Bakeries

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Bakeries
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• From 2002 through 2004, the baking industry
  appeared to be losing ground. Today, it
  appearsto be on the rebound.
• One recent study has indicated that in-store
  bakeries grew byjust over 1 percent in 2006.
• Categorically speaking, the baking industry is
  comprised of several product segments. These
  include breads, cakes, cookies, crackers, cereals
  and nutritional bars. Manufacturers tend to
  specialize in one or more of these segments.

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• According to BakingBusiness.com, bread and cake
  shipments totaled more than 23 billion in 2006. 
  
• Today, there are 2,250 bread and
  cakemanufacturing companies located in the U.S. 
  
• In the cookies and cracker segment,shipments
  totaled over 10 billion last year. 
• Bakery snack food is an even largersegment in
  terms of the value of itsshipments, even though
  there arefewer manufacturers.

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• There are several differenttypes of retail
  establishments within the bakery industry. These
  include retail in-store bakeries, specialty
  bakeries and retail standalone bakeries.
• Retail in-store bakeries are defined as those
  located within larger retail establishment such
  as a grocery store, mass merchandiser or
  wholesale club store. They offer an assortment of
  bakery products such as breads, cakes, pies,
  bagels, cookies, donuts, and muffins.

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• An in-store bakery typically staffs counter space
  and bakes their products on-site. In 2006, annual
  in-store bakery sales were about 20 billion.
  While this is nearly a 6 increase over the
  previous year, operators have concerns over costs
  such as labor, ingredients and fuel.

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• Specialty bakeries are key players in
  theindustry and a significant portion of
  the38.4 billion specialty foods market.  
• Stores such as Cinnamon Sam'sand Cinnabon are
  typically locatedin shopping malls,
  airports,college universities and retailstores.
  They carry their ownbranded products that
  arebaked on site.  
• These specialtybakeries are one ofthe fastest
  growingsectors in the U.S.

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• When looking at in store sales, the two top
  products contributing to sales are cakes and
  bread. 
• Due to a decline in the popularity of the
  low-carbohydrate dietand an increase in whole
  grains, bread is making a comeback. 
• Consumers are passing on bagels, pies and donuts
  offered atin-store bakeries. This is most likely
  due to the perceived or realized quality of the
  product. 
• Cookies are also seeing high growth. This is
  probably dueto consumers who feel they deserve a
  little spoilingor a pick-me-up.

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• After several years of expansion, a lull is
  developing in the areaof in-store
  bakeries. Theslowed growth in this areais
  attributed primarily torapid maturity of
  thecategory, as well ascompetition from other
  typesof bakeries and products. 
• Long-term success in this category is contingent
  upon the development of innovative products that
  are of high-quality and meet the changing
  consumer demands. 

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• The holistic view of the industry depicts a much
  more favorable picture.  Analysts expect that the
  continued growth in the Hispanic population will
  help to fuel the industry as more ethnic products
  are developed to serve the demands of this
  demographic.
• Consumers are beginning to demand healthier, more
  nutritional food choices.  By using whole grains
  and limiting trans fats, bakeries can comply with
  more palatable options. 
• With growth comes stability in the area of
  industry employment, which is expected to grow at
  an average rate through 2014.

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• American consumers are well aware that a diet
  rich in fiber and whole grains canhelp stave off
  cardiovascular disease,high cholesterol and
  diabetes.  
• The U.S. market for wholegrain products is
  thelargest in the world.Its estimated to
  beworth about5.6 billion.

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• Many American companies are beginning toincrease
  their offering of whole-grain products,as well
  as those fortified with vitamins. 
• Barbara's Bakery, started in Northern California
  in1971, has been developing all-natural and
  organicproducts for 36 years.  It is one of the
  foundingmembers of the Whole Grain Council and
  works topromote the health benefits of whole
  grains.

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• Given the company's history and mission, it is
  wellpoised to take advantage of the forecasted
  growth inthe baked, whole-grain snacks market,
  which isexpected to reach 21 billion by 2010. 
• In 2004, Con Agra Food produced wholegrainflour
  using a special winter wheat with
  apatent-pending, new technology to achievea
  finely milled product. Ultragrain,as it is was
  named, has a similartexture to refined
  flourproducts and providesbakeries withthe
  ability tooffer healthierbread choices.

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• For decades, American children have been enjoying
  their peanut butter and jelly and balogna on
  white bread. Mothers, however, would prefer that
  they eat whole wheat bread. 
• About 40 of the nation's bread consumptionis
  white. Today, whole grain white bread hashit the
  grocery store shelves.It offers a combination
  ofwhole grain and enrichedwhite flour as its
  foundation. 
• Sara Lee Corporation andInterstate Baking
  Companyhave both developedtheir own white
  breads. 

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• An increased whole grain intake has been shown to
  provide a benefit of up to 40 reduction in
  cholesterol.
• Additionally, as noted by the Food Navigator -
  USA, people who regularly eat wholegrain foods
  can have a 20 to 40 lower risk of heart disease
  and stroke.
• Armed with these specifics, the U.S. government
  has modified its dietary guidelines to include
  three portions of whole grains into daily
  diets.  
• There is a wealth of opportunity in the baking
  industry for any baker or baking company that can
  develop, manufacture and market new products that
  address the deficiencies in today's American
  diet. 

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• Recent additions to the bakery industry include
  wholegrain products, fewer transfats and
  technology. 
• For Stephen Pazyra, baked goods represent more
  than just food and nourishment. They also
  represent the comfort and familiarity of home.
• In 2002, Pazyra started 1-800-Bakery, Inc. with
  the purpose of bringing the customer experience
  online.

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• Pazyra started out by offering products from La
  Patisserie. Once customers began requesting
  products thatLa Patisserie did not bake, Pazyra
  realized that there wasreal potential in
  expanding his product offering beyondhis own
  kitchen. 
• 1-800-Bakery.com is an excellent example of how
  the world of ecommerce is changing every
  industry. 
• Today, 1-800-Bakery.com is a sizeable network of
  about 20 bakeries across the country.

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• To ensure that the products arrive fresh at the
  consumer's home, each bakery sends the products
  directly to the consumer rather than through a
  distribution center. 
• Keeping track of orders has been one of the
  greatest challenges facing the business. 
  Products often have to be temporarily removed or
  made unavailable in order to ensure the partner
  bakeries are not overwhelmed with orders.

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• 1-800-Bakery strives to maintain the personal
  feel of a local, neighborhood bakery - just
  online. All customer service issues are handled
  personally. 
• Following each order, the customer is sent a
  handwritten email asking how they liked their
  ordered products. Pazyra says this aids the
  company in learning about any errors, and to put
  in place measures ensuring thaterrors are not
  repeated. The emails also add a personal touch to
  what can seem an impersonal service.

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• In terms of business success, 1-800-Bakery seems
  to have a corner on the market.  In its first
  year, they generated about 52,000 in sales. 
• Over the past four years, the business has really
  grown through word-of-mouth advertising.  In
  2006, figures reached 800,000. 
• The company plans to continue to expanding beyond
  its current partnerships. Theyre looking to
  include about 50 bakery products by the end of
  2007.  

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• In 2002, Hispanics became the largest ethnic
  group in the United States. Since that time, this
  demographic group has continued to grow and is
  expected to account for about 25 of the U.S.
  population by the year 2050. 
• Recognizing the potential with a group of that
  size, marketing departments have begun focusing
  much of their effort on developing campaigns and
  products that appeal to them. 
• For the bakery industry, the growing Hispanic
  population represents untapped potential. Paying
  attention to this group could translate into
  significant overall growth. 

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• Several manufacturers are modifying their
  business in order to accommodate the Hispanics'
  taste buds. By giving this demographic a little
  taste from their homeland in the form of food and
  tradition, baking companies can expect their
  sales to rise like the yeast in their cakes.
• Prime Choice Foods, Con Agra and La Tortilla
  Factory are a few of the baked goods
  manufacturers that have begun targeting the
  Hispanic demographic.  
• In 2003, Flowers Food Specialty became the first
  wholesale baker to offer Hispanic cakes produced
  in the U.S. 
• Since then, Flowers has continued to develop
  different products to accommodate the Hispanic
  taste of home. In 2005, they added a
  croissant-like product to its offering. 

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• What most companies focusing on the Hispanic
  market have found is that the packaging is as
  important as the product. Hispanics need to be
  able to relate to the product and the packaging
  is the first thing to catch their eye. 
• Without authentic, recognizable packaging, the
  product may never be bought or tasted. Brighter
  colors and improved product photography have
  replaced the previous, more conservative
  packaging.

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• After packaging, the most important item is
  taste. The taste of the product must be authentic
  with ingredients that are recognizable, household
  items. 
• The shape of the product is also key. Like other
  consumers, Hispanic consumers recognize certain
  shapes from back home. A round shape is
  identified as a concha, while the c-shape of a
  croissant is identified as a curenito. 

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• Companies that offer healthy bakery products that
  support the new dietary guidelines published by
  the U.S. government should include the new food
  pyramid in their advertisements. It will make it
  that much easier for consumers to choose
  healthier products.
• Children influence a large portion of a familys
  spending decisions. Advertising efforts for
  baked goods manufacturers should be targeted at a
  younger demographic that is greatly influenced by
  its peers.
• Bakeries located in areas where there is an
  influx of Hispanics should begin to incorporate
  authentic Hispanic products into their daily
  offerings and develop advertisements using
  traditional Hispanic colors and verbiage. This
  will attract local, repeat customers from the
  Hispanic demographic.

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• Companies that offer healthy bakery products that
  support the new dietary guidelines published by
  the U.S. government should include the new food
  pyramid in their advertisements. It will make it
  that much easier for consumers to choose
  healthier products.
• Children influence a large portion of a familys
  spending decisions. Advertising efforts for
  baked goods manufacturers should be targeted at a
  younger demographic that is greatly influenced by
  its peers.
• Bakeries located in areas where there is an
  influx of Hispanics should begin to incorporate
  authentic Hispanic products into their daily
  offerings and develop advertisements using
  traditional Hispanic colors and verbiage. This
  will attract local, repeat customers from the
  Hispanic demographic.

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The answer is three simple reasons!
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Remember,Only television can give youThe right
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the right place!
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