10Nov2010
Bread Rises Dough Flat
Frozen bread and dough dipped by 1.5% over the 52 weeks ended Sept. 5, according to Chicago-based market research firm SymphonyIRI — but a turnaround may be coming.
Over the past 12 weeks, reports the company, category dollars were down only 0.2% to $135.2 million, thanks to a 0.4% rise in the frozen fresh baked bread/roll/biscuit subcategory. Gainers included private label, New York, Sister Schubert’s and Alexia Foods.
“Unlike other categories where value brands have driven growth in this economy, premium brands like Alexia are helping grow the frozen bread category,” says Lindsay Williamson, brand manager for Alexia Foods (www.alexiafoods.com), Long Island City, N.Y. “We’re starting to see other brands add new SKUs that tap into this trend as well,” she adds. Unfortunately, the fresh-baked subcategory’s momentum didn’t carry over to the smaller frozen bread/ roll/pastry dough segment, where dollars slid 2.3%, due mostly to topseller Pillsbury Grands’ 14.7% loss. While the number-two and -three brands, Mary B’s and Rhodes, as well as Rhodes’ Anytime subbrand, posted both dollar and unit gains, the rest of the top ten struggled.
In the lowerpriced frozen dough segment where consumers are typically more priceconscious, “Shoppers are looking for value,” explains Ken Farnsworth, Jr., chairman of Salt Lake City-based Rhodes Bake-N-Serv (www.rhodesbread. com). Although they deliver excellent quality, “A loaf of Rhodes bread (dough) costs only costs about a dollar, and (par-baked) Rhodes dinner rolls cost approximately 12 cents each, making them both a great value.”
BETTER-FOR-YOU
Health and wellness continue to gain importance within the segment. “People are reading labels, and not just for fat and calories but to find out what the product is made of, whether it’s all natural or contains preservatives,” says Carrie Morey, owner of Charleston, S.C.-based Callie’s Charleston Biscuits (www.calliesbiscuits. com). “They want to know not only what’s in it, but what’s not.”
For example, “Trans fat is quickly becoming unacceptable,” says Somerset Gagne, director of sales at Bath, Maine-based Gagne Foods (www. gagnefoods.com). While the company’s Robinhood Meetinghouse line of all-natural frozen biscuits and rolls has always been free of trans fat, the trend is now everywhere.
According to Karen Bailey, senior marketing director at Columbus, Ohio-based T. Marzetti Co., “Our entire line of Sister Schubert’s Homemade Rolls (www. sisterschuberts. com) now contains no trans fats, preservatives, artificial flavors or ingredients.” In addition, she remarks, the company recently rolled out Sister Schubert’s Soft Multi-Grain Rolls made with 100% whole wheat, oats, millet, flax seeds and sunflower seeds.
Rhodes also added a pair of better-for-you options to its Warm- N-Serv lineup recently: multi-grain rolls in convenient oven-ready pans and whole-wheat rolls in bags that boast “the cleanest ingredient statement in the category,” according to Farnsworth.
Another hot trend that often goes hand-in-hand with better-for-you is locally made. “Customers want to know who’s making their food,” says Morey, who believes retailers should expand offerings of handmade artisan-type frozen bread and dough products from small, local companies. “It’s a big trend that’s really catching on with the general population,” she notes, citing growing demand for higher quality frozen bread and dough alternatives.
CROSS-PROMOTION KEY
Although volume of frozen dough sold with merchandising support was up 1.4 points versus the same 12-week period a year ago, according to SymphonyIRI, at just 13.9%, it’s still well below the frozen department average. In the freshbaked subcategory, however, volume sold with merchandising support jumped 3.3 points over the past 12 weeks to a respectable 30.8%, which may help explain the difference between the two subcategories’ performances recently.
Because bread, rolls and biscuits are rarely consumed alone, says Williamson, “We see the best results when our products are included in meal solution promotions… with pasta/spaghetti dishes, produce (for salads), fresh meat and cheeses as well as sandwich fixings.”
Another good idea: Demos. “You have to hold customers’ hands a little and show them how to use the product to make their lives easier,” says Morey, who’s a big believer in demos.
“Promotions should be geared toward simplifying life and creating solutions consumers can feel good about,” agrees Gagne. “You want to help them to create healthy meal combinations that bring families together” — everyday, not just during holidays. “We have to market the category year-round,” he confirms.
But since almost 23% of category sales come during November and December, manufacturers say it’s critical for retailers to stock up during peak selling seasons so they don’t run out of key items. To prevent frustrating out-of-stocks, they should consider secondary displays of top sellers, ideally positioned near complementary products. Or, for those retailers willing to think outside the box a little, how about putting a small freezer of frozen breads, rolls and biscuits in the fresh bread section?
“Not everyone goes down the frozen aisle,” says Morey, citing its poor reputation among fresh-isbest- minded consumers. But if they see a high quality frozen alternative alongside their usual brand in the fresh aisle, shoppers just might give it a chance — especially if they’re planning to freeze the fresh purchase anyhow.
IN-STORE BAKERY
She also likes the idea of baking off frozen breads, rolls and biscuits in in-store bakeries and selling them warm. “When people say they love them, the manager can point them to the frozen section where they can find the bake-at-home version.”
For their part, Morey continues, manufacturers need to ramp up product development efforts. While Callie’s plans to debut a brown sugar bacon biscuit this January and Rhodes is test-marketing Warm-N-Serv sourdough rolls in select markets, new items have been few and far between lately, thanks to retailer SKU rationalization initiatives that have many suppliers fighting to keep existing products on the shelf — forget about grabbing space for new ones.
However, concludes one manufacturer, “I really think the category needs some excitement in order to overcome the risk of commoditization.”
