Sweet smell of success: sales of indulgent in-store bakery goods continue to rise. | Food Processing | Professional Journal archives from AllBusiness.com
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The scent of cinnamon bread baking, the sight of a freshly baked pie, a bite of decadent chocolate cake, or a glimmer of glaze on a doughnut all stimulate our senses.

Essentially comfort foods, bakery goods remind us of the pleasures of childhood, a less complicated, stress-free time of life. For that reason, no matter what the current trends, we seek bakery goods here, there and everywhere. American consumers may be clamoring for wellness foods, but they aren't ready to give up their indulgent bakery treats just yet. A 2002 poll by Madison, Wis.-based International Dairy*Deli*Bakery Association (IDDBA) found that 29 percent of shoppers felt they spent more money at in-store bakeries in the past year. Another 53 percent felt their spending was about the same, and only 11 percent spent less. In fact, in-store bakery sales rose 2.1 percent for the year ending August 11, 2002, compared with 2001 sales for the same period, according to Information Resources Inc.

"September 11 has led to increased demand for comfort foods both at home and for away-from-home eating occasions," says Alan Hiebert of IDDBA's Education Department. "In the bakery, people tend to look for products that remind them of their childhoods or products they can use to reward themselves and their families: decadent dessert items likes cake and fruit pies and, of course, chocolate."

Most are purchased in supermarkets, and of the nearly 32,000 supermarkets in the United States, about 25,000 have in-store bakeries. Some are full-service, with baking facilities at separate central locations providing partially baked goods that are finished in the store. That's an advantage, since they are able to tantalize customers with the aroma of freshly baking goods -- a strategy that has generated profits from impulse buyers.

Consumers are pleased with in-store bakery products, according to a Food Marketing Institute survey, cited in IDDBA's "What's in Store 2003" report. Shoppers said their stores' baked items were "excellent" (43 percent) or "good" (48 percent), accounting for 90 percent of the response total.

Consumers also say they are very concerned about the nutritional value of what they eat (50 percent), according to IDDBA, but a poll of bakery managers shows that many consumers have not shown interest in healthier baked goods.

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