Orla Donohue, Bakery Sector Manager, Bord Bia – Irish Food Board
Baking and Biscuit International recently reported on a new GIRA report on the European baked goods market which shows that the market overall is saturated with a volume of around 40 million metric tonnes. According to the report, there is great variety in consumption patterns and trends by market. While the share of pre-packed baked goods in Ireland and the UK is much larger than fresh products, for example, fresh bread consumption is in growth. The researchers also discovered a polarisation in the market, with an increasing demand for high quality artisan breads and premium products, supplied not just by artisans but also by industrial bakeries while on the other hand, basic/commodity and low priced products are growing, driven by the growing presence of hard discounters offering fresh bread.
With such a large spectrum of suppliers and marketing channels, there are many opportunities for differentiation, particularly in the premium sector of the market which is less price sensitive, and niche segments such as health, regional, free from and organic products. Some brands within the category have developed innovative campaigns and marketing propositions to stand out from the competition.
In the US, Dave’s Killer Bread is best known for its organic seed-packed loaves which have bucked the trend of sluggish sales in the category. The company has a strong social sustainability position which is based around making lasting change, seeing the good in everyone and providing second chances; one third of employees has a criminal background. The company was voted one of Oregon’s top workplaces in 2015.
In Germany, the bakery chain Kamps has organised “poetry slams” in its 500 strong network of bakery shops. This rather unique campaign has allowed the company to communicate with its customers in a fresh and different way, reach the under-thirties age group and project an image of a modern, fun company. The “slammers” contribute personality and passion, and generate a social debate which Kamps can be at the heart of.
For more information please contact orla.donohue@bordbia.ie