MINNEAPOLIS -- Supermarket in-store bakeries can create a profitable niche for themselves with products made from organic flour -- but probably not without educating the consumer about what "organic" means.
That was the advice given attendees at a seminar on consumer acceptance of organic bakery products, presented here at the International Dairy-Deli-Bakery Association's convention, Dairy-Deli-Bake '96.
In the seminar, Sheldon Romer, president of Rudi's Bakery, Boulder, Colo., and Thom Leonard, owner and head baker at WheatFields Bakery & Cafe, Lawrence, Kan., drew upon their experience in manufacturing and retailing bakery products made from organic flour.
"We've found that the best sales of organic products are in cities like Austin, Ann Arbor, Boston -- university towns and cosmopolitan areas for the most part -- where the average consumer is well-educated and already familiar with organic products," said Romer.
These consumers are very willing to pay the 30% to 50% higher retail for the organic products, he said. He stressed, however, that in any town it's worth the retailer's time to educate consumers about organic products.
"It starts with educating your employees. We have a short quiz on organics that we give our counter people. It's essential that they be able to answer customers' questions about organic products. They need to know more than a well-informed customer," said Leonard.
Romer said point-of-sale materials and signs are important tools for educating consumers. He then showed a slide of signs that his company helped develop for Denver-based 70-unit King Soopers, to promote its crusty bread program. The signs, identifying the products, carry a colorful starburst that says, "Made with organic flour."
Romer said consumers are becoming interested enough in organic products that the very word "organic" can spur sales of a category.
"When we developed a crusty bread program and began to market it to the mass market, to bakery directors, last year, the single strongest key to sales -- aside from the bread's quality -- was that it was organic," Romer said.
Since the market for organics is continuing to grow, Romer suggested that supermarkets can boost their "quality niche" with the addition of organic bakery products such as bread, buns, rolls and cookies.
He pointed out that his company clearly indicates products that are made from organic flour. "We couldn't guarantee every ingredient, but we emphasize that we use certified organic flour," he said.
To claim that a product is made with certified organic flour, the retailer needs to be able to produce a piece of paper that guarantees that all through the production process the flour has met particular qualifications.
Organic growing practices are verified through farm inspections and soil testing by a third-party certifying agency, he pointed out.
Leonard stressed that the organic process doesn't stop with the growing of the product. Harvesting and storage conditions also have to meet certain qualifications to be certified organic.
He suggested that retailers make consumers aware of the benefits of organic growing that they might not have thought of.
"For example, organic growing can leave us with a cleaner water supply since there's no threat of run-off from chemical fertilizers," he said.
Romer pointed to the rapid sales growth of the category, which has accelerated to 20% a year, he said.
Sales of organic products -- excluding organic produce, which also has grown tremendously in sales in the last few years -- totaled $2.8 billion last year. That's up from $681 million in 1989, he said. And consumers keep on looking for products that they consider superior or healthier, he said. He pointed out that statistics show that in 1994, one in three consumers changed their eating habits.
"That presents a huge opportunity for retailers," Romer said.
The sales growth continues even though the retail price is 30% to 50% higher than for products not certified organic, he said. Organic flour is more expensive for manufacturers to buy -- at least 40% higher than commercial flour, he said. Romer suggested seminar attendees could bulk up on organic information by accessing the web site, "Outrageous Organics." The web site address is http:// www.healthcraze.com, he said.
