IBIE - 2019 Special Edition & Show Preview - 45

ABA partners with FMI in the 'Power Of' series
eter of the store," observed Todd Hale, principal, Todd
Hale LLC, who conducted and delivered an analysis of
the "Power of Bakery 2019" report with Anne-Marie
Roerink, principal, 21 Analytics, at ABA's convention.
Mr. Hale also noted that retailers are increasing efforts to set themselves apart from the competition
coming from so many different types of outlets. That
store-hopping the Hartman Group identified is creating direct competition to supermarket in-store bakeries;
Ms. Roerink identified c-stores, farmers markets, online
ordering, independent retail bakeries and at-home baking as some of the biggest threats.
Ten years ago, supermarkets ruled the roost. At that
time, around 70% of consumers identified this to be their
primary outlet for groceries, Ms. Roerink observed. "But
as years go by, we seem to be stalling out around 50% of
shoppers saying they spend the majority of their grocery
dollar in the supermarket channel," she said.
While food-related mobile apps are disrupting the
foodservice space, proximity-based social media groups
like Nextdoor - where people can exchange questions
and recommendations for any type of product or service in their immediate neighborhoods - are presenting
challenges that could become opportunities for in-store
bakeries.
Ms. Roerink advised that uniting the supply chain
through collaboration will bring about new ways to educate and inform consumers. With neighborhood websites, retailers who become known for their cupcakes, in
turn, become top-of-mind when shoppers seek recommendations from their neighbors. "Creativity and idea
generation are key," she said. "Don't just wait for the bakery desire to hit. Generate it."
ABA customer panelist Ranier Glaubitz, international commercial and food services manager, SPAR
International, Amsterdam, The Netherlands, agreed that
new opportunities are hiding in the in-store bakery just
waiting to be discovered. "The bakery department can
be a real profit driver toward overall store performance,"
he said. "We as bakers need to drive people here." He
cited three ways to accomplish that goal: collaboration,
credibility and creating a hybrid experience.
"We need to bring the categories together, such as
bringing the in-store bakery together with the aisle to
create a combined shopping experience," he added.

Shoppers get personal
In the age of social media, most people have developed
a habit of "oversharing," or disclosing a large amount of
personal information to a wider social group. In turn,
however, those who are willing to offer that much detail often expect highly personalized products and services in return.

"Power of Bakery" is more than just a name.
Not only was it the theme for the association's
annual convention held April 7-10 in Naples, FL,
but it's also the title of the latest research project,
sponsored by Corbion and conducted in partnership with the Food Marketing Institute (FMI) and
unveiled at the convention.
The study, which included 1,500 consumer
participants, was the latest installment in FMI's
"Power Of" research series, which began with
"Power of Meat" in 2005.
"We realized that we have access to all the
sales data," said Anne-Marie Roerink, principal, 21 Analytics, who conducted the study and
presented the research findings with Todd Hale,
principal, Todd Hale, LLC. "We know the size of
the pie and what's growing, but we didn't know
the 'why,' " she said.
In each installment of the series, consumer
participants are asked several questions relative
to the respective category (in this case, bakery).
"Then we overlay that with sales data because
often what consumers say and what they do tend
to be different things," Ms. Roerink said.
More information and access to the study can
be found at www.americanbakers.org.

"We want what we want when we want it,"Ms. Roerink
said.
In the report, consumers identified things like price,
nutritional information and convenience as benefits to
the center store, but for the perimeter, the list was much
longer and included benefits such as selection healthfulness, service, freshness, quality of ingredients and product consistency.
However, Ms. Roerink cautioned that it's important
to note the power of perception. "This is not necessarily reality," she said. "This is about consumer perception,
and it's an important list to use as a starting point. A lot
of times, items in the aisle are just as fresh as the ones
in the in-store bakery. But clearly, the consumer doesn't
know that. It's an important perception to go after."
Cross-merchandising throughout the store will not
only create product and brand recognition but also communicate that these products - and the retailers - understand their specific needs and how they fit into their
personal needs overall.
"Take the time to differentiate yourself," Mr. Mayberry
said. "When you do, you have products that resonate
with consumers, and then you're known for them. And
that needs to happen across brick-and-mortar and
e-commerce. When you do that, you win."

IBIE 2019 PreShow Guide 45

http://www.americanbakers.org

IBIE - 2019 Special Edition & Show Preview

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