inStorebuyer - December 2011 - (Page 16)

The Road Ahead Challenging issues for the bakery and deli include cost control and achieving targeted profit margins. by John Unrein Predicting and controlling costs of goods, meeting expectations for profit margins, and hiring quality employees rank as top challenges for the bakery and deli industries, according to the latest research from key multiple sources including inStore buyer’s 2011 Usage & Attitude Study. For the fourth year in row, concern about national and local economies was number one on the food retail industry’s top 5 Worry Index, according to The Food Retailing Industry Speaks 2011 report from the Food Marketing Institute. Retailers are taking actions such as emphasizing private brands, to neutralize the adverse effects of the fluctuating economic recovery. Rising healthcare costs pose a particular challenge for the laborintensive food retailing industry. Sixty-six percent of retailers reported rising healthcare costs in 2010, with the average increase hovering near 9 percent. Eighty percent of retailers anticipated cost increases again in 2011. Healthcare costs average 1.5 percent of total food retail sales. Commodity prices are another primary concern to supermarket executives and buyers. The Consumer Price Index (CPI) for all food is now projected to increase 3.5% to 4.5% in 2011, with food-at-home (retail) prices forecast to rise 4% to 5%. Price increases from feed corn, soybeans and fuel affected a number of food prices in 2011. A bushel of feed corn stood at $6.45 as of Nov. 2, compared to $5.75 the same time last year – a 12.2% increase. Retail food sales are forecasted to rise 5% annually through 2012 to reach $698 billion. According to household census data, the U.S. population has shifted to more people of Hispanic origin. At the same time, single households have tripled in the last 30 years to comprise nearly onethird of U.S. households. Bakery Insights Customers are keen to know where their food comes from and more stores today offer fresh-baked artisan breads produced on-site, according to the International DairyDeli-Bakery Association’s Innovation Trends, Attitudes, and Opportunities report. Bake-off is the most favored ISB production method, with 32.2% of bakeries reporting it as their primary production method. However, scratch baking has made a significant comeback. Nearly 16% of surveyed bakery operators said scratch baking best defined their production method | 16 | inStorebuyer | December 2011 |

Table of Contents for the Digital Edition of inStorebuyer - December 2011

inStorebuyer - December, 2011
Editor's note - The Road Ahead
Contents
Dobla’s Executive Pastry Chef Wins World Chocolate Masters
Ultimate Cake Decorating Competition Winners
Dawn Busy Bakery - Busy Bakery Video Contest
America’s Best Raisin Bread Contest
CSM Announces Leadership Change
Dawn Busy Bakery - Bakery Trends Overview
C-Stores Gains
The Road Ahead
European Vacation
Bakery of the Year - Schnucks
Deli of the Year - Publix
Local Makeovers
Walmart
Kroger
Costco
Safeway
Supervalu
Publix
Ahold
Delhaize
H-E-B
7-Eleven
Meijer
BJ's Wholesale
Whole Foods Market
Trader Joe's
A&P
Hy-Vee
Winn-Dixie
Wegmans
WinCo
Stater Bros
Price Chopper
Schnuck Markets
Brookshire's
United
Balls Food
Product Trends
Product Showcase
Ad Index
Donut Time

inStorebuyer - December 2011