Baking & Snack - March 2005 - 61

MARKET UPDATE

functional ingredients and enhancements to help consumers feel better about eating it," she said.
BEST FRUIT FORWARD. Flavor trends are taking a cue
from the focus on health. Fruit flavors are gaining steam
as consumers look for lighter-tasting options. "While the
most popular flavors continue to be traditional such as
carrot cake and variations on chocolate, we're also seeing
a lot more opportunities in fruit," Mr. Kowal explained.
"But the fruit has to be fresh and natural tasting and not
as sweet as in the past."
Ms. Karner said fruit fusion flavors are on the increase.
"Blueberry is still the No. 1 flavor, but fusion flavors like
mixed berry are also popular." Pennant offers a finished
Danish in the shape of a figure 8 that features two flavors
of fillings, such as apricot on one side and cheese on other. Mr. Scales said fruit flavors must come across as very

ᮡ New applications for traditional sweet goods extend them beyond
breakfast or snack foods to focus on dessert.
PENNANT FOODS

fresh and light. "People are willing to pay for cutting-edge
items that are unique and fresh, - something they can't
get at home," he said.
Ethnic flavor profiles are increasing the use of fruit,
too. "Nuevo Latino is a driving trend that we feel the
dessert category/signature cakes needs to respond to,"
Mr. Rubenstein said. And Galaxy has. Its mango mousse
cake was introduced in January to appeal to Hispanic
consumers. Mango is also a popular flavor in Asian
cultures. For nonethnic consumers, mango is tropical,
light and refreshing. Galaxy also offers a line of tarts that
includes forest berry, key lime and lemon.
SWEET SIGNS OF GROWTH. Although this segment is

64 / BAKING & SNACK / March 2005

difficult to track with figures, growth is seen through
facility expansion, acquisitions, new product development, expanding customer base and increased business
opportunities.
Dawn Foods, which supplies bakery ingredients and
sweet goods to Panera Bread Co., Richmond Heights,
MO, was named Vendor of the Year in 2004 by the
bakery-cafe chain for its product innovation and commitment to quality. It is this and the company's focus
on consumer research that assures continued growth
in the category for the company, according to Mr.
Kowal. "As many of our customers rethink their sweet
goods strategy, we want to be sure we have any form
imaginable, from scratch baking to ready-to-finish to
thaw-and-sell and beyond, depending upon how the
customer wants to run its bakery.
"Our customer base continues to expand as we gain
more and more capabilities," he continued. "This category is near and dear to our heart. We've developed it
further with just about any form our customers could
want to deliver outstanding, highly differentiated
bakery programs to their consumers."
Galaxy Desserts is confident in the
growth of the segment, having just
doubled its capacity with a move into
a new 52,000-sq-ft facility. "All of our
channels are growing really well,"
said Mr. Rubenstein. "We wouldn't
have jumped into this new facility
if there wasn't demand." As a result
of the move, the company increased
automation and is doing more product
development. "We're well-positioned. We
still have the responsiveness and creativeness
of a small company, but we're big enough now that
we can handle national accounts with the largest retailers and food service operators and do it at a volume and
price they can work with," he continued. "We're a largescale custom house."
Mr. Scales discussed Pennant Foods' expanding
customer base in relation to category growth. "Clearly
a big area of growth is the chain business, particularly
with bakery-cafes and coffee concepts," he said. "The
nice thing about our product line is that we can hit
every segment within the food service arena. We offer a variety of different formats and levels that allow
operators to bring uniqueness to their products while
saving labor," he said.
When it comes down to it, saving on labor is the
ongoing trend driving growth for these producers. The
more innovation, customization and on-trend responsiveness companies can provide to help their customers differentiate themselves in this crowded segment,
the more the category will grow.
Ⅲ

Baking & Snack - March 2005

Table of Contents for the Digital Edition of Baking & Snack - March 2005