Baking & Snack - May 2022 - 36

5 GENERATION BAKERS
Production is forecasted a week ahead, but that can
change 30% to 40%, depending on customers. The new
building has increased the bakery's capacity five times.
With the efficiencies it has found in swirl bread production,
Scott Baker started looking into other products
and channels.
New opportunities
In the new facility, 5 Generation Bakers was experiencing
double-digit sales every year. In 2017, the bakery
added a second shift. Scott Baker started innovating new
products, including chunky bread and sticky buns. 5
Generation Bakers went beyond the company's in-store
bakery customers. Scott Baker pitched the product to
the QVC home shopping network. As an old-fashioned
crimp-style bread, it seemed like a perfect fit for QVC's
dedicated food audience. QVC passed at the time, but
the company gained more foodservice business and had
its own e-commerce platform on its website. However,
one foodservice account made up 50% of 5 Generation
Bakers business, which Scott Baker admits was risky.
New twists on an old favorite
Scott Baker, founder and president of 5
Generation Bakers, McKees Rocks, Pa., admits
that crimp-style cinnamon swirl bread
is a bit old-fashioned. While it's his dream to
make it a household name, he isn't stuck in
the past.
The fifth-generation baker is always looking
for ways to expand his product line. First
there were Chunky Breads, chopping up the
iconic swirl bread into a monkey bread-like
format. Then came the sticky buns. After
that, Mr. Baker was wondering how he could
move away from sweet into savory with the
round crimp loaf, and 5 Generation Bakers
developed three savory varieties: Olive
Focaccia, Garlic and Herb, and Tomato Basil.
Mr. Baker's family swirl bread has always
brought joy to consumers, but he started
wondering if he could create a bread that
was functional. After seeing friends benefit
from CBD, he pursued the idea of a bread
that could deliver CBD.
" I couldn't find a CBD that tasted good, "
he said of the challenges he quickly faced.
" I couldn't find a trusted source of CBD who
could provide an ingredient at consistent
potency or guarantee that it was THC-free. "
The project was shelved until July
2020 when he was connected to Hemp
Synergistics, a company that offers a Hemp
Bake Mix. The CBD is encapsulated, protecting
it not only during bakery production but
also through the digestive system. It also
cuts down on off-flavors and odors.
Through this partnership 5 Generation
5 Generation
Bakers' round
loaves are sliced
automatically and
then bagged in
special cylindrical
bags.
" We knew it was a concentrated risk to put so much
business with one customer, and it was one we were
moving away from, " he said. " But I just couldn't say no to
a $2 million account. "
Though 5 Generation Bakers was reducing the account's
impact on the business - it was 40% in 2018 -
it was too little too late. The customer wasn't transparent
about the forecast, and overnight, Scott Baker learned
that the next week's truckload of product would be the
last. With the loss of $1.5 million in one fell swoop,
the business that had been experiencing double-digit
growth and meeting its financial goals was suddenly fac36
Baking & Snack May 2022 / www.bakingbusiness.com
Bakers developed Hemp Bakers, a line of
brownies and cookies that contain CBD.
The 2018 Farm Bill, however, ruled that CBD
could legally be used only in pharmaceuticals,
which bars it from use in food. This has
made manufacturing the products difficult.
" We were the right bakery to develop this
product, but not the right bakery to scale it
up, " Mr. Baker explained.
There are moves at the federal level to
reverse this situation, even from the US
Food & Drug Administration itself. Until
then, Hemp Bakers products are being
manufactured by partners in states that have
passed legislation protecting the sale of CBD
in food.
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