Milling & Baking News - September 6, 2011 - 27

Indulgence in, inexpensive alternatives out
Cookie companies bring back bigger, bolder products as interest in private label products wanes
“Our fans’ passion and enthusiasm has challenged us to raise our game,” said Jessica Robinson, associate director of consumer engagement for Kraft Foods. “With the Triple Double Oreo cookie, we set out to take Oreo to another level by adding a new twist. We are looking forward to engaging with Oreo fans as they share their twisting, licking and dunking moments with the new Triple Double Oreo cookie.” It won’t be the first time Kraft has taken Oreo to a “third level.” In 2006, the company introduced Triple Stuf Oreos in certain cities for a one month promotional trial before permanently discontinuing the product. Triple Stuf Oreos had three times the Top-selling cookie brands normal amount of Per cent Per cent white cream filling, change from change from making it slightly Dollar sales year ago Unit sales year ago different from the Nabisco Oreo $347,266,200 8.4% 130,885,100 11.1% most recent launch Nabisco Chips Ahoy! $343,244,900 2.8% 135,021,000 9.8% of Triple Double Nabisco Oreo Double Stuf $153,938,600 -9.6% 51,246,760 -7.8% Oreo. Little Debbie $138,785,000 -0.5% 124,990,200 3.8% Lofthouse $138,191,000 3.2% 41,743,200 11.2% The second-largest Private label $669,339,100 0.2% 307,152,600 -1.6% branded cookie company, Keebler Co., 52 weeks ended Aug. 7, 2011 Total U.S. - F/D/MX (Supermarkets, Drugstores and Mass Merchandisers, a division of Battle excluding Wal-Mart Stores, Inc.) Creek, Mich.-based Source: SymphonyIRI Group Kellogg Co., also performed well duras the overall cookie category appears to ing the past year. Although the company’s top-selling Keebler Chips Deluxe cookies be back on solid footing. In the 52 weeks ended Aug. 7, dollar sustained a 13% drop in dollar sales and 15% sales in the cookie category rose 1.8% to dip in unit sales during the 52 weeks ended $4,685,054,000, while unit sales increased Aug. 7, the company’s overall cookie dollar 2.1% to 2,200,020,000, according to and unit sales rose 2% and 3%, respectively, SymphonyIRI. Leading the way was Kraft behind several initiatives and indulgent Foods Inc., Northfield, Ill., which through innovation. “We successfully launched the Keebler its Nabisco brand was able to grow dollar and unit sales 4% and 7%, respectively, in Master brand initiative (during the second quarter), which aligns cookie pricing, the period. and scale Kraft’s Oreo brand over the past year packaging was able to overtake the company’s Chips behind the Keebler brand,” Ahoy! as the top selling cookie brand, John Bryant, president according to SymphonyIRI. Dollar sales and chief executive officer of Oreo jumped 8% on an 11% gain in unit of Kellogg, said during a sales, while Chips Ahoy! dollar and unit July 28 conference call with sales rose 3% and 10%, respectively. In mid-August, Kraft announced the nationwide launch of the Triple Double Oreo. The cookie has a layer of vanilla creme, a layer of chocolate creme and three chocolate wafers. year ago in this publication’s update on cookies, private label garnered attention as a key driver in the category. Year-over-year dollar sales in the 52 weeks ended Aug. 8, 2010, were up 8% for private label cookies, while unit sales rose nearly 10%, according to SymphonyIRI Group, a Chicago-based market research firm. Fast forward to August 2011 and a different picture has emerged in the segment. Private label cookie dollar sales were up only 0.16% in the 52 weeks ended Aug. 7, 2011, while unit sales fell nearly 2%, according to SymphonyIRI. The lower growth numbers have come even
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analysts. “The shift caused a reduction in activity during the second quarter, which impacted our merchandising results. However, our base sales were strong and outpaced category-based sales growth. “Keebler Fudge Shoppe continued to perform well, and we had strong innovation with Coconut Dreams, Jumbo Fudge Sticks and Mint Crème Middles.” With its expansive line of decadent cookies, Norwalk, Conn.-based Pepperidge Farm, Inc., struggled through a difficult few years as consumers turned to private label products. But over the past year, the company is on the rebound as dollar sales gained 3% to nearly $300 million on a 3% increase in unit sales. Dollar sales of Pepperidge Farm Milano cookies climbed 1% to $95,176,540 in the 52 weeks ended Aug. 7, according to SymphonyIRI. Pepperidge earlier this year added another indulgent cookie to the line that it hopes will fuel more growth. Milano Melts, introduced in early May, feature a crisp cookie filled with chocolate crème. The cookies are available in two varieties: Dark Classic Crème and Chocolate Dark Classic Crème. “One insight we’ve gained is that creamy fillings provide a highly appealing alternative to both traditional and new Milano consumers,” said Pat Callaghan, president of Pepperidge Farm, in a July 12 conference call with analysts. “Another simple insight is that if you keep your Milano wafers separate and use them for an open-faced treat, there is almost an endless potential for delicious topping combinations. Plus, we have developed the technology in our plants to provide both of those delicious variations. “The Milano Melts and Milano Slices are the two recent offerings of these compelling insights. Milano Melts was launched last February, and has already proved to be a hugely popular and incremental addition to the brand. And the Milano Slices concept was actually developed by a team of employees at one of our employee innovation fairs and is shipping in October after a successful test in the last holiday season.” MBN
— Eric Schroeder
Milling & Baking News September 6, 2011 / 27

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Cookies Update

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Milling & Baking News - September 6, 2011

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