Baking & Snack - July 2022 - 19

" WE DO SEE INVENTION
stream, and the constriction of the pandemic really put
our market choices into perspective. "
For some respondents, however, this was an area of
needed improvement for ingredient
suppliers. Many
bakery professionals reported they just wanted to know
what was going on, even if it meant receiving bad news.
" Our suppliers certainly need to be more transparent as
we have to be with our customers about price drivers and
forecasting, " one respondent explained in a written response.
" We have less latitude than our suppliers when it comes to
price on finished goods; we are in a very competitive space. "
As bakers evaluated these six initiatives as they look to the next 12 to 18 months, there did seem to be a recovery
in product development, but with a continued eye
on saving costs, supplier rationalization and a focus on
line extensions. Of the big three formats of product development,
formulation has surpassed its pre-pandemic
numbers, jumping from 58% of respondents prioritizing
it to 71%. Innovation is seeing a nice recovery with 76%
focused on this initiative for the future vs. 88% before
the pandemic. Invention is recovering - survey respondents
who were focused on this initiative fell from 73%
pre-COVID to 41% during the pandemic - but it lags
with only 59% of respondents saying this was important
Internal R&D teams
Height of the pandemic 63% | Currently 78%
Consumers
Height of the pandemic 55% | Currently 71%
Bakery customers
Height of the pandemic 43% | Currently 63%
Ingredient suppliers
Height of the pandemic 33% | Currently 53%
Restaurants
Height of the pandemic 31% | Currently 41%
Equipment suppliers
Height of the pandemic 27% | Currently 38%
In-store bakeries
Height of the pandemic 29% | Currently 34%
External product development company
Height of the pandemic 18% | Currently 28%
Bakery start-ups
Height of the pandemic 17% | Currently 15%
to their companies for the coming 12 to 18 months.
" We do see invention recovering, but according to this
research, we project it won't likely make it to pre-pandemic
levels until some time in 2024, " Ms. Hellmer explained.
Leading R&D initiatives for the future, however, are
ingredient/formulation cost savings with 90% of survey
respondents saying this was a priority for the next 12 to
18 months. No. 3 in importance for the future is ingredient
supplier base reduction/rationalization, with 63%.
" We're still seeing those belt-tightening measures with
the focus on cost savings and reexamination of the supplier
base, " Ms. Hellmer said.
In fact, survey respondents who listed invention or innovation
as less important were asked to give their company's
primary reasons for shifting away from these initiatives.
Sixty-two percent reported greater attention on
both cost savings and existing brands and product portfolio.
Fifty percent also reported an increased company
focus on other operations or a focus on manufacturingRECOVERING,
BUT ACCORDING TO
THIS RESEARCH, WE PROJECT IT
WON'T LIKELY MAKE IT TO
PRE-PANDEMIC LEVELS UNTIL
SOME TIME IN 2024. "
Marjorie Hellmer, Cypress Research
WHERE DO BAKING COMPANIES
GET THEIR INSPIRATIONS?
www.bakingbusiness.com / July 2022 Baking & Snack 19
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Baking & Snack - July 2022

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