When the highlight of the year is the bankruptcy of a major player, as was the case of Hostess Brands in 2012, it is going to be a rough year. That pretty much describes 2012 for baked goods, including cookies and crackers.
New product introductions lost altitude like balloons the day after New Year’s Eve. Launches of new baked goods (including bread and rolls, cakes, pastries and morning goods) dipped 37.3% in 2012, says Datamonitor’s Product Launch Analytics. Cookies and cracker launches dwindled, too, dropping by 51.1% and 34.5%, respectively. Looking past the drop in new products, a lot of new product action still managed to set the market up well for 2013 and the future.
Make no mistake, ancient grains continue to be a top flavor and ingredient story in bread products. Indeed, this is part of a long-term health makeover for bread. According to the “Shopping for Health 2012” survey, sponsored by the Food Marketing Institute, 55% of U.S. grocery shoppers have switched to whole-wheat or whole-grain bread since 2010. In addition, 33% of consumers say they are concerned about the presence of protein on product labels, up 10 points since 2009.
No doubt, consumers are reading product labels more closely. This, combined with the trend toward higher protein foods, seemed tailor-made to set the stage for ancient grains in 2012. Examples include One Degree Flax & Spelt Bread, Nature’s Path Heritage Ancient Grains Bread and Van’s Natural Foods 8 Whole Grains English Muffins (with millet, buckwheat, flax and more). The trend transcended national borders, with Wickbold Chia & Macadamia Bread launching in Brazil.
Additionally, ancient grains got a helping hand from continuing interest in the gluten-free concept. Gluten-free baked goods (excluding cookies and crackers) rose from 3.6% of launches in 2011 to 8.4% in 2012, says Product Launch Analytics.
Flax is a rising star in bread and is popping up as a headline ingredient with growing frequency. That was the case with Flax4Life Flax Sandwich Buns, Udi’s Gluten Free Foods Omega Flax & Fiber Bread and Food for Life Ezekiel 4:9 Sprouted Flax Grain Bread. Flax contains plant-based omega-3s, although it is not clear how much this matters to consumers.
The “Shopping for Health 2012” survey found a 1% decline in the percentage of U.S. grocery shoppers saying omega-3s are “of concern” when examining product labels between 2010-2011. Specific health claims aside, flax can help communicate that a product may be less processed and more “natural.” This can resonate with shoppers, as nearly half (49%) say they are buying fewer processed foods, says “Shopping for Health.” But, the question remains: How many can identify the specifics behind this sentiment?
No matter, baked goods makers were helping with that. Breads formulated with seeds say “less processed”—this is demonstrated by Whole Foods Market’s Bakehouse Seeduction Bread with sesame, millet, pumpkin and poppy seeds. Another tactic was to highlight ingredients closely associated with health, like oatmeal. Kellogg’s Pop-Tarts Oatmeal Delights Toaster Pastries took this approach.
Leaving ingredients out was yet another way to go, something picking up steam for weight-loss diets. Regimens, such as the “paleo” or “paleolithic” diet eliminate entire classes of foods, like grains and legumes.
Reflecting the spirit of this “simple food” movement, Kellogg added Simply Eggo Waffles to its lineup in 2012. The frozen waffle contains no preservatives, artificial flavors or colors. Interestingly, Kellogg does not make any quantitative claims about the number of ingredients used, something just beginning to be employed for products from ice cream to pet foods.
Also buttressing the “less is more” concept were flatbreads. Bread went flat with Amy’s Organic Sandwich Rounds and Arnold Pocket Thins Flatbread. One trendy type of flatbread now making waves on the sales front is naan bread. This Indian bread is versatile and ideally suited for use with spreads such as hummus. 365 Everyday Value Tandoori Naan Bread, made from an “authentic Indian recipe,” was just one naan entry.
Turning to flavors for baked goods (outside of cookies and crackers), 2012 was a stellar year for cinnamon- and brown sugar-flavored products. Cinnamon topped the flavor charts, while brown sugar clocked in at the number six spot, per Product Launch Analytics. That is impressive, since brown sugar was not even within shouting distance of the top 30 list of flavors in 2011.
SuperPretzel Sweet Cinnamon Fully Baked Sweet Soft Pretzels; Kellogg’s Pop Tarts Frosted Brown Sugar Cinnamon Mini Crisps; and Nice! Topped with Brown Sugar Streusel Coffee Cake from Walgreens show where this flavor trend is headed. The move toward sweeter flavors is also relevant for breads like Pepperidge Farm Strawberry Banana Flavored Swirl Bread. Could aromatic flavors be next? The UK launch of Heston from Waitrose Hot Cross Buns in an Earl Grey & Mandarin flavor makes scent a possible major selling point.
Two other flavor developments bear watching. The first is the red velvet flavor, a trendy red-colored cake that seems to fly in the face of consumer preferences for natural flavors and colors. However, the popularity of the dessert on restaurant menus aided launches like Weight Watchers Red Velvet Crème Cake and Entenmann’s Red Velvet Iced Cake.