The total pre-packaged sliced bread category was worth over £1.8bn over the latest year, selling over 1.5bn loaves (Nielsen).
Over 55% of total units (Nielsen) in pre-packaged bread are white at present.
Given the current economic climate, many shoppers are buying fewer different types of bread for their households (Nielsen) and are increasingly moving towards pre-packaged white bread (Nielsen), which is most likely to satisfy the needs of multiple people. It is therefore clearly important for retailers to stock white bread as it is a potential “crowd-pleaser” for everyone in the household.
“However, it’s also crucial not to forget to offer choice via the other bread types,” comments Alistair Gaunt, Commercial Director at Hovis. “For example, bread with seeds and grains accounts for over 18% of loaves sold and brown/wholemeal for nearly 14% (Nielsen). With this in mind, stocking products such as Hovis Wholemeal and Hovis Seed Sensations (the nation’s #1 brand of bread with seeds and grains, Nielsen) should also be key areas of focus.”
With 53% of shoppers looking to save money by eating out less (Focus Insights), supermarkets are increasingly linking up with branded restaurants to produce ready meals and kits to offer “eat out at home” style deals (Mintel). Occasions for these restaurant-style meals don’t have to be limited to dinner and stores can inspire shoppers with breakfast/brunch items or options to help “elevate” their lunch or even as a delicious snack.
In terms of the breakfast occasion, despite many consumers now returning to the office, figures from Mintel show that eating breakfast at home remains the most common consumption location, with 57% eating breakfast at home every day in comparison to just 5% eating it out of the home.
“Traditional” breakfast items (e.g., crumpets, English muffins) grew +0.9% in units over the latest year (Nielsen). Hovis is well-placed to help retailers respond to this rising elevated breakfast / brunch trend with both Hovis Bakers Since 1886 Crumpets and English muffins (with Barber’s Farmhouse Cheddar) firm favourites for the occasion.
Given the rising demand for value, the latest year has seen shoppers increasingly shift their purchasing from all the other major sectors into white bread (Nielsen), as white bread generally has one of the lowest average prices per loaf (Nielsen).
“Whilst many shoppers may be looking to save money (in light of rising prices), there is still a huge desire for quality bakery products from recognised brands like Hovis that consumers know and trust,” adds Gaunt. “The extensive Hovis range continues to offer shoppers a broad range of products from a well-known brand satisfying different needs and budgets with a product that is consistently recognised by consumers as better quality.”
Matt Grenter, Retail Sales Manager, Brioche Pasquier, comments: “Customers look to the bakery category for reliability and consistency. Bread is, after all, one of the most important store cupboard staples. However, consumers are increasingly also looking for a change from the ordinary. This could be in the form of bread subsectors, such as tortillas, bagels, and pastries, though these alternatives do not deliver the exact same functionality of bread itself. Different styles of bread are seeing an uptick in popularity, as consumers become more adventurous when looking for different tastes but require the consistency that traditional bread offers.”
Brioche Pasquier brioche bridges both types of buyers. It offers good value, high quality, convenient and family friendly varieties. It also is a step away from the traditional sliced loaf and white bun, offering a slightly sweet and softly textured variation which consumers are increasingly enjoying.
“Retailers need to keep their bakery shelves dependable while at the same time adding interest with new and different bakery products,” adds Grenter. “Brioche Pasquier offers the comfort of a familiar, well-established brand with a sprinkling of continental glamour to make the offering more exciting.”
Jen Johnson, Head of Marketing – Cake, Dr. Oetker Baking, comments: “Despite the cost-of-living crisis, which has seen consumers across the UK tightening the purse strings, customers still like to celebrate special occasions even when budgets are restricted. Additionally, when budgeting, many consumers will swap their days or nights out for staying home and creating their own occasion, for example making homemade brunch or afternoon tea in place of visiting a restaurant. Although budgets are tightening, celebrating events continues to grow and we expect to see key events perform well such as the King’s Coronation, based off the success of the Platinum Jubilee.”
After a period of huge growth during COVID, the baking category has started to return to normal levels of growth, with sales moving from a -2% decline in the 52 weeks to +9% growth in the latest 12 weeks (IRI). We can attribute the main driver as inflation, as shoppers are spending more through inevitable price increases.
As always, food trends continue to evolve and within home baking this is more focused around the type of product or occasion. Over the last year we have seen less demand for larger portions such as family tray bakes, and increased popularity in individual and indulgent products. Out of home, customers are willing to pay for luxury coffee shop and on-trend products at around £3 -£5 per portion. Consumers are now looking to recreate these products in their own kitchens for a fraction of the price, enjoying a luxury treat moment at home.
The home baking category is seeing most of its growth during key seasonal events, with sales during the Christmas period seeing a +23% uplift vs. the previous year (IRI). This was aided by range expansion of seasonal lines; however, the main growth driver has been inflation for the home baking category.
“In order to maximise sales in the home baking category, executing seasonal events is key,” adds Johnson. “Home baking is often a popular pastime for special occasions and supporting seasonal events with specific lines is a great way to bring excitement to the category. Dual-siting products in the baking aisle and in any feature space is crucial for converting new shoppers into the category, on top of supporting core ranges with promotions and inspiration.”
Rachel Wells, UK Sales Director, St Pierre Groupe, comments: “The key subsectors in bakery that retailers should be focusing on in 2023 are bread, morning goods and rolls, and St Pierre Groupe’s power brands St Pierre, Baker Street and Paul Hollywood are strong performers in all three.”
St Pierre, the number one brioche brand, offers brioche in many formats, including the recently launched St Pierre Brioche Soft Bagels and Mini Brioche Buns. It’s also a leading supplier in rolls, with 4 branded rolls in the top 12 value rankings, St Pierre Brioche Burger Buns (4 pack) launched last year, St Pierre Brioche Buns (6 pack), St Pierre Brioche Hot Dog Rolls and St Pierre Seeded Brioche Burger Buns (4 pack). In morning goods, St Pierre has a strong selection including Vegan Croissants and Vegan Pains au Chocolat.
“The two key trends for retailers to bear in mind are indulgence and premiumisation,” adds Wells. “There’s a lot happening in the world, but that doesn’t change the fact that, as the Platinum Jubilee proved, and the King’s Coronation celebrations will no doubt confirm, when they get the chance, people like to forget their troubles and enjoy themselves with bakery treats. For everyday eating, shoppers are looking for bread products that enhance their daily lives by offering a point of difference.”
“We recommend offering a variety of complementary products that allow shoppers to ‘elevate’ their regular offering to something a little more special. Bakery products that provide long-life, multi-pack formats, like those from St Pierre Groupe, can also help to reduce food waste, which is key for wholesalers, retailers and out of home operators, but increasingly relevant for shoppers too,” suggests Wells.
The St Pierre Groupe brand portfolio includes number one brioche brand, St Pierre, long life bakery name, Baker Street and part-baked category leader, Paul Hollywood. Its brands all benefit from extended life, which has boosted success in the retail and out of home sectors, allowing retailers and operators alike to navigate unpredictable shopping and dining habits – guaranteeing availability and reducing wastage.
Danielle Dransfield, UK Brand Director at St Pierre Groupe, comments on behalf of the Paul Hollywood brand: “As a result of the interest in healthy eating and nutrition following the pandemic, consumer behaviour has inevitably shifted, leading to a number of ongoing trends. These include shoppers ‘trading up’ on their usual staples to something more premium, like part-baked bread, in which Paul Hollywood, part of the St Pierre Groupe portfolio, is a leading brand. The Paul Hollywood Ready to Bake range can be tailored to suit any mealtime, from sharing boards to an accompaniment alongside a main meal. It also appeals to those who are looking to serve freshly made bread, but don’t want to bake it from scratch, offering convenience and versatility.”
Home baking sales have benefited from consumers taking a growing interest in food, nutrition and healthy eating. Many of these consumers have now returned to their offices and no longer have the time or skillset to bake from scratch but are still looking to add a premium twist to their meals, whether that be breakfast, lunch or dinner. Part-baked bread goes some way to address busy consumers’ desire for home baking, and offers a convenient, premium solution. While part-baked bread volume sales have inevitably come down since the record heights seen in the pandemic, the Paul Hollywood range, which includes Rustic Rolls, Crusty Rolls and Multi-Seed Rolls, has benefited long term from the ongoing trend of ‘trading up’, as it provides both quality and convenience.
As consumers adjust to the current economic conditions, the Paul Hollywood Ready to Bake range continues to perform well thanks to their high quality and great taste, with the Paul Hollywood Ready to Bake White Crusty Rolls and Rustic Rolls and Multi-Seed Rolls making up three of the top six branded part-baked breads (Nielsen Value Sales – L52 Weeks Oct 22nd, 2022). The Paul Hollywood Ready to Bake range’s extended shelf life also means that retailers can cater for smaller households looking to add something special to their meal occasion. They can be used alongside a host of dishes, or as a carrier for gourmet sandwiches.
Mark Frossell, Senior National Account Manager at St Pierre Groupe, comments on behalf of Baker Street: “The Baker Street brand is in long-term growth and is a must-stock for retailers. The Burger Buns and Hot Dog Rolls, which are cleverly packed to stay fresher for longer, are performing well as they meet consumer needs around creating impromptu take away classics which can be easily handled, whilst helping to reduce food waste. They also cater for the whole family and multiple meal occasions – something that is a very attractive proposition to consumers.”
Baker Street is helping retailers keep consumers coming back for more in the cost-of-living crisis with a calendar of promotional activity and above the line campaigns throughout the year. The brand focus will be on further pushing brand awareness, driving trial and extending distribution. The brand offers long-life bakery products, and attitudes towards extended life products are changing. All Baker Street marketing and advertising activity is designed to communicate the benefits of its long-life proposition for retailers and consumers, for whom food waste is a growing concern.
Josh Corrigan, Customer Development Director, UK at St Pierre Groupe comments on behalf of the St Pierre brand: “Retailers should look at where growth is coming from in their stores and dedicate extra product facings where possible to high performing products. The growth in croissants and in burger buns and hot dog rolls – especially from St Pierre, which also offers extended shelf life and helps reduce wastage with these time-sensitive products – means that retailers can be ready for unpredictable sales uplifts.”
Another important sales driver for retailers is food to go. Savvy retailers will take cues from foodservice and approach the fixture as more of a destination. As coffee shop competitors, stand-alone retailers and stores attached to forecourts need to think about how to engage their audience and provide reasons for consumers to choose them. Offering a full range of brand-led products is one way to keep customers coming back. St Pierre’s morning goods products are designed to help shoppers recreate the café culture wherever they are – at home, work or on-the-move in between, so can be merchandised on a bakery fixture, in a food-to-go area or alongside other sweet treats, like cakes.
All the St Pierre products offer an extended shelf-life, which is resulting in growth across the board, as they are increasingly popular with consumers watching their purses. Such products also enable retailers to provide a strong bakery offering throughout the year, minimising the risk of wastage.
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