The grocery and foodservice sectors have opportunities to enhance bakery sales by tapping into the evolving lifestyle needs of today’s consumer, according to ABA Convention speakers. A panel of executives from baking industry customer organizations relayed perspectives about consumer behaviors and category growth. The panel, moderated by Anne-Marie Roerink, President, 210 Analytics, also responded to new consumer research and insights presented by Roerink.
Offering Solutions and Driving Excitement
Panelists emphasized that when consumers face financial challenges or increasingly busy lifestyles, there are opportunities to meet the consumer where they are by presenting convenient options via meal solutions or providing a more robust meal by adding bakery items to offerings.
“As we continue to see pressure on consumer dollars, we have to really try to create excitement with foodservice that's compelling and makes bakery attractive,” said Doug Hensler, Vice President, Category Development, Foodbuy, the procurement arm of Compass Group North America.
Tristen Kendall-Barros, Vice President, Marketing, Roche Bros. Supermarkets, said her organization is working to help solve consumers’ dinner challenges from a convenience standpoint and bring bakery into the offerings. “Sometimes we're adding bread to a rotisserie chicken meal, and other times we're adding a dessert element to an Italian meal,” she said.
Brad Clarkin, Vice President of Production Operations, Kwik Trip, said his goal is to “have the right product on the shelf at the right time,” and he added that analytics can help identify consumer preferences.
Addressing Millennial Preferences
The new ABA consumer insights presented by Roerink found that millennials are increasingly key to sales success and, in many cases, have different preferences than Baby Boomers. Panelists said they are placing a growing focus on millennial opportunities.
Kendall-Barros said millennials are key to maintaining and growing the retailer’s business. “We are trying to speak the language of the millennial and also use more digital video and content that really resonates with that consumer,” she said. She added that the retailer is leveraging social media and influencers to help engage with this cohort.
Hensler said his organization is eyeing strategies to help engage with younger foodservice shoppers in venues ranging from universities to airports. “We need an attractive assortment that works for them and meets them where they are,” he said. “And it’s all about the Instagramability of it all”
Balancing Well-being and Enjoyment
The research relayed that consumers are balancing the functional benefits of food with enjoyment that supports mental well-being.
Clarkin said convenience stores are well positioned to succeed both with indulgent treats and better-for-you options. “We're going to play both ends of the spectrum,” he said. “It's really about at that moment, during your shopping experience, what do you want to go for?”
Hensler said product claims such as allergen-free and gluten-free are important in food service, while at the same time, much of the sales are still focused on traditional, popular items — such as chocolate chip cookies.
Highlighting Sustainability Initiatives
The research found that Gen Z and millennials care deeply about preventing food and packaging waste and avoiding negative environmental impacts from production. Panelists said they work to find sustainable packaging solutions that can also support their merchandising and marketing needs.
Kendall-Barros said Roche Bros. is always working to find new packaging solutions that can reduce waste and also showcase products in optimal ways. “But it’s not an easy task by any means,” she said.
Hensler said sustainability is a major area of focus for his organization. “We communicate with our suppliers, look at emissions factors, and drive towards organizational goals,” he explained.
The research presented at the Convention was based on ABA's Bakery Playbook series that aims to help the baking industry stay ahead of consumer trends and drive category growth. Two new Bakery Playbooks – Pizza and Flatbread, sponsored by Lesaffre, and Donuts, sponsored by Dawn Foods – were just published and can be downloaded by ABA members here.
About the American Bakers Association
The American Bakers Association (ABA) is the largest, most established, and diverse trade association for the commercial baking industry in the United States. ABA’s community includes more than 370 member companies representing over 1,200 commercial baking facilities and the extensive industry supply chain.
Since 1897, ABA has served as the voice of the baking industry, offering compelling advocacy, insightful thought leadership, and comprehensive research on industry trends. ABA members also benefit from extensive business services including premier networking events, impactful knowledge sharing, and effective workforce development programs and training resources. ABA is committed to enhancing its mission by growing the category and promoting the industry as the destination workplace.
