June 5, 2025 • 8 mins
Tillamook Ice Cream – the fastest-growing family size ice cream brand in the United States – is now officially in production at the new Tillamook County Creamery Association (TCCA) manufacturing facility in Decatur, Ill. As TCCA’s first owned-and-operated manufacturing site outside of Oregon, the production facility opening marks a key milestone in the 116-year-old farmer-owned co-op’s national expansion.
Tillamook President and CEO David Booth discusses the company’s growing dairy business on the first day of operation for its new plant, as well as the impact of tariffs on profits.
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Speaker 1 (00:00):
Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg business
Weekdaily reporting from the magazine that helps global leaders stay
ahead with insight on the people, companies, and trends shaping
today's complex economy. Plus global business, finance and tech news
(00:23):
as it happens. The Bloomberg Business Week Daily Podcast with
Carol Masser and Tim Stenevek On Bloomberg Radio, David.
Speaker 2 (00:32):
Gera, Emily Graffeo infer Carol Masser and Tim Stenevek, and
following all the economic data looking ahead to Jobs Day
on Friday, we'll get another read on the health of
the US labor market. I want to check in with
someone who's navigating the uncertainty of this moment as a
business leader. David Booth is the president and CEO of
Tillamook That is shorthand for the Tillamoc County Creamery Association,
(00:53):
former owned co op that's been around since nineteen oh
nine and know of their cheese and their ice cream.
He joins us now from Decatur, Illinois. They've just opened
up a new factory and that's where I want to start.
If I could hear David, great to speak with you.
We're at a moment where we're hearing a lot of
business leaders say we're going to hold off on new investment,
hold off on capex. Want to see where things stand.
(01:13):
You had a project underway, you're opening it up today.
How are you feeling just about the health of this
economy right now and business generally.
Speaker 3 (01:22):
Overall. I'm feeling very good. The food sector, the brand
itself is performing extremely well. We've been on a national
expansion for the last four or five years and it's
going really well. And this investment really helps us support
that long term vision that we have.
Speaker 4 (01:40):
What about the labor market, because we are going to
be looking at jobs data on Friday here at Bloomberg News.
From your view, are you planning on increasing hiring, are
you keeping everything the same? How does labor look for
your company?
Speaker 3 (01:57):
That's a great question. Obviously, here Indicator were bringing in
about seventy new jobs into the community. We've had a
really nice reception from the local the local population, and
we filled nearly fifty of the seventy jobs up to
this point. And as the capacity continues to expand, we'll
fill the rest of those roles. And for the rest
(02:17):
of the organization, both of our other manufacturing facilities are
ninety five to ninety eight percent fill rate right now
from an employment standpoint, and the job market looks pretty
good for us.
Speaker 2 (02:30):
I'm curious about just the way that the company is structured.
I know that you're a B corp. How big is it?
You mentioned you have a national footprint. I think eighty
percent of the country can get tillbook products. So how
is it structured? And you what's your sense of how
you'd like to grow it or where you'd like to
go that you aren't right.
Speaker 3 (02:46):
Now, Yes, you're dead on the number. So we were
in eighty percent of grocery stores across the country and
we'll do about one point four billion dollars in revenue
this year. And to put that in perspective, when we
went on this national expansion back in twenty fifteen, we
are about four hundred and fifty million dollars. So we've
nearly tripled the size of the business over the last decade.
(03:08):
And we've done that really by pushing distribution and partnering
with key retailers, but more importantly, the quality of the
product we bring to market. Once we get the product
in people's mouths and they try it, our repeat rate
is nearly sixty percent. So that's the magic in this
brand is the quality that we bring to the market.
Speaker 4 (03:27):
How is your supply chain looking right now? I guess
we can start with ice cream and then maybe go
to cheese. I don't know, if it's.
Speaker 2 (03:34):
Your preference, it's your order of preference. We start start.
Speaker 4 (03:37):
Yeah, Well, you know this factory, I guess is for
it's an ice cream plant or is it ice cream
and cheese in the plant.
Speaker 3 (03:45):
That's a great question. So this is our first manufacturing
facility outside of the state of Oregon. So we have
two cheese production facilities in Oregon. One of those also
makes ice cream, but this is our first facility outside
of the state of Oregon, and our first facility dedicated
so to production of ice cream. So it's a sixty
thousand square foot facility that'll make fifteen and a half
(04:05):
million gallons of ice cream when fully at capacity.
Speaker 4 (04:09):
I'm just thinking of the supply chain for ice cream.
I mean, I don't know. We talk a lot about
tariffs a lot, but this seems like a very domestic
business where you're sourcing your ingredients domestically. Have you run
into any recent issues over the last couple months when
it comes to just getting everything you need to build.
Speaker 3 (04:29):
Yeah, but I mean obviously terrists are in everybody's mind,
and we'll wait to see how everything settles out. But
at this point, given that milk is our number one ingredient,
and you know it comes domestically from many of our
own numbers and our owners, as well as some partner
farms that we have, we feel fairly fairly isolated right now.
Speaker 2 (04:47):
I'm very curious to sort of we were talking a
little bit about expansion before. Are there are there any
hindrances to that going forward? You so you've obviously built
and open this new new factory, but is there is
there anything that's kind of giving you pause this moment
of time doesn't have to be with your business itself,
but with the economy more broadly. I'm just kind of
curious of how you're thinking about the economy, the future
(05:08):
of the economy.
Speaker 3 (05:09):
Well, you know what we've seen. You know, when we
see in economy downturns is less people eating out and
more people eating at home. So quite honestly, for Tillamook,
we have a substantial retail business and our food service
business isn't quite as large as a little bit underdeveloped,
So it actually plays to a benefit for Tillamook right now.
And we also see that households are willing to spend
(05:31):
a little bit of a premium for that higher quality
to feed their family at home, so it could play
to our advantage quite nicely.
Speaker 4 (05:39):
Is ice cream a seasonal trend? Do you anticipate that
sales will pick up in the summer just because it's
hotter outside, or if consumers are pulling back, will that
also hit you know, even these affordable luxuries like ice cream.
Speaker 3 (05:55):
Well, it is definitely a seasonal item. We definitely see
that kind of that Memorial Day till Labor days like
in the business. What I can tell you is the
early read into this season is it's been very strong.
The purchases from customers have been great. Early reads on
takeaway through the first few months of the year continue
to see this brand and this ice cream business continue
(06:17):
to expand at nearly double digits, So I would say
at this point it's continued as business as usual.
Speaker 2 (06:22):
Could you talk a bit about the relationship that the
company has with the farmers who are producing the milk
the dairy products that you use. Is that very much
a national footprint as well. Are they kind of confined
to the Pacific Northwest where I know you're you're headquartered.
What does it look like and how much has it
grown in recent years?
Speaker 3 (06:40):
Yeah, that's a great that's a great question. So the
co op is made up of fifty five farmer members,
all based in Oregon and primarily on the coast of Oregon.
They supply one hundred percent of the milk into Artillamook
Cheese manufacturing facility. So over the last decade, while the
number of members may have declined, the amount of milk
continues to remain relatively constant into that facility. Then we
(07:04):
have a secondary facility in Eastern Oregon that we partner
with a large farm out in Eastern Oregon who supplies
the milk to that facility. And then for this one,
we've partnered with Foremost Farms and a couple of Keith
Farms and need all of our milk quality standards to
supply the milking in it. So we have partners outside,
but we also have a large portion of milk that
(07:24):
comes from our numbers.
Speaker 2 (07:26):
David, it was great to catch up with your congrats
on the new factory as well as David Booth. He's
the president and the CEO of Tillamook Shorthand for the
Tillamoc County Creamery Association based out of the Pacific Northwest
in Oregon. It's a farmer owned cooperative that's been around
since nineteen oh nine. That new facility manufacturing ice cream
to the tune of fifteen million gallons. I'm still trying
to get my head around that.
Speaker 4 (07:45):
They said that their product is in one in four
US households.
Speaker 1 (07:49):
Do you have any of your else?
Speaker 2 (07:51):
You know, I may have some cheese in the cheese tour,
but I will now as you bring up the seasonality. Yeah,
it's time.
Speaker 4 (07:57):
It's time to replenish the stores by some ice cream.
It's cheaper than going out and buying ice cream, Like
if you've got a big tub in bulk, the
Speaker 2 (08:06):
Half gallon or the gallon
Bloomberg Audio Studios, Podcasts, radio News. This is Bloomberg business
Weekdaily reporting from the magazine that helps global leaders stay
ahead with insight on the people, companies, and trends shaping
today's complex economy. Plus global business, finance and tech news
(00:23):
as it happens. The Bloomberg Business Week Daily Podcast with
Carol Masser and Tim Stenevek On Bloomberg Radio, David.
Speaker 2 (00:32):
Gera, Emily Graffeo infer Carol Masser and Tim Stenevek, and
following all the economic data looking ahead to Jobs Day
on Friday, we'll get another read on the health of
the US labor market. I want to check in with
someone who's navigating the uncertainty of this moment as a
business leader. David Booth is the president and CEO of
Tillamook That is shorthand for the Tillamoc County Creamery Association,
(00:53):
former owned co op that's been around since nineteen oh
nine and know of their cheese and their ice cream.
He joins us now from Decatur, Illinois. They've just opened
up a new factory and that's where I want to start.
If I could hear David, great to speak with you.
We're at a moment where we're hearing a lot of
business leaders say we're going to hold off on new investment,
hold off on capex. Want to see where things stand.
(01:13):
You had a project underway, you're opening it up today.
How are you feeling just about the health of this
economy right now and business generally.
Speaker 3 (01:22):
Overall. I'm feeling very good. The food sector, the brand
itself is performing extremely well. We've been on a national
expansion for the last four or five years and it's
going really well. And this investment really helps us support
that long term vision that we have.
Speaker 4 (01:40):
What about the labor market, because we are going to
be looking at jobs data on Friday here at Bloomberg News.
From your view, are you planning on increasing hiring, are
you keeping everything the same? How does labor look for
your company?
Speaker 3 (01:57):
That's a great question. Obviously, here Indicator were bringing in
about seventy new jobs into the community. We've had a
really nice reception from the local the local population, and
we filled nearly fifty of the seventy jobs up to
this point. And as the capacity continues to expand, we'll
fill the rest of those roles. And for the rest
(02:17):
of the organization, both of our other manufacturing facilities are
ninety five to ninety eight percent fill rate right now
from an employment standpoint, and the job market looks pretty
good for us.
Speaker 2 (02:30):
I'm curious about just the way that the company is structured.
I know that you're a B corp. How big is it?
You mentioned you have a national footprint. I think eighty
percent of the country can get tillbook products. So how
is it structured? And you what's your sense of how
you'd like to grow it or where you'd like to
go that you aren't right.
Speaker 3 (02:46):
Now, Yes, you're dead on the number. So we were
in eighty percent of grocery stores across the country and
we'll do about one point four billion dollars in revenue
this year. And to put that in perspective, when we
went on this national expansion back in twenty fifteen, we
are about four hundred and fifty million dollars. So we've
nearly tripled the size of the business over the last decade.
(03:08):
And we've done that really by pushing distribution and partnering
with key retailers, but more importantly, the quality of the
product we bring to market. Once we get the product
in people's mouths and they try it, our repeat rate
is nearly sixty percent. So that's the magic in this
brand is the quality that we bring to the market.
Speaker 4 (03:27):
How is your supply chain looking right now? I guess
we can start with ice cream and then maybe go
to cheese. I don't know, if it's.
Speaker 2 (03:34):
Your preference, it's your order of preference. We start start.
Speaker 4 (03:37):
Yeah, Well, you know this factory, I guess is for
it's an ice cream plant or is it ice cream
and cheese in the plant.
Speaker 3 (03:45):
That's a great question. So this is our first manufacturing
facility outside of the state of Oregon. So we have
two cheese production facilities in Oregon. One of those also
makes ice cream, but this is our first facility outside
of the state of Oregon, and our first facility dedicated
so to production of ice cream. So it's a sixty
thousand square foot facility that'll make fifteen and a half
(04:05):
million gallons of ice cream when fully at capacity.
Speaker 4 (04:09):
I'm just thinking of the supply chain for ice cream.
I mean, I don't know. We talk a lot about
tariffs a lot, but this seems like a very domestic
business where you're sourcing your ingredients domestically. Have you run
into any recent issues over the last couple months when
it comes to just getting everything you need to build.
Speaker 3 (04:29):
Yeah, but I mean obviously terrists are in everybody's mind,
and we'll wait to see how everything settles out. But
at this point, given that milk is our number one ingredient,
and you know it comes domestically from many of our
own numbers and our owners, as well as some partner
farms that we have, we feel fairly fairly isolated right now.
Speaker 2 (04:47):
I'm very curious to sort of we were talking a
little bit about expansion before. Are there are there any
hindrances to that going forward? You so you've obviously built
and open this new new factory, but is there is
there anything that's kind of giving you pause this moment
of time doesn't have to be with your business itself,
but with the economy more broadly. I'm just kind of
curious of how you're thinking about the economy, the future
(05:08):
of the economy.
Speaker 3 (05:09):
Well, you know what we've seen. You know, when we
see in economy downturns is less people eating out and
more people eating at home. So quite honestly, for Tillamook,
we have a substantial retail business and our food service
business isn't quite as large as a little bit underdeveloped,
So it actually plays to a benefit for Tillamook right now.
And we also see that households are willing to spend
(05:31):
a little bit of a premium for that higher quality
to feed their family at home, so it could play
to our advantage quite nicely.
Speaker 4 (05:39):
Is ice cream a seasonal trend? Do you anticipate that
sales will pick up in the summer just because it's
hotter outside, or if consumers are pulling back, will that
also hit you know, even these affordable luxuries like ice cream.
Speaker 3 (05:55):
Well, it is definitely a seasonal item. We definitely see
that kind of that Memorial Day till Labor days like
in the business. What I can tell you is the
early read into this season is it's been very strong.
The purchases from customers have been great. Early reads on
takeaway through the first few months of the year continue
to see this brand and this ice cream business continue
(06:17):
to expand at nearly double digits, So I would say
at this point it's continued as business as usual.
Speaker 2 (06:22):
Could you talk a bit about the relationship that the
company has with the farmers who are producing the milk
the dairy products that you use. Is that very much
a national footprint as well. Are they kind of confined
to the Pacific Northwest where I know you're you're headquartered.
What does it look like and how much has it
grown in recent years?
Speaker 3 (06:40):
Yeah, that's a great that's a great question. So the
co op is made up of fifty five farmer members,
all based in Oregon and primarily on the coast of Oregon.
They supply one hundred percent of the milk into Artillamook
Cheese manufacturing facility. So over the last decade, while the
number of members may have declined, the amount of milk
continues to remain relatively constant into that facility. Then we
(07:04):
have a secondary facility in Eastern Oregon that we partner
with a large farm out in Eastern Oregon who supplies
the milk to that facility. And then for this one,
we've partnered with Foremost Farms and a couple of Keith
Farms and need all of our milk quality standards to
supply the milking in it. So we have partners outside,
but we also have a large portion of milk that
(07:24):
comes from our numbers.
Speaker 2 (07:26):
David, it was great to catch up with your congrats
on the new factory as well as David Booth. He's
the president and the CEO of Tillamook Shorthand for the
Tillamoc County Creamery Association based out of the Pacific Northwest
in Oregon. It's a farmer owned cooperative that's been around
since nineteen oh nine. That new facility manufacturing ice cream
to the tune of fifteen million gallons. I'm still trying
to get my head around that.
Speaker 4 (07:45):
They said that their product is in one in four
US households.
Speaker 1 (07:49):
Do you have any of your else?
Speaker 2 (07:51):
You know, I may have some cheese in the cheese tour,
but I will now as you bring up the seasonality. Yeah,
it's time.
Speaker 4 (07:57):
It's time to replenish the stores by some ice cream.
It's cheaper than going out and buying ice cream, Like
if you've got a big tub in bulk, the
Speaker 2 (08:06):
Half gallon or the gallon
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