Going upscale with artisan-style breakfast items and premium sweet goods provides a point of differentiation in a category where indulgence reigns.
Cleaning up their act
More consumers are looking for authenticity and “real” ingredients in their foods, including sweet ingredients like real sugar. A greater number of Americans continue to avoid products made with processed or artificial ingredients, according to data from IDDBA.
The team at J. Skinner believes commitment to quality and traditional methods separate its line of European-style Danish, coffee cakes, gourmet cinnamon rolls, muffins and other sweet goods from the competition.
“For instance, products using our signature Danish dough take up to 36 hours from raw ingredients to finished product,” Mr. Kyle said. “By allowing proper fermentation and resting of the dough, we produce flavors and textures that competitors can’t touch with their fast-paced processes.”
Earlier this year, Hostess introduced a new Mini Muffins formulation that has the nutritional benefit of 8 g whole grain per serving.
Meanwhile, Hostess Brands is expanding its product portfolio to include more nutrition-oriented products, and, in fact, earlier this year, the brand introduced a new Mini Muffins formulation that has the nutritional benefit of 8 g whole grain per serving.
“In addition to being a good source of whole grain, Hostess’ new Mini Muffins contain no high-fructose corn syrup, no partially hydrogenated oil and 0 g trans fat,” Mr. Raine observed.
Families consume more cakes and pies, but nutritional value of treats made with artificial ingredients are not popular with this segment, according to Mintel’s May 2016 report on prepared cakes and pies. Manufacturers would do well to offer all-natural and organic brands to attract families. Ideas for customization, such as decoration and personalization, would likely further appeal.
Otis Spunkmeyer offers 20 snack foods containing "no funky stuff."
In many ways, people are searching for a real deal. “Consumers are on the lookout for better ingredients but aren’t willing to sacrifice flavor,” said Kristina Dermody, brand president of Otis Spunkmeyer, an ARYZTA brand, San Leandro, Calif. “The best thing about Otis Spunkmeyer is that our entire line of 20 snack foods contains ‘No Funky Stuff,’ offering consumers an incredible variety of sweets made without artificial flavors or colors, high-fructose corn syrup or partially hydrogenated oils.”
Clyde’s Donuts led the market in the prompt removal of azodicarbonamide and continues to research flavor profiles and clean label ideas that will appeal to shoppers. “We’re always looking for ways we can be innovative with our products to give customers what they love best,” Mr. Bickford pointed out.
Millennials continue to demand fewer preservatives and are likely to view prepared cakes, pies and other snacks as undesirable for that reason, according to Mintel. Expanding brands to include upscale products made from premium ingredients and fewer additives may appeal to this segment of the population.
Clyde’s Donuts removed azodicarbonamide from its products and continues to research flavor profiles and clean label ideas that will appeal to shoppers.
“Otis Spunkmeyer foods are made with real ingredients that deliver a superior, homemade taste. Our ‘No Funky Stuff’ guarantee really stands out to shoppers,” Ms. Dermody added. “It’s a promise to consumers.”
Mintel reported millennials are also brand loyal. Nearly two-thirds (63%) reported they always buy the same brand, compared with 28% of baby boomers. Plans to include gourmet brands could attract and retain younger consumers with upscale offerings and high-quality ingredients.
“Many manufacturers sell on price, which in turn creates inferior products that do not encourage repeat purchases,” Mr. Kyle noted. “Our marketplace strategies differ in that we want to create a loyalty and following with our products through quality and fresh branding.”
