IBIE - 2022 Special Edition & Show Preview - 91

PERIMETER VS. CENTER STORE
prices or less promotion, people are still opting
for prepared baked goods in the aisle and the
perimeter. "
Bread is driving the surge in dollar sales in
the center aisle, with sales up 9.9% to $729
million in March 2022, while unit sales slipped
slightly to 0.2% compared to March 2021. During
inflationary times, Ms. Parker said, sandwiches
provide an affordable meal option for budgetminded
consumers looking to cut corners without
compromising quality. As a result, consumers are
willing to pay more for those products that provide
a bigger bang for a few extra bucks.
" People vote with their dollars toward health
and premium, " she said. " A lot of new entrants
have come into that space offering a better
taste experience as well as strong health-leading
attributes. Even though there are much cheaper
sliced breads in that aisle, people are not willing
to give up those attributes of health and taste
when it comes to just a $1 or $2 more even in this
inflationary period. "
Indulging despite inflation
Despite rising prices, Americans want to enjoy
themselves, and why not? In the center aisle,
several categories have experienced strong growth
in March, including snack cakes, cookies and cakes.
In the perimeter, sweet goods and desserts also
remain sturdy as more people gather to celebrate
holidays and other special occasions.
Many Americans are still looking for those little
rewards that have become an essential purchase in
many people's minds, noted Anne-Marie Roerink,
principal of 210 Analytics, during the IDDBA webinar.
" We're seeing that indulgence dollar in candy
and in bakery do really well. The reason for that is
emotional well-being has become very important
in today's marketplace, " she explained. " It's been
a difficult two years. Now we're dealing with not
having time and dealing with not having as much
discretionary income as we used to, so this idea
of a little treat every once and awhile - which is
where bakery is really strong - is actually a trend
that is very big. "
Ms. Parker pointed out that in-store bakeries
should focus on little escape treats like donuts or
cupcakes that target adults for additional sales.
" Remember, 72% of US households do not have
a child present, " she said. " Therefore, so much
of the fresh bakery that had previously aimed at
schools and young children is [now] seeing a lot of
positive strength by being aimed at adults. "
INSIDE IBIE | 91
The breakfast eating occasion is also white hot,
as it has been throughout the pandemic. IRI data
showed that donuts, muffins, bagels and croissants
experienced double-digit growth in March 2022
compared to March 2021.
Companies like Hostess Brands, Lenexa, Kan.,
are riding the wave.
" Morning snacking is on fire and one of the
drivers behind our 8.5% increase in sales of our
Hostess handheld breakfast snacks over the past
three years, " said Tina Lambert, vice president
of innovation and growth at Hostess Brands.
" Through consumer research, we've identified
18 different consumer snacking occasions, one
of which we call 'morning sweet start.' This
occasion represents a $5.8 billion annual market
opportunity that has been growing at 5.5% over
the past three years. "
Since 2021, Hostess has launched Lemon Drizzle
and Cinnamon Swirl Baby Bundts, which are mini
bundt cakes drizzled with icing, and Muff'n Stix,
which are portable morning snacks that come in
Blueberry and Chocolate Chip. And Hostess's mini
donuts is the No. 1 selling sub-brand.
" We are focused on innovating and marketing in
the breakfast space, " Ms. Lambert said. " Donettes
will continue to be one of our priority brands for
advertising and one that is ripe for continued
innovation given these trends. For example, to
address consumers' interest in energy-boosting
foods, we recently launched caffeinated Hostess
Boost Jumbo Donettes in two decadent flavors -
Caffeinated
donuts and
other innovative
products fuel sales
of baked goods
for the breakfast
eating occasion.
Hostess Brands
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