Baking & Snack - November 2023 - 17

Baker Perspective
SPECIAL REPORT
Bread Market From
Eyes of Two Bakers
by Josh Sosland
A
A razor-sharp focus on customer service and a restrained
approach to price increases in the face of cost
inflation are among strategies that have helped bakers
retain business customers amid unsettled market conditions
for baked foods, executives at two independent
baking companies said.
While there has been no escaping ingredient price
swings of the past two years, transparency and a disciplined
approach that avoids imposing on customers
sudden, large price increases has proven effective, the
executives said.
For the 2023 bread industry perspective, Sosland
Publishing Co.'s Milling & Baking News profiles a
century-old independent baker from the Northeast as
well as a startup baking business based in Houston.
Strength for a private label
A company long focused principally on the private label
market, Gold Medal Bakery, Fall River, Mass., has enjoyed
a lift in demand over the past 12 months.
" It's been an improved year obviously, " said Justin J.
LeComte, vice president of sales and marketing at Gold
Medal. " People are very price conscious. Private label
has
seen growth, especially through value channels.
Core grocery has seen significant growth, too. "
Within its product line, which today includes sliced
bread, rolls, English muffins and specialty products, Mr.
LeComte said organic and non-GMO bread have become
a growing part of the business.
While Gold Medal bakes a mix of branded and private
label products, Mr. LeComte described private label as
" the main driver of the business. "
Before the recent pickup in private label bread sales,
the subcategory had been losing market share steadily
over the last several years. Mr. LeComte said Gold Medal
for many years has diversified its mix of customers to
avoid overreliance on any one aspect of its business.
" We've always had our hand in other avenues, " he
said. " We've done co-packing. We've expanded into
parts of foodservice, also in-store bakery programs and
deli programs. "
Mr. LeComte said the company has worked to " saturate "
its existing customer base, maximizing its presence
in stores beyond the commercial bread aisle.
While variety bread has become more popular in private
label, Mr. LeComte said the basics still rule.
" Core products are still the core products - traditional
white bread and wheat, " he said.
Even as demand for private label has grown with consumers
becoming more price sensitive amid an inflationary
environment, Mr. LeComte said navigating the
current marketplace with extreme ingredient price volatility
has been a challenge. With its wide range of private
label and co-packing customers, Gold Medal has taken
steps to ensure the company is viewed as a dependable
supplier.
" What we've done, especially after the last two years,
is we've needed to make sure we are reliable, " he said.
www.bakingbusiness.com / November 2023 Baking & Snack 17
An independent baker from the
Northeast and an artisan business
in Houston provide perspective
on the 2023 bread industry.
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http://www.bakingbusiness.com
Baking & Snack - November 2023

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