'Micro-cheesery' closes
Landlord plans to demolish cheese production building
By CHRISTINE MCMANUS
ChristineMcManus@coloradoan.com
Bingham Hill Cheese Company of Fort Collins closed on Thursday, laying off 20 employees.
The international award-winning "micro-cheesery" cited several factors that resulted in months of negative cash flow.
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The company experienced phenomenal growth from its 1999 opening until last summer when its main client, Trader Joe's Company, Inc. specialty food stores, stopped carrying Bingham products. The local artisan cheese maker was not keeping up with demand, despite rapid business expansion.
Without Trader Joe's purchase orders for dozens of stores in the West, Midwest and Eastern U.S., owners Kristi and Tom Johnson said they found it hard to cover expenses associated with the major expansion investments they'd made to accommodate their biggest account. Although they found several new buyers, the demand from those buyers was not enough.
Furthermore, Bingham's landlord plans to demolish the building used for cheese production. The Johnsons were unable to invest in another new facility.
Costs for milk, fuel and shipping drove Bingham's cost up substantially the past year. In addition, Tom Johnson said labor prices and real estate prices in Northern Colorado made it hard to compete.
"Bingham Hill consistently fought to keep cheese prices in line with the competition, sometimes at the expense of profit," Tom Johnson said.
Each of the 20 types of cheeses made at Bingham Hill Cheese Company won industry awards. At the international World Cheese Awards in London, Bingham won Best Blue Cheese and Best American Cheese honors.
Wisconsin officials courted the award-winning cheese maker last fall, offering free land, low interest equipment loans, marketing dollars and grants. Although the Johnsons considered moving to reduce the company's costs, they decided not to move away from family in Colorado.
Bingham Hill Cheese Company is selling its brand, all recipes and artisan instructions, packaging, equipment and supplies. The company will have a weeklong eBay auction beginning March 1.
"We are grateful to the people who gave us a chance to succeed in this business," Tom Johnson said. "Our investors, customers, suppliers and colleagues have been loyal and supportive, and we will miss working with them."
Kristi Johnson plans to return to her previous profession as an attorney. Tom Johnson plans to return to work as a freelance writer.
Tom Johnson said that any retail, food manufacturing or distributing business that wants to consider hiring former Bingham employees can fax a job description to him at (970) 472-0702.
Chef2Chef News Desk