Food Forum: The Year of the Clean Label Bakery

Once considered to be just another fad, the clean label trend is here to stay. The year 2017 is positioned to be “the year of clean label,” remembered as a time when supermarkets embraced customers’ expectations for natural ingredients as the new normal, even in indulgent categories such as baked goods.

For in-store bakeries, this trend offers a major opportunity. Because grocery shoppers are looking for healthy food for their families and reading labels on packaged food products, they approach your bakery counter with a clean label mindset. This means shoppers who regularly purchase baked goods will show more interest in a shorter, simpler ingredient list–and shoppers who previously were not interested in purchasing treats may be persuaded by the promise of a clean label.   

Since today’s shoppers are willing to pay a premium for foods with shorter, easier-to-understand ingredient lists, stores stand to ultimately profit from investing in the movement. However, you should act now, as the opportunity to charge a premium for foods with a shorter, simpler ingredient list may be a narrow window. As this trend continues to gain momentum among consumers, a clean label may soon become a baseline expectation. 

Increasingly, consumers want transparency at every level of the supply chain. Today’s shoppers want to know more about where their food comes from, how it is made and even how it is transported. Supermarkets should keep in mind that, while a clean and clear ingredients list can score major points with consumers, it is just one part of a store’s larger transparency strategy. 

Another trend related to clean label baked goods is the movement toward a balanced diet that incorporates “good fats” and “good sugars.” Not long ago, fats were disparaged as the root of all ills. Soon after that, sugars became the culprit. Now, consumers approach food with a more nuanced understanding. In fact, when asked to define a “healthy eating style,” in a recent survey, consumers’ top three responses were as follows:

1.  The right mix of different foods 

2.  Limited or no artificial ingredients or preservatives 

3.  Natural foods 

Rather than disparaging fat or sugar, consumers are increasingly interested in a balanced diet based on ingredients they perceive as more natural. That means a clean label can make a difference, even when it comes to sweet treats such as baked goods. 

Offering Clean Solutions  

This plan of action can help in-store bakeries take the first step toward offering clean label options that draw a premium price and position your store as a leader with a pulse on consumer trends.  

 Start the conversation. Your bakery team is your best connection to your customers. Have them start a dialogue with customers to determine how shoppers feel about clean label baked goods and what ingredients concern them. 

 Create a definition or leverage your company’s existing definition. Different ingredients matter more – or less – to different shoppers. Determine what clean label means to your customers based on the conversations you have. The ingredients they are most concerned about are the ones you should eliminate first. 

 Work with your suppliers. Your suppliers are partners in your business and can help you offer great-tasting baked goods within your new clean label definition.

 Educate your customers on your definition of clean label and why it matters. Work with your suppliers and marketing team to create on-package messaging and point-of-sale signage. Develop talking points so your staff can spread the word and help tell your transparency story.

The time is now for supermarkets to embrace the clean label trend, leveraging the opportunity to sell premium products and position themselves as leaders. But, it is important to remember the clean label trend is not just a rejection of certain difficult-to-pronounce ingredients. Rather, it is a symptom of a larger movement toward authenticity. By approaching this shift in a holistic way, in-store bakeries can simultaneously win over consumers while predicting their next concerns and laying a foundation for the future.

It all starts with your customers. By understanding their needs, concerns and desires, you can offer great-tasting treats while helping them feel better about the choices they make.    

 Erik Enyedy is senior marketing manager at Dawn Foods. He can be reached at [email protected].