CENTRAL POINT — In the process of crafting world-renowned cheese, Rogue Creamery created demand beyond its ability to supply.

In the space of 3½ years, David Gremmels and Cary Bryant have converted a company on the brink of extinction into a thriving enterprise that has grown from three to 35 employees and expects to have 55 on the payroll by year’s end.

Likewise, revenue has ballooned, hitting the $2.4 million mark in 2005 following a $1.4-million year in 2004. Although final projections aren’t in place for 2006, sales are expected to surpass $3 million.

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Rogue Creamery has kept to three-day production weeks because of limited cold storage space. That changed on Friday when Gremmels and Bryant closed on a $1.1 million deal that gives them plenty of room to grow.

Rogue Creamery purchased Central Point Cold Storage, a 22,000-square-foot refrigerated warehouse on Haskell Street, from Jerry Michael of White City. The creamery has been renting about 20 percent of the 11-year-old building, sharing space with Gary West Meats and Sabroso Co.

"It’s imperative that we have the space to age our world-class cheese in state-of-the-art refrigerated coolers," Gremmels said. "We’ve been there close to three years. We started with one pallet, then two and now we have 2½ refrigeration spaces filled with blue cheeses — 100-plus pallets."

One cheese pallet holds between 120 and 140 5-pound wheels and Rogue Creamery has about 700 pallets on site.

"We’ve been renting the facility, so it will be a really nice transition into ownership," Gremmels said. "We’ve been accustomed to the location and we’ve had a year to understand the flow of product in the facility."

Rogue Creamery considered adding cold storage at its 311 N. Front St. plant, but it would’ve cost twice as much to build as purchasing the existing structure a quarter-mile away. JulieAnn Nelson will manage the building’s operations.

With more available storage space, Gremmels said, the creamery is poised to expand production to 4½ days.

"We could’ve increased production a year ago, but we really wanted to train our apprentices so they understood our procedures and keep our quality high," Gremmels said. "Now with a year of training, we’re ready to double our capacity as we move forward."

The acquisition was aided by Southern Oregon Regional Economic Development Inc., the Oregon Business Development Fund and PremierWest Bank.

A $115,000 loan marks the second cash infusion SOREDI has given the entrepreneurs, said business development specialist Bob Bueoy.

"This is going to end up being a real tourist destination when they get everything completed," Bueoy said. "They bring not only national but international recognition to the Rogue Valley with awards they’ve won for their blue cheese."

Gremmels and Bryant bought Rogue Creamery in 2002 from the founding Vella family. They went on to win more than two dozen medals and trophies, including World’s Best Blue Cheese at the World Cheese Awards in London and the Best New Product in the World Award at the National Association for the Specialty Food Trade Food Show in New York. Its products are marketed by 20 domestic distributors and one in London.

In the artisan food industry, however, it takes more than hiring people and developing sales channels. Ingredients remain a prime component.

Rogue Creamery presently gets its milk from Volbeda Dairy in Linn County, outside of Albany.

"They understand the quality necessary for our products because they own a small artisan creamery themselves," Gremmels said. "It’s sustainable, hormone-free and they’re in the process of getting organically certified."

But one small herd in the Willamette Valley won’t be enough in the near future. Rogue Creamery will soon add hormone-free milk from the Brink Dairy on Upper River Road near Grants Pass.

Reach reporter Greg Stiles at 776-4463 or e-mail business@mailtribune.com.