Baking&Snack - June 2014 - 50

Bagel Category Sales Remain Flat
Dollar sales
($ mil)
Total bagel category
833.0
Frozen bagels
27.5
Refrigerated bagels
129.4

Dollar sales
% change
2.0
-6.3
2.7

Unit sales
(mil)
280.7
15.0
82.9

For 52 weeks ending Jan. 26, 2014
IRI

taurants and bagel shops. At the end of 2013, Bruegger's
Enterprises, St. Paul, MN, announced plans to open 100
of its Bruegger's Bagels bakeries by 2015, and at the beginning of this year, Einstein Noah Restaurant Group,
Lakewood, CO, reported opening a record 61 restaurants in 2013, with 75 to 85 more in 2014.
Such expansions are evidence of some growth, but Mr.
Latouf attributes that growth not necessarily to the bagel
but to the totality of what the restaurants offer consumers. "It's about the whole store so to speak," Mr. Latouf
said. "The guys that are doing a good job at innovation,
offering good coffee and a broader selection of products
seem to be doing better, and the guys with limited offerings don't do as well," he said.
These chains' success relies on offering a whole package: a pleasing variety of food, coffee and atmosphere.
"People especially like the places where you can get good
quality food quickly but don't necessarily want to rush
out the door," Mr. Linzer said. "People love to enjoy a
breakfast bagel sandwich, gourmet fresh-brewed coffee
and browse away on their iPad."
When it comes to finding success selling bagels in these
outlets, companies hit the mark when they offer the right
kind of products built around the bagels: low-calorie
sandwiches carried on health-conscious bagels or bagel

50 Baking & Snack June 2014 / www.bakingandsnack.com

Unit sales
% change
2.9
-5.4
4.4

Consumers may demand clean labels but must
be willing to pay the price of costlier formulations that come with clean ingredient labels.
Shutterstock

thins. Panera Bread uses its new
Sprouted Grain Bagel Flat as the
carrier for the Egg White, Avocado
and Spinach Breakfast Power
Sandwich. Bakeries will also sell the bagel flat separately.
Early this year, Einstein Noah Restaurant Group launched
its Thintastic Bagels, which contain 35% fewer calories than
conventional bagels, on its Smart Choices menu.
New varieties and flavors of bagels can also gain consumer attention, particularly limited time offers. The
team at Always Bagels took inspiration from the muffin category. When muffins suffered from persistent flat
sales, new flavors and sizes gave the category a boost.
While Always Bagels' specialty flavors make up a small
part of its overall volume, eye-catching flavors can reignite interest in this lagging category.
Harlan Bakeries found success in incorporating the
ever-popular fall flavor of pumpkin, and Original Bagel,
West Caldwell, NJ, took its winning Asiago bagel as a
cue to develop another cheesy variety, Cheddar. Garrett
Levenbrook, vice-president of finance for Original
Bagel, described the new Cheddar cheese bagel as having an eye-catching appearance and cheesy richness.
Whether through smaller products, nutritious and
high-quality ingredients or creative positioning, bagel
producers continue to search for ways they can adapt
to today's health-conscious consumer population and
find balance between demand for nutrition and the
safety of indulgence.

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Baking&Snack - June 2014

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