Bi-Monthly Newsletter May 2020

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Posted by Foodelice

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How to Maximize In-Store Bakery Sales

May 4th

 

 

Quote               Let’s Bring Back Artisan Bread to Family Tables

In-Store Bakery(IDDBA-IRI data)

As many retailers have closed or reduced their in-store bakery offering, sales for the in-store bakery (non-UPC, random-weight items, no UPC items) were off by more than 32% versus those during the same week last year. On the plus side, packaged baked goods — i.e., the “bread aisle” and packaged cookies and crackers — continue to sit comfortably above last year’s sales (at 5.2% and 4.7% gains, respectively). The in-store bakery has an opportunity to delight shoppers with grab-and-go items, especially in smaller safe pre-package sizes.

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Going up against Easter 2019 sales, bakery had a significant down week. Easter typically sees a significant bump in both indulgent and functional items as consumers celebrate with family and friends. All retailers and wholesalers had stocked up for Easter. They are now selling out excess inventory

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Opinion     Some Explanations

What continues affecting in-store bread sales?

  • Consumers have reduced the frequency of grocery store visits, therefore looking for items that last longer.
  • Increased online shopping, making it difficult to offer fresh baked breads.
  • Bread merchandised in crafted bags and/or bulk bins are not likely to be perceived as safe foods.
  • Store trafficrestriction and reduced opening hours make it challenging to plan labor and production.
  • Consumers have reconnected with home baking, a temporary activity.

 

We are certainly discovering new reasons as we continue this stay-at-home ruling. A newinteresting story just came out this past week. A Real Canadian Superstore in Ontario, Canada has urged their shoppers who bought bread on the weekend, to throw the bread away, after a bakery employee at the store tested positive for coronavirus. Of course, the risk is very low, but it doesn’t bring consumer confidence.

Some Opportunities

Taking those facts into consideration, the “Thaw and Sell” pre-packaged bread program may not be a bad idea after all. Shoppers benefit from:

  • Breads and rolls being packaged in a tamper-proof bag.
  • 7-day shelf life – coincide with ounce a week visit.
  • Easy to merchandise – no labor required and easy to plan.
  • Easy to mass merchandise while reducing risk of product shrinkage.
  • Perfectly suitable for online grocery shopping.
  • Can also be sold in freezer case.

We suggest The Mad Bakers and Oforno Brands:

  • Artisan breads and rolls.
  • Marketing prices that defy competition.
  • Maintain store gross profit margins while no labor required.
  • Attractive brands that can be merchandised in in-store bakery fresh department displays, freezer case and/orideal for online grocery delivery.

Ask us about how The Mad Bakers proven “Thaw and Sell Bread Program” can help you maximize volume and profits!

 

Please contact us, we’ll be glad to build a custom program for you.

 

Info@nullfoodelice.com

 

USA 954-997-9965

Canada 514-781-9787

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