Supermarket Perimeter - April 2020 - 21

There's a fine
balance between what
consumers and retailers
want when it comes
to ingredients.

Nutritional attributes

CPG shoppers and one-third of CPG spending. Smart, demanding and
influential, they lead the charge for products made with better-for-you,
free-from ingredients packaged with sustainability in mind.
Although there will always be hot button issues for consumers, there
remains the fine balance between what the consumer wants and what
the retailer wants when it comes to ingredients, cautions David Skinner,
marketing manager of Omaha, Neb.-based J. Skinner Baking, a supplier
of thaw-and-sell authentic Danish dough and sweet doughs.
"Consumers will bend a bit when it comes to the ingredients panel
on a sweet baked good, but it's always a plus to incorporate a high-level
attribute that softens the self-imposed guilt," he said. "While it's ideal for
us to cater to the consumer in this regard, many retailers require reasonably shelf-stable products. Also, when you start swapping ingredients, you potentially sacrifice the flavors and textures the consumer has
come to love and associate with the brand."

KARANOV IMAGES - STOCK.ADOBE.COM, TRADER JOE'S, J. SKINNER

Getting to know the customer
Changing consumer demographics and evolving dietary wants/needs
indicate it's critical to know who's consuming the products you're
developing. In this vein, J. Skinner Baking is diving deep into analytics to
improve information about its purchasing demographic.
Using Martech, or marketing technology, the company is looking for
relevant, clean data omitting anomalies and redundancies that can skew
the data. The ability to look at information from different points of view
includes being cognizant of survivorship bias as to not miss the real
reasons items perform as they do.
Armed with data and identification of its audience, the company can
pivot into understanding the identified audience through psychographic
data, considered the fourth wall when it comes to identifying a target.
J. Skinner Baking is using the data to generate creative products and
calls to action, and it's developing an in-house CDP (Consumer Data
Platform) to tie its data silos together to paint a more accurate picture of
the consumer.

As Millennials and Gen Z continue to demonstrate their willingness to
pay for what matters to them, this creates more incentives for manufacturers to accommodate requests for clean labels, grab-and-go in
smaller formats and health-centric ingredients. Attributes that continue
to gain favor include 100% natural, organic, multi-grain, Omega DHA, no
HFCS, no artificial flavors or colors, no artificial preservatives, non-GMO,
dairy-free, low/fewer carbohydrates and plant-based. USDA Organic
and Non-GMO are the biggest product attributes in sales, according to
IDDBA's "What's In Store 2020," report.
Finding new ways to differentiate could also help manufacturers deal
with the massive influx of private label product brands instore. Growing
acceptance of private label products from retailers such as Trader Joe's,
Aldi and Costco have set the stage to change the consumer's mindset,
seeing private label products to be at the very least on par with traditional brands.
"Now you're not only seeing a private label alternative, but multiple private label brands with tiers of quality and/or health attributes,"
Skinner said. "This multi-front approach makes it more difficult, but
certainly not impossible, for brands to thrive in the instore bakery."

Thriving vs. Surviving
This includes introducing consumers to new ways of looking at
traditional bakery products. Launched in 2012, St Pierre Groupe,
Manchester, UK, offers a product portfolio centered around brioche.
The lineup includes traditional sliced brioche loaves, rolls, burger buns
and baguettes as well as decadent Brioche Swirls and Brioche to Share,
which are swirled with vanilla custard and chocolate chips.
Considering most American consumers didn't grow up eating
brioche, St Pierre Groupe sees an opportunity to educate and
demonstrate how to use brioche across dayparts, according to Paul
Baker, co-founder, St Pierre Groupe. Shifting perceptions allow brioche
with its rich and tender crumb to be viewed as an everyday bakery

58%

would like meal kits to include baked goods,
making packaged bakery baked goods an
area for e-commerce considerations.

38%

of Gen Z and Millennials say they would be
convinced to try a company's baked goods if the
company used responsibly sourced ingredients.

33%

Trader Joe's is
a retail legend
when it comes
to leveraging the
brand power of its
own name, and
baked goods are
no exception.

would buy more baked goods if
they could taste them first.
Source: IDDBA What's In Store 2020

supermarketperimeter.com

SP_Apr20.indb 21

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4/1/2020 4:55:42 PM


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Supermarket Perimeter - April 2020

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Supermarket Perimeter - April 2020 - 1
Supermarket Perimeter - April 2020 - 1
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