BIG CHEESE: Brian shows off one of the Milk Pail's popular cheese wheels. Photograph by Alex Stover
The conventional wisdom is that in this current economic climate of harsh, bottom-line realities, the independent operator can’t compete against a deep-pocketed store with a national distribution system, economies of scale and volume. We live in a big-box world, and the little guy doesn’t stand much of a chance.
So how then do you explain the endurance of Mountain View’s The Milk Pail Market?
Located right across the street from Safeway, the 38-year-old market has carved out a deep niche—one filled with rarefied cheese, eclectically flavored ravioli and great deals on produce.
Owner Steve Rasmussen bought what was a bankrupt milk-processing facility in 1974 and renamed it the Milk Pail Market. The store was originally a drive-through milk shop that pasteurized its own milk and sold it in glass bottles.
As more grocery stores began to open in the area, Rasmussen figured he had to stay ahead of the competition, and so the Milk Pail became “a little alternative food business sort of thing” that sold food in bulk to value-conscious shoppers and those looking for out-of-the-ordinary ingredients way before Whole Foods Market started doing the same thing.
In time, Rasmussen added produce, vast quantities of which are now piled up around the edges of the open-air store.
In spite of the prepackaged sameness that defines the retail world today, Rasmussen has stayed in business by going the opposite route and offering specialty items one is not likely to find elsewhere and deals on produce by buying directly from producers.
Because the market caters to an international clientele, the produce goes way beyond iceberg lettuce and Red Delicious apples. I spotted a green cauliflower for 39 cents a pound and beautiful-looking Indian eggplant the size of cue balls.
So when Trader Joe’s opened nearby a dozen years ago, it didn’t hurt Rasmussen’s business. It helped. Trader Joe’s shoppers came from near and far, and many also made their way to Rasmussen’s store on the corner of California Avenue and San Antonio Road. Same thing when Whole Foods opened on El Camino Real. Shoppers looking for the organic and specialty products at Whole Foods ended up at the Milk Pail, too.
“I think the atmosphere of the business is a very engaging for a certain part of the population,” Rasmussen says. “It’s very experiential.”
Rasmussen calls that “certain part” of the population “thrill-seekers” who are looking for something else in their shopping cart than the latest product from Kraft or Nestle.

Comments (9)
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Valerie Boyle Thu, Aug 23, 2012 - 3:56 pm
Dear Stett,
You captured the essence and personality of that wonderful little market! Thanks for the history and also letting people know that there are independent shops and stores everywhere who do wonderfully BECAUSE they found, and cater to, their niche customers! Now if only we could get that cheese to be “no calorie” cheese….darn!
Penelope Low Thu, Aug 30, 2012 - 12:39 pm
Perhaps their next progression would be to stock some vegan, cholesterol free cheese.
CAT Sat, Sep 15, 2012 - 7:43 am
That would not be cheese.
Sammy Sun, Aug 26, 2012 - 1:01 pm
It is a great place for great prices on produce. If you can stand being with the totally obnoxious and weird customers who cut in line, or will see 3/4 of an inch space between you and the shelf you’re browsing and force themselves in front of you.
Parking isn’t as bad or crazy as Berkeley Bowl, but pretty close.
judith langston Wed, Aug 29, 2012 - 9:18 pm
Love the Milk Pail, reminds me of my childhood growing up in Europe and taking daily trips with my grandma to the open air market. Thank You so much for all the goodies that You provide for your shoppers.
Judith Langston
Sally wood Thu, Aug 30, 2012 - 8:35 pm
What a wonderful story, Steve! I even learned a few new details about your beginning. Your early hard work really did pay off. Congratulations!
Michele Fri, Aug 31, 2012 - 9:31 am
I’ve been going to the Milk Pail since its opening. Love it! What more can you say…..I know there is so much more to say…..lol….hugs…...
Sarah With Veggie Kids Fri, Sep 07, 2012 - 11:07 am
Great article and great store! I love The Milk Pail, not only for those exotic and delicious fruits and veggies but for their amazing soy cheeses! It’s been a fun place to take out of town guests who say it reminds them of a Parisan market. Keep up the great work! I’d love to see more vegan foods too! =)
Linda Fri, Sep 07, 2012 - 11:52 am
Hi Steve;
My son and I moved to Miller Ave across the Street from Sears in July 1979. My son was 23 months old. I was going thru very hard times due to having to move a lot because of people and their stereos.
My son and I walked with his stroller to The Milk Pail and Mostly looked at the great food items because I had very little money. Steve always talked to his customers. 20+ years later I was there alone (my son had just left the nest)and he said “I know you”! You had a little boy and came here all the time. I was stunned. (of Course I was very good looking; but he remembered my little toddler)!
The transformation and the fact that he is still there is to say the least very impressive. Good Job Steve!
Linda S.
9-7-12