Milling & Baking News - December 9, 2003 - 26

With an ever-expanding share of the
total U.S. population (Hispanics accounted for 38.8 million, or 13.5%, of the
U.S. population on July 1, 2002, according
to the Census Bureau), Hispanics have
presented an attractive audience to grainbased foods manufacturers.
What started as isolated efforts by food
companies to try and enter the Hispanic
market through Spanish-language packaging and couponing has escalated into

offer these snack cakes specifically suited
to Latino and Hispanic preferences. These
snack cakes have been in development
for more than a year and were created
through market and brand research and
plenty of taste testing. We've created
recipes that will especially appeal to Hispanic tastes and our cakes are winning
accolades from our customers."
Earlier this year, Fort Worth, Texasbased Bimbo Bakeries USA introduced in
eight western states seven new products,
including two "heart-healthy" bread
products that are among the company's
most popular varieties in Mexico.
The bread products - Bimbo Multicereal and Bimbo Double Fiber - are the
first health-conscious products on the
market specifically targeting Hispanic
American adults, Bimbo Bakeries said.
"These new breads have customers'
health in mind," Juan Muldoon, president
of Bimbo Bakeries, said at the time of the

a full-blown wave of products developed
solely with the Hispanic consumer in
mind.
In one of the most recent efforts, announced in late October, Flowers Foods
became the first U.S. wholesale baker to
launch a full line of snack cakes to appeal
to the Latino and Hispanic markets with
the introduction of a 13-product snack
cake line under the Tesoritos (Little Treasures) and Pan Dulce de Mi Casa (Sweet
Bread from My House) brands.
The line, inspired by Flowers' Mi Casa
flour and corn tortillas introduced in the
mid-1990s, include such treats as conchas,
panquecitos, mantecadas and panque con
nuez.
"Our aim is to provide baked foods
that appeal to all consumer segments,"
said George E. Deese, president and chief
operating officer, Flowers Foods. "With
the Hispanic population growing faster
than any other segment, we are pleased to

products' launch. "We have identified a
growing interest in health issues among
our consumers. That's why we have developed bread products to address the
needs of balanced nutrition and deliver
more fiber and nutrients than any other
bread on the market."
Mr. Muldoon said that the products are
the first to offer a healthy alternative for
Hispanic Americans in the United States.
Bimbo also tackled the Hispanic sweet
goods segment with the introduction of a
line of bite-sized croissants and cupcakes.
The products will be sold in three varieties, each in six-count packages - Chocolate Mini Bigotes, Caramel Mini Bigotes
and Mini Mantecadas.
Bimbo's sister company, Marinela,
introduced Sponch Multipacks, a cookie
and marshmallow treat filled with strawberry jelly and coconut, and Galletas X,
creme-filled wafers coated in fudge. MBN
- Eric Schroeder

jumped 39.2% to $317,200,000.
The company affirmed its previously
announced goals of system-wide comparable sales of 10% for the year with
quarterly variations. Additionally, Krispy
Kreme upped its store development plans
to open 92 to 97 new stores in 17 new markets, including 10 units that are a combination of donut and coffee shops and/or
satellite stores during fiscal 2004.

Hispanic market is hot

Doughnuts, Inc. Little has changed in
product formulation of the donut since
the company's founding in 1937, yet 2003
proved an extremely successful year
for Krispy Kreme as its donuts popped
up everywhere from shopping malls to
baseball parks.
How could a company that has been
around so long create such fervor? Although it claims not to do any formal
advertising, the donut maker has found
clever ways to work its way into the consumer mindset. From a promotion with the
Kansas City Royals baseball team that converted ticket stubs from games in which the
Royals got 12 hits into a free dozen Original
Glazed donuts to incredible product exposure in television shows and movies, Krispy
Kreme has found a way to reach consumers' love for the doughy morning treat.
In the past several years Krispy Kreme
has expanded into Canada and just a few
months ago opened its first stores outside
of North America.
Today, the company operates 333 stores
in 42 U.S. states, Canada, Australia and
England.
In perhaps one of its most ringing endorsements, Vincent A. Melchiorre, senior
vice-president and chief marketing officer
of Tasty Baking Co., Philadelphia, in an
interview earlier this year with Milling &
Baking News said that the success of Krispy
Kreme has been a positive for the grainbased foods industry overall. In a snack
cake category that by his own admission
has been "pretty stodgy," Mr. Melchiorre
said the success of Krispy Kreme during
the past year has proved to a lot of people
that sweet goods can be relevant
"(Krispy Kreme) has given people
ideas - that you can make sweet goods
and win," Mr. Melchiorre said.
And win it has. In the nine months
ended Nov. 2, net income at Krispy
Kreme rose 46% from the same year-ago
period, while sales during the period

26 / Milling & Baking News, December 9, 2003

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