IBIE - 2019 Special Edition & Show Preview - 44

ABA PERSPECTIVE

Todd Hale, Todd Hale
LLC, and Anne-Marie
Roerink, 21 Analytics,
discuss their findings
from ABA's "Power of
Bakery" report.
American Bakers Association

foodservice, third-party delivery services are changing the game. Matthew Riddleberger, vice-president,
supply chain services, Firehouse Restaurant Group,
Jacksonville, FL, who spoke on the ABA panel, identified third-party delivery service as a new challenge in
the foodservice space.
Vendors such as Uber Eats, Grubhub and DoorDash
have become major players for shifting destinations in
this market. For example, three years ago, Firehouse
Subs did not offer food for delivery, but today, it makes
up about 6% of the company's sales.
This presents a challenge from a business perspective, Mr. Riddleberger said, because these vendors can
encroach on anywhere from 15 to 30% of the total ring.
"It's very difficult to make that profitable," he said. "We
have found that we need to do that by not adding labor
to the equation ... that means we're open to efficiencies."
Fellow panelist Sam Mayberry, president, Sam
Mayberry Consulting, noted that, in addition to mobile delivery apps, e-commerce has redefined where
consumers make their food purchases. He suggested
to bakers, as well as retailers and foodservice operators, that luring consumers to the company's website
can expand the trade area without sacrificing the
brick-and-mortar.
If a baking company can hit the right audience with the
appropriate products targeted for the correct opportunity,
Mr. Mayberry suggested that e-commerce can create a
whole new market outside its traditional geography.
"There are no trade areas in e-commerce," he said.

Outside, inside ... and all around
Despite the rise in food delivery and online purchases,
people are still visiting restaurants and brick-andmortar retail outlets. In fact, the modern path to pur-

44 PreShow Guide IBIE 2019

chase actually includes more stops than ever before.
Although consumers are brand loyal, they're not necessarily store loyal. Last year, Hartman Group reported
that 93% of consumers shopped between two and 10
retail channels for groceries in a 30-day period, and primary household shoppers visited an average of 4.4 channels in 30 days.
In a $277 billion dry grocery category, baked foods
can use this stiff retail competition to partner with
supermarket in-store bakeries and the center store aisle

"We need to bring the
categories together,
such as bringing the in-store
bakery fresh bakery
together with the aisle
to create a combined
shopping experience."
Ranier Glaubitz, SPAR International
to create new opportunities and points of differentiation.
The "Power of Bakery 2019" research indicated that,
excluding e-commerce outlets and big-box retailers such
as Costco, the bread and baked foods category was a
more than $60 billion business, and although the threeyear CAGR was 0.8%, the in-store bakery department
saw strong growth at 2.2% CAGR with $14 billion in
sales, according to 2018 Nielsen data.
"That's not atypical to what we've seen in the perim-

IBIE - 2019 Special Edition & Show Preview

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