Grocery
Commercial Bakery and Baked Goods
campaign for our Nature’s Own brand in a number of years. ... One example of our approach is creating what we call a ‘Simple Sandwich Night,’ where TreATS For All moms get a break and everyone gets otis Spunkmeyer the sandwich they want.”
is reintroducing its brand — now featuring such items as snack cakes — with the only for everyone promotion.
I think there is lots of opportunity to bring more excitement to the category in terms of flavors, forms and other innovations.” —ellen Copaken, Hostess Brands llC
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A Private Matter Another key element in commercial bread is private label, which, according to Chicago-based Mintel, currently holds a 23.85 dollar share — the secondhighest in the segment (for more about commercial bread and other categories, read the Consumer Expenditure Study, starting on page 45). Redner’s Markets Inc., for instance, saw “sales growth within our commercial bread” line offering of white and honey wheat varieties after a switch to a new manufacturing partner within the past two fiscal years, says spokesman Eric B. White. As a result of the new partnership, the Reading, Pa.-based warehouse grocer “moved to a contemporary lookingpackage with differentiating colors for the style of product,” explains White, noting “positive store sales and customer support from the change.” For the commercial baked goods section as a whole, he observes, “Price point and promotion have been the key to driving sales for us. We have used some in-store tables … as supplemental displays.” Keep ’em Sweet There’s also a sweeter side to the category, with long-established names and relatively new retail players alike performing well. “Hostess has seen spectacular sales growth over the past year,” affirms Ellen Copaken, senior director of marketing at Kansas City, Mo.-based Hostess Brands LLC. “Our growth is primarily a result of us delivering high-quality, iconic snacks.” The company hasn’t been content to rest on its laurels, however. Copaken notes that “we have been listening to recent consumer trends and implemented some efforts to clean up our labels and offer healthier alternatives, like our new Mini Muffins, now with whole grain.” She adds that Hostess has also “dialed up our innovation efforts in exciting line extensions and seasonal flavors, as well as new platforms like brownies.” Hostess also relaunched its fondly remembered Suzy Q snack cakes and released Ghostbusters Key Lime Slime Twinkies to tie in with the summer blockbuster film. As well as leveraging social conversations in its
| Progressive Grocer | Ahead of What’s Next | July 2016
new product launches, as with the Suzy Q campaign, which included packaging that referenced actual consumer quotes from social media, “Hostess uses a variety of display vehicles across our large- and smallformat customers to drive excitement around new product launches and interrupt at the point of purchase,” says Copaken. “Shipper displays in grocery and countertop units in convenience stores are two of our most leveraged merchandising tools.” “We have seen a lot of excitement and interest in our foods,” observes Kristina Dermody, president of Otis Spunkmeyer, a brand of Zurich, Switzerlandbased Aryzta and previously best known for its ubiquitous foodservice cookies. “With our recent retail launch of 20 new sweet snacks sold in grocery stores and Walmart locations nationwide, we’ve noticed that consumers are really responding to our ‘No Funky Stuff’ seal. ‘No Funky Stuff’ is our commitment to no high-fructose corn syrup, artificial flavors, colors and partially hydrogenated oils.” The new items include snack cakes, mini muffins and mini cupcakes. At press time, the brand was “getting ready to kick off our Only for Everyone advertising campaign reintroducing the Otis Spunkmeyer brand to consumers,” explains Dermody. “The campaign includes digital ads, in-store demos and a 10-city tour to include outdoor sampling events.” An interactive consumer event on the Santa Monica Pier in Los Angeles, scheduled for July 2, invited people to sample the new treats and take part in a giant inflatable obstacle course ending in an Otis Spunkmeyer branded ball pit. Although the items are currently merchandised with other snack cakes, Dermody notes that Otis Spunkmeyer has “also been able to secure secondary corrugated displays throughout the store.” Beyond cleaner-ingredient products, what can shoppers expect in the commercial baked goods aisle? Hostess’ Copaken, for one, envisions more upscale offerings. “I think there is lots of opportunity to bring more excitement to the category in terms of flavors, forms and other innovations,” she says. “There is opportunity to bring more premium products and flavors to the snack cake aisle.” PG For more about commercial bread and baked goods, visit Progressivegrocer.com/commercialbread.