BakeMark's Bakin N Rockin - April 2011 - (Page 3)

Tapping into Bakery Shopper Trends The instore bakery department is facing an interesting quandary. On one hand, interest in bakery – particularly cupcakes and cake decorating – are reaching all-time highs due to increased exposure of cake and cupcake decorating competitions televised nationally on media outlets such as Food Network and TLC. On the flip side, consumers continue to watch their food dollars closely and don’t shop more often in the bakery department where sales are flat. In fact, a recent report published in Perishables Group’s March 2011 newsletter, The Fresh Perspective, points out the instore bakery is unique in that it typically offers sensory shopping, high-value products, a large assortment, product customization options and an abundance of new items at any given time. But despite the fact that instore bakeries have a lot to offer, sales are flat to declining, and the department garners just 8% share of supermarket perishables dollars. A look at the new FreshFacts Shopper Insights powered by Spire reveals that the household penetration, or the number of shopper households that purchased a bakery item in 2010, is a healthy 92%, comparable to other fresh departments. Yet shoppers are only buying from the bakery 12 times per year, and this purchase frequency is declining. No bakery category captured more than 60% of households in a year, and nearly all declined in household penetration. Only about one in 10 households buys more than one bakery item in the same trip, even though bakery products can span a variety of eating occasions. Trends show healthy breads, ethnic fare, and epicurean desserts are now mainstays of the bakery product lineup, according to the International Dairy-Deli-Bakery Association. Interest in breads with a healthier profile is accelerating: wholegrain bread consumption climbed 37% from 2009 to 2010, and consumption of value-added bread, such as iron-fortified, high-fiber, and crustless, rose 28%. Artisan breads made with locally sourced ingredients are also popular as they contribute to attributes of freshness and authenticity. Decadent desserts, such as elaborate cakes and cupcakes, have been made even more appealing in single servings and bitesized portions —which also happen to be simple, easy, graband-go options that give customers control of price, calories, and leftovers. Mainstream bakeries are adding international fare, for example, with crusty Mexican bollilos, and Vietnamese bread baked specifically for popular banh mi sandwiches. Despite the rising use of bakery products, customers in 2010 are veering away from traditional instore bakeries in favor of the commercial aisle in supermarkets, as well as independent bakeries. Shopper statistics showed they visited the traditional supermarket instore bakery 0.61 times per week, down from 0.97 times a week in 2004. However, customers said they visited the self-service bakery one to three times a month in 2010, while the 2004 shopper was most often found there once a week. At the same time, IDDBA survey data shows customers shopped the commercial bakery aisle an average of 1.09 times per week in 2010. Instore bakeries are responding to current trends in a wide range of manners. Schnucks Markets, for example, is capitalizing on increased demand for whole grain breads and artisan breads through its new artisan bread program at two of its supermarket bakeries in the St. Louis marketplace. Others like Ralphs, a Southern California operator owned by The Kroger Co., are featuring cakes and cupcakes with more elaborate decorations and an expanded array of single-serve or two-person desserts including jumbo cupcakes, 3-inch individual pies, and cake slices in popular flavors like red velvet. New spring arrivals at Winn-Dixie included bundle deals such as an Easter 4-inch bakery cake with lilies for $9.99, 12 cupcakes with balloon and plush toy for $14.99; or a fresh 8-inch carrot cake with tulips for $19.99.

Table of Contents for the Digital Edition of BakeMark's Bakin N Rockin - April 2011

BakeMark's Bakin N Rockin - April 2011
Production Ideas -- Liven Up Your Cakes and Cookies
Merchandising Tips -- Tapping into Bakery Shopper Trends
Product Trends -- CSM Bakery Products Debuts TranSmart Cakes
Product Trends
Bakery Profile -- Natalie Bakery Dazzles with Unique Cakes and Pastries

BakeMark's Bakin N Rockin - April 2011