australian society of baking 19 th october 2011 shannon o’connell, national sales manager kate...
TRANSCRIPT
Australian Society of Baking19th October 2011
• Shannon O’Connell, National Sales Manager• Kate Hurley, Category Development Manager
Agenda
Market Trends
Kate Hurley
Category Development Manager
International Trade Show
Shannon O’ Connell
National Sales Manager
• Bakery industry influences & drivers• The bakery shopper• Bakery mega trends• Future growth opportunities
• International Dairy Deli and Bakery Association (IDDBA) June 2011• New products
Market InsightsKate Hurley
__________________________________________________________________________________
Consumer/Shopper
Retail Environment
Grocery
46% share
Specialty/Route/P&C
33% share
Foodservice/Away from Home
21% share
The major supermarkets will continue to dominate and grow their share of Australian’s bakery goods expenditure.
Source: BIS Shrapnel, Aztec, Internal Estimates
The Shopper
SINKS/DINKS
% of Pop: 48%
Defined: Single Income No Kids(SINKS) and Double Income No Kids(DINKS) are typically aged between 25-35
• More disposable income • Quality, premium & gourmet • Willing to try new products• Entertain regularly• Single serve options
FAMILIES
% of Pop: 35%
Defined: Younger families have kids aged5-12 years and older families have kidsaged 13-17 years
Younger Families• Switch between brands
Older Families• Volume and private label based
EMPTY NESTERS
% of Pop: 17%
Defined: Empty nesters are parentswhose children have flown the familynest. They are aged 55 years+
• High disposable income• Brand loyal • Value for money• Less open to new products• More likely to buy mainstream
Source: Retail World, Australian Bureau of Statistics
Sinks/Dinks and Empty Nesters, currently two thirds of the market and growing, will be the key target groups with higher incomes seeking specialty products.
Demographic & Socio-Economic Drivers
65% of population growth is driven by migration
Population
Couples will outnumber families in the next 5 yearsHouseholds
The proportion of Australians over 65 is projected to increase from
13.9% to 22.6% in 2050Age
Average household income grew by 4% year on yearIncome
Increased demand for more ethnic products
Rising demand for smaller portion sizes
Products will need to be adapted to appeal to mature customers
Ongoing demand for premium products
The demographic and socio-economic factors in Australia will drive the need for more ethnic products, smaller portion sizes, high quality premium offerings and products that appeal to the over 65 age group
Source: ABS, Datamonitor
Influence of the following factors choosing food and beverage products
8169
55 5542 41 39 37 37
27 22 21 2013
Ta
ste
or
fla
vo
r
Pri
ce
He
alt
h
Ha
bit
or
pre
ferr
ed
bra
nd
Co
nv
en
ien
ce
Co
un
try
of
ori
gin
Sc
en
t o
r a
rom
a
Ab
ilit
y t
o s
ha
re
Re
co
mm
en
da
tio
ns
fro
m f
rie
nd
s/f
am
ily
Pro
du
cti
on
me
tho
ds
Eth
ics
/Su
sta
ina
bil
ity
be
ne
fits
Bra
nd
na
me
or
ima
ge
Cu
sto
miz
ati
on
be
ne
fits
Pa
ck
ag
ing
de
sig
n
Showing ‘high’ or ‘very high’ influence
Influences When Choosing A Food Product
%
Source: Datamonitor BFCM0401, August 2010
The fundamental importance when choosing a food or drink is sensory appeal and value for money. Over half of Australians are also highly influenced by health.
Bakery Mega Trends
Natural/clean label
Functional ingredients
Seeds, grains & oats
Nuts & fruits
Organic
Gluten Free
Customised
Occasion Specific
Consumer Focused
Ethnic Proposition
Gourmet/Indulgent
Exotic flavours
Traditional/Authentic
Experience
Exclusive
Portion Control
Real Value for Money
Address a need
Bakery Innovation
Drivers New product launches need to deliver against
mega trends to be successful
Product innovation is a key driver of growth within the
Bakery market
Bakery Industry Influencers
Private label market share is expected to double to 50% by 2025Private label market share is expected to double to 50% by 2025
Increased labour and rent costs are big challenges Increased labour and rent costs are big challenges
Consumer confidence is in declineConsumer confidence is in decline
Increase in imported productsIncrease in imported products
Growth in the demand for convenient fully finished formatsGrowth in the demand for convenient fully finished formats
22
33
11
55
44
The baking industry will be influenced by private label growth and imported products, increased labour costs, declining consumer confidence and increased demand for convenient formats.
Source: Rabobank, Datamonitor
Future Growth Opportunities
• Expand tiered offering
• Increase specialty offering
• Smaller convenience store formats
• Retailers and suppliers working together
• Implementing shopper marketing strategies
• Online retailing
• Social media
• ‘Village market’ feel
Retail Foodservice
• Regional expansion
• Product range expansion & improvements
• Celebrity endorsements
• 24 hour service
• Moving out of shopping centers
• Day part marketing
• Social media
• Experiential Merchandising
What does this mean?
Consumers are highly influenced by taste, price and health
Future product innovation and investment need to correlate with these
trends
IMPLICATIONS MARKET TREND
Increase in migrants, smaller households, over 65 population and
average income
Develop ethnic, mini, premium product concepts and adapt products to mature
consumers
The major supermarkets will continue to dominate and grow
Shift in manufacturers to entertain more private label manufacturing
Retail and foodservice players are under pressure from increasing costs
Decreased shop footprints and a move towards convenient formats
International Trade ShowShannon O’ Connell
__________________________________________________________________________________
IDDBA Show held in June 2011 at Anehaim CA
• A 3 day event once a year
• Largest show in the world serving these categories
• 1,500 booths focussed on new products
• Broad spectrum of exhibitors from large multinational exhibitors
(CSM, Richs, General Mills) to small independently owned
businesses
• Over 8,000 attendees
• Fantastic guest speakers (Dr Condeeleza Rice, Joe Montana etc)
Rich’s Ancient GrainRange of all natural breads, one popular flavour being Ancient Grains supported by the Whole Grain stamp
Rich’s Par Bake All Natural range
Thin please…. sandwich bunsTurning thin…… sandwich thins popular in US and UK.
The bagel has also turned thin..Not just sandwich thins….introducing the `thin` Bagel
Various different flat breads with unique shapesFlat bread across a variety of shapes, ingredients and formats. Is this also
a case of clutter claim?
Functional Probiotic bread with GanedenBC30 to promote digestive health
Calorie counting across bread, cupcakes, biscuits etc….Calorie Counting to encourage sensible indulgence
Sugar Free (just add splender)Sugar alternatives with splender
Or is it……With Out Wheat
Improvement in taste and texture performance across gluten free products as technology improves
Kuko Bites
Wheat and dairy free. Packed with seeds, nuts, dried fruit, goji berries and cocoa nibs.
Wheat free and dairy free. Packed with seeds, nuts, dried fruit, goji berries and cocoa nibs
Supporting Breast Cancer Awareness with a Berry 5” Cake
Novelty donuts drive incremental sales during key seasonal or event activities
Key Focus Is Artisan
Canadian Baker – Boulart. Unique shapes all par bake
Ace Bakery - Raisin and Walnut
Focaccia flat style also popular
More shapes…..
Chunky hand cut cookiesHandcrafted chunky cookies with natural ingredients
Textured…filled and centredAll about texture….filled, soft, crunchy, oozing
Filled scones
`Centerfuls are delectable dollops of flavour surrounded by a soft chewy cookie`
Layer upon layer upon layer…….
“Desserts can fit into an overall healthy diet when used in small portions and balanced with healthy foods," said Melanie Douglass, a dietitian, personal trainer
and author of a new weight-loss book called "Losing It! 5 Keys to Successful
Just for me….
Layer upon layer upon layer…….Bite sized treats…..another dimension to portion control
Bite size Brownies
$19.004” – 6” cakes
$8.00
For the couple households – 5 “ cakes are exploding!
An American classic….. Red Velvet donuts, cookies, cupcakes, whoppies…..
In summary……
Natural clean label
Thin/Flat
Functional
Calorie Counting
No Added Sugar
Gluten Free
Kids Celebration Cakes
Cause-related
Seasonal Events
Artisan
Texture
Handcrafted
Portion Control
Exotic Flavours
Real Value for Money
Address a need
Bakery Innovation
Drivers
Thank you…
Please feel free to approach Kate or myself if you wish to obtain our contact details.