Milling & Baking News - August 1, 2017 - 33

Buns and Rolls Update

Opportunities abound for buns and rolls
Acquisitions, new products and new outlets offer additional avenues for growth

ctivity of interest in the buns and
rolls category has transpired at a
feverish pace over the past few
months, ranging from key acquisitions
with potential global implications to new
product introductions that may open
new doors to manufacturers.
In the 52 weeks ended July 9, dollar sales
in the fresh rolls/buns/croissants category (not including hamburger and hot
dog buns) totaled $2,068,897,276, up 2.4%
from the same period a year ago, while
unit sales increased 1.8% to 722,561,823,
according to Information Resources, Inc.,
a Chicago-based market research firm.
Meanwhile, dollar sales in the hamburger and hot dog bun category fell 2%
to $1,930,877,593, while unit sales eased
1% to 1,097,264,576, according to I.R.I.
Transactions playing role
Taking a broader look at the industry,
potential game-changing moves have surfaced in the buns and rolls category for the
food service industry in recent months.
Most recently, Mexico City-based Grupo
Bimbo S.A.B. de C.V. on July 21 said it
reached agreement to acquire Chicagobased East Balt Bakeries from One Equity
Partners for $650 million. Founded in 1955,
East Balt produces and supplies buns, rolls
and other baked foods to quick-service restaurants around the world, and by adding
the company to its portfolio Grupo Bimbo
hopes to fulfill its vision of expanding its
global reach to better serve more consumers (see related story on Page 1).
"East Balt enjoys long-standing strategic relationships with the largest and most
established Q.S.R. brands in the world,"
said Daniel Servitje, chairman and chief
executive officer of Grupo Bimbo.
Leading East Balt customers include McDonald's, Wendy's, Burger King, KFC, Pizza Hut, YumChina, Subway and Nando's.
A week prior to the East Balt acquisition, Peak Rock Capital, a middle-market private equity firm, added to its portfolio with the acquisition of Gold Coast
Bakeries, L.L.C. (see story on Page 10).
Based in Santa Ana, Calif., Gold Coast
Bakeries makes fresh and frozen specialty
and organic bread, buns, rolls and sweet
goods for distribution to consumer packaged goods companies, grocery retailers
and food service customers. The company has two U.S.D.A. organic-certified
facilities in California and Illinois.
Innovation grabs hold
New bun products also are making
bakingbusiness.com / world-grain.com

waves at food service locations.
Atlanta-based Chick-fil-A in June
added a gluten-free bun to the menu in
restaurants nationwide. The individually-packaged bun may be ordered with
any sandwich and is made with quinoa,
amaranth, molasses and raisins. The bun
was tested last year in three cities, where
it most commonly was ordered with
the Grilled Chicken Sandwich and the
Grilled Chicken Deluxe Sandwich.
"We know our customers are looking
for more gluten-sensitive alternatives,"
said Leslie Neslage, senior consultant of
menu development at Chick-fil-A. "They
asked, and we listened. We heard positive feedback in test markets that the bun
tastes better than some other gluten-free
breads. That's because instead of rice
flour, we've made the bun with more

food service. King's Hawaiian buns and
rolls are featured on the menus of such
restaurants as Arby's and Johnny Rockets. The company also this spring opened
the King's Hawaiian Grill at Dodger Stadium, featuring pulled pork sliders made
with King's Hawaiian Original Hawaiian Sweet Rolls and the Hawaiian BBQ Dodger Dog made with a
King's Hawaiian Hot Dog bun.
Grocers in on the action
With an eye on grabbing consumers who may be
looking for something more than
the traditional
bun or roll,
two companies
have stepped

Top-selling rolls/buns/croissants vendors

King's Hawaiian Bakery West Inc.
Grupo Bimbo
Martin's Famous Pastry Shoppe Inc.
Campbell Soup Co.
Flowers Foods, Inc.
United States Bakery
Private label

Dollar
sales
$459,928,324
$364,344,133
$133,952,265
$119,543,306
$98,057,768
$32,821,701
$524,328,717

Per cent
change from
year ago
13.1%
-4.2%
1.3%
9.8%
-10.2%
0.3%
1.3%

Unit
sales
145,157,982
117,676,345
37,789,509
40,199,531
34,994,129
10,475,406
216,909,978

Per cent
change from
year ago
7.5%
-3.0%
1.8%
10.6%
-10.7%
1.8%
1.8%

52 weeks ended July 9, 2017
Total U.S. Multi-Outlet (supermarkets, drugstores, mass market retailers, military commissaries and select club and dollar retail chains)
Source: Information Resources, Inc.

premium ingredients like quinoa and
amaranth. Our hope is that the glutenfree bun addition opens up options for
gluten-sensitive customers to enjoy more
of our menu."
Chick-fil-A isn't the only major fastfood chain to make a change to its bun
lineup. A year ago, McDonald's Corp.,
Oak Brook, Ill., debuted new buns made
without high-fructose corn syrup for its
Big Macs, Quarter Pounders, hamburgers
and cheeseburgers, Filet-O-Fish and McChicken sandwiches.
Companies such as King's Hawaiian have found food service locations to
be a good outlet to grow brand recognition and, ultimately, sales. Torrance,
Calif.-based King's Hawaiian posted
rolls/buns/croissants dollar sales of
$459,928,324 in the 52 weeks ended July
9, up 13% from the same period a year
ago, according to I.R.I. But just as important to the company's business has been
a growing trend of partnerships within

forward in recent months to launch new
products at supermarkets. Ace Bakery
has introduced River Road Bakehouse, a
new lineup of artisan baguettes, ciabatta
buns and bread loaves for distribution
across the United States. The products
will be available at Meijer, Publix, TOPS,
Food City and Roche Bros. The products
are made at zero-waste bakeries, a feature
that builds off the company's desire to be
a brand "with a purpose and a promise."
In the Bay Area, La Boulangerie, which
operates six retail bakery locations, in May
introduced a new line of products in select
Costco stores. The new products include
Super Soft Brioche Loaf, Super Soft Brioche Buns, Super Soft Brioche Hot Dog
Buns and Super Flaky Croissant Buns.
"This launch of our C.P.G. line is a direct extension of this mission, an exciting new way we're bringing a little slice
of France to people everywhere," the
company said. MBN
- Eric Schroeder
Milling & Baking News XAugust 1, 2017 / 33

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Milling & Baking News - August 1, 2017

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