Wake them up to own-brand breakfast foods
From nutritionists advice on popular weight-loss TV shows to features in health and fitness magazines, many sources are making breakfast the star of the days food lineup. And theyre getting consumers to pay attention. As American shoppers seek better-for-you options, theyre also looking for convenience and value – especially when mornings mean a mad dash from bedroom to the kitchen, and then out the door.
According to a number of breakfast food suppliers, product trends in the breakfast food category this year have been focused on consumers need for energy and nutrition in convenient or on-the-go packaging. And although traditional breakfast foods once typically were enjoyed only before noon, items such as toaster pastries, breakfast sandwiches and cereal bars are now staples for after-school snacking, dessert and game-day festivities. Smart procurement and in-store merchandising of private label breakfast foods could mean robust sales for retailers.
Better-for-you beckons
One of the biggest retail trends in recent years has been consumers increasing awareness of ingredients and food labels, says Frédéric Langlois, senior vice president of private label sales for Biscuits LeClerc, Saint-Augustin-de-Desmaures, Quebec. And that trend shows no signs of waning anytime soon. Whether its in response to food allergies, taste preferences or a weight-loss regimen, many shoppers are learning to read and analyze labels better.
\"Consumers are concerned [with] their health,\" he says. \"Simple smartphone apps give them instant access to nutritional knowledge, leading them to scrutinize labels and seek out pure ingredients.\"
According to Michael Halverson, vice president of sales for Schulze & Burch Biscuit Co., Chicago, consumers can plan their daily caloric intake and make decisions about what to put in their cart based on instant access to information on the products nutritional aspects, such as protein content and saturated fat. This instant access to information has led to more interest in products with labels featuring \"free-from\" language – such as \"sugar-free\" and \"fat-free\" statements.
\"The market is [rife] with opportunities for product developments that meet the needs of customers looking for a free-from experience,\" says Halverson.
But interest in better-for-you products goes beyond a desire for free-from items, Halverson stresses. Some consumers are more interested in natural products with a list of simple, pronounceable ingredients. Whole grains, fiber and protein all rank high on these consumers lists of must-have breakfast nutrients.
And because theyre more ingredient-conscious than they are brand-conscious, these shoppers present an excellent opportunity to make in-roads with private label products, Halverson adds.
\"As millennials enter the market and shop to feed their growing families, theyre driving many of the trends around better-for-you products with ingredient names they can understand,\" Halverson says. \"Theyre interested in experiential grocery items – meaning they like to experiment with new, innovative products.
Do
consider offering breakfast foods made with ancient grains to appeal to health-conscious shoppers.
Dont
forget that better-for-you attributes dont mean much if a product doesnt taste good.
\"Ancient grains are a good example,\" he continues. \"Put products made with these thousand-year-old ingredients on your shelves, and millennials are likely to pick them up just to see what theyre like.\"
Of course, better-for-you products dont appeal much if they dont taste good. Jose Carlos Lopez, export manager for Artenay Cereals, Artenay, France, points out that high-quality ingredients are key to success in the category.
\"Some low-quality products in the discount category have damaged the image of store brand cereal bars,\" Lopez cautions. \"The best strategy for store brands is to offer quality thats as good as [the] national brands for a reasonable price. Retailers who cooperate with suppliers, adapting to consumers demands and developing the categories in terms of ranges or families of products, will be the most successful in the category.\"
Anytime is breakfast time
On the marketing side, Aldo Cabrini, senior director of retail sales and marketing at J.R. Simplot, Boise, Idaho, has some advice for increasing sales of store brand breakfast foods: Promote these products for more than just one meal a day.
Do
think about marketing store brand breakfast foods for meal occasions other than breakfast – and for snacking.
Dont
neglect consumers desire for convenient and portable items when developing private label breakfast foods.
\"Breakfast items arent just for breakfast,\" he says. \"Nearly 50 percent of [handheld] frozen breakfast ... consumers eat these items at lunch; 30 percent, at dinner; and 30 percent, as a snack.\"
Thinking outside the breakfast box and helping customers do the same can boost sales as well. According to Langlois, American adults consume a quarter of their daily calories through snacking. By giving them an affordable, healthful option for when the 3 p.m. slump hits at the office, retailers could take breakfast food to a new level of sales – as well as a new time of day.
Smart in-store merchandising could remind consumers about breakfast foods versatility. Halverson says he sees great potential for dynamic merchandising when it comes to private brand toaster pastries.
\"They have a strong everyday following,\" he explains. \"And consumer insights have shown us the varied ways people consume toaster pastries: Heat up a chocolate fudge toaster pastry; top it with ice cream; and you have an affordable, yet special, dessert.\"
Package for portability
Portability also is key to creating a successful private brand breakfast foods program.
\"When it comes to building a strong frozen breakfast program, additional convenience, portable and on-the-go options are key,\" Cabrini says. \"Innovative packaging formats such as microwave technology and single-serve items are also a big opportunity. Breakfast is becoming the most important meal of the day, but consumers are still rushed for time, especially during the weekdays.\"
Joe Pacinelli, president of North East, Pa.-headquartered Better Baked Foods, agrees that retailers could capitalize on consumers morning time crunch, particularly with breakfast sandwiches.
\"A trend we continue to hear about and get asked about is that breakfast must be portable, fast to prepare and nutritious,\" he says. \"The breakfast sandwich has become as popular as peanut butter and jelly in the eyes of high-schoolers. Of all of the products sold as microwaveable, the breakfast sandwich exceeds them all.\"
Where breakfast is headed
Looking toward the future, some manufacturers say they see top-quality ingredients, food traditions from other cultures, and creative promotions as key to growing the store brand breakfast foods category.
\"Look for ethnic options to appear more and more in the breakfast food segment,\" Cabrini says. \"In addition, retailers should promote breakfast on occasions that are back to normal after holidays. We see high seasonality during post-holiday/back-to-school periods on frozen breakfast entrées. This suggests that the consumer turns to breakfast convenience after getting back to normal from a hectic lifestyle.\"
Lopez points to \"new recipes based on healthy and exotic fruits, sugar and fats reduction, and sunflower oils\" as the way of the future. And better ingredients across all types of breakfast foods provide the memorable taste experience that solidifies a customers relationship with a particular private brand. Consider the bread used in breakfast sandwiches, for example.
\"The difference-maker in breakfast sandwiches is the bread base,\" Pacinelli says. \"Everyone uses an egg, sausage, bacon, etc., but the bread creates the repeat sale.\"
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| H-E-B Fully Cooked Bacon, Egg & Potato Breakfast Tacos contain no trans fats or MSG. Available from H-E-B, San Antonio, the microwavable tacos retail in 14.4-oz. cartons six individually wrapped products. |
| Open Nature Vanilla Almond and Honey Multi Grain Instant Hot Cereal, from Pleasanton Calif.-based Safeway, has 33g of whole grains and 4g of fiber per serving. The all-natural cereal contains no artificial colors, flavors or preservatives. It is kosher-certified and retails in an 8.8-oz. box containing six 1.48-oz. packets. |
| Source: Mintels Global New Products Database |