IBIE - 2022 Special Edition & Show Preview - 90

ALL OVER AGAIN
Bakery sales in the center store and the perimeter remain
healthy despite inflation and myriad other issues.
by Dan Malovany, Baking & Snack
EVERYONE REMEMBERS THE " new normal, "
that overused phrase from two years ago when
people wondered what life would be like when the
coronavirus (COVID-19) pandemic subsided. Well,
it's here, more or less. National mask mandates are
gone, and mobile mania has returned with people
dining out and traveling more than ever.
For baking industry veterans, however, the new
Both perimeter
and center store
bakery sales
remain strong,
despite inflation
and supply
chain concerns.
normal seems surprisingly old with skyrocketing
food prices reminiscent of the 1980s and supply
chain issues not seen since post-World War II.
Meanwhile, consumers are worried more about
inflation than the pandemic, which is not surprising
since most millennials and Generation Z have
never experienced economic times like these with
inflation reaching 40-year highs in recent months.
In March, IRI's survey of primary shoppers found
that 92% noticed that food prices are somewhat or a
lot higher than last year, of whom 95% are concerned
about it. Moreover, 49% of those surveyed are
extremely concerned about inflation compared to
90 | INSIDE IBIE
27% who are that worried about the pandemic.
" Inflation has a far greater grip on the nation's
food spend than COVID-19 in the current
marketplace, " Jonna Parker, team leader fresh for IRI,
noted in a recent trends report by the International
Dairy Deli Bakery Association (IDDBA).
Bakery sales, at least for now, remain strong. IRI
data reported overall bakery department sales for
March 2022 rose 10.2% to $2.9 billion compared
to the same monthly period last year. Bakery sales
in the center store jumped 10.9% to $1.7 billion,
while fresh bakery sales of in-store bakeries and
perimeter of retailers increased 9.2% to $1.2 billion,
according to IRI. Unit sales remained relatively
unchanged. Ms. Parker said it's " remarkable " that
bakery volume is holding up with such inflation.
" Of course, that means there is a higher price.
You'll see that especially in center store baked
goods, " she said during a recent IDDBA webinar
analyzing the market data. " However, the fact that
units have not fallen off means that, despite higher
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IBIE - 2022 Special Edition & Show Preview

Table of Contents for the Digital Edition of IBIE - 2022 Special Edition & Show Preview

IBIE - 2022 Special Edition & Show Preview - Intro
IBIE - 2022 Special Edition & Show Preview - FCa
IBIE - 2022 Special Edition & Show Preview - FCb
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