Bake Up An Expansion

The in-store bakery presents a great opportunity for retailers to expand store brand offerings, but presentation counts.

A great-looking in-store bakery, filled with the fresh breads and tempting sweets consumers want most, can go a long way in enticing consumers to return to a grocery store again and again. Moreover, with the proper assortment and smart merchandising strategies, such a bakery also presents an excellent vehicle for retailers to expand store brand product development and sales.

Eye on assortment

Of course, store brand success here really depends on the retailer's commitment to its own brands, notes Barry Rosenbaum, president of Hicksville, N.Y.-based Nassau Candy.

"Those retailers that really just try to nibble around the edges have programs that are far less successful than those that make a strong commitment in terms of display space," he says. "There's a message of commitment from the store to the consumer in terms of how much the store believes in the product — on the basis of the display space provided and the depth of the inventory."

Retailers that have highly developed store brand programs overall are best able to put less emphasis on national and regional brands within the bakery, notes Lou Mastriano, vice president of sales and marketing at Burlington, Iowa-based Baker's Pride Inc. He points to Rochester, N.Y.-based Wegmans Food Markets as one of those retailers. Those with less-developed own-brand programs, however, need to put more emphasis on well-known brands "to convey quality, reliability and freshness."

Still, most retailers will find plenty of room to grow their store brand assortment within the bakery. But it's critical that product development aligns with current and emerging trends.

"While current economic realities have made price the most important factor in consumers' perishable department purchases, more whole grains is emerging as a trend in the bakery," notes Alan Hiebert, education information specialist for the Madison, Wis.-based International Dairy-Deli-Bakery Association (IDDBA). "The whole-grain and high-fiber foods market is expected to reach $24 billion by 2015, according to IDDBA's recently published 'What's in Store 2012' trends report."

And a recent IDDBA consumer survey certainly jibes with that trend. Respondents selected whole-grain or multigrain breads as one of the top three items that would convince them to visit the in-store bakery more often, Hiebert says. The remaining two? Cheese breads such as parmesan bread and cupcakes. He also notes growing demand for "free-from" products such as gluten-free, vegetarian and vegan.

Rosenbaum, too, believes bakery products that mesh with the health and wellness trend are good prospects for store brand product development. He says his company is seeing "tremendous consumer interest" in tree nut-based and dark chocolate-based products. He also notes that milk chocolate, which also is recognized as having health benefits, holds appeal.

In addition to gluten-free items, Mastriano adds gourmet/premium products, holiday cookie assortments, brownies and muffins to the list of on-trend must-haves. And retailers will still find a large audience for one long-time favorite, too.

"The biggest seller continues to be a good-tasting chocolate chip cookie," he says.

Make them unable to resist

In the in-store bakery, a good mix of tasty, on-trend products is critical, but so is presentation. Among the basics to keep in mind here are frequent rotation, freshness and holiday and seasonal themes, Mastriano says.

"Convey freshness, [and use] signage for product description and price," he adds.

But retailers could do much outside these basics to tempt consumers to a sale. Hiebert notes that IDDBA believes consumer education can really help boost sales within the in-store bakery.

"When it comes to merchandising, stores can emphasize the whole-grain content of their private label offerings by using the Whole Grains Stamp from the Whole Grains Council," he suggests.

"They should also offer information through in-store signage [and the] Web and other electronic media."

And sampling is a critical part of that consumer education, too. When properly implemented, sampling programs can dramatically increase bakery sales, Hiebert says. For example, store associates could offer shoppers samples of whole-grain bread while informing them of the benefits of increased whole-grain and fiber consumption — improved digestive health, assistance in energy regulation, satiety and reduced risk for diabetes — at the same time.

"That can be a powerful message," he stresses.

Packaging, too, is a huge part of the equation for merchandising success within the bakery. After all, most bakery products are designed to look almost as good as they taste, so the product itself needs to be visible.

"Any package where the product is visible, where the consumer can 'eat with their eyes,' so to speak, helps the product to sell," Rosenbaum says. "So we're finding tubs, as well as anything else clear such as clear bags, executing well."

Eye-catching artwork also works well to draw the consumer's eye when it comes to confectionary in the bakery, Rosenbaum says.

"We've been very successful with nostalgic-type of artwork," he says. "We've also been very successful with hot color-type of artwork. Really, it has to be in keeping with the positioning of the retailer as an entity, as well as the positioning of the bakery as a department within the entity."

But consumers' increasing environmental awareness also means more demand for "green" packaging that is recyclable or biodegradable, Hiebert says, pointing to findings cited in IDDBA's recent "Innovation Trends, Attitudes, and Opportunities" report.

"We also found that consumers are interested in minimal packaging so that it takes up less space in their refrigerators," he says. "An added benefit of minimal packaging is that it can allow for more products per pallet to make shipping more efficient."

Despite the draw of packaging reductions, a growing market exists for single-serve packaging, Hiebert adds.

"Portion-controlled packaging can help prevent overeating, but the packaging tends to take up more space in the kitchen," he notes.

No matter what the packaging format, don't forget the basics, Mastriano advises. Every package should seal properly to ensure freshness is maintained and to thwart tampering.

"Avoid flimsy packaging [and] anything not properly labeled and confusing to the consumer."

New Products

Frozen fruit blends

Imperial Frozen Foods' frozen Berry Cherry Fruit Blend is a mixture of four berry varieties (strawberries, raspberries, blueberries and blackberries) and two types of cherries (sweet cherries and tart cherries). The product contains no additives and is available for private labeling. www.imperialfrozenfoods.com

Cooking oils in new bottle sizes

Catania-Spagna Corp. now offers a number of new bottle sizes for its cooking oils. Retailers can choose from 16-, 24-, 32-, 48- and 64-oz. bottles of cooking oil for their private label programs. www.cataniausa.com

Vinaigrette condiment

Now available from Mazzetti is Rosato Vinaigrette, an innovative sweet-and-sour condiment. Available for private labeling, the product is a balsamic vinegar-style item that is made from rosé wine vinegar and select cooked grape must. Its fruity and zesty flavor is light and refreshing — suitable for salads, light meats and seafood. www.modenafinefoods.com .