Baking&Snack - July 2012 - 30

SUGAR BOWL BAKERY

Old-Fashioned Donut Gems packed in plastic clamshell containers represents one of just two different products made at Sugar Bowl Bakery’s Sabre facility.
Blane Sutton

Although the bakery takes pride in the cost of its products, he pointed out that its prices are not always going to be as low as those of its competitors. “You can’t compare a product made with butter versus one made with margarine,” Michael said. “Value is not only price. Value is what you get for the price, and even though our price is a little higher than the general market, the quality is a lot better.” While many families may not eat out as often because of the current economic situation, Andrew said, they are still looking for ways to reward themselves, and Sugar Bowl Bakery’s sweet goods provide the small indulgences these consumers desire. He also noted that people feel proud bringing Sugar Bowl’s products to their parties, and the company wants to offer the value to allow them to do that. For example, its package of 28 Madeleine cookies retails for $6.99, which rounds to about a quarter per cookie, and Michael noted that its cookies are basically the same, if not higher, quality than those for which consumers would generally

pay $1 per cookie at most bakeries and coffee shops. In addition to value, the company also wants to increase its volume. “We know that if you don’t have a good value, you can’t drive volume,” he said. To improve value to consumers, Sugar Bowl Bakery generally sells its products in large packages. Recently, a retailer wondered whether the bakery’s 32-oz package of Petite Brownie Bites priced at $6.99 would be too costly for its shoppers who were used to a smaller product with a lower price point. However, the Petite Brownie Bites became one of its top sellers. “Once we got that proven success, they were willing to bring in the Madeleines and Palmiers,” Michael said. “They learned that there is a market for premium baked goods and those consumers are willing to pay a little extra for them.”

Taking care of customers
Sugar Bowl Bakery’s sweet goods can be found at 15 of the Top 25 US retailers and distributors. “That is a huge difference from where we were

A fami-Ly business

The five Ly brothers own Sugar Bowl Bakery and have been part of its growth since pooling their money to purchase a retail bakery 28 years ago. The brothers — Tom, Binh, Andrew, Sam and Paul — know about struggles, hard work and perseverance. The brothers and their wives immigrated to the US from Vietnam in the late 1970s. They had to learn English and worked odd jobs. But just as they built Sugar Bowl Bakery using hard work and perseverance, those values drove them when working kitchen jobs and delivering newspapers and to also save. In 1984, the brothers purchased the company’s original retail bakery for approximately $40,000. Despite obstacles, they slowly and steadily grew their business, building a small chain of retail bakeries and then transitioning into a higher-volume wholesale bakery. A graduate of San Francisco State University, Andrew serves as CEO, a position he assumed when the company incorporated in 1993. The oldest brother, Tom, acts as chairman, and all the brothers sit on the company’s board of directors. Michael Ly, vice-president and general manager, is Binh’s son, and Sam’s son Kevin works as corporate chef overseeing R&D and equipment, and he played an integral role in purchasing equipment for the bakery’s new facilities. While several other family members are also involved with Sugar Bowl Bakery, it’s not a requirement. Many of them have found successful careers outside the family business. However, Andrew also noted that everyone who works for the company is family — or at least that is how he and others like to treat them.

/ Baking & Snack / July 2012

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Baking&Snack - July 2012

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