Rich Products - British Society of Baking

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Rich Products - British Society of Baking
Free-from Developments and
Bakery Product Innovation
British Society of Baking Autumn Conference,
14th October 2015
© 2015 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.
The global development of free-from and what is
driving the trend in the UK
What innovation focus are we seeing from the
world’s biggest bakery companies
The rapid rise of allergen-free products in food & drink NPD
Fastest rising claims in food & drink product launches, Top 5 – Global
2015 is Jan-Sept
Source: Mintel GNPD
Gluten-free is the driving force
Gluten-free claim penetration in food & drink launches - per region
Driven by legislative requirement for
gluten disclosure in Brazil
The most innovative
regions by some distance
Consistent progress, led by
Spain, Germany, UK, Italy
2015 is Jan-Sept
Source: Mintel GNPD
US, by far the largest market for gluten-free
Gluten-free food & drink
$8.8 bn
market value in 2014
value growth forecast 2014-2017
of adults said they eat gluten-free
versions of food in June 2015,
compared to 22% in June 2014
Source: Mintel Reports
A wide range of health-related issues
influence perception of gluten-free
Other (than intolerance/sensitivity) reasons for
eating gluten-free foods, US, June 2014
The UK is less dynamic (than the US), but still a fast growing market
Total UK free from market valued at £365m in 2014, forecast to grow by 50% by 2019
Both the dairy-free and gluten-free segments continue to record impressive growth (both
seeing 15% growth between 2013 and 2014)
+15.0% on 2013
+15.3% on 2013
Excludes prescription sales
Source: Mintel Reports (based on IRI/Mintel)
Penetration of free-from food reaches 30%
Three in 10 people in the UK had bought or eaten free-from food in the six months to June
2014, with gluten-free and dairy substitutes being the most commonly purchased/eaten – by
18% and 17% respectively.
Source: Mintel Reports
Millennials are more influenced by new ‘free from’ lifestyles
UK 16-34 year olds are 31%
more likely than average to
avoid red meat or poultry
They are 40% more likely
than average to avoid dairy
or lactose
They are also 40% more
likely than average to avoid
wheat or gluten
Mintel Reports
Foods - UK - November 2014
The “Lifestylers” account for almost half of the ‘free from’ audience
39% of people live
in households where
somebody is
avoiding specific
because of an
or because of a
lifestyle choice
Of the avoiders,
almost half (46%)
do so “as part of a
general healthy
lifestyle” with the
remainder having
“an allergy or food
Source: Mintel Reports
UK: avoidance driven as much by healthy lifestyles than intolerance
Types of food avoided, UK, June 2014
Source: Mintel Reports
Healthy image, variety, naturalness and weight control benefits all
appeal above personal allergy/intolerance
Reasons for eating free-from foods, UK, September 2015
Source: Mintel Reports
The top reason
consumers don’t eat
free-from foods is
because they are
deemed as too
expensive compared
to standard foods
(39%), followed by
the belief that they
do not taste as good
as standard
alternatives (22%)
Food launches by selected health/natural claim: GF vs. Non-GF
Gluten-free vs. Non-Gluten-free, Europe, Oct 2012 – Sept 15
% of launches by selected claim
A gluten-free product
is much more likely
to be organic, low in
sugar and fat, with
no additives or
preservative than a
‘regular’ product
Riding the craze for trendy ingredients – protein, ancient grains, almond/coconut
High protein claims are increasingly coming into mainstream products but free-from has
already been riding the craze
Wholesome Chow Organic
Gluten Free Hi-Protein
Pancake & Baking Mix (US)
Source: Mintel GNPD
Enjoy Life Brownie Mix with
Ancient Grain made with teff
and flaxseed (US)
Melro's Best Simply
Oragnic Raw Coconut
Brownie (France)
Bread brands work harder to convey health
Genius adapts its bread recipes – now boasting low levels of
saturated fat and high levels of fibre, as well as no artificial
preservatives and additional vitamins and minerals (some lines
containing omega-3 or iron)
Dr. Schär USA revamps with a new line of Artisan Baker breads,
baked with ancient grains
Silver Hills Gluten Free Omega Flax Bread
contains high fibre omega 3 flax seeds (US)
Source: Mintel GNPD
PureBred Bakery Multigrain Farmhouse Loaf is
a gluten-free, five grain high fibre loaf with
omega 3 rich seed mix (UK)
What’s next – watch for grain-free
Criticism of typical
western diets being highly
dependent on refined
processed grains has
contributed to a negative
stigma attached to grains
Grain-free is starting to
emerge as the next
generation of (and
healthier alternative to)
gluten-free with Paleo and
other ‘raw’ food diets
entering the mainstream
Nut, fruit and vegetable
ingredients are gaining
use instead. Almond and
coconut flours/ingredients
are particularly trendy
Source: Mintel GNPD
Simple Mills Naturally GlutenFree Chocolate Muffin & Cake
Almond Flour Mix (US)
Paleonola Pumpkin Pie Grain
Free Granola (US)
Key points for the future
Health halo of
“free-from” is key
There are more
ways to ‘sell’ health
But taste remains
Foods bearing a free-from claim appear increasingly
relevant to a wider number of consumers
These foods, in consumers’ eyes, are closely tied to
health – whether their own, their family’s, or the planet’s
Health hooks such as high protein, ancient grains,
fruit/nuts are ways to boost free-from health benefits
Taste leads in the appeal of non-dairy milk and taste
concerns hold back gluten-free
The more taste appeal that can be brought in, the more
likelihood of success for individual products
Innovation from the Global Bakery
Big Guns
So, who are the Big Guns
Top 5 global bakery companies ranked by sales, 2014
2014 sales:
Local currency
Grupo Bimbo (Mexico)
1. __________________________
Ps. 187.1bn
Yamazaki Baking (Japan)
Aryzta (Switzerland)
Flowers Foods (US)
Rich Products (US)
2. __________________________
3. __________________________
4. __________________________
5. __________________________
US$ equivalent using
2014 av. exchange rate
*Food group revenue only
Source: Mintel from Company Information
Bakery remains fragmented globally
Grupo Bimbo is the biggest baking company in
the world but it still claims less than a 5% share
of the global baking industry according to its
own estimates. This despite a very acquisitive
few years for the company, including buying
Canada Bread in 2014
No.1 in North America
26% value share of bread market in the US
32% in Canada
No. 1 in Latin America, e.g.:
34% value share of bread market in Brazil
55% in Chile
56% in Colombia
85% in Mexico
Also a leader in sweet bakery in
those regions
But elsewhere it’s more ‘patchy’:
**Market share
Source: Grupo Bimbo company information / Mintel Market Sizes
No.1 in Spain/Portugal and also present in
the UK with New York Bakery Co.
Small presence in China (c1% share)
Grupo Bimbo - recent NPD of note
Bimbo Bakeries in the US has a range of mainstream bread brands and has been prioritising a healthier
positioning for many of these. The company has had particular recent success with the Thomas’ brand,
with high recent sellers including a limited edition cinnamon vanilla English muffin, and protein and fibre
fortified versions
Thomas' Double Protein Oatmeal English
Comprise a blend of wheat and rice protein.
The low fat product is free from trans fat and
cholesterol, it contains 7g of protein per
Source: Mintel GNPD
Healthfull Bread - available in Flax &
Sunflower, Steel Cut Oats & Honey,
and Nuts & Seeds variations
Contains no high-fructose corn syrup or
artificial colors or flavors
Brownberry Natural Health Nut Bread
Made with natural ingredients, including
almonds/walnuts, provides 8g of
wholegrain and 3g of fiber per slice
Yamazaki Baking – recent NPD of note
Yamazaki has used seasonaility in many of its launches, as well as co-branding, and has also more
directly targeted children through new products such as lunch pack sandwiches aimed specifically at this
Yamazaki Lunchpack Milk Coffee Cream
Sandwich (limited edition)
Features milk coffee cream designed to
resemble Ucc Milk Coffee
Yamazaki Lunch Pack Three Berries
Chocolate Tablet & Yogurt Cream Sandwich
Fiilled with a chocolate tablet with three berry
syrups and yogurt cream with Disney design
Source: Mintel GNPD
Yamazaki Wonut Strawberry
Chocolate Waffle Doughnut
Yamazaki has introduced numerous
packaged hybrid bakery products, such
as cronut variants and this ‘Wonut’
Yamazaki Ensaïmada
Originally from Spain. The soft fluffy bread
contains cheese and is saturated in sugar
and margarine.
It is common to see European specialities
re-configured in the Yamazaki range and in
single-portion packs
Aryzta – recent NPD of note
On the back growth for American-style bakery products in Europe, Aryzta has launched its Otis
Spunkmeyer brand into the foodservice sector in Europe with its range of cookies, donuts and muffins. It
is also embarking on a US retail push for the brand n 2016
US retail push for Otis Spunkmeyer
The new retail line will begin hitting shelves in
early 2016 and will go beyond the cookies and
muffins the company long has been known for
Source: Mintel GNPD
In the UK, Aryzta has been
focussing on the ethnic bread
market recently, launching a new
line of Planet Deli naan breads in
the retail market
Aryzta has also been expanding its Wrapped
to Go range in the UK, including with the
above salted caramel shortbread bar
Under the Cuisine de France unit, Aryzta has
also recently launched ‘Le Twist’, an almond
encrusted pastry filled with crème patissiere
Flowers Foods – recent NPD of note
Pushing naturalness/quality under Nature’s Own and Cobblestone Bread Co. brands, although more NPD
can be expected from the Wonder brand following its integration into the business in 2013/2014
Has also made a big push into organic in 2015, buying Dave’s Killer Bread and Alpine Valley
Natures Own White Enriched Bread
No trans fat, cholesterol, artificial preservatives,
colors, flavors or HFCS. 35% less sodium and
x5 the fiber of enriched white bread
Flowers has this year cut the number of
ingredients in Nature’s Own bread (the bestselling bread brand in the US) to 14 from 26
Source: Mintel GNPD
Cobblestone Bread Co. Knead for Seed
12 Grain Bread
Cobblestone is Flowers new brand
described as “everyday artisan” bread
aimed at the millennial generation with a big
focus on social media and sandwich recipe
idea generation
“The cure for the sandwich rut”
Dave's Killer Bread Sprouted Wheat
Organic Bread
Free from GMO, animal products, artificial
preservatives, artificial ingredients, HFCS and
power-packed with wholegrain nutrition.
Alpine Valley Natural Whole Grain Breads
Organic multi-grain bread with omega-3
Rich Products – recent NPD of note
Rich Products has aimed to take advantage of the flatbread boom in the US with anew retail range, as
well brand licensing opportunities (in its ice cream cakes) and the demand for more varied flavours in
sweet bakery (via its in-store bakery range)
Our Specialty is a new line of 10 retailpackaged, premium flatbread products
The new items include traditional
flatbread products such as original naan,
original pita, wheat pita, white Sandwich
Flats and multigrain Sandwich Flats, as
well as garlic cheese naan, original rustic
Flats, Italian herb Flats, chipotle Flats,
and garlic and herb pizza crust.
Source: Mintel GNPD
Rich's Wishes Chocolate Cake &
Vanilla Ice Cream & Hello Kitty
licensed Ice Cream Cake
The company has a range of Happy
Birthday ice cream cakes, with other
licences including Oreo, Twix, Snickers,
Chips Ahoy! And recently the Peanuts
comic strip
Rich’s Extreme (in-store bakery)
Line-up of indulgent, decadent treats
includes six items portioned for one to two
people: Mini Chocolate Brownie Extreme,
Mini Caramel Sea Salt Blondie Extreme,
Mini Boston Crème, and three flavours of
bar cake (Red Velvet, Triple Chocolate,
and Carrot)
Top 6 other global bread and sweet bakery innovations (last 12 months)
New formats and new ingredients a feature
Ferrero Nutella B-Ready
Bread Wafer with a Nutella
Filling (Italy)
Woolworths Food
CarbClever Cauliflower
Wraps (SA)
Food for Life Sprouted for
Life Gluten-Free Almond
Bread (US)
Atrian Home Crok Glas
croissant-doughnut pastry
Windy City Organics
Rawmio Organic Raw
Chocolate Truffle Cake (US)
Dahls Coarse Coffee Bread baked
with coffee and flavoured with
cranberries (Sweden)
Source: Mintel GNPD
Major bread players are pushing more heavily into healthy
product variants as a way to negate diet trends and
consumer health concerns
Time-saving formats and convenient packaging are being
used to help consumers reappraise when and where to
consume bakery products
A focus on flavour and taste, as well as engaging formats
and packaging is being used to help position bakery
products as having more fun appeal
Thank you!
Chris Brockman
Research Manager, Mintel Food & Drink - EMEA region
[email protected]
© 2015 Mintel Group Ltd. All Rights Reserved. Confidential to Mintel.
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