Milling & Baking News - March 19, 2013 - 45

Buns and Rolls Update



A fresh beginning
Buns and rolls segment getting makeover in wake of break-up of Hostess Brands

ike several segments of the grainbased foods industry, the fresh
buns and rolls category is in a state
of flux as Irving, Texas-based Hostess
Brands, Inc. enters the final stages of the
sell-off of most of its brands and assets.
In late February, Flowers Foods, Inc.,
Thomasville, Ga., emerged as the highest
and best bid for the largest bread brands
and related assets of Hostess. Included in
the victorious bid were Hostess brands,
including Wonder, Nature’s Pride, Merita, Home Pride, and Butternut. Both
Wonder, with dollar sales of more than
$61 million, and Merita, with sales approaching $24 million, are among the top
20 hamburger and hot dog bun brands,
according to data from Chicago-based
market research SymphonyIRI Group for
the 52-week period ended Feb. 24.
Meanwhile, Hostess awaited word last
week on whether Portland, Ore.-based
United States Bakery, also known as
Franz Family Bakeries, would emerge as
the winner for several of its bread brands

Buns getting whole grain
boost at McDonald’s
ROSEMONT, ILL. — The decision of McDonald’s USA to use bakery-style buns with whole
grains and English muffins with whole grains,
as well as offering oatmeal, amounts to selling 836 million servings with whole grains per
year, said Jerry Volkman, director of product
innovation and development for McDonald’s
USA. He spoke Feb. 28 at the Institute of Food
Technologists’ Wellness 13 in Rosemont.
The bakery-style buns used in premium
chicken sandwiches have 16 grams of whole
grains. McDonald’s USA sells 218 million servings per year of the sandwiches.
The English muffins used in Egg McMuffins
have 8 grams of whole grains, Mr. Volkman said.
McDonald’s USA sells 400 million servings per
year of Egg McMuffins. The company considered
having 16 grams of whole grains in each English
muffin but decided against it, Mr. Volkman said.
He said McDonald’s never wants to change a
core product so radically that it upsets people
who have bought the product for 30 or 40 years.
The product development approach at McDonald’s USA starts with taste, Mr. Volkman
said. Product developers also seek to enhance
perceived quality, such as through the use of
clean/simple ingredient labels and local sourcing. Nutrition, such as whole grains, also fits
into product development. MBN

bakingbusiness.com / world-grain.com

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Top-selling hamburger and hot dog bun vendors

Bimbo Bakeries USA
Flowers Foods Bakeries Group
Martin's Famous Pastry Shoppe Inc.
Hostess Brands, Inc.
Aunt Millie's Bakeries
Pepperidge Farm, Inc.
United States Bakery
Merita Corp.
Pan-O-Gold Baking Co.
Private label

Dollar
sales
$472,924,400
$153,450,100
$85,403,420
$80,876,380
$40,738,620
$35,917,110
$29,393,030
$23,977,800
$19,591,160
$796,739,500

% change
Unit
from year ago
sales
3.5
195,018,700
7.3
70,537,640
6.5
24,408,280
-27.1
40,432,860
5.7
20,047,340
14.9
11,833,240
10.1
14,102,260
-33.0
11,497,520
18.0
7,752,968
-0.3
627,668,800

% change
from year ago
4.7
6.2
0.3
-29.8
0.8
13.4
7.3
-34.2
22.6
-0.9

52 weeks ended Feb. 24, 2013
Total U.S. Multi-Outlet (supermarkets, drugstores, mass market retailers, military commissaries and
select club and dollar retail chains)
Source: SymphonyIRI Group

in the Pacific Northwest, including the
Sweetheart brand, which was sold in
the Idaho, Montana and North Dakota
bread areas for more than 64 years and
is known for its hot dog and hamburger
buns. The acquisition would boost United States Bakery’s presence in the hot dog
and hamburger bun category, which currently stands at about $30 million in sales.
According to SymphonyIRI, hamburger and hot dog bun sales for Hostess totaled $80,876,380 in the 52 weeks ended
Feb. 24 on unit sales of 40,432,860. Dollar sales of Merita hamburger and hot
dog buns were $23,977,800 on unit sales
of 11,497,520. Meanwhile, dollar sales of
all other fresh rolls/buns/croissants at
Hostess totaled $27,501,910 in the period.
Big boost to Flowers
The addition of the Hostess brands
should boost Flowers’ share of the hamburger and hot dog bun category to more
than 12% from about 8%. Currently,
Flowers is the No. 2 player in the category (behind Bimbo Bakeries USA) with
dollar sales of $153,450,100, according to
SymphonyIRI. In the wake of Hostess’
departure from the market Flowers’ dollar sales rose 7% from the same period a
year ago, the research firm noted.
The biggest spike came from growth
within the company’s Nature’s Own
brand, where dollar sales increased 29% to
$36,237,890 on a 27% gain in unit sales to
15,033,660. Flowers’ Sunbeam hot dog and
hamburger buns rose 5% in the period to
$43,427,760 on a 6% increase in unit sales.
Bimbo also benefits
Bimbo Bakeries, Horsham, Pa., also has
benefited from the dwindling presence

of Hostess in the marketplace. In the 52
weeks ended Feb. 24, dollar sales for the
company’s hamburger and hot dog buns
totaled $472,924,400, up nearly 4% from
the same period a year ago, while unit
sales increased 5% to 195,018,700. The
company has seen particularly strong
sales from the Ball Park brand that was
brought into the fold when the company
acquired the North American fresh bakery
business of Sara Lee Corp. late in 2011.
In the 52 weeks ended Feb. 24, dollar
sales of Ball Park hamburger and hot dog
buns were $96,187,290, up 71% from the
same period a year ago on a 78% gain
in unit sales to 42,769,340. Bimbo did
not see similar success in Sara Lee Soft
& Smooth, down 25% to $64,058,950, or
Sara Lee, down 21% to $32,798,430.
Bimbo also ranks as the top player in the
all other fresh rolls/buns/croissants category tracked by SymphonyIRI. In the 52
weeks ended Feb. 24, dollar sales at Bimbo
Bakeries in the segment were down 7% to
$419,399,500, contributing to an overall
decline of 1% for the total category.
Bimbo Bakeries later this year will
begin construction on a new $75 million bakery in Macungie Township, Pa.,
that will produce bread and buns for the
Northeast. The bakery is expected to begin operation in early 2014.
Helping offset some of the decline in
the all other category were strong results
at King’s Hawaiian Holding Corp., Torrance, Calif. The company’s products
generated sales of $225,663,200 in the 52
weeks ended Feb. 24, up 13% from the
same period a year ago, according to
SymphonyIRI. Unit sales for the period
were up 8% to 94,737,790. MBN
— Eric Schroeder
Milling & Baking News March 19, 2013 / 45

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Milling & Baking News - March 19, 2013

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