Sonoma’s latest snack craze: Mr. Cheese O’s

Real cheese, gluten free, no artificial hormones, vegetarian, protein-packed and including the go-to grain quinoa, Mr. Cheese O’s may just be a snack-food miracle – and it’s made right here in Sonoma. That’s right folks, step right up and grab a bag because when this new product is as wildly successful as Krave, you’ll be one of those who can say they caught the craze early.

Sonoma Creamery CEO John Crean is keeping the exact numbers under wraps, but said this week that since Mr. Cheese O’s hit the market last May, the sales-percentage increase has been dramatic and “has hit triple digits.”

The first four flavors – original, cheddar, Tuscan herb, and sweet chili – are doing so well they are adding two new flavors, French onion and zesty barbecue, this quarter. “We have gotten a lot of grassroots attention,” he said.

Mr. Cheese O’s received recognition as one of the top five new food trends at the San Francisco Fancy Foods Show this month, and just won the number-three spot on Dairy Foods Best New Products of 2014, where it was the only product on the Top 10 list that was not launched by a major, multi-billion-dollar company.

“Our product is made of cheese, as opposed to being a cheese-flavored snack. That’s our big innovation, and we have extended the footprint of our company,” Crean said. Sonoma Creamery has made fresh cheese for 86 years, and was behind the innovation of pepper jack and other flavored cheeses, but like all cheeses, must be refrigerated.

“Mr. Cheese O’s is a crunchy, snack product with real cheese, not pasteurized processed cheese, but yet it is shelf stable. That was our goal, and that’s what we achieved,” he said. “Read the back label and it speaks for itself. It’s all completely natural. And it’s not fried.”

A 1-ounce package has 150 calories and 10 grams of protein with only three carbohydrates and eight grams of fat. The front of the package is adorned with a drawing of Mr. Cheese O himself, who is vaguely reminiscent of Planters’ Mr. Peanut, but with a shorter hat.

“The Mr. Cheese O icon is memorable,” Crean said. “We wanted something a little edgy, a little different. You might think our name is a little bit goofy, but you remember it.”

Asked if Mr. Cheese O’s is being developed as a product to spinoff he said, “We don’t have any specific plans. We are building a business. That’s the only plan.”

Located on Eighth Street East, Crean said the company employs “about a dozen, and a couple of dozen more temporary employees as we grow the business.” Every employee is given stock in the company. “We are always looking to hire good people,” he said. “We are the kind of company where people have fun. It is a very collegial place to work.”

Mr. Cheese O’s has so far been launched predominately in the West, but can be found in Texas, and is gradually being distributed nationwide. In Sonoma, it is available at Sonoma Market, Safeway and Lucky.

It took two years to develop Mr. Cheese O’s, including the recipe itself, packaging and +++branding. Crean said everyone involved in the project was committed to creating a healthy snack. “You have to believe in something in order to be able to sell it properly,” he said. “And it’s our favorite snack.”

He said they came up with the product by “trial and error,” but what they had in their favor was that the company has deep roots in cheese making. “That’s our secret sauce – we’re cheese makers,” he said. He was also adamant that Mr. Cheese O’s would be gluten free. “I think gluten free is big and it’s here to stay. I don’t think it’s a fad.”

Crean, as the lead investor along with other private investors, bought Sonoma Creamery three years ago. He and his wife Claire and their two sons have lived in Sonoma since 2001. He is one of three partners who founded the Winery Exchange in Novato, where he is still an investor and member of the board. Winery Exchange creates private label wine brands for the retailors worldwide, including Safeway, Costco, Whole Foods and Winn-Dixie.

He said Mr. Cheese O’s are appealing to adults and children, although it was not designed for children. “It passes the Mommy test (for their kids), but adults love them.”

Crean had not yet heard the buzz last Tuesday that Hershey’s was reportedly buying Sonoma’s other snack star, Krave beef jerky, for $200 million to $300 million. “Hats off to them,” he said when told. Crean is a vegetarian, so he has never tasted Krave, but added, “I know many people who love that product.”