instore - July/August 2013 - 16

consumer insights

Trendspotting: Cupcakes Rise to the Occasion
America’s love affair with the gourmet cupcake is far from fading. Still,
with any food trend, there is a tipping point. Is the mighty cupcake
nearing its pinnacle?
A recent news report in The Wall Street Journal pinned the cupcake’s
tipping point on financial news that Crumbs Bake Shop, the nation’s
largest cupcake chain with 69 stores in 12 states and the District of
Columbia, was reporting that sales for the year would be down 22%

Instores like Dorothy Lane Market continue to innovate in the cupcake

from previous estimates.

business with seasonal and unique flavor combinations. Dorothy Lane
Market recently introduced Maple Bacon Cupcakes, made with rich

Yet cupcake shops continue to pop up from the West Coast to the East

yellow cake infused with DLM 100% Pure Maple syrup and then iced

Coast, and a number of bakery owners say that, other than French

with maple buttercream frosting and topped with bacon.

macarons, there is no gourmet bakery item that is more in style than
the cupcake.

Hy-Vee’s newest store in Overland Park, KS, features over-the-top indulgent cupcakes like Peanut Butter Chocolate Cupcakes and Celebration

With any gourmet food operator, the first lesson to realize is that

Confetti Cupcakes, priced at $1.99 apiece. Pennsylvania-based Giant

successful brands don’t grow overnight. Gourmet retailer Wegmans

Eagle’s bakery just rolled out Itty Bitty Salty Caramel Cupcakes. Salted

opened its first “showplace store” in 1930; today, they operate 81 stores.

caramel is a popular new flavor for cupcakes, which continue to be in

Savvy retailers in the gourmet food sector know that to be successful

strong demand.

over the long haul you must choose your store locations wisely.
A creative use of fondant and gumpaste can have your decorators
Further, ask any supermarket bakery and most will tell you cupcakes

making all types of unique cupcake decorations. The new Edible Décor

sales are still going strong, as consumers seek out convenience and

line of cake decorating solutions from DecoPac offers instore bakeries

indulgence in droves at the instore bakery.

the opportunity to help cake shoppers celebrate with sweetness. The
Edible Décor line features everything you need to decorate beautiful

Instore bakeries continue to see an upswing in cupcake sales,

cakes and cupcakes, including Candy Pearls, Fondant DecoShapes, and

according to Nielsen Perishables Group. In the latest year, cupcakes,

Sanding Sugars.

the second highest selling sub-category, rose 9.6% in dollar sales.
Or you can borrow an idea from Russ’s Market in Omaha, NE, and top
Desserts accounted for nearly half of all instore bakery sales and

your decorated cupcakes with novelty candy pieces and candy canes

posted 0.9% growth during the 52 weeks ending April 27, 2013,

to create special treats that offer a taste of nostalgia. You can even deco-

according to Nielsen Perishables Group.

rate your own “Cupcake Critters” in fun and colorful designs like Santa,
offering a new twist on the cupcake craze during the holidays.
For added convenience, new Cake Boss Cupcakes from Dawn Food
Products set a new standard for instore bakeries in the premium
category. Master baker and cake decorator Buddy Valastro, star of Cake
Boss, Next Great Baker and the new series Bakery Boss, and a Dawn
Foods customer for 20 years, worked closely with Dawn Foods to
create and expand the Cake Boss cake line, which includes cupcakes
for the first time.
Creative cupcake promotions also will drive higher sales during
holiday seasons when bakery shoppers are gearing up for weekend
celebrations. Texas-based Brookshire’s promotes specials on its signature Yums cupcakes that keep loyal shoppers coming back for more.

16 • JUL + AUG 2013 • instore

instore - July/August 2013

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