David Wagstaff is the newly appointed managing director at St Pierre Groupe. Having previously held high profile commercial and management roles with some of the world’s biggest food brands, he had been running the US operation of St Pierre Groupe for two years before taking on role of managing director in December 2022.
The St Pierre Groupe includes the St Pierre, Baker Street and Paul Hollywood brands in its portfolio and whilst it’s headquartered in Manchester, the business has offices in Ohio, USA, too. Here, Wagstaff discusses the impact of a cost-of-living crisis, emerging trends, new products and advice on staying one step ahead in a fast-paced category.
How has the cost-of-living crisis affected people’s eating habits? What kind of trends are you seeing as a result?
What happens when consumers ‘feel the pinch’, is not that they spend less money necessarily, but that they become more discerning with where and how they spend that money. This translates into shoppers investing in trusted branded goods that are known for high quality and consistency, ensuring great value for money.
The financial difference for consumers between buying ‘good’ or ‘best’ can be marginal – therefore, shoppers are more likely to opt for the better quality, or premium offering. It’s different if you’re talking about cars or high-value purchases, but everyday grocery brands are subject to a different purchase journey – and knowledgeable brands – and retailers – should be ready to highlight quality goods to shoppers.
This also creates an opportunity for St Pierre specifically; because we win out in independent tests on taste, texture and flavour, we understand that driving trial is key. Whilst inflation might create a more risk averse consumer, perceived quality and what consumers spend their money on is so important.
Inflation is being felt across the board, in every sector. So, there’ll be two camps of shoppers, those who spend a little extra knowing they’re getting a better quality and reliable product and become brand loyal; and those who don’t spend the extra, but then don’t have an experience that keeps them coming back.
We are working with retailers to help protect basket spend in a climate where perceived value is vital to shoppers.
This year, you launched new brioche bagels in the UK. What inspired this product development?
The brioche bagel launched in America first and was a product of many years of development. Bagels are an American staple and bringing some French flair to an American classic is a formula that has worked well so far to make St Pierre America’s number one brioche brand. Equally, in the UK, breakfast is a booming market – with Brits eating an extra half a billion breakfasts in 20211 . The appeal of a bagel is two-fold though; an established part of the UK bakery repertoire, bagels are in growth and increasingly used for lunchtime occasions too. We have a unique proposition with our soft brioche bagel that offers something different while combining two growing markets.
Do you have NPD planned for 2023?
Any new product development is born of research and insight that demonstrates our products will meet consumer demand. In the US, we have a pipeline of new products coming down the track and often, we see US trends cross the pond to the UK. If that happens, we’ll be in a strong position to meet consumer demands in the UK with a product range that is ahead of the curve. That was certainly the case with our brioche bagels.
In the last 12 months, we have launched a number of new products in the UK, including our brioche bagels and a new vegan range of morning goods under the St Pierre brand and so now, rather than focusing on new products, we are looking at pack sizes and how best to cater to changing consumer habits. That said, we are busy preparing for the potential impact of new HFSS legislation and whilst I can’t say too much about that currently, we are making sure that we will continue to offer the best quality products available.
How do you work with retailers to maximise bakery sales?
This is a full-time commitment. We will always work with retailers as partners. The bakery category is fast-moving and ever-changing. We invest a huge amount in research and insight so that we can be helpful to our customers and we take notes on what the competition is doing. As a sector, it’s dynamic and we are leading the way, trying new things and working in partnership with our customers to get the best results.
We’re also transparent with our findings. The team are in stores every week, reporting back on trends, NPD and merchandising. We are producing independent bakery reviews that we share with our partners. Insight is central to everything we do, and we share that because when our customers do well, we do well.
Beyond that, we are leading the way with merchandising solutions that create in-store theatre. Our brand experience starts in-store and carries on at home; but the creation of that experience not only provides excitement and interest for our brand in-store, but also drives incremental sales and a longer dwell time in-store which benefits retailers. Whether we do that through our striking Eiffel Tower displays or through our innovative branded bays which we introduced to UK retail in 2022, we are always looking to go bigger and better to deliver the best shopper experience possible.
What are the biggest challenges facing the bakery sector right now? Do you have any advice for businesses?
The past few years have been challenging for the industry across the board. Rising costs of ingredients, production and freight, matched by labour shortages have meant bakery businesses have faced strong headwinds. However, St Pierre has continued to face challenges head on, grow and assign resources to prepare for future trials. Throughout the last 12 months, we have invested heavily in our US and UK supply chain to ensure we continue to serve our customers at the impeccable level for which we are known.
The other challenge the industry will need to address is the affordability of basic food items. We are seeing the impact of inflation in both the UK and the US – and whilst it means that for many, purse strings will be tightened as costs continue to rise, there is an opportunity for brands like ours.
Now is a great time for retailers to lean into premium brands – with the understanding of what ‘premium’ means for shoppers – beyond price point. For consumers, the trend for premiumisation is here to stay. Previously, shoppers were elevating their meals at home because they couldn’t travel or dine out in the pandemic. Now that the cost of living is on the up, consumers are still looking to treat themselves well at home. Preparing and consuming better-quality foods along with entertaining guests at home is once again becoming more convenient and cost effective than dining out. Elevated meals and quality products that save shoppers time and provide an easy solution for quality entertaining at home are doing well throughout the store.
Retailers offering a trade up in one area of the grocery store can drive increased sales in other areas. For example, a shopper who opts for a premium brioche burger bun from St Pierre is more likely to pair it with premium meats and cheeses. Our innovative merchandising and standout branding catch the attention of shoppers – and we know that St Pierre shoppers have a higher basket spend as a result of opting for our quality baked goods.
We know what the impact of supermarket price-matching and increased cost of living has on the ‘middle shelf’. As a result, we’ve seen time and again that premium brands win out. European retailers combat that ‘squeeze’ of the middle ground by opting for branded offerings that deliver excitement and theatre in the fixture. St Pierre is well-placed to help retailers do just this and we are seeing this trend developing – reinvigorating bakery, by delivering a quality shopping experience that starts in-store and continues at home.
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