Baking & Snack - November 2020 - 46

BREAD

BAKING AT HOME:

FUTURE OR FAD?
Mr. Grzebinski said another catalyst for change
in 2019 was a decision by retailers like Walmart to
convert some fixed weight bread items (UPCs that
fall into the center-store category) into random
weight bread items (UPCs that fall into the perimeter
category).
" Some retailers did this conversion seeking more flexibility and the need to make bread assortment changes
more swiftly, " Mr. Grzebinski explained. " This change is
contributing to some of the growth we are seeing in perimeter bread. "
During peak COVID-19 panic buying and pantry
stocking, March 9 to 22, IRI data showed an all-time
high of 40% dollar sales increase over the last year for
perimeter bread sales. As the pandemic continued,

" WHETHER IT'S A BAGUETTE, BRIOCHE
OR BOULE, CONSUMERS WANT
A PRODUCT THAT TASTES
AUTHENTIC AND IS MADE WITH
HIGH-QUALITY INGREDIENTS. "
Paul Baker, St. Pierre Groupe
growth rates slowed from March 23 to 29 showing 8%
growth over the same period last year. Since then, between March 30 and Oct. 4, perimeter bread sales leveled off to an average growth rate of 3.5% compared to
the same period in 2019.
" While we expect to see continued online bakery
sales growth, we also anticipate continued perimeter
bread growth as we move through the pandemic and
as many consumers plan to work from home more often, eat out less and prepare more meals at home, "
Mr. Grzebinski said.
Across food and beverage, online purchasing and
curbside pickup have grown tremendously during the
pandemic, and Mr. Grzebinski expects gains in e-commerce to stick. About 40% of grocery shoppers are using curbside pickup, and of the nearly one-third who
are ordering their groceries for home delivery, more
than half say they will continue to buy groceries that
way moving forward. This change has dramatically
changed the online dollar sales for bread.
Pre-pandemic online dollar sales for fresh bread
and rolls vs. the same period a year ago were growing
at more than 62%. Pandemic online dollar sales saw
a spike of more than 133% - more than double the
pre-pandemic growth rate - although online was at
a smaller base.

46 Baking & Snack November 2020 / www.bakingbusiness.com

The onset of the coronavirus (COVID-19)
pandemic brought unseen levels of interest
in at-home baking. All across the county,
shelves that used to hold flour, yeast and
other baking ingredients went bare.
The NPD Group tracked this interest and
noticed several interesting sales trends
that may indicate the at-home baking
trend may be here to stay.
According to weekly retail tracking
data from The NPD Group, May sales of
hand mixers, stand mixers, bakeware
and other baking appliances surged.
In the six weeks ending April 25, dollar
sales of hand mixers nearly doubled
compared to the same period last year,
and stand mixers grew 69%. Mixers aren't
just for baking but paired with the 18%
increase in dollar sales of bakeware in
the three weeks ending April 4, it is clear
that baking has become a more popular
pastime for many people.
" Consumers welcome anything that
offers them a bit of an escape from
otherwise mundane, stressful, or hectic
days, " said Joe Derochowski, home
industry advisor at NPD. " Beyond facevalue product benefits, like baking a
sweet treat or soothing tight muscles,
many home products allow us to pass the
time and reconnect with the simple joys
of life. "
Mr. Derochowski also wrote in an NPD
blog post that this behavior is likely to
see a surge during the fourth quarter as
consumers once again look for indoor
activities.
Other sales data also back up this trend.
Unit sales for bread cookbooks have
grown 145% in 2020 through July, and
baking cookbooks are up 40%, according
to The NPD Group.
Meanwhile overall bread consumption
increased in March with sustained
increases through June. NPD studies
show that the number of times people ate
bread, buns, rolls and tortillas per month
jumped from 10 or 11 times per month to
12 to 14 times per month during that time
period.
Whether people bake as much at home
once the pandemic passes is yet to be
seen, but all signs point to a heightened
interest in at-home baking.

http://www.bakingbusiness.com

Baking & Snack - November 2020

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