Purpose and Precision
For more than two decades, Jeremy McLeod has spent his time trying to understand and improve the science behind dairy processing. Today, as Hilmar’s Senior Director of Technical Services and R&D, Jeremy leads a cross-functional team responsible for ensuring Hilmar’s products, processes and people operate at their highest technical potential.
Fun Facts About Jeremy
Years at Hilmar: 17
Alma Mater: Massey University, New Zealand
Hometown: Waipu, New Zealand
Jeremy’s Journey
From Dairy Farm Roots to Process Engineering Expert
Growing up on a dairy farm in New Zealand meant Jeremy has always had a connection to the dairy industry. An interest in applying science to real world problems led him to pursue a bachelor’s, master’s and PhD in Process Engineering from Massey University in New Zealand, setting the stage for a career built on both practical understanding and academic depth.
A Career Built on Curiosity and Continuous Improvement
Since joining Hilmar 17 years ago, Jeremy’s career has spanned multiple facets of R&D – from supporting pharmaceutical and refined lactose production to pioneering initiatives in cheese and innovation. These experiences deepened his expertise in product and process development, scale-up and technical troubleshooting.
Today, as Senior Director of Technical Services and R&D, Jeremy oversees teams skilled in:
- Cheese and Whey Technology
- Microbiology
- Applications
- Product and Process Development
- Water Treatment
- Loss reduction and system optimization
His team supports both manufacturing and customer-facing functions—ensuring Hilmar’s products meet customer needs and rigorous quality standards while maximizing the value recovered from every drop of milk.
Innovation That Makes an Impact
Among his proudest achievements, Jeremy led the development of Hilmar’s unique, patented smoked cheese process. This innovative method sets Hilmar apart in the industry by smoking cheese efficiently at scale, offering customers a superior smoked flavor and clean label from natural smoke with no added ingredients.
Listening, Learning and Leading by Example
Throughout his 17 years at Hilmar, Jeremy has been influenced by several mentors, both past and present. One lesson that continues to stand out to him: “Get involved, listen and look for opportunities to add value.”
Another piece of advice came from one of Hilmar’s earliest employees, Larry Fillman who was the director of cheese sales at the time: “If you wouldn’t be prepared to do it yourself, then don’t expect others to do it for you.”
These guiding principles underpin Jeremy’s leadership style – rooted in curiosity and an interest in solving problems continue to shape how he leads today.
The Surprising Skills That Matter
One of Jeremy’s most-used tools isn’t found in a lab; he notes that decades of dairy science research exist in books and journals. “Taking the time to find, read and apply that knowledge is key to technical advancement. It also gives you an appreciation that what we do today is built upon the hard work and intelligence of those who worked in this industry before us,” he says.
Advice for the Next Generation
Jeremy encourages early-career professionals to:
- Spend time talking with people to understand their work and listen to their suggestions for improvement
- Combine this hands-on experience with your own expertise and skills to identify opportunities that advance your ideas
- Build progress one day at a time
His own PhD experience was shaped by time in the plant, working alongside operators who understood the nuances of lactose crystallization firsthand. “Their experiences and observations were extremely useful as they allowed me to blend the practical with the science I was studying.”
Motivated by People, Culture and Purpose
When asked what makes him proud to work at Hilmar, Jeremy doesn’t hesitate:
“The culture. People here are given the opportunity to learn through both success and failure. Seeing people who grow from that and use it to continually improve themselves and Hilmar—that’s what makes me proud.”
That mindset reflects Hilmar’s purpose of “Improving Lives Together” and its company values of relationship, integrity, improvement, teamwork and excellence.
Jeremy McLeod’s leadership is a living example of The Hilmar Way – pairing deep technical expertise with strong relationships and a commitment to curiosity, innovation and continuous improvement. His deep technical expertise, collaborative approach and passion for learning help Hilmar deliver the advancements that benefit Hilmar’s operations, products and customers every day.
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Dr. Chao Wu Named ADPI
C. Earl Gray Award Recipient
Dr. Chao Wu was presented with the American Dairy Products Institute (ADPI) C. Earl Gray Award of Merit at the 2026 ADPI Annual Conference.
Hilmar, Calif. May 12, 2026. Hilmar is proud to announce that Dr. Chao Wu, Director of Product Research, has been named the 2026 recipient of the American Dairy Products Institute (ADPI) C. Earl Gray Award of Merit, one of the dairy ingredients industry’s highest honors.
The C. Earl Gray Award of Merit is presented annually to recognize individuals who have made lasting contributions to the dairy products industry through leadership, technical excellence and service. Dr. Wu was selected for his more than 35 years of dedication to advancing dairy protein science, industry standards and global nutrition markets.
“This recognition is a testament to Chao’s lifelong dedication to innovation, education and the advancement of our industry,” shared Greg Schlafer, CEO, “Beyond his technical accomplishments, Chao is a respected leader and teammate whose humility, curiosity and collaborative spirit have made a lasting impact at Hilmar and across the dairy community.”
Dr. Chao Wu is pictured with Brad Nyman, Marina Crocker, senior director – product category and marketing, and Greg Schalfer, chief executive officer and president.
Dr. Wu joined Hilmar in 1998 and currently leads collaborative research efforts focused on the nutritional and functional benefits of dairy-derived specialty ingredients. Over the course of his career, he has played a pivotal role in developing dairy protein–based ingredients used in early-life, medical and adult nutrition applications worldwide. He holds multiple patents related to large-scale protein-enriched whey processing, reflecting his role as a driving force behind technical innovation in dairy processing. While some of these technologies remain proprietary, their influence has been broadly felt across the industry. His work has helped enable the large-scale production and adoption of protein-enriched whey ingredients that support global health and wellness markets.
Beyond his contributions at Hilmar, Dr. Wu has been a longstanding leader within ADPI. He currently serves as Chair of the ADPI Technical Committee and Co-Chair of the ADPI Standards Committee, where he has helped advance standards across dairy protein ingredient categories. Among his most notable industry contributions are his leadership in establishing the WPPC Infant GRAS and the whey protein hydrolysates standards, both of which have helped shape today’s global dairy protein marketplace. Dr. Wu’s expertise has also extended through his involvement with standards development efforts with USP and AOAC International, further supporting industry alignment, quality and credibility.
Dr. Wu holds a master’s degree in Food Science and a Ph.D. in Agricultural Chemistry from the University of California, Davis. Throughout his career, he has maintained a strong commitment to academic collaboration, partnering with UC Davis and universities across the United States and China to advance research initiatives spanning cognition rapid response nutrition medical nutrition and early-life nutrition.
Hilmar congratulates Dr. Wu on this well-earned recognition and celebrates his enduring impact on our organization and the dairy ingredients industry.
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About Hilmar®
Hilmar Cheese Company, Inc. uses the power and promise of dairy to improve lives together. We provide health and nutrition for consumers, contribute to brand success for our customers, create opportunities for employees, support independent milk producers and improve the communities where we live and work. With a focus on collaborative product innovation, real-time scalability and a progressive approach to sustainability, Hilmar is a global leader in efficiently producing functional cheese and whey ingredients at scale. We deliver high-quality products to customers in more than 50 countries. Founded in 1984, Hilmar operates manufacturing plants in Hilmar, California; Dalhart, Texas; and Dodge City, Kansas. For more information, visit www.hilmar.com and LinkedIn @Hilmar.
Hilmar Earns Nine Medals
Hilmar Medals in the 2026 World Championship Cheese Contest
Hilmar, Calif. April 21, 2026. Hilmar Cheese Company, Inc. proudly earned nine medals at the 2026 World Championship Cheese Contest® Awards Banquet, including gold medals in both cheese and whey protein categories — a first in the company’s history. The awards were presented April 16, 2026, during CheeseExpo.
The nine medals included three for cheese and six for whey protein ingredients, recognizing Hilmar’s commitment to quality across its diverse portfolio. We are honored to see the dedication of our teams recognized on a global stage.
Hilmar swept the Pepper Flavored Monterey Jack, Mild Heat category, earning gold, silver and bronze for our Pepper Jack cheese produced at our Dalhart, Texas site. The award-winning cheese features jalapeño pepper pieces evenly distributed throughout, delivering balanced heat and consistent flavor in every bite.
In addition to its award-winning cheese, Hilmar’s whey protein portfolio earned outstanding recognition across multiple categories.
PROfunction™ Adapt won gold and bronze medals in the Whey Protein Isolate 90 category. This versatile protein supports a range of applications and is lactose-free, low in fat, acid stable and heat stable during pasteurization.
PROfraction™ Beta was awarded gold in the Whey Protein Isolate, Instantized category. It is lactose-free with lower fat and carbohydrates. Agglomerated and instantized, PROfraction Beta is well-suited for powdered beverages and mixes.
Hilmar 9020 earned silver and bronze medals in the Whey Protein Isolate, Acidified category. Known for superior dispersibility and reduced foaming, Hilmar 9020 performs well in RTM applications, while its excellent heat and acid stability also make it an ideal choice for RTD beverages. It remains clear in solution, making it suitable for clear beverages, gels and protein waters.
Hilmar 8010 won a silver medal in the Whey Protein Concentrate 80, Instantized category. Instantized with soy lecithin, Hilmar 8010 disperses quickly in cold water and offers strong solubility and acid stability for powdered dry mix applications.
The World Championship Cheese Contest® is recognized as the world’s premier technical competition for cheese, whey protein, butter and yogurt. Hosted biennially by the Wisconsin Cheese Makers Association since 1957, the contest brings together expert judges from around the globe to evaluate entries using a stringent 100-point scale. Gold, silver and bronze medals are awarded to the top three entries in each class.
Kevin Hubbard, Site Director – Dalhart, proudly accepted the award on behalf of the Hilmar team and is pictured with Derek Snider, Taylor Peterson, Kalyan Manchala and Sterling Crawford. These awards reflect Hilmar’s ongoing commitment to quality, innovation and delivering trusted dairy ingredients and cheeses to customers worldwide.
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About Hilmar®
Hilmar Cheese Company, Inc. uses the power and promise of dairy to improve lives together. We provide health and nutrition for consumers, contribute to brand success for our customers, create opportunities for employees, support independent milk producers and improve the communities where we live and work. With a focus on collaborative product innovation, real-time scalability and a progressive approach to sustainability, Hilmar is a global leader in efficiently producing functional cheese and whey ingredients at scale. We deliver high-quality products to customers in more than 50 countries. Founded in 1984, Hilmar operates manufacturing plants in Hilmar, California; Dalhart, Texas; and Dodge City, Kansas. For more information, visit www.hilmar.com and LinkedIn @Hilmar.
Unlocking Better Bar Performance
How PROtelyze™ for Bar Elevates Nutrition Bars in a Growing Market
The bar category continues to grow as consumers seek convenient nutrient‑dense options. According to Mintel, the US snack, nutrition and performance bar market reached $9.2 billion in 2026 with continued growth expected through 2030 driven by demand for functional benefits and protein‑rich formats. Among the three bar types, nutrition bars are leading the way with a 12.3% sales increase, reflecting rising interest in protein and clean ingredient profiles.1
However, as the desired protein content in bars increases, formulators face a well‑known challenge: bars harden quickly, reducing chewability, shortening shelf life and impacting consumer satisfaction. This is where PROtelyze™ for Bar provides a meaningful functional advantage.
Why Bars Harden – Why It Matters
High‑protein bars commonly lose softness during storage. Conventional protein sources such as whey protein concentrate or isolate tend to bind water and crystallize, producing firm dry textures that worsen with age. As protein content increases, this problem becomes more pronounced, increasing the risk of product waste, customer dissatisfaction and reduced repeat purchases.
Hydrolyzed whey proteins offer a proven path to improved texture stability, but not all hydrolysates perform the same.
PROtelyze for Bar: A Functional Protein Designed for Softer, Longer‑Lasting Bars
Hilmar’s PROtelyze for Bar is a low‑degree hydrolyzed whey protein isolate engineered specifically to help bars stay soft and pliable throughout shelf life.
Softness that Lasts
Bars made with PROtelyze for Bar maintain softness significantly longer than those made only with standard WPI. Shelf‑life studies show reduced hardening over time resulting in better texture and improved customer experience. Click here to download our white paper and view our shelf-life study!
Better Pliability for Improved Texture
Hydrolysis transforms the protein structure to improve water-binding and reduce crystallization. The result: a tender, consistent eating experience from the first bite to the last.
Neutral Flavor Profile
Many hydrolysates introduce bitterness, but PROtelyze for Bar’s low degree of hydrolysis and optimal enzyme selection ensures a neutral flavor profile that integrates smoothly into bar formulations – no masking agents required.
Nutritional Profile Consumers Value
PROtelyze for Bar offers the nutrition attributes today’s consumers expect:
- Low fat, low lactose and low glycemic index
- Highly digestible
- Rapidly absorbed
- A complete amino acid profile with BCAAs
These attributes align with expectations for premium performance and nutrition bars.
A Strategic Formulation Strategy: Finding Your Ideal Blend
While using 100% PROtelyze for Bar produces extremely soft bars, Hilmar’s research shows that blending PROtelyze for Bar with a WPI provides the ideal balance of functionality and cost. The perfect blend depends on your specific bar formulation and is something our applications scientists can help with. This approach:
- Extends shelf life more effectively than WPI alone
- Maintains softness without processing drawbacks
- Reduces equipment adhesion risk
- Supports cost‑efficient formulation decisions
Meeting Modern Consumer Expectations – Naturally
Today’s consumers want bars that deliver high protein, clean label positioning and great taste – without artificial softeners or stabilizers. PROtelyze for Bar supports these expectations by improving texture naturally, reducing the need for additives and helping brands maintain label simplicity.
As bars continue to grow in popularity for wellness, performance and everyday snacking, delivering long‑lasting softness and desirable texture is crucial. PROtelyze for Bar gives formulators a powerful tool to overcome protein‑driven hardening, creating bars that stay soft, taste great, and perform throughout their shelf life.
With its proven functionality, clean flavor and strong nutritional profile, PROtelyze for Bar helps brands meet rising consumer expectations and stand out in an increasingly competitive market.
Whey Protein Hydrolysate Effect on Product Functionality
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Why Natural Cheese is Powering Category Growth
Natural Cheese Consumption is Growing
Natural cheese has never been more relevant. As US consumers double down on flavor, quality and protein‑forward foods, the segment continues to outperform and set the pace for category growth. For brands and manufacturers, understanding the “why” behind this shift is key to capturing demand and staying ahead of the market.
The Category Powerhouse
According to Mintel’s latest US Cheese Market Dynamics Report (2025), natural cheese continues to dominate retail, accounting for 71% of the cheese market. With an estimated $23.7 billion market size in 2025 and steady growth expected through 2030, natural cheese remains not only the largest segment but also the most resilient.
By contrast, processed cheese is under pressure. Evolving consumer expectations and growing apprehension of “processed foods” have contributed to stagnant or declining performance. For brands and manufacturers navigating these shifts, natural cheese presents a clear path to drive innovation, capture value and unlock long-term growth.
By The Numbers
US: total retail sales and forecast of cheese, by segment, at current prices, 2019-30
Source: Mintel’s US Cheese Market Dynamics Report, 2025
| Natural Cheese | Processed Cheese | |||
| Year | $ million | % change | $ million | % change |
| 2019 | 17,220 | – | 3,689 | – |
| 2020 | 20,301 | +17.9 | 4,281 | +16.1 |
| 2021 | 20,054 | -1.2 | 4,140 | -3.3 |
| 2022 | 21,321 | +6.3 | 4,420 | +6.8 |
| 2023 | 22,167 | +4.0 | 4,444 | +0.5 |
| 2024 | 22,796 | +2.7 | 4,389 | -1.2 |
| 2025 (est) | 23,737 | +4.3 | 4,294 | -2.2 |
| 2026 (fore) | 24,441 | +3.0 | 4,303 | +0.2 |
| 2027 (fore) | 25,169 | +3.0 | 4,300 | -0.1 |
| 2028 (fore) | 25,815 | +2.6 | 4,303 | +0.1 |
| 2029 (fore) | 26,242 | +1.7 | 4,296 | -0.2 |
| 2030 (fore) | 26,625 | +1.5 | 4,316 | +0.5 |
Why Natural Cheese is Powering Category Growth
1. Versatility & Snacking Culture
Cheese has firmly claimed its spot as a go‑to snack. More than half of consumers (56%) report eating cheese as a snack in the past three months,1 and natural cheese formats such as sticks, cubes and single‑serve portions align perfectly with today’s demand for convenient, high‑protein snacks. For retailers and brands, this creates opportunities to expand on-the-go, portion-controlled and multi-pack offerings that fit seamlessly into busy lifestyles.
2. Flavor First
Across the category, flavor remains king. Roughly 30% of cheese consumers cite flavor as the most important purchase driver—outranking format or ingredient considerations.1 With its range of textures, taste profiles and aging possibilities, natural cheese is uniquely positioned to deliver the sensory experience consumers expect from everyday favorites to premium specialty offerings.
3. Innovation & Novelty Capture Younger Consumers
Younger buyers (18–34) are particularly adventurous, with 40% seeking new cheese experiences.1 From bolder flavors to new cuts, blends and functional benefits, natural cheese offers an ideal canvas for innovation. Brands that experiment with global flavors, seasonal offerings and cross-category collaborations can win with trend‑driven consumers and differentiate on shelf.
4. Health & Nutrition Matter—More Than Ever
As high‑protein lifestyles continue to rise, natural cheese’s nutritional profile is a clear advantage. It’s a strong source of protein and calcium. For consumers looking to balance indulgence with wellness, natural cheese is a “better‑for‑you” option compared to processed alternatives.
5. Premiumization & Ingredient Transparency
Premium brands with shorter ingredient lists and strong origin stories are outperforming the market. Simplicity, authenticity and craftsmanship resonate with consumers, especially Millennials and Gen Z. For private label and national brands alike, highlighting clean labels, responsible sourcing and production expertise is an effective way to build trust and justify premium price points.
Why Processed Cheese is Struggling
The processed cheese segment posted a two‑year decline and is projected to remain flat. Key challenges include:
- Concerns about ultra‑processed foods: 34% of U.S. adults cite “highly processed” ingredients as a top concern when buying food.1
- Shifting snacking habits: More consumers prefer natural formats for perceived health and quality.
- Reduced novelty: Innovation in processed cheese has not kept pace with the natural segment.
- Brand loyalty erosion: Younger consumers are less tied to legacy processed cheese brands.
Even so, processed cheese continues to play a critical role in foodservice where wellness influences only 11% of meal decisions, as dining out remains more focused on convenience and indulgence (Circana). It will also continue to be a staple in specific applications, such as sauces, stuffed entrées and microwaveable products. While growth projections are limited, snackable formats and flavor innovation present opportunities for processed cheese brands to stay relevant.
Natural Cheese Opportunities for Brands
For retailers, food manufacturers and packaging partners, natural cheese presents strong opportunities across:
- Private label expansion
- Premium product lines
- Snack innovation
- High‑protein and functional formulations
- Foodservice customization
- Ingredient applications for ready‑to‑eat and ready‑to‑heat meals
With private label now holding 52% of natural cheese market share, value‑driven consumers are clearly receptive to private brands and looking for more choice across formats, price points and quality tiers.
Hilmar: Your Partner in Natural Cheese Excellence
At Hilmar, we specialize in producing high‑quality natural cheeses designed for private label, regional and national brands. Our focus is simple: deliver consistent, high‑performing cheese that protects your brand and your margins.
Whether you’re expanding a retail line, innovating a new snack product or optimizing your ingredient supply chain, Hilmar brings the expertise, scale and flexibility to help you move quickly and confidently. Our teams collaborate with you from formulation through packaging to ensure your products perform on shelf, in the kitchen and with consumers.
The Bottom Line
Natural cheese is the engine behind category growth – and the momentum is expected to continue through 2030 and beyond. With strong consumer demand, nutritional advantages and endless innovation potential, it’s the clear growth engine for brands across retail, foodservice and CPG.
Hilmar is here to help you capture that demand with high‑quality, nutritious, reliable natural cheese that elevates your brand and strengthens your business for the long term, and we invite you to explore what’s possible in your portfolio with us.
Sources:
- Mintel US Cheese Market Dynamics Report, 2025
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QiQi Peng
Driving Advancements in Dairy Applications
QiQi Peng has spent more than 15 years at Hilmar, blending scientific expertise with practical solutions to help customers succeed. As applications manager for cheese and ingredients, QiQi leads a team dedicated to improving product performance and supporting innovation across the dairy industry. From developing functional applications to providing technical support, her work ensures customers achieve the highest quality and functionality in their products.
Fun Facts About QiQi
Alma Mater: University of California, Berkeley (undergrad) and Kansas State University (graduate program)
Career Path: QA Lab -> Cheese R&D -> Applications Manager
Favorite Part of Role: Helping customers succeed through science-driven solutions
QiQi’s Journey
From QA Lab to Applications Leadership
QiQi’s career began after earning a B.S. in Chemistry from the University of California, Berkeley and an M.S. in Food Science from Kansas State University. Her education gave her a deep understanding of the science behind dairy, from dairy ingredients to finished products.
Since joining Hilmar in 2010, QiQi has held roles in the QA lab for four years and spent eight years in cheese research & development before stepping into her current leadership position. QiQi describes her role in cheese R&D as a “cheese detective,” focusing on developing new products and improving existing ones through ingredient selection, process optimization and sensory testing. She also provided technical support by analyzing customer feedback and ensuring products meet quality and functionality standards to help customers succeed. The culmination of these experiences honed her analytical thinking, problem-solving skills and collaborative approach—qualities that define her success today.
Role & Impact
As applications manager, QiQi oversees a team that works closely with sales and marketing to address customer requests, support new product launches and troubleshoot technical challenges. They also work with R&D to test product functionality in a variety of applications and a variety of product attributes during the new product development process. Her team focuses on:
- Providing technical expertise for analytical and compositional concerns
- Improving product quality and functionality
- Creating on-trend food and beverage application concepts that showcase Hilmar’s whey protein ingredients
- Collaborating with customers to perfect their food and beverage formulations
“Our goal is simple,” QiQi says. “We are here to increase production yield and improve product qualities to help our customers succeed.”
Industry Trends
QiQi is particularly excited about hydrolyzed whey protein, a trending dairy ingredient that is gaining traction for its dual benefits:
- Nutritional advantages for health-conscious consumers, including a complete amino acid profile and superior digestibility
- Functional support for finished products, enhancing texture and performance
Consumers are showing increasing interest in the value of hydrolyzed whey proteins, particularly for their enhanced digestibility and absorption benefits. This aligns with the broader trend in sports nutrition and protein supplements that is shifting from simply increasing protein quantity to emphasizing protein quality.
Customer Value
QiQi and her team are problem-solvers at heart. By optimizing product functionality and improving quality, they help customers innovate and thrive in a competitive market. Their collaborative approach ensures that every solution is tailored to meet specific needs.
QiQi Peng’s dedication to advancing dairy science and supporting customer success reflects Hilmar’s commitment to innovation and collaboration. Her leadership ensures that Hilmar remains a trusted partner for customers seeking quality, functionality and forward-thinking solutions.
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Clear Protein Drinks
A Growing Market Trend
Consumers today are demanding more from their beverages – great taste, convenience and of increasing importance, functional benefits. As consumers look for higher nutritional value from their drinks, clear protein beverages are on the rise. Unlike traditional creamy shakes, these drinks offer a light, refreshing experience that’s easy to digest while also delivering high-quality protein. This format allows for high-protein claims in new beverage categories, such as sparkling waters , protein sodas and juice-based drinks.
According to Mintel, high-protein claims in beverage launches have surged, with 5% of all US drink launches in 2025 making a high/added protein claim, up from just 2% five years ago. Additionally, drinks surpassed foods in protein-related claims for the first time in five years. This trend is fueled by innovations in clear soluble proteins, which allow brands to create transparent, flavorful and stable formulations.
Challenges in Formulating Clear Protein Beverages
Achieving clarity and stability in protein drinks is not easy. Formulators must address several technical considerations:
Protein Selection: Whey protein isolate (WPI) is the preferred choice for clear beverages due to its high solubility, low fat and lactose, and excellent heat and acid stability. But not all WPIs perform the same. Functional differences in processing can impact clarity, dispersibility and flavor. Selecting a WPI optimized for low pH is essential.
Sensory Profile: Consumers expect a clean, refreshing taste without chalkiness or off flavors. Foaming issues during mixing can also affect consumer perception for powdered mixes. Find the right WPI that delivers a clean flavor and rapid dispersion with minimal foam to ensure a smooth, refreshing drinking experience.
pH and Heat Processing: Low pH and thermal treatments are challenging for most proteins and can cause denaturation of the protein. Choosing a protein that remains acid-stable and heat-tolerant is critical.
Why Alternative Proteins Fall Short: Other protein sources such as milk protein, casein and soy protein present significant challenges in low pH systems. They often denaturize in acidic conditions, leading to cloudy beverages. Their lower solubility and heat stability also make them unsuitable for pasteurized or hot-fill processes in RTDs, frequently introducing off-flavors and textures that require masking.
See Hilmar 9020 In Action
Hilmar 9020: Engineered for Clarity and Performance
Hilmar 9020 is a 90% whey protein isolate optimized for low‑pH beverages, delivering clarity, stability, and superior sensory performance for protein fortification.
Clear in Solution: Hilmar 9020 delivers exceptional clarity in acidic environments, making it ideal for clear ready-to-drink (RTD) and ready-to-mix (RTM) beverages, protein waters and functional sports drinks. Unlike standard proteins that can cause haze or sediment, Hilmar 9020 remains transparent even after thermal processing, ensuring a visually appealing product.
Superior Dispersibility: One of the biggest challenges in protein beverage formulation is achieving rapid hydration without clumping or excessive foam. Hilmar 9020 disperses quickly and uniformly, reducing mixing time. Its low foaming properties enhance consumer experience in RTM applications where clarity and convenience are key.
Exceptional Flavor: Hilmar 9020 offers a clean flavor profile that complements fruit-forward and refreshing beverage concepts. This allows formulators to minimize masking agents and maintain a light, crisp taste.
Heat & Acid Stability: Clear protein beverages often undergo pasteurization or hot-fill processes, which can destabilize proteins. Hilmar 9020 is engineered to withstand these conditions without compromising clarity or texture. Its acid solubility and heat tolerance make it perfect for RTD products.
Applications Beyond Beverages
Hilmar 9020 isn’t just for clear drinks and protein waters. Its versatility also extends to:
- Sports Nutrition: Sports gels and shots.
- Healthy Living: High-protein gummies, gelatin desserts and carbonated protein drinks.
- Healthy Aging: Nutrient-dense RTD beverages designed for older consumers seeking convenient protein solutions.
Why Choose Hilmar 9020
In addition to its advanced functional properties, Hilmar 9020 delivers superior nutritional benefits. It has low lactose and low fat to support clean-label claims and appeal to health-conscious consumers. With complete whey proteins and an excellent amino acid profile, this product is easily digested and provides all the benefits expected from dairy proteins. Hilmar 9020 enables brands to meet the increasing consumer demand for refreshing, high-protein beverages without sacrificing clarity or taste.
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Ben Smith
Elevating Cheesemaking at Hilmar
Ben Smith isn’t just passionate about cheese; he has a deep appreciation for the entire cheesemaking process and those who make it happen. As Hilmar’s cheese product manager, Ben brings over a decade of hands-on experience and a deep commitment to innovation, ensuring customers achieve their conversion process goals. Whether visiting customer facilities, judging at championship cheese contests or collaborating with the Center for Dairy Research, Ben is a familiar face for many in the dairy industry.
Fun Facts About Ben
Years at Hilmar: 9
Alma Mater: Oregon State University (undergrad) and California Polytechnic University (graduate program)
Favorite Hilmar cheese: Habanero Jack because “it’s the perfect level of spice.”
Ben’s Journey
From OSU’s Creamery Team to Hilmar’s Cheese Product Manager
Ben’s interest in cheesemaking began at Oregon State University, where a dairy science elective introduced him to the craft. Encouraged by Dr. Lisbeth Goddick, he joined the creamery team where students are actively involved in the production of student-made ice cream, cheese and honey. This hands-on experience is how he first discovered his passion for cheese. After earning a B.S. in Fermentation Science from OSU, Ben pursued a Master of Professional Studies in Dairy Products Technology at Cal Poly.
His career at Hilmar started in 2016 as a production supervisor in the cheese plant, then progressed to the cheese technical team where he worked on the recipes, and ultimately to his current role as cheese product manager. “Every role at Hilmar prepared me for the next one, and I wouldn’t change any of it,” shares Ben. “I learned so much as a supervisor that I still rely on today and truly value that time on the production floor.”
What Sets Hilmar Apart
“When someone buys cheese from Hilmar, they get access to our support, research knowledge and onsite assistance to ensure their success,” Ben explains. Unlike many suppliers, Hilmar’s team visits customer facilities to observe cheese performance and production processes to gather feedback. This active collaboration between customers, R&D, sales and quality ensures recipes are perfected for specific needs, something that truly sets Hilmar apart.
Industry Trends & Innovation
Ben is particularly excited about smoked cheeses. Hilmar has developed a unique, patented process for naturally smoked cheeses—without artificial flavors or liquid smoke. This innovation delivers an even smoke flavor from inside to out by smoking the curds; a distinction no other cheesemaker can offer. “It’s still relatively new, so we’re having a great time showing it to customers and explaining what makes it unique,” Ben says.
Partnerships & Research
Ben values Hilmar’s strong relationship with the Center for Dairy Research at the University of Wisconsin. As a member of the CDR Industry Team, Hilmar participates in annual forums where research students present cutting-edge projects. These collaborations keep Hilmar—and its customers—at the forefront of dairy science and industry trends.
Ben Smith’s dedication to innovation and collaboration reflects Hilmar’s mission to improve lives through better cheesemaking. From pioneering smoked cheese technology to building strong industry partnerships, Ben ensures customers receive not just exceptional products, but exceptional support throughout the process.
Ben has accepted a new role at Hilmar as the manager – product excellence & customer engagement since this interview.
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