inStorebuyer - October 2012 - (Page 12)

bakerydevelopment DATA ANALYSIS AND CATEGORY MANAGEMENT Donut Growth The instore bakery continued to grow throughout the past year, despite the rising cost of inputs. The donut category was no exception, as sales increased in the 52 weeks ending June 30, 2012. Compared to the prior year, sales shifted toward smaller-count packages or to the bulk donut case. In the 52 weeks ending June 30, 2012, donut sales accounted for 7.4% of bakery department dollar sales nationally, which was unchanged compared to the prior year. The category averaged weekly sales of $785 per store, an increase of 4.1% from with $803. The East and the South regions followed with $677 and $632 in average per-store donut category sales, respectively. Average weekly donut sales increased across regions, with growth rates of 5.2% in the Central region, 4.8% in the West, 3.9% in the East and 2.7% in the South. Dollar growth for donuts surpassed that of the bakery department in all regions except the South, where growth lagged behind overall department growth by 1.4 percentage points. Price inflation, as well as volume growth, drove the growth of the category. The Central and West regions were the only regions where the donut category’s contribution to bakery department sales increased compared to the prior year, up 0.3 and 0.1 percentage points, respectively. Dollar contribution to department sales remained steady in the East, while it declined 0.1 percentage point in the South. The highest contribution to bakery department sales was in the Central region (12.1%), followed by the West (7.6%), the South (7.4%) and the East (4.5%). Nationally, 1-count/bulk donuts led sales with 50.5% dollar share of the category, followed by 12-count donuts at 17.1%, 6-count donuts at 13.2%, mini/donut holes at 10.6%, all other count donuts at 6.1% and 2-5 count donuts at 2.5%. One-count/bulk and 6-count donuts each gained 0.4 percentage point of dollar share at the expense of larger 12-count packages, which lost 1.3 percentage points of Figure 1 Total US Category Share of Bakery Dollar Sales 52 Weeks Ending 6/30/12 (Average per week per store) Desserts: 47.9% Breakfast: 21.7% Breads & Rolls: 29.0% Other: 1.4% Sweet Goods: 7.0% Donuts: Muffins: 4.5% 7.4% Bagels: 2.8% $755 the prior year. The top week for donut sales occurred the week leading up to the Lenten season with $977 per store, driven by the traditional Fat Tuesday treat, Paczkis, in all count packages. Sales dipped the weeks following Thanksgiving ($692) and Christmas ($613). The Central region had the highest per-store dollar average with $1,378 per week, almost double that of the next leading West region | 12 | inStorebuyer | October 2012 |

Table of Contents for the Digital Edition of inStorebuyer - October 2012

inStorebuyer - October 2012
Editor's Note - Lessons from the Road
Table of Contents
Front Line News - Kroger Unveils Simple Truth Brand
Walmart Teaches Healthy Habits
The Safeway Foundation Airs Cancer Awareness PSA
Food Service Retail - The New Family Mealtime
Baking & Decorating - Breakfast on the Run
Bakery Development - Donut Growth
Deli Development - Deli Meats Grow Dollars, Lose Volume
The Fun Zone
Know Your Loyal Customers
Packaging Innovation - Tackling Food Tampering
Package to Show
Health & Nutrition - Portion Control
Cheese Corner - Spreadable Cheese
Product Trends
Product Showcase
Marketplace Network

inStorebuyer - October 2012