Low-carb and wellness trends transform bakery sales: packaging is a key ingredient in spurring consumers to make informed buying decisions

Food & Drug Packaging, June, 2004 by Deirde Sokol

Fierce competition in the baked goods category has not only given rise to inventive recipes, but creative packaging concepts as well. Savvy bakers have tapped into the American conscience to move product off the shelf and into American pantries. Trends like convenience, health and indulgence are high on every shoppers list and consumers are hungry for products that meet these lifestyle choices.

Exploiting current trends, however, is only a piece of the pie. In the race to rise above the competition, baked goods manufacturers are adding an extra ingredient to their secret recipes. Innovative designs are now standard weapons in any sales and marketing battle plan. Pretty packages look nice, but more important they stimulate sales. More sales activity means a bigger slice of market share and healthy profit margins. Since lifestyle trends affect each category differently, it's up to brand managers to cook up inventive packaging solutions that communicate appealing messages to consumers in the blink of an eye.

The low down on low carb

Consumers' thirst for low-carb products shows no signs of being quenched. According to the Natural Marketing Institute's Wellness Trends Database, the amount of Americans who tried to loose weight by going on a low-carb diet grew 50% in 2003. This bumper crop of consumers is a market windfall for baked goods brand managers hungry to eat up more market share--if they can find the right message.

With so many people avoiding breads because they're high in carbohydrates, how do baked goods manufacturers grab a bigger slice of a shrinking pie?

Low-carb dieters might not have to eliminate bread entirely. They may just switch to a more carbo-friendly type, such as a multi-grain product.

Experience shows that product alone isn't enough to seal a deal. Marketing gurus are putting more stock in clever, eye catching and consumer friendly packaging to close a sale. An appealing package can influence a consumer to switch from one brand to another.

For bread makers like Natural Ovens Bakery of Wisconsin, all it took to stand out on the shelf and entice old and new consumers to sample their loaves was a simple paper insert. The bakery added a newsletter in between the over-wrap and primary packaging. The insert was a minor production change that added to the brand's appeal.

"Customers look forward to reading it," says Barbara Stritt, one of Natural Ovens owners. The 11-inch long, folded natural-looking paper insert explains the health and wellness benefits of natural low carb ingredients and fits snuggly between the double wrapped loaves. The newsletter is strategically positioned so consumers get a peek at it between the plastic wraps.

The carbo craze has also served as an excellent entree into the marketplace for powerhouse bakeshops, but with only a nanosecond to capture a busy shopper's attention, the recipe for success means not skimping on creative packaging ingredients. Creativity doesn't always have to be expensive, or a total redesign, to be effective. It just has to be distinctive--something that sets a product apart from the competition.

When the Sara Lee Bakery Group rolled out its new Delightful bread category, brand managers wanted a continuation of the traditional Sara Lee packaging. While standard in terms of materials, the uncluttered design strikes a healthy balance between brand recognition and product differentiation. Clear packaging lets consumers see the bread from the top or the side or the end. The idea was to use packaging to show off the product and at the same time, generate brand recognition. "When you put multiple loaves on a bread shelf, we really want them to work together so you get one big Sara Lee red wave going," explains Matt Hall, Sara Lee's vice president of communications.

The brand also appeals to health conscious consumers because of its reduced calories and carbohydrate content. A starburst highlights the number of carbohydrates per slice to help consumers make a more informed buying decision amidst today's confusing low carb labeling claims. Sara Lee packaging designers also added the starburst so that it could be easily removed without completely redoing the package graphics, just in case the low-carb craze calms down or dissipates entirely.

Kansas-based Interstate Brands Corp. (IBC) added health conscious consumers to the recipe when it developed its new super premium breads, Baker's Inn[TM]. In addition to a honey white loaf, the line also features seven other grain-based breads that appeal to the health conscious side of shoppers. Unique in-store displays have been designed to evoke the image of a corner store front with a hanging Baker's Inn sign and color-striped awning.

Indulge yourself, but not too much

Low-carb formulations are just one way to stimulate market appeal. Some companies tackle the health and wellness issue by portion control, including Sara Lee. In fact, the skinny on how the low carb craze has affected its dessert line is positive. "What we've heard back from our research is that people would rather have a little bit less of something they really like," explains Jonathan Bloom, brand manager of the company's pie division. "People who are eating desserts generally aren't doing it because it's a healthy ting to do, they're doing it because it's a treat."