Sweetening sales

Retailers need to entice shoppers into the bakery department with convenient and unique offerings that satisfy their sweet—and savory—tooth. Nothing brings out a smile like a colorfully decorated cake to celebrate a special occasion, an individually packaged cupcake or cookies to enjoy at the end of a long day. Yet, despite the increasing appeal and creativity of sweet—and savory—baked goods, the in-store bakery has a dearth of foot-traffic. Industry research suggests that only about 30% of shoppers visit the bakery when they go to the grocery store. Figuring out how to get more shoppers into the section should be a priority for retailers. Jeff Montie, CEO of Wenner Bakery, based in Bayport, N.Y., offers one explanation: the section needs to be made more shopper-friendly, he says. That means, among other things, bigger and more informative signage. “A lot of times you need to have perfect eyesight to see what exactly is being presented; you certainly can’t see from a distance,” says Montie. “The way retailers package things up and lay things out can make it easier to navigate and get shoppers to places they didn’t go before. Then they can purchase something that they wouldn’t have previously because it used to take too much time.” Time is something most consumers are pressed for in their day-to-day lives, so anything that makes shopping quicker will be a hit, say industry observers. Many companies are encouraging retailers to turn to technology to improve the bakery bottom line. Solutions that capitalize on shoppers’ need for convenience can not only increase sales, but also reduce cost and save time. DecoPac’s The Magic of Cakes Kiosk, for example, is an easy solution for consumer cake ordering, whether in-store, at home or from a mobile device. “Mackenthun’s in Waconia, Minn., loves using our system,” says Barb Hiller, associate marketing manager for DecoPac, based in Anoka, Minn. “They tell us that their customers like working with the kiosk because it is very user-friendly and it provides information on service sizes, price, flavors and fillings and a confirmation of the orders placed.” DecoPac also offers retailers its PhotoCake technology and is launching DecoSet backgrounds which Hiller says is intended to provide bakeries with dynamic cake designs while saving decorating time and driving profits. “The change really comes in how in-store bakeries can stand out against each other. They need to attract consumers to the bakery with bright, bold trend forward designs in order to gain those sales,” Hiller adds. Larger signage and new technology may help deliver shoppers to the bakery once, but the continued presence of new and innovative products can get them coming back for more. According a proprietary study conducted by Corbion Caravan, based in Lenexa, Kan., heavy consumers of bakery products are strongly driven by a desire to experiment with new products and flavors. The study claims new and unique products keep those consumers engaged and are a key advantage the in-store bakery has over packaged bakery items sold throughout the store. “Having new, innovative products in the in-store bakery creates a point of differentiation,” says Barb Murphy, director, commercial insights and marketing communication for Corbion. “Most any retailer can carry the same branded items, but not everyone can create unique baked goods that consumers want to give to their friends and family, or buy as their own secret indulgence.” One of the more unique products to hit the bakery scene is the Cronut. That concept of combining two—or more—tasty treats seems to be popping up everywhere. “Mash ups” as Tara O’ Donovan, marketing manager for Bake’ n Joy Foods, based North Andover, Mass., calls them, can encompass many standard bakery items, such as cupcakes, donuts, pastries, croissants, pies and brownies to name a few. “Whether focused on blending unexpected flavors, such as hot and sweet, or combining two kinds of pastries, like donuts and muffins, they are getting a lot of attention,” says O’ Donovan, adding that Millennials in particular expect something beyond basic fare and are looking for these unique items. To capitalize on this trend, Dawn Foods recently introduced its Vortex Dessert Cakes. Erik Enyedy, director of marketing for the Jackson, Mich.-based company, says the hybrid products combine an indulgent formulation of cake and brownie, finished off with a distinctive “vortex” swirl of chocolate truffle waterfall. Currently the Vortex Dessert Cakes are available in several flavor and color combinations to meet seasonal or special occasions. “The favorite to date has been the Red Devil Vortex that combines red devil cake and brownie layers,” says Enyedy. It makes sense that Dawn’s Vortex cakes meet seasonal demands as most observers say those are times that the bakery really shines. Officials at 5 Generation Bakers introduce limited editions of its cinnamon swirl bread, marketed under the Jenny Lee brand, during the different seasons. That includes a cinnamon apple swirl which sells from late summer to early autumn and a chocolate chip swirl from January through Mother’s Day. This is also the first year the McKees Rocks, Pa.-based company is selling its Holiday Rum Raisin bread, which will be launched in a few small markets this year. “Ninety percent of our sales are cinnamon swirl and cinnamon raisin,” says Scott Baker, president of 5 Generation Bakers, “but we put these seasonal flavors out there to keep our line interesting and keep our core customers happy with something new.” While seasonal items allow 5 Generation Bakers to expand its offerings beyond its core, Baker says the biggest boon for sales has been the growth of baked goods for breakfast. “A lot of customers are using us as a breakfast item,” says Baker. “It’s a cinnamon swirl bread so it can be pulled out of the bag and be toasted for a quick breakfast or it can be used for a French toast. We have also got retailers like Wawa using it for a French toast sizzle that can be purchased at the counter.” Top of the morning Breakfast is actually the fastest growing segment within bakery, say observers. They expect that to continue growing by about 30%, reaching sales of around $4 billion by 2017. Practically a breakfast staple because of its grab-and-go nature is the muffin. With healthy eating on the forefront of a great deal of consumers, more and more bakers are providing retailers with healthier muffin options. Bake’n Joy, for example, offers a line of 100% Whole Grain muffins. The line has recently been expanded with what they call Super Muffins—a Superfruit & Nut Muffin and Hearty Oat Apple Raisin Nut Muffin. “These are PanFree, requiring no muffin pans for baking and the upscale muffin cups are perfect for creating eye appeal,” says O’ Donovan. “These muffins are loaded with the good stuff, antioxidant fruits, omega-3 from nut and flaxseeds; they are 100% whole grains; and they contain no artificial flavors, colors or preservatives.” J Skinner Baking is capitalizing on the breakfast boon as well, adding a line of authentic påtisserie croissants and its Triple Flavor Danish Ring. The Omaha, Neb.-based company uses European-style methods for all its products. “Each crafted croissant is built with layer upon layer of dough and European-style butter,” says Elyse Norton, vice president of marketing for Skinner. “They are then delicately brushed with an egg wash that provides deep, golden undertones and a lustrous sheen. It’s this rich combination that delivers the unforgettable taste and quality that in-store bakery customers seek.” The Triple Flavor Danish Ring was created in response to existing bakery trends and consumer feedback, she says. It combines Skinner’s traditional Danish dough, in a ring formation, with Skinner’s signature apple, cheese and raspberry fillings. The portions are then segmented so consumers can take the guesswork out of serving sizes. Across the pond Also with roots in Europe is Lantmännen Unibake USA. The Lisle, Ill.-based company, with global headquarters in Copenhagen, Denmark, imports its pretzel breads directly from Germany. Along with its pretzel breads, which Scott Rosenberg, director of marketing and customer service, says are “on fire,” the company offers Euro-Bake artisan breads. Lantmännen has invested $8 million in its St. Petersburg, Fla. bakery to replace its artisan loaf line. “The real benefit of the line is improved quality and product consistency,” says Rosenberg. “Our Euro-Bake artisan breads are crafted for great flavor and cell structure; this new line helps us achieve that on every loaf.” To celebrate the new line, Lantmännen is launching four demi loaves: Tampa Bay Sourdough, Rosemary Olive Oil, Three Cheese and Jalapeño Cheddar. “Each has a lot of flavor—especially the Jalapeño one—and they’re half the size of our normal loaf,” he says. “We feel the size is perfect for smaller households or as a dinner loaf for a family.” Smaller sized offerings such as Lantmännen’s demi loaves and personalized desserts have become very popular, say observers. “Personal-sized dessert portions work perfectly for in-store bakeries, just a small addition to a special meal or a small indulgence to enjoy any day of the week,” says DecoPac’s Hiller. “With the holidays around the corner, in-store bakeries can capitalize by creating displays that are perfect grab-and-go individual desserts. Adding a bow or using a seasonal box can encourage consumers to grab a sweet treat for all those extra small gifts.” Packing some punch Retailers and manufacturers invest a lot of time and effort to provide not only tasty, but eye-appealing treats to the in-store bakery. The last thing they want is a potential sale to be lost because of shoddy packaging. While the main role of packaging in the bakery is primarily utilitarian, some retailers are looking toward packaging manufacturers to help generate sales too. One such success story comes from Lindar Corp. According to officials for the Baxter Minn.-based company, retailers approached them looking for a better way to sell cupcakes one at a time. “We pioneered the single-serve cupcake container,” says Dave Fosse, director of marketing. “We developed our finger-hold for cupcakes and that package, in and of itself, retailers have told us it created a sale that they never had before or couldn’t offer. So packaging was a key component in making that sale.” Fosse says Lindar continues to work on new ideas designed to improve bakery packaging. That includes what Lindar officials call the  “freshness seal,” basically a lid that overlaps the base and helps keep the product fresh. Lindar also provides tamper-obvious packaging, including a two-piece tamper-obvious package for pies and cakes. “Retailers have told us they want a way to convey to the consumer that the product is fresh and safe,” says Fosse; “this is a way to do that.”