Baking & Snack - June 2020 - 38

BAGELS

York bagel," but with 29 grams of protein and
just 29 grams of carbs. The bagels are made
with pea protein and come with sesame, sunflower and flax seeds.
By mixing health with the
recognizable utility of a bagel,
bakers are finding new opportunities for growth.

Leaning into innovation

Paleo bagels allow
consumers to cut
carbs while enjoying
their favorite variety.

TOP GROWTH
BRANDS IN 2019:
Thomas Bagels - $31

million

Dave's Killer Bread - $15.5
Private label - $4.5

(absolute dollar sales growth)

million

million

Canyon Bakehouse - $4.3

million

IRI

BigY, Chicopee, Mass., launched the seasonal Taste
of the Season Cranberry Bagels for winter holidays. The
packages came with six naturally and artificially flavored
cranberry bagels. Franz Bakery, Portland, Ore., launched
Blueberry Chia Premium Bagels that are organic, vegan,
non-GMO and naturally flavored.
While these creative twists might provide glimmers of innovation, they also need to reach consumers
through the right channel. Traditionally, that might've
been the grocery story. Today, it's often e-commerce.

The new bagel consumer market
The coronavirus (COVID-19) pandemic changed the
baked goods market for the foreseeable future. Spikes in
online sales settled a bit through April, but there is still
significant growth in the bagel category as consumers
continue to eat at home.
"E-commerce was already capturing the vast

©ImagesMy - stock.adobe.com

Bedrock Bakers

While there are new flavor and
ingredient combinations popping
up throughout the bagel market,
innovation has been mostly muted.
"Bagel product launches in
the United States in 2019 came
in at just over half the rate of innovation as recently as 2016,"
Mr. Vierhile said. "For whatever
reason, bagels are not setting the
world on fire, at least from the
perspective of packaged bagels
sold in supermarkets, mass-merchandisers, etc."
But, he said, there is a lot of white space when it
comes to flavor innovation, and that bagel marketers should target seasonal or limited-time offerings.
According to a 2019 Innova Trends Survey, 64% of
Americans say they love trying limited edition or seasonal flavors.
"Flavors like cranberry certainly hit the seasonal button, while stuffed bagels represent more adventurous
flavor innovation," Mr. Vierhile said.
Bantam Bagels, New York, introduced frozen
stuffed mini bagels in 2013. The mini bagels come six
in a carton box and have a shelf life of five days refrigerated or one year frozen. To prepare them at home,
consumers just defrost the bagels in the refrigerator
overnight, then toast.

Mr. Grzebinski pointed out that impactful flavors can
drive incremental sales in the bagel category, especially
those that showed strong growth in 2019 like everything, cinnamon raisin, cinnamon swirl and blueberry.
"There may be opportunity for bagels to win with
unique flavor varieties to try and capture more occasions throughout the day, as well as capture seasonal
sales trends," Mr. Grzebinski said.

38 Baking & Snack June 2020 / www.bakingbusiness.com


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