Supermarket Perimeter - May 2020 - 26

Bakery: Cakes

Any-sized celebration

Listening to Customers
Millennials make up one-third of CPG spending.
Accounting for one-fourth of all CPG shoppers,
Millennials are influential and demanding shoppers
who are willing to spend to achieve their shopping
goals, according to the 2020 IDDBA What's In
Store report.
Proprietary research from chocolate and cocoa global
supplier Barry Callebaut found the use of responsibly
sourced ingredients could improve sales. Thirty-eight
percent of Gen Z and Millennial consumers would
be convinced to try a company's baked goods if the
company used responsibly sourced ingredients, 56%
of North American Millennials said the best cakes
or pastries are ones with healthy or good-for-you
ingredients added in and 38% of North American
Millennial consumers said they seek out vegan cakes
and pastries, compared to 24% of the total population.

While there's every reason to go big on the decorating side, it's important
to consider size does matter, especially when not all customers want or
need a cake that's super-sized. In response, Lawrence Foods is finding
success offering "baby cakes" to its grocery customers. The 5 in double
layer cakes offer customers a more upscaled look in a smaller footprint.
Smaller sizes also offer a convenient excuse to enjoy cake more often.
To encourage more impulse cake purchases, Richard recommends
offering a variety of options in smaller sizes. "Cake is a way for
consumers to treat themselves, but they don't always want a sheet
cake," Richard said. "There's an opportunity to engage with smaller sizes
that resonate with smaller families and single people."
This includes acknowledging that depending on the size of the
household, a cake purchase could stretch over multiple eating
occasions, and no one enjoys eating stale cake. While there was a big
push for recyclable cardboard packaging several years ago, functionality
has now led to the return of plastic domes. The convenience and
ease of a resealable container that keeps the remaining product fresh
resonated with customers, according to Delaney.
With the trend of "snackification" alive and well across the food
industry, individually packaged small snacks or slices of cake at POS
often serve as impulse purchases of an indulgent treat for one. Corbion,
Lenexa, Kan., shares that the effects of the COVID-19 outbreak have
further increased the demand for individually packaged items. The

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Supermarket Perimeter - May 2020

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