Swiss Cheese Cartel's Masterplan: Making Fondue Popular

The popularity of fondue was no accident. In the 20th century, a group of Swiss cheese makers formed a cartel to control the country's cheese industry. This group, known as the Swiss Cheese Union, set the price of milk, limited production, and restricted the types of cheeses that could be made. To increase demand for Swiss cheese, they marketed fondue, a dish that calls for large amounts of cheese, as a traditional and healthy meal. Their aggressive ad campaigns, backed by the Swiss government, were a success, and fondue became a hit in Switzerland and beyond.

The Swiss Cheese Union's control of the Swiss economy

The Schweizer Kaseunion, or the Swiss Cheese Union, was an all-powerful group of Swiss cheesemakers that ruled the Swiss economy for almost a century. The Union was formed in 1914, after World War I, when Switzerland was left with an excess of cheese due to decreased demand and increased supply. The Union was essentially a cartel, an agreement among competitors to control prices and not compete with each other.

The Swiss Cheese Union had a tight grip on the Swiss cheese industry and, by extension, the Swiss economy. They set the price of milk, limited milk and cheese production, and restricted the kinds of cheeses that could be made in Switzerland. The Union mandated that cheese production be limited to only three varieties: Emmentaler, Gruyère, and Sbrinz. Cheesemakers selling other varieties had to either cease production or find illegal ways to sell their cheeses.

The Union's control over the Swiss economy was so strong that they could make or break a cheesemaker. For example, they could prevent cheesemakers from selling certain types of cheese or delay their applications for licenses indefinitely. This power dynamic is best illustrated by the story of Sep Barmettler, a "cheese rebel" who wanted to make a cheese called Sprinz, similar to Parmesan. Barmettler applied to the Swiss Cheese Union for a license but was denied after eight years of waiting. Despite the rejection, he continued to make and sell his cheese quietly under the table.

In the 1950s and 1960s, the Union sought to increase the demand for Swiss cheese to match the excess supply. They decided to promote fondue, a dish common in some parts of the Swiss Alps that required large amounts of cheese. The Union launched aggressive ad campaigns in the 1970s, featuring attractive Swiss people in ski gear partying over pots of fondue. These ads, backed by the Swiss government, were successful in popularizing fondue not just in Switzerland but also internationally.

However, by the 1990s, the Swiss Cheese Union had collapsed due to allegations of corruption and concerns over the high cost of cheese subsidies. With the collapse of the Union, Swiss cheesemakers were finally free to make and sell any type of cheese they wanted, leading to an explosion of new and unique Swiss cheeses.

How the cartel influenced the types of cheese produced

The Schweizer Kaseunion, or the Swiss Cheese Union, was a cartel that controlled the Swiss cheese industry for almost a century. It was formed in 1914, after World War I, when Switzerland was facing a surplus of cheese due to decreased demand from war-torn Europe. The Union aimed to maintain the prosperity of the cheese business by fixing milk prices, limiting production, and restricting the types of cheeses that could be produced in Switzerland.

The Union mandated that cheese production be limited to only three varieties: Emmentaler, Gruyère, and Sbrinz. Emmentaler and Gruyère were the most popular and heavily marketed by the Union, especially in the early years. Emmentaler, also known as "Swiss cheese," is the hard cheese with holes that is widely recognized today. Gruyère, a semi-hard cheese, is the other "big" cheese that the Union supported and promoted. Sbrinz, similar to Parmesan, was the third variety allowed by the Union, though it was less common and faced restrictions.

The Union's control over the types of cheeses produced in Switzerland limited the creativity and variety of the country's cheese industry. For example, Sepp Barmettler, a "cheese rebel," wanted to produce Sbrinz but was denied a license by the Union, which claimed he was too small. Barmettler had to sell his cheese quietly under the table for eight years until the Union's collapse.

The Union's restrictions on cheese types aimed to streamline production and reduce competition among cheesemakers. By limiting the variety of cheeses, the Union could better control supply and demand, ensuring that their selected cheeses were widely produced and consumed. This strategy allowed them to maintain their power and influence over the industry for decades.

When the Union collapsed in 1999 due to corruption allegations and changing economic landscapes, Swiss cheesemakers were finally free to innovate and experiment with new cheese varieties. Today, Switzerland boasts over 450 unique types of cheese, a far cry from the limited selection during the Swiss Cheese Union's rule.

The aggressive marketing campaigns of the 1970s

The 1970s saw the Swiss Cheese Union launch a series of aggressive marketing campaigns to promote fondue. Backed by the Swiss government, these campaigns featured advertisements of attractive, healthy Swiss men and women in ski gear, partying over brightly coloured pots of fondue. The Swiss Cheese Union positioned fondue as a "healthy food from the Alps", invoking the image of Heidi from the popular book, and encouraging consumers to eat cheese by the bucket. Fondue sets, consisting of a sturdy cast-iron pot, long-handled forks, and a camping stove burner or flame, became a staple in households across Switzerland and beyond.

The Swiss Cheese Union's marketing campaigns were so successful that they transformed fondue from an Alpine delicacy to a national dish and a permanent fixture in Swiss identity. The campaigns were so effective that fondue's popularity has persisted even after the collapse of the Swiss Cheese Union in 1999. The resurgence of fondue single-handedly revived the Swiss cheese industry, with fondue sets remaining a common feature in kitchens around the world.

The decline of the Swiss Cheese Union

By the 1960s and 1970s, Switzerland's reputation was shifting from being predominantly associated with dairy farming to being known for its scientists and engineers. This shift in perception led to growing concerns about the significant sums of taxpayer money subsidising the dairy industry. It was estimated that in the 1960s and 1970s, the cost of dairy subsidies exceeded the entire budget of the Swiss Army. This disparity raised questions about the allocation of government funds and contributed to a re-evaluation of the Swiss Cheese Union's role.

Additionally, allegations of corruption within the Swiss Cheese Union surfaced, further eroding its support and legitimacy. By the end of the 1990s, the union faced corruption charges, and a former manager was arrested for involvement in a kickback scheme. These scandals, coupled with the changing societal and economic landscape, ultimately led to the Swiss government withdrawing its funding and support for the union.

The success of the Swiss Cheese Union in promoting cheese consumption and reviving the industry also contributed to its eventual decline. The union's aggressive marketing campaigns, particularly the popularisation of fondue, led to a resurgence in cheese demand and consumption. However, by the 1990s, fondue's popularity began to wane, and concerns arose about the high costs of cheese subsidies. The union had achieved its goal of boosting cheese consumption, but the industry no longer required the same level of intervention and control.

By 1999, the Schweizer Kaseunion, or the Swiss Cheese Union, collapsed amid these various factors. The end of the union marked a new era of innovation and competition in the Swiss cheese industry, with the emergence of diverse cheese varieties and a more dynamic market.

The lasting impact of fondue on Swiss culture

The Swiss Cheese Union's marketing of fondue transformed the dish from an Alpine delicacy to a national dish and a permanent fixture in Swiss identity. Fondue is now an iconic part of Swiss culture and is still very common in restaurants throughout Switzerland. The Swiss Cheese Union's legacy is such that, even today, visitors to Switzerland are encouraged to try fondue and to eat it until they hit the bottom of the pot.

The Swiss Cheese Union's marketing campaign was so successful that it not only increased the popularity of fondue but also associated the dish with Swiss identity and patriotism. The campaign used images of attractive, healthy Swiss people shovelling cheese into their mouths, with fondue framed as a "healthy food from the Alps". The campaign also drew on the globally-known story of Heidi, using its imagery in advertisements to promote fondue.

The Swiss Cheese Union's impact on Swiss culture extended beyond the popularity of fondue. The Union controlled the Swiss cheese industry for 85 years, setting the price of milk, limiting production, and restricting the types of cheeses that could be made. This included a focus on popularising Emmental cheese outside of Switzerland, which is why Americans refer to it as "Swiss cheese". The Union's activities also led to the development of new cheese varieties, as some cheesemakers were forced to find creative ways to sell their cheeses.

The Swiss Cheese Union's impact on the Swiss cheese industry and the popularisation of fondue had lasting effects on Swiss culture, with fondue becoming an iconic dish and an important part of Switzerland's national identity and culinary culture.

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