Bake up success

Nearly everyone loves homemade treats, so home baking in America is big business. It is an affordable way to enjoy some of the delectable baked goods sold in fancy bakeries, for just a fraction of the price.

For retailers wanting to increase sales of their store brand baking mixes and ingredients, one means of grabbing customer interest is by thinking gourmet.

“Consumers are interested in the experience of baking,” says Kim Holman, director of marketing at St. Francis, Wis.-based Wixon Inc. “With people spending more time at home, they are looking for products that they can showcase to friends and family.”

According to global market research firm Mintel, the number of premium-type baking mixes launched in 2013 jumped 100 percent from 2012. Flavors that go far beyond the basic could be a means for retailers to get into the premium game here, Holman says, citing Lindt’s white coconut brownie mix as an example of such a flavor spin.

And according to Woodridge, Ill.-based Wilton, a manufacturer of bakery decorating supplies, some of the trendiest flavors for 2014 are ones involving alcohol.

“Bourbon- and craft beer-spiked baked goods have made their way into the mainstream,” notes the company’s “Treatology” blog, which also lists Latin American flavors such as dulce de leche as popular for the year ahead.

Aligning store brand products with a familiar name could also signal “gourmet.”

“For premium indulgence, the combination of branding and ingredients help communicate the product benefits — like the Cake Boss line of cake mixes that have a pouch of bakery cream included to enhance moistness and flavor,” says John Rzeszut, senior brand manager at Jackson, Mich.-based Dawn Food Products Inc.

Packaging is critical to communicating premium. The look and feel of the box really does need to look high-quality; even the wording matters.

“Not just chocolate brownies, but triple dark chocolate brownies,” Holman says.

Look beyond premium

For baking mixes and ingredients, premium/gourmet is not the only trend making waves. Better-for-you (BFY) products also are in vogue. Falling under the BFY umbrella is the trend toward gluten-free, which is still going strong. The number of gluten-free baking mixes launched in 2013 jumped 70 percent in comparison to 2012, according to Mintel. But will shoppers keep buying gluten-free, even if they don’t have celiac disease?

“Only time will tell,” Holman says. “I think that if people lose weight and feel better, it has a solid chance of some longevity, but many gluten-free products have more sugar or other ‘not-so good-for-you-ingredients’ in them to compensate for the lack of gluten.”

Most forms of regular bread contain gluten, though, so for people with celiac disease or a gluten sensitivity, the range of baking products being introduced to the market could be of interest to them long term.

“The key for gluten-free baking mixes is to formulate products that are not just gluten-free, but also taste good,” says Evan Hyman, private label business development manager at Bridgewater, N.J.-based Ingredion Inc.

Also falling under the BFY umbrella is the trend toward cleaner ingredient statements. Consumers might be more willing to forget about fat and calories when buying a baking mix or baking products, but they still want to know what’s in it.

“Consumers are looking for ingredients that they can understand and would likely use at home,” Hyman says.

Today’s consumers also want to understand where and how the foods they feed their families are produced, says Beth Bitzegaio, sales manager at Waukegan, Ill.-based Nielsen-Massey Vanillas Inc. She adds that non-GMO (products without any genetically modified organisms) is another BFY trend still on the horizon, but quickly gaining traction.

“Non-GMO is going to be the next big trend — it is already part of the natural retailer inquiries and will become more mainstream,” she says.

Despite all of the BFY products appearing on shelves in stores all over America, there really isn’t a “dominant national player” when it comes to the BFY baking category, Rzeszut points out, and for retailers, that could be an advantage.

“It’s an opportunity to create an expertise that will draw consumers into their stores,” he says.

Convenience matters

Ingredients and packaging are only part of the equation for success, however. Home-baked desserts can represent birthdays, holidays or just quality time spent doing something with the kids. So the question of which products to offer isn’t the only one retailers need to be asking themselves — they also need to focus on when and what.

“Consumers might be shopping for a special occasion and are looking for a high-end baking mix and decorations for the mix, or they may be looking for an easy brownie mix for the weekend for their family,” Holman says, adding that she thinks retailers could be more strategic in marketing their store brand baking products.

No matter what the occasion, consumers still want it easy, even if they are baking a recipe that has others wondering if they spent all day in the kitchen.

“Manufacturers are starting to realize this and cut out steps for the consumers,” Holman says.

One way to emphasize convenience to customers is through kits, which can include ingredients such as a mix, frosting and decorations all in one package.

“Having all the ingredients in one place makes it an easy decision to purchase for the consumer,” she says.

Retailers also need to think about how convenient the packaging is for consumers. Boxed powders, for example, are not always easy to deal with.

“There is a fine line that exists between price and package,” says Dick Buxton, national retail sales manager at Terre Haute, Ind.-based Clabber Girl Corp., which manufactures cornstarch and baking powder under its own brand and for private labeling.

“It has been shown that consumers are willing to pay extra in this category for convenience and functionality or practicality,” he says, adding that customers are fond of his company’s resealable canisters.

Product placement is also an area for potential improvement. Today, a trip to the grocery store for ingredients usually involves a walk down several aisles. Retailers could dedicate one section of the store as the “go-to” location for home bakers, which could also help spur impulse sales.

“It’d be great to see an innovative retailer who’s willing to cross traditional category lines and design a space that’s fully devoted to the full home baking and decorating experience,” Rzeszut says.

Highlight quality — not price

Pricing is yet another area with room for improvement within the store brand baking ingredients and mixes space. Buxton says he has seen the price gap between branded and private label stretch as far as 40 percent, but for a product such as baking powder, which is a “very key, if not critical” ingredient, super low pricing isn’t necessarily going to pay off if customers perceive the product as cheap and therefore not trustworthy.

“There is no need to give margin away,” Buxton says.

Communication that emphasizes quality, convenience or even usage occasions is much more appropriate for this category than low pricing, Rzeszut says.

And one of the easiest and most enduring claims to put on the package is a simple American flag.

“Made in America supports the idea of American job growth as well as ‘local,’ which has been a trend for some time,” Bitzegaio adds.

Whatever the product though, and wherever it is located, don’t go overboard with the messaging.

“It can cause confusion,” Holman says. “Pick a primary message and maybe a secondary message, and call it a day.”