Supermarket Perimeter - May 2023 - 27

INSTORE BREAD OPTIONS offer consumers the ability to upgrade their
at-home dining with restaurant-like experiences through premiumization
and parbaked, take-and-bake and thaw-and-sell options.
Over the last couple of years, sales of bread, buns and rolls have
experienced incredible highs. During the pandemic, when at-home
eating hit an all-time pinnacle, bread products became a shopping list
essential. After such incredible highs, many manufacturers anticipated
such a peak couldn't last as the world opened back up and consumers
could return to their favorite foodservice and restaurant options.
But economic uncertainty coupled with ongoing supply chain
disruptions have shown recovery might not be as straightforward as
anticipated. Consumers are once again looking for at-home options
and ways to re-create restaurant experiences on a budget, helping to
maintain bakery as a staple category for shoppers.
At home eating, versus away from home eating, remains a larger
portion of consumer spend, according to Circana, (formerly IRI and
NPD), Chicago and Port Washington, N.Y. 80% of meals are being
prepared at home and 38% of consumers said they dine out less often.
96% of shoppers are concerned about food cost inflation and 79% are
making one or more changes. The most popular trade-offs include
looking for sales and cutting back on non-essentials.
An ADM Trends report, The Future of Ready-to-Eat Meals, found
consumers are looking for cost savings over a standalone restaurant
purchase. This includes a desire for quality, taste and healthfulness with
no compromise on taste. Consumers also continue to rely on food for
comfort with fresh bread as a well-established item on the dinner table
for a growing number of consumers.
Within the instore bakery, retailers that continue to face labor
challenges are rationalizing their offerings to reduce operational
complexities. Thaw-and-sell items allow bakeries to have fresh baked
solutions using less labor. Reduced redundancy in portfolios is also
opening doors to new offerings and flavors such as brioche, rolls,
upcycled grains and heirloom varieties, according to Brie Buenning,
marketing director, La Brea Bakery, Van Nuys, Calif.
She predicted a shift from parbaked to more thaw-and-sell items
as talent and labor issues improve and become less of a focus. These
preferences will also be buoyed by an ongoing focus on how foods can
impact and support health.
" There has been a rise in grain-based and sourdough breads, up 6.6%,
coming out of the pandemic, " Buenning said. " We expect to see these
types of breads continue to gain traction and for consumers to better
understand the benefits of grains and fermented products and how
higher quality breads help their overall health. "
Defining value
St. Pierre Bakery, a part of Grupo Bimbo, Mexico City, is seeing the
trend of premiumization also continuing to play out in the category.
Premiumization hit a stride during the pandemic when consumers
couldn't travel or dine out and sought an accessible way to treat
themselves. Now the rising cost of living has shifted the angle of
premiumization slightly.
While consumers still desire permissible indulgence and treats, the
act of premiumization might be more accessible through the action
of trading up or trading one item for another as consumers look to
treat themselves well at home. Premiumization in action might include
choosing a premium bakery product to pair with more premium
meats and cheeses. As consumers look to upgrade their bread-eating
experience, many are choosing more rustic and artisan varieties. Sales
of artisan bread are up 10% over last year with growth in specialty rolls
up 22% and 14% in volume, according to Nielsen, New York.
" Understanding what value means to shoppers is always key, but it
is particularly important in the current climate, " said Neil Pittman, U.S.
sales director for St. Pierre. " Bakery is a relatively low-value category and
with consumers watching what they spend, they are just more aware
of what they perceive as value. This offers an opportunity for premium
brands, particularly in the bakery. The difference between an extra
dollar instore is minimal, but the difference it makes to the quality of a
shoppers' meal is much more significant. "
St Pierre continues to tap
into surging demand for
premiumization in the
take-and-bake space.
supermarketperimeter.com
MAY 2023 - 27
http://www.supermarketperimeter.com
Supermarket Perimeter - May 2023

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