Milling & Baking News - February 23, 2010 - 32

Bread Product Perspective 


Pepperidge Farm
Nature's Own
Sara Lee
Oroweat
Arnold
Wonder
Stroehmann
Sunbeam-Flower Foods
La Brea
Freihofer
Home Pride
Mrs Bairds
Nature's Pride
Brownberry
Private label

Top-selling fresh bread brands
Dollar
sales
$426,339,000
$410,614,700
$364,028,900
$323,428,300
$310,624,500
$217,332,200
$117,703,100
$108,414,300
$103,148,200
$98,529,140
$97,761,250
$80,448,830
$78,745,820
$65,856,870
$1,723,624,000

Per cent
change from
Unit
year ago
sales
-1.0%
128,026,600
5.0%
165,802,800
-11.2%
145,761,500
-4.2%
91,976,640
15.17
108,125,700
-15.4%
95,236,510
-8.7%
52,406,890
-6.4%
52,968,020
-0.1%
32,723,540
-7.5%
38,777,310
2.4%
39,707,770
-2.8%
34,728,120
NA
31,170,650
-50.0%
26,848,920
-0.7%
1,156,862,000

Per cent
change from
year ago
-0.7%
5.7%
-8.0%
3.3%
20.6%
-7.6%
-3.8%
-6.6%
-2.6%
-5.3%
-10.6%
4.9%
NA
-43.1%
0.4%

52 weeks ended Jan. 24, 2010
Total U.S. supermarkets
Source: Information Resources, Inc.

that path was leveraging that precision agricultural technology."
Another partnership is at the core of
the other introduction, Sara Lee Soft
& Smooth Plus breads Made with
DHA Omega-3. The DHA omega-3
for the product is supplied by Martek
Biosciences Corp., a company
that has specialized in the
development of DHA omega-3 products and partnering with food manufacturers.
Mr. Zimmer said the new
product is aimed at a very different demographic than the EarthGrains line - mothers between the ages of 25 and
34 with children aged 10
months to 5 years.
"As mothers transition
their toddlers from liquids into solids, bakery
products are not always
top of mind," he said.
"We thought there was a
great opportunity to step
in and make moms aware
that bread can play an
important role in their
child's diet as they make
this shift. DHA omega-3
is enjoying significant
growth, and when we
did research with moms,
brain health and development, which are
helped by the ingredient,
was a concern. Research
shows 92% of mothers
are aware of the benefits
of DHA omega-3."
This high level of awareness among young women reflects
the success infant formula makers
32 / February 23, 2010 Milling & Baking News

have had adding DHA-omega 3, he
explained.
The new bread varieties are offered both in 100% whole wheat and
made with whole grain white varieties. Breaking from the signature red,
the packaging's blue color is meant to
have "visual impact in the bakery aisle," Mr. Zimmer said.
Sara Lee's marketing program is oriented toward helping with the transition to solid
foods, he explained. For instance,
marketing materials show bread
slices cut up in quarters, making the
bread easier to handle.
"We focused carefully on
how a mom would interact with her child, hand
to mouth," Mr. Zimmer
said. "We spent a lot of
time trying to understand
that from the consumer
standpoint."
The decision to offer a
product targeting toddlers
both in a white and whole
wheat variety also reflects
marketplace changes, Mr.
Zimmer said.
"More and more mothers in that age are introducing whole wheat
bread as a first product
for their children," he
said. "In the past, it was
always white, and that
has evolved."
Asked whether the
"Plus" in the Soft &
Smooth Plus brand will be
a platform for other functional
benefits, Mr. Zimmer said, "Our consumers, moms, will dictate if and how

we evolve Soft & Smooth Plus. We
find when we listen to her closely, we
succeed." New, value-added products
aside, Mr. Zimmer acknowledged that
the competitive environment in baking at present is very challenging.
"The overall white bread market
remains soft, down about 6.5% in
the latest 12 weeks, as measured in
pounds," he said. "Dollar sales are
10.5% down. We believe there is an
opportunity underlying white bread,
driven at a top-line level by making
sure you have value-priced white
bread in tough economic times.
"We have wanted to protect our
pricing in the marketplace, and there
is a lot of pressure on this category
from a value standpoint. We believe
that over time we will be able to protect pricing by offering innovative
solutions in the marketplace. What's
happening right now is part of the
transition in the category, moving
from a price, commodity-driven category to one with consumer solutions
and variety within the aisle."
Without abandoning this approach,
Mr. Zimmer said Sara Lee is well aware
of and is responding to the challenges
posed to baking in a difficult economic
environment. Still, he said the company is taking a "Sara Lee" approach
toward offering consumer value.
"Yes, we continue to evaluate our
pricing, but the way we have adjusted
through a wide range of in-store activities - programs around couponing and value meal deals," he said.
"For instance, we offer consumers the
chance to get a dollar off milk when
they buy Sara Lee bread, driving value across the market basket, not just
through prices discounting."
By mixing the value and innovation approaches, Sara Lee will generate positive results in 2010, Mr. Zimmer said.
"You will see a much improved
I.R.I. performance next year," he said.
Rudi's sees rebound for organic
Difficulties in the bread market cut
across nearly all segments, including one that had appeared immune to
such swings - organic food products.
But the recent slowdown in the rate of
growth for organic food products will
not endure, said Douglas K. Radi, vicepresident of marketing for Charter Baking, Boulder, Colo. Charter owns three
baking businesses: Rudi's Organic Bakery, Vermont Bread Co., and The Baker.
"I don't think the long-term growth
prospects have changed at all," Mr.
Radi said. "I think we've hit a small
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Milling & Baking News - February 23, 2010

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