Milling & Baking News - July 8, 2014 - 15

Merchandising



Americans seek 'snackable'
indulgences, says Mintel
CHICAGO - New research from Mintel shows that total retail sales of prepared
cakes and pies grew 24% from 2009-14 to
reach $11.2 billion. But that's only the tip of
the iceberg, as the market research firm projects the category to grow an additional 18%
from 2014-19, reaching $13.2 billion in sales.
Mintel said growth will depend on new
product development that is focused on
better-for-you attributes, flavor innovation and controlled portion size.
According to Mintel, 41% of consumers
claim to eat prepared cakes and pies as
a snack between meals, a higher percentage than many other occasions, including
for a special occasion dessert (18%).
The research firm pointed to in-store
baked cakes and pies as a driving force behind category
growth, with sales representing more than half of
the overall category (52%),
followed by shelf-stable
cupcakes and brownies at
23%. Nearly half of consumers who eat prepared
cakes and pies (46%) view
them as an indulgence,
and 42% said they are open
to trying new flavors of these items, Mintel said. About 61% agree gourmet or premium products are worth paying more for,
including 72% of those aged 25-34.
"The snacking mindset has permeated
the dessert segment, as people are mindful
of what they eat, but at the same time, want
to indulge and treat themselves as well,"
said Amanda Topper, a food analyst at
Mintel. "Much as we've seen with the highend cupcake and donut trends, consumers
are willing to pay a little bit extra for a small
indulgence made with quality ingredients.
Since almost two-thirds value taste over
nutrition and more than two-thirds would
like to see more flavor variety, this presents
an opportunity to offer more unique, highquality offerings, especially to younger
consumers who are more brand loyal and
willing to pay the price premium."
Private brands dominate
Delving deeper into category specifics,
Mintel found that private label represents
the largest category market share at 38%, a
larger share than the market share of all five
brand leaders combined. The brand leader,
McKee Foods Corp., manufacturer of Little
Debbie shelf stable cakes and pies, had sales
of $654.2 million in the 52 weeks ended Feb.
23, up nearly 16% from the same period a
year earlier, according to Information Resources, Inc. Sales for Flowers Foods L.L.C.
bakingbusiness.com / world-grain.com

also advanced, climbing 21% to $201.6 million during the period. Sales for Hostess
Brands, though, fell 41% to $191.8 million.
Supermarkets, men a source for sales
The majority of sales within the prepared cakes and pies category are in supermarkets, which make up 65.8% of the
market, Mintel said.
Men are significantly more likely than
women to eat prepared cakes and pies as
part of, or in place of, a meal. Mintel said
about 24% of men eat prepared cakes and
pies as part of breakfast, and 25% eat them
as part of lunch, while 13% use them as a
meal replacement altogether. Meanwhile,
women are significantly more likely than
men to eat prepared cakes
and pies as a dessert (75%,
compared to 66% of men).
"Over two-third of consumers have eaten some
type of R.-T.-E. cake or pie
within the past six months,
and the majority are open
to experimenting with
flavors," Ms. Topper said.
"To that end, they can stay
interested with hybrid flavors, such as sweet
and salty options, or seasonal and limitededition varieties. Natural ingredients, without additives or preservatives, are also important to consumers who buy prepared
cakes and pies, so manufacturers should focus on promoting the quality of their ingredients, and promote them via easy-to-read
ingredient lists. At the end of the day, people
are willing to indulge, but they just want to
make sure the calories are worth it."
Demand dips for frozen, refrigerated
While interest in prepared cakes and
pies is on the upswing, demand for frozen and refrigerated cakes and pies has
slipped, according to Mintel. During the
2009-14 period sales of frozen and refrigerated cakes fell 2.4% to $945 million.
Mintel said the segment has struggled
to grow in recent years after two years of
minimal growth in 2010 and 2011.
"To help improve segment sales, brands
can focus on new product development
related to health, quality and taste," Mintel said. "Frozen and refrigerated products
can also be positioned as more gourmet alternatives to shelf stable offerings with the
addition of ingredients such as whole fruit
pieces or natural whipped cream."
Mintel does expect a rebound in the category, though, as sales in the frozen and
refrigerated cakes and pies segment are expected to increase 7% from 2014 to 2019. MBN

ingredients
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B.C. Williams Bakery Service
BCW Food Products
1-800-527-4104

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Milling & Baking News July 8, 2014 / 15

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