09Mar2011
Savory + Sweet = Sales
Supermarket sales of frozen bread and dough both scored gains in dollars and units in the 12 weeks ended Jan. 23, according to SymphonyIRI Group, the Chicagobased market research firm.
The tiny cookie dough sub-category posted the highest increase, but keep in mind that the shortage of these products last year is likely distorting these numbers. In all three sub-categories, private label sales gains were lower than the average for the brands.
PL GROWTH SLOWS
“The dynamic growth by private label over the last two years is slowing,” notes Schrade Radtke, senior marketing manager of T. Marzetti Co., Columbus, Ohio, maker of the Sister Schubert’s (www.sisterschuberts.com) brand. He adds that some companies are introducing more artisan-type garlic breads, “but none are really setting the world on fire.”
Kenny Farnsworth, president, Rhodes Bake-N-Serve (www.rhodesbread. com), Salt Lake City, notes that “We continue to see strong interest in par-baked rolls, especially the parbaked rolls packaged individually in bags as consumers can choose how many rolls to bake for a given meal.” Over the past six months, he’s seen a big uptick in sales of the company’s cinnamon rolls.
He urges retailers to keep the cinnamon rolls with the frozen bread and roll dough. “Some retailers have tried moving the cinnamon rolls to the breakfast section, and so far it has never been successful,” he says.
Rhodes recently introduced a 12-count version of its Warm-N-Serv soft white rolls (in addition to the existing six-count packages) for larger households.
Farnsworth says smart retailers recognize the seasonality of the frozen bread section and authorize displays on rolls for the key holidays — Thanksgiving, Christmas, and Easter.
Dan Yost, senior vice president, Bridgford Foods (www.bridgford. com), Anaheim, Calif., agrees. “The three strong sales holidays for frozen bread and dough are Thanksgiving, Christmas/ Hanukah and Easter,” he says. “So when the meal planner can’t find her special bread in the store, panic can set in.”
Yost has seen this panic on Bridgford’s consumer hot line, which usually gets positive product comments – except when shoppers can’t find their SKUs. Panic calls spike around the three major holidays as shoppers look for alternate sources when their main store runs out.
CHECK THE BACKROOM
Yost suggests increasing sales floor holding power and working with stores to ensure adequate inventory. “A quick trip to the backroom freezer by the store employee will go a long way toward making that fretful shopper happy with the store,” he says. And, of course, keep her in the store, not running to the competitor.
Shoppers are increasingly seeking out all-natural, higher-quality foods, says Laura Trust, president, Finaglea- Bagel (www.finagleonline.com), Auburndale, Mass., a regional supplier with a twist – they also operate a chain of bagel shops. “People want fewer ingredients, fewer chemicals and we see retailers treating this seriously,” she says.
Trust says her company shares a big challenge with grocers as she expands her distribution reach – getting the true bagel connoisseur to try a frozen bagel. She knows what they want in the product through her direct experience in her bagel shops, and also knows the connoisseur wouldn’t usually consider a frozen bagel.
Social media is turning out to be her new road to the freezer case for these preferred shoppers. “We partnered with Harris Teeter (Charlotte, N.C.) on social media when we launched our line in their stores,” says Trust. “Harris Teeter put a notice about the launch on their Facebook page and we saw several people post responses.”
Learnings from this experience: In addition to typical price and promotion information, a Facebook post helped targeted consumers know about the new product before they walked into the store. Trust likened this to the traditional “New Item” section that some retailers use in stores to let shoppers know about new products.
But she thinks the social media approach is better. “We think this reached those customers who would be inclined toward all-natural items and got these products on their shopping lists,” says Trust. One more thing Trust knows: she will be tapping social media for consumer research in the future.
Trust wants to explore the use of mobile technology for instant promotions. She has seen “fabulous results” with Groupon events in her bagel shops and wants to translate that into a supermarket promotion.
BETTER-FOR-YOU
Shoppers are increasingly seeking out better-for-you products in frozen bread and dough, and “They know about the improvements in freezing technology,” says Paula Rimer, CEO, Crepini Café (www. crepini.com), Brooklyn, N.Y. “They know there is no reason to use preservatives in flash-frozen products,” she says, “and they are no longer afraid of all-natural ingredients.”
Rimer considers her products a “bread alternative,” and is finding crepes increasingly used in bread applications. “We see a lot of mixing sweet and s avory by consumers,” says Rimer. This is evidenced by a comeback for meats,” according to Rimer. Look for new meat-filled crepes (chicken, beef and ham) launched by Crepini at trade-shows beginning in March.
“These will be more entrée-oriented products,” says Rimer, whose selfproclaimed mission is to get people to eat crepes all day. Typical consumers are health-conscious, gourmet moms, which Rimer learned through research captured during QVC promotions of her products. Focus groups showed the mixing of sweet and savory in consumer choices of condiments and sides.
Results of Rimer’s research were applied to in-store merchandising in 2010 with some interesting takeaways. “Best sales results happened when retailers merchandised a full line versus just one or two SKUs of crepes,” says Rimer. “Best crossmerchandising results were crepes with savory items (e.g., meat, cheese) versus other frozen products.
