2021 Imperatives: Remain Vigilant, Build on Momentum

The baking industry is at a crossroads.

Executives are hoping that next year vaccines will largely eradicate the pandemic and that the industry will have an opportunity to build on growing engagement with consumers.

However, in the near-term, companies will need to remain vigilant in the face of growing COVID-driven challenges.

These points emerged from the latest edition of American Bakers Association’s podcast Bake to the Future. In a discussion that recapped the year and looked ahead to 2021, Robb MacKie, ABA’s President and CEO, interviewed Fred Penny, President, Bimbo Bakeries USA.

Facing Near-Term Challenges

Penny said the baking industry has done a terrific job in overcoming pandemic challenges, and that everyone is now weary and waiting for relief from vaccines. However, he added, in the near term leaders need to keep up employee morale in the face of rising infection rates around the country.

“At least for the next few months, we've got to be prepared to do the right things,” said Penny. “We need to continue to navigate the pandemic, double down on the mission, and do what we need to do on behalf of our customers, associates and consumers.”

Supporting Baking Workforces

ABA is striving to ensure the baking industry’s workforce continues to be prioritized with critical infrastructure status — and has timely access to vaccines.

“In terms of the vaccines, you know, we've had continuous conversations with government,” MacKie said. “I think there's great recognition at the federal level. And I think we've got a little bit of work to do at the state level, particularly in some states, to make sure that Food and Ag is protected.”

Building on Momentum  

A big opportunity for 2021 is building on renewed consumer appreciation for baked goods exhibited during the pandemic.

“Until recently we were facing headwinds as an industry,” MacKie said. “This year we’ve seen this huge reconnection with consumers who are enjoying baked foods at home. So the question is, how do we build on that momentum?”

Penny said there are roles to play for both individual baking companies and the industry as a whole.

“The industry, from ABA to Grain Foods Foundation, needs to do as much as it can to promote products,” he said. “In addition, individual companies will need to promote the benefits of the products we make.”

Addressing Biggest Consumer Needs

Penny said changing consumer behaviors require the industry to move ahead on multiple fronts:

• Ensuring that ecommerce capabilities are up to speed for bigger consumer demand.
• Messaging about how baking products can fit into a balanced diet and healthy lifestyle.
• Increasing focus on sustainability, including food waste, in response to more consumer interest in this topic.

“I think this industry, and the food industry in general, has an opportunity to address food waste in a bigger way,” Penny said.  “One of the striking things about this pandemic has been the millions of people in lines at food banks. And then you think about all the food that is wasted.”

Overcoming Foodservice Hurdles

The baking industry is hoping the hard-hit foodservice sector rebounds in 2021. However, the pace of progress will vary by segment of that business, Penny said.

“It depends on which segment you’re talking about,” he said. “It’s not equal. Quick service restaurants have fared better and come back quicker. Venues with indoor dining will be challenged for quite some time. Foodservice venues tied to hotels and airlines will be challenged for a long time. A lot depends on consumer levels of confidence, once a vaccine is broadly available, in going back to what they used to do.”

Relaying Optimism About the Future

The podcast addressed a range of additional topics — from strategies to support employees to the obstacles faced by independent restaurants.

Despite ongoing challenges, there’s reason for optimism, Penny said.

Changing consumption behaviors have lifted a category that was previously struggling to achieve growth, he explained.

“We’re blessed to be in the baking business,” he said. “I’m optimistic that the industry is going to come out of this in a better place with consumers.