Baking & Snack - March 2018 - 25

SPECIAL REPORT
Growth Channels

POCKETS OF
OPPORTUNITY

As the food purchasing landscape changes,
commercial bakers carve out sales where
consumers are buying from the most.

by Charlotte Atchley

The way people buy food is changing. Supermarkets are
no longer just a place to stock-up on staples, but a destination for a culinary experience, and c-stores and dollar stores are now common places to purchase groceries
and not just snacks. People are looking for convenience,
freshness and quality, and it's altering the way people interact with the traditional places they purchase food.
Among c-stores, dollar stores, drug stores, supermarkets, Nielsen reported that only c-stores and dollar stores
grew in number of locations from 2016 to 2017 with 0.3%
and 5.2% growth, respectively. Jeanne Danubio, executive vice-president, retail for lead markets at Nielsen, attributed this to c-stores' innovation and investments in
food purchases. "All of these factors have enabled convenience stores to meet the needs of consumers, stretching
far beyond the pump," she said. "This shift must continue
to further expand c-store's relevance in today's changing
retail landscape."
In more traditional retail outlets such as supermarkets, Nielsen's research showed that sales at brick-andmortar center stores declined in the 52 weeks ending
July 1, 2017. Most of the growth in supermarkets wasn't
driven by center aisle sales but the perimeter, a trend
that has been growing for years. Sales for supermarket
fresh categories were up 0.6% while dollar sales for center store were down 0.9%.

"This isn't specific to bakeries, but the overall shopping pattern is focused more and more on fresh and the
fresh perimeter," said Eric Richard, education coordinator, IDDBA. "That area is experiencing growth, much
more than the center aisle."
In this shifting landscape, it can be difficult to leverage these outlets for the best opportunity at growth.
"There doesn't seem to be any singular channel knocking it out of the park, but there are pockets of strength in
each major channel," said Wade Hanson, principal, advisory practice, Technomic. "This emphasizes to us the
need for channel and account prioritization more than
ever." To maintain balance and keep their feet grounded
in the sands of change, commercial bakers need to zero
in on their customers' priorities and consumer preferences and adapt to meet them.

In channels such as
c-stores and the prepared
foods department in supermarkets, bakers can insert
their breads and desserts
as components of a meal.
iStock

Portion-control and grab-and-go
In the traditional channels, products that are packaged
for convenience and portion control are finding a place
in shoppers' baskets. Between busy lifestyles, smaller
households and concerns about weight management,
consumers are looking for smaller sizes.
As reported in IDDBA's "What's In Store 2018,"
Global Data found that 63% of Americans say eating smaller portions is their preferred action to lose

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Baking & Snack - March 2018

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