Baking & Snack - July 2018 - 18
BEMA announces 2018-19
executive committee officers
Private label becoming
greater force in snack market
Store brands have taken a bigger bite out of the snack market, driven by changing consumer perceptions and a growing assortment.
Millennials, previously the least trustful of private label products,
are now the most likely cohort to buy them, said Jordan Rost, vicepresident of consumer insights at Nielsen.
"There has been this incredible shift in growth toward private
label," Mr. Rost said during a presentation at the Sweets & Snacks
Expo, held in Chicago. "A good enough offering can and will start
to take market share. That is the classic textbook definition of disruption. And I think we're potentially in the midst of seeing this
play out across the landscape."
Private label has captured 10% share of the snack market with
$4,026 million in sales, up 4.8% over last year, according to IRI
data. Comparatively, the top four manufacturers in the category
have 53% share and grew 3.7% over the prior year. The total snack
market grew 3.4% to $42.5 billion in the recent 52 weeks, according to IRI.
As retailers have expanded private label offerings in recent years,
dollar share has shifted in the snacks category to premium and organic from value and mainstream products, said Sally Lyons Wyatt,
executive vice-president of thought leadership at IRI.
Additionally, private brands are gaining shelf space for snacks,
with total points of distribution up 9.3% compared with a gain of
0.6% for national brands over the past four years, she said.
"The benefit retailers have is they can make some decisions of
what goes on the shelves and what doesn't," Ms. Lyons Wyatt said
during a presentation at Sweets & Snacks. "They're leveraging all
aspects of the store to drive some convenient and tasteful options
that consumers are gravitating toward."
-Monica Watrous, Food Business News
Above: Private label brands are picking up market share.
18 Baking & Snack July 2018 / www.bakingandsnack.com
During the general membership meeting of the
BEMA annual convention, the association named
the officers of the 2018-19 executive committee.
The officers are: Paul Lattan, publisher, Baking
& Snack, Sosland Publishing Company, chairman of the board; Mark Hotze, vice-president,
North America, Corbion, 1st vice-chairman;
Rick Hoskins, CEO, Colborne Foodbotics, 2nd
vice-chairman; Tim Cook, president and CEO,
Shick Esteve, 3rd vice-chairman; and Don
Osborne, food business team leader, Intralox,
immediate past chairman.
Mr. Cook was the newest officer named to the
executive committee. To fulfill the remainder of
Mr. Cook's term on the board of directors, BEMA
elected Eric Riggle, president, Rademaker USA, to
the board. Association members also voted to renew a three-year board term for Jim Warren, vicepresident, Exact Mixing, Reading Bakery Systems.
Taking the gavel at the Chairman's Dinner,
which closed the convention, Mr. Lattan called
for increased member participation to further
strengthen the association's role in the industry.
"We, along with our diverse group of baker
guests, are the keepers of the supply chain," he
said. "And there is no greater role than that."
Additionally, Mr. Lattan called for stronger
ties with BEMA's sister organizations for the
betterment of the entire industry.
"Standing before you, I know three things to
be true," Mr. Lattan said to attendees. "This is
the greatest time to be in the greatest industry
with the greatest people."
Looking ahead, BEMA is focused on plans
for the 2019 International Baking Industry
Exposition (IBIE), which it co-owns. IBIE is
slated to be held Sept. 7-11 in Las Vegas.
Richard L. (Rick) Dahlin, longtime veteran of the baking industry, died May 26.
Mr. Dahlin was president of Henry & Henry, a producer of fruit
fillings, icings and glazes for baking applications, for many years
before joining Dawn Foods, Jackson, MI, in 2002 as vice-president
of operations. Mr. Dahlin was active in many bakery trade organizations, serving on the boards of the American Bakers Association,
and as president of the National Bakery Suppliers Association.