Shoppers are increasingly interested in artisanal and specialty breads.
The in-store bakery remains a powerful supermarket destination. A recent study from Arlington, Va.-based FMI – The Food Industry Association has revealed that more than half of shoppers (53%) say that in-store bakery items are fresher and taste better than those in the commercial bakery aisle. A full 95% of shoppers eat a bakery item at least occasionally, and 63% eat a bakery item on a weekly basis.
Nearly two-thirds of shoppers (72%) say that they buy indulgent treats (such as doughnuts, cakes, cookies and pies) at the same store where they purchase their groceries. Futher, a majority of these purchases are impulse buys.
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“Consumers want to focus their daily diet on the best-tasting products, leading to a shift from center store packaged goods to in-store bakery items that are fresher and more indulgent,” says Brant Cash, managing director at New York-based global investment bank Harris Williams. “The confluence of these consumer themes bodes well for the premium baked goods sector.”
Supermarket retailers clearly have an opportunity to maximize their bakery departments. FMI’s research shows that shoppers want variety from their in-store bakery, including more cultural/ethnic options and a greater number of indulgent items, and they want these offerings to be fresh.
Artisanal Breads Gain Appeal
Supermarkets are raising their game in the bakery department with improved products and expanded variety. Research from Arnhem, Netherlands-based Innova Market Insights reveals that consumers are increasingly seeking unique bread experiences and view artisanal breads as an affordable everyday indulgence. This trend is fueling the popularity of traditional and artisanal varieties, and as a result, baguettes, ciabatta and naan bread are now widely available in supermarkets.
Lakeland, Fla.-based Publix Super Markets recently debuted Italian-inspired Tutto Pugliese bread, made exclusively from durum wheat semolina flour and certified sourdough flour, which are typically used to make pasta. The grocer’s bakers trained for months to produce the loaf, which has a higher hydration than other breads produced in the bakery and requires extra handling. Each loaf is shaped by hand, made daily and sold in paper bags.
For its part, The Kroger Co. recently revamped a number of its private label bakery offerings, including its Private Selection Signature Buttercream Cakes, Private Selection Cinnamon Rolls, Private Selection Cinnamon Crumb Cake, Fresh Baked Chocolate Chip Cookies and Private Selection Croissants. The Cincinnati-based retailer also added a Private Selection French Baguette to its lineup.
Global Flavors Attract Consumers
Adding new twists on old favorites creates novel flavor experiences that entice customers. “A churro doughnut isn’t that much different than a sugar cinnamon doughnut, but they can be from different cultural experiences,” notes Sarah Hickey, senior director of insights and market research for Jackson, Mich.-based Dawn Foods North America.
From mochi desserts influenced by Japan to Middle Eastern baklava, international flavors can provide new inspiration to traditional desserts. FMI research shows that two-thirds of shoppers want to see cultural or ethnic bakery items in-store, and more than half (58%) are already finding these products in grocery store bakery departments.
“Food retailers have an opportunity to expand the assortment of cultural and ethnic bakery items they offer and to consider seasonal options,” observes Rick Stein, FMI’s VP of fresh foods. “This could also be paired with weekly themed meals — Taco Tuesday with tortilla options, or Italian Thursday with an artisanal Italian loaf. This offers both meal ideation and convenience for shoppers and enhances the value of their shopping experience.”
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Meanwhile, Hickey urges retailers to think about layering in flavors like matcha or savory tahini to give nostalgic favorites an ingredient upgrade, or infusing pastries with unexpected fruit options.
New flavors are particularly important for seasonal products, which play a big role in driving incremental sales. A recent report from Dawn Foods notes that “operators can also expand beyond traditional seasons and holidays to celebrate quirky mini-holidays like ‘National Lemonade Day’ or ‘National Donut Day.’ Decorated baked goods, like a Pink Lemonade Old Fashioned Donut, are an easy way to participate in these single-day activations.”