Milling & Baking News - February 8, 2011 - 30

Bagel Update

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Keeping it fresh
Thinly-sliced bagels doing their part to grow fresh category, but frozen, refrigerated brands are struggling
year ago at this time, Bimbo Thins brand has generated $67,601,330 sales up but failed to drive dollar sales, Bakeries USA and Flowers since its launch, making it the No. 2 which fell nearly 10% in the 52 weeks Foods, Inc. made headlines fresh brand, according to SymphonyIRI. ended Dec. 26, 2010, to $9,433,032. After initially launching Thomas with the launch and promotion of While fresh bagel dollar sales at Sara thinly-sliced bagel products. The Bagel Thins in 100% whole wheat and Lee Corp. fell 9% to $74,063,140 durtrend even carried over to ing the period ended Dec. food service, where Einstein 26, 2010, unit sales advanced Bagel boom or burst? Noah Restaurant Group, 7% to 27,121,200. The comInc. introduced thinly-sliced pany’s staple Sara Lee brand Dollar sales Unit sales bagel sandwiches for its cussuffered a 16% decline in Category Dollar sales % change Unit sales % change tomers. The products were dollar sales during the peFresh bagels $610,647,600 6.72% 216,270,500 11.69% seen as much needed innoriod despite a 2% increase Refrigerated bagels $63,245,060 -1.57% 40,084,280 -0.86% vation in a bagel category in unit sales. But it was conFrozen bagels $52,672,450 -23.70% 27,051,720 -23.74% that had seen new product tinued momentum in Sara Data for the 52 weeks ended Dec. 26, 2010 introductions dwindle and Lee Soft & Smooth Made Total U.S. supermarkets, drugstores, and mass merchandisers, exsales slide in recent years. with Whole Grain Mini Bacluding Wal-Mart It appears the new items gels that helped propel unit Source: SymphonyIRI Group are doing their part — at sales. Introduced in the fall least in terms of rejuvenatof 2009, dollar and unit sales plain varieties, Bimbo has added cin- of the brand rose 73% and 77%, respecing the fresh bagel category. In the 52 weeks ended Dec. 26, 2010, namon raisin and Everything ﬂavors. tively, in the 52 weeks ended Dec. 26, dollar sales in the fresh bagel category In mid-January, Bimbo brought more 2010, according to SymphonyIRI. totaled $610,647,600, up 7% from the attention to the Thomas Bagel Thins Success in the fresh bagel category same period a year ago on a 12% gain line with the announcement it would aside, things have not gone as smoothly in unit sales to 216,270,500, according be partnering with celebrity nutrition- in the refrigerated and frozen segments. to SymphonyIRI Group, a Chicago- ist Keri Glassman. Ms. Glassman has In the 52 weeks ended Dec. 26, 2010, created “morning makeover tips” and dollar sales in the refrigerated bagels based market research ﬁrm. Most of the gain could be attributed four original recipes for each one of category totaled $63,245,060, down to Horsham, Pa.-based Bimbo Baker- the Bagel Thins varieties. 2% from the same period a year ago, “We’re excited to be working with while dollar sales of frozen bagels fell ies USA and its Thomas Bagel Thins. Bimbo, which commands a nearly 60% Keri,” said Eileen Gonthier, brand 24% to $52,672,450. share of the fresh bagel category with manager for Thomas. “She shares Dollar and unit sales at Pinnacle $362,958,400 in sales, experienced a Thomas’ attitude for an approachably Foods Corp., Mountain Lakes, N.J., 19% increase in dollar sales and a 24% wholesome lifestyle, and knows that were lower in the refrigerated bagel catgain in unit sales during the 52 weeks taste can’t be sacriﬁced for nutrition. egory, as consumers trended away from ended Dec. 26, according to Sympho- They need to go hand-in-hand to en- the company’s category leading LendnyIRI. While the company’s base (and sure long-lasting wellness.” er’s Bagel Shop Bagels and Lender’s 100 For Flowers Foods, Thomasville, Calorie Bagels. But a bright spot could category leading) Thomas Bagel brand sustained a 1% decline in dollar sales Ga., the addition of Nature’s Own be found in the company’s Lender’s during the period, the Thomas Bagel Thin Sliced Bagels helped push unit Little Bagels brand, where dollar sales soared 77% on a 96% jump in unit sales. In the freezer aisle, both the No. 1 (Pinnacle Foods) and No. 2 (Kraft Foods Inc., Northﬁeld, Ill.) players sustained sharp declines in dollar and unit sales. lthough the demand for bagels may be sluggish, one company believes interest in bagel seaIn the case of Pinnacle, dollar sales fell soning is on the rise. Bagel Spice L.L.C., North Wales, Pa., recently added Zesty Jalapeño and 15% to $19,245,990 on a 17% drop in unit Bagel Spice with Mediterranean Sea Salt Flakes to its line of seasonings that include Original sales to 11,495,330. Meanwhile, dollar Recipe. sales at Kraft slipped 39% to $18,159,180 The premise behind the company’s founding followed an encounter in which Bechara Jaoudeh, while unit sales fell 44% to 6,963,626. owner of Bagel Spice, watched as someone took the toppings that had fallen off his bagel and reKraft’s Bagel-fuls, which make up the sprinkled them back onto the bagel. And while the seasonings may be used on bagels, they also have entire frozen bagel portfolio of Kraft, other uses, including as a topping for cream cheese, mashed potatoes, egg salad and as marinades. burst on the scene in the spring of 2008 “Ever since our launch last year, we’ve been ﬂooded with requests from customers asking us to to much fanfare, ringing up more than make a spicy version of Bagel Spice — Original Recipe,” Mr. Jaoudeh said. “Our answer is Bagel Spice $25 million in sales and churning out — Zesty Jalapeño. With Mediterranean sea salt and green jalapeño ﬂakes, it’s sure to satisfy those approximately 10 million units during with a more adventurous palate.” the ﬁrst eight months on the market. MBN For more information on the bagel spices visit www.bagelspice.com. MBN
— Eric Schroeder
30 / Feburary 8, 2011 Milling & Baking News bakingbusiness.com / world-grain.com

Spicing things up

http://www.bagelspice.com http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - February 8, 2011

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