On a "roll"

Prepared Foods, March, 2005 by Christy Brinnehl

* Healthy wellness market

* Providing convenience

* Premium and indulgence emerge

The baked goods category covers a large spectrum of products, ranging from breads to cakes to cookies. For the most part, these markets are saturated, keeping the competitive landscape exciting. With this said, quite a few common trends reigned during 2004--health and wellness, convenience, positioning toward children, and the ongoing emergence of premium flavoring and indulgent choices.

"Low in--"

Throughout 2004, the number-one trend seen across all spectrums was health and wellness. This covers all areas, including "low in--" claims, fortification, functionality, etc. Within baked goods, heavy activity was seen in products touted as low-carb. This much-publicized trend, however, is beginning to morph into something more substantial, a trend that can benefit more than just those consumers participating in fad diets. Product claims such as low-sugar, low-glycemic index, and "suitable for diabetics" are making their way into bakery items, although this is not particularly surprising, considering 18.2 million Americans currently suffer from diabetes, according to the American Diabetes Association (Alexandria, Va.). Most of these products were seen in cookies and crackers, and introduced by smaller companies such as Fifty 50 Foods (Florham Park, N.J.), which launched Low Glycemic Hearty Oatmeal Cookies. These cookies are formulated for use in a low-glycemic diet and are sweetened with fructose. Outside of cookies and crackers, Bimbo Bakeries U.S.A. (Fort Worth, Texas) introduced Oroweat Sugar Free Bread--bread free from hydrogenated oils and trans fat, and aimed at diabetics and consumers who value health benefits, but still desire good taste.

The most frequently seen "low in--" claim, apart from low-carb, was low-fat. Applied to both bread and bakery items, this positioning has increased substantially since 2003. In August, General Mills (Minneapolis) extended its Pillsbury Grands! biscuit line to include Reduced Fat Original Flaky Layers Biscuits and Reduced Fat Homestyle Buttermilk Biscuits, which contain 25% less fat than the original. Additionally, Recommended Foods (Oklahoma City, Okla.) launched Luscious & Light Cream Cheese Brownies. The brownies contain 50% less tat than regular fudge brownies.

Raising the bar this year for not only health and wellness, but also convenience, was Kraft Foods (Northfield, Ill.). The release of its 100 Calorie Packs provided consumers with mini versions of their favorite indulgences, such as Oreos, Wheat Thins, Cheese Nips and Chips Ahoy! The products contain no cholesterol, are low in fat and contain only 100 calories. The convenience factor is high here, as consumers can grab a bag while on the go, as well as easily locate the calorie content.

Functionality and Fortification

Functionality and fortification were two additional positioning claims used by companies in 2004, taking the healthy aspect of baked goods to a new level. A good example of functionality is Kashi's (La Jolla, Calif.) release of its Heart to Heart Waffles, which are said to reduce cholesterol and support healthy arteries. The waffles contain oats, whole grains and sesame.

In regards to fortification, Nana's Cookie's (San Diego) Cookie Bars fit this positioning, as they contain 12 vitamins and minerals. The introduction of 2 Sweet Kidz (Greenburg, Pa.) SnackWize Cookies also provide a good example, as they contain natural and organic ingredients, added protein, calcium, iron, niacin, and vitamins A, B1 and B2.

Convenience Factor

Activity in products touted as convenient remained strong throughout 2004. The presence of single-serve, on-the-go packaging and quick preparation were definite highlights. General Mills led the way, releasing Pillsbury Perfect Portions. The place-and-bake biscuits were designed to fit consumer lifestyle needs of convenience, portion flexibility and simplicity. They are packaged in peel-open pouches, so consumers can bake just two biscuits and refrigerate the rest for later. Sara Lee Bakery (St. Louis) also introduced Quick Cups--individually wrapped, single-serving cups of chocolate cake topped with fudge icing. The cups can be heated in the microwave for 25 seconds. Lastly, Pepperidge Farm (Norwalk, Conn.) launched On the Go! Milano Cookies, an extension of its On the Go! line, which historically has included only snacking items, such as crackers.

For the Kiddies

Grabbing a child's attention with baked goods is not a difficult task, particularly when it comes to cakes and cookies--just picture a child in the cookie aisle of a supermarket! Companies, however, constantly are devising innovative ways to do so through packaging, flavors and fun shapes. Promotional marketing in 2004 for newly released movies and television shows seemed like the way to go, as evidenced by Kellogg (American Idol, SpiderMan 2, etc.) and General Mills (Shark Tale, Shrek 2, etc). Flavor-wise, Keebler (Kellogg, Battle Creek, Mich.) introduced S'mores with Sargento Dip, which features a milk chocolate bar and a marshmallow dip with honey graham crackers, while Kellogg launched Pop-Tarts Chocolate Chip Cookie Dough Toaster Pastries. Additional interesting kid-centric products included Color-A-Cookie Tic Tac Dough Cookie Game and General Mills' Pillsbury Dunkables French Toast Sticks with Syrup Cups.