IN AMERICA, THE CHEESE industry has finally matured.

Between camembert, brie, pecorino and feta, Europe has long held a choke-hold on the cheese business. But over the last decade, the number of domestically-made cheeses has grown notably -- along with a U.S. presence in dairy aisles around the world. Between 1995 and 2005 cheese production in the U.S. expanded by more than 32%, according to the U.S. Department of Agriculture, and today, the United States makes more than a quarter of the world’s cheese. While American gourmets still have a taste for foreign cheeses, they’ve also begun experimenting with local products and have helped boost sales for smaller dairies here at home.

One beneficiary: The Vermont Butter & Cheese Company in Websterville, Vt. An artisanal cheese maker and creamery, Vermont Butter has bested many of its international competitors in global tasting competitions. Yet with exporting challenging -- and not particularly cost effective — company co-founder Allison Hooper says she is focusing on building her business here.  In 2009, the company rang up close to $10 million in sales, up from around $9 million the year before. In 2010, Hooper expects sales to gain another 10%. She declines to discuss profits.

SmartMoney asked Hooper a few questions about her ups and downs as a cheese maker. Here are her condensed answers.

In launching the business, what were some early hurdles you needed to clear?

When my partner Bob Reese and I were first getting started in the early '80s, there weren’t any commercial goat milk providers in Vermont. Back then, many of the top restaurants in New York were led by French chefs. We knew they’d likely appreciate being able to get goat cheese without importing it. So, we reached out. With their support, we were able to convince Vermont farmers to take a gamble on supplying us with goat’s milk.

What’s been the most effective way you’ve found for gaining attention for your products?

We enter contests. We can’t enter into the French cheese awards because the rules of the competition require someone from the competition to go out to the cheese maker to pick up the cheese to judge. They aren’t going to come here. That said, we’ve won gold medals in the World Cheese Awards, which is held annually. We also have our own competition in the U.S., at which we’ve come away with ribbons each year. Also, anytime you can get a great endorsement from a well-known food writer or chef will add to your credibility.

Ben and Jerry’s, Cabot Creamery, Green Mountain Coffee Roasters… Seems like independent companies love Vermont. Why did you choose to set up shop there?

I grew up in New Jersey and moved to Vermont with the intention of doing something in the cheese world. I knew there would be opportunities for me here when I visited for several days one summer. There were more cows than people. Vermont is dairy-based and agricultural. Essentially, it seemed like a place that was sympathetic to what I wanted to do.

People have a good feeling about Vermont. Maybe they have seen pictures of it and traveled here on vacation. And when you’re looking at ideal climates for growing grass, you can’t get much better than Vermont. It’s not too hot, and the rainy season isn’t particularly long.

How has the buy local movement affected business?

It’s actually helped and hurt. Here’s why: In Vermont, there is a very long tradition of practicing loyalty to local products. There’s not a lot of industry here and agriculture is very important to Vermonters. However, from the point of view of producing and selling here, we’re not going to get far by feeding 600,000 local residents. Plus, we have to sell these products in markets where consumers have disposable income. So here we are pushing local, but those of us who make cheese have to sell in other high-end markets. So even though we are a lot more local than cheeses from France and Italy, we’re not as local in states that have their own cheese. In this case, local trumps everything else. If we try to sell our products into a market that already has a local darling, it’ll be a difficult sell.

How are you able to combat the negative aspects of the buy local movement?

Our task is to create products that aren’t made locally, but are signature products that are just plain good and get doors to open for us that way.

Local is a notion that doesn’t mean the same thing to all people. What people need to understand is regardless of whether you’re in San Francisco or New York and you’re buying Vermont cheese, you’re buying into a philosophy that helps continue that interest. You’re continuing to promote variety – whether it’s buying from small firms or buying fair trade items from Colombia.

After going from having no market for goat cheese to being swarmed by competitors, how have you dealt with the added competition?

It’s not hard to get distribution into grocery stores; many operations will help you with that. But what’s difficult is fighting for shelf space once you get there. You need to make sure your cheese is distinguishable enough to pick it up. And if you are shipping it into a market where no one knows who you are, you have to be extra thoughtful about product design and attracting first-time customers.

What will your company’s focus be in the future?

In the next few years, what will be interesting is we’ll all have to be much more thoughtful about energy costs and investing in clean energy and reducing our carbon footprint. Not only will this practice be good for business, but it is expected by our target customers. We hear it; we see it in social media; we get questions from our customers. I think that customers are much more conscious and thoughtful about who is making what, how they treating their employees and whether or not they environmentally conscious. If we don’t do anything, they’ll surely vote with their pocketbooks.

What’s your best advice for would-be cheese makers?

Visit retailers. Inspect the marketplace. Talk to people who sell cheese. Do your own market research to figure out how you would distinguish yourself.

- Do you know of a small business that would make a good In Focus? Send your suggestions to: Editors@smSmallBiz.com