Milling & Baking News - October 16, 2012 - 29

Technology, brand intervention seen among factors inﬂuencing baking
WASHINGTON — Technology, an aging population with money, brand intervention and the rise of Asia as a key commercial influencer are four trends Mintel sees playing an instrumental role in baking now and over the next few years, said Sarah Theodore, senior global food and drink analyst for Mintel Food & Drink. Ms. Theodore spoke at the American Bakers Association’s Executive Leadership Development Committee 2012 public policy forum held Oct. 4 at the Washington Court hotel in Washington. Ms. Theodore said it’s no surprise that technology is a key area of focus for companies, especially as they try to figure out how to use the technology for marketing and how to use it to interact with consumers better. She said industry is “only at the tip of the iceberg” as far as actual penetration of smartphones in the marketplace and the potential to use them. There are a number of reasons smartphones and the like will have an impact, including the ability to communicate with consumers. While most consumers now tend to use them for entertainment, Ms. Theodore said there is a growing movement toward using them for commerce or comparison shopping. She said Mintel has found 31% of U.S. smartphone owners have compared prices while shopping. The latest technology that companies are using for mobile devices are QR codes, which are the black and white squares that direct consumers to web sites. Currently, they are mostly used to direct consumers to content that already has been created for them, such as links to recipe ideas, Ms. Theodore said, but the Girl Scouts also are using a QR code to show where their cookies are being sold. “I couldn’t see any reason why a branded company couldn’t use that technology to promote a limited edition product, or maybe a seasonal product that is only in the market for a short period of time,” she said. “Let consumers know where they can get it and stock up on it.” Other signs of “anytime/anywhere” technology are the growing number of vending machines offering baked goods such as bread and cupcakes, as well as geotargeting, which is being used, mostly by restaurants such as McDonald’s and Wendy’s, to tell consumers the nearest restaurant
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location based on the GPS technology in the phone, as well as the promotions going on. Aging population is ‘old gold’ A very different trend is “old gold,” Ms. Theodore said, noting that the number of older consumers is growing, and the demographic has the money to spend. “Over-55s will become the most coveted and influential demographic going forward,” she said. In marketing to this demographic, Ms. Theodore said companies are using buzz words such as wellness, strength and vitality. Ms. Theodore

‘Over-55s will become the most coveted and inﬂuential demographic going forward.’
— Sarah Theodore, Mintel Food & Drink

pointed to the granola category as an area in the baking industry where opportunity exists. “It’s driven by both health and indulgence,” she said. “People eat them as healthy snacks. They also eat them as desserts and as meal replacements. So, there is a lot of opportunity to work within all of those usage occasions to target these things.” For the baking segment to take advantage of this opportunity, companies must innovate beyond traditional fiber content, she said. Going forward, Ms. Theodore said she expects to see several trends playing out in the senior segment, including the introduction of more functional foods with science conveying clearer benefits for older consumers and with clearer instructions on dosage. Home meal delivery also will broaden its mandate to include more functional food ready-to-eat products, and more “senior friendly” packaging should enter the market. Brand intervention on upswing With governments feeling the burden of obesity and looking for someone to take the responsibility away from them, brand intervention has emerged as a hot button topic, Ms. Theodore said.

In the United States, the most recent example is the ban on large sugary drinks in New York. “We are not saying this is the right way to approach this problem, but it’s very much the reality of what is going on out there,” she said. “What we are encouraging companies to do, obviously being here and being part of an organization like this puts you in a position to help fight legislation like that, but we’re also saying there might be opportunities out there to develop products that are actually good for business that address these problems.” Panera Bread, for example, was ahead of the curve in terms of calorie posting on its menus, she said. This has helped them differentiate themselves from their competition. An area of interest for the baking industry is gluten-free. Ms. Theodore said that while it’s currently best described as a diet fad, researchers at the Mayo Clinic have determined that the incidences of celiac disease are much more common than has been diagnosed. She said the researchers are suggesting that testing for gluten intolerance should be as common as it is for blood pressure and cholesterol levels. “If that were the case, and if the rest of the medical community agreed with that, and consumers were tested that much more often for gluten intolerance and things like that this could very easily become a regulatory issue and not just a diet fad,” she said. Looking ahead to the future, removing the bad will continue to be a focus. There also will be efforts to introduce other flavor profiles beyond just salty and sweet, or to enhance salty sweet. Reeducating consumers’ taste buds will be a big thing, she said. East meets West Ms. Theodore said the final trend is the idea of East meets West. “Asia will become one of the key commercial and cultural influencers in the coming years,” she said. “There will be increased trade between countries that will kind of blur category and cultural boundaries. In some cases, the impact of the Asian companies is going to bypass the U.S. and Europe all together. They are going to be investing in Latin America, they are going to be investing in Africa. So rather than everything being viewed through the lens of the U.S. and Europe that is an area of change.” MBN
Milling & Baking News October 16, 2012 / 29

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Milling & Baking News - October 16, 2012

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