Consumers opt for donuts in the morning

Breakfast has always represented a traditional time for consumers to ingest bakery foods. And even though donut sales are not as robust as they were a year ago, they still rank as America's favorite breakfast food according to statistics from Information Resources Inc.

For the 52-week period ended July 11, donut dollar sales increased 7.9% to $776 million, and unit sales rose 3.1% to $343 million. During the same period, other breakfast bakery foods did not fare as well (see chart on this page). These statistics measure scanner data at more than 11,300 supermarkets, and represents 90% of all supermarket volumes, excluding Wal-Mart.

Although the donut category has seen continued year-over-year increases, statistics point to a slow down in this once red-hot category. Uncertainty exists about the company mainly credited for the immense popularity of donuts in the last few years. Krispy Kreme Doughnuts Inc., once the darling of the donut industry and Wall Street, has recently shown some warts. Despite posting double-digit increases in total revenues and company store sales for the second quarter ended August 1, the Winston-Salem-based company's income from continuing operations decreased to $6.2 million from last year's $13.4 million. The company also slashed the number of new stores it plans to open in the next year from 100 to 75.

Although donut sales are still robust, it remains to be seen how long the category can sustain significant growth on a year-over-year basis. It's also yet to be seen if the donut category will take the same path as bagels and flame out after a sustained period of significant growth.

Fresh Bakery Products 52 Weeks Ending July 11 Dollar Sales % Change Prior Year 52-week Unit Sales % Change Prior Year
Bread 5,738,645,248 -0.4% 3,443,203,264 -3.9%
Cookies 3,543,203,200 -4.6% 1,653,586,240 -6.8%
Crackers 3,158,999,296 -0.6% 1,454,292,864 -2.9%
Rolls/Buns/Croissants 1,768,656,128 0.1% 1,210,219,904 -1.8%
Cupcakes/Brownies 796,960,320 1.4% 592,820,224 -3.2%
Pastry/Danish/Coffeecakes 633,575,040 -5.6% 314,890,208 -2.7%
Donuts 775,862,912 7.9% 342,852,160 3.1%
Cakes (excl. snack/coffeecakes) 577,127,744 -3.0% 127,207,680 -4.2%
Bagels/Bialys 422,896,064 0.4% 170,489,712 -2.7%
English Muffins 375,114,528 -6.7% 188,827,408 -8.0%
Muffins 216,257,376 -0.5% 84,087,576 0.7%
Pies (excl. snack pies) 184,371,008 -6.4% 47,287,880 -6.8%
Source: Information Resources Inc.
Frozen Bakery Products
Sweetgoods (excl. cheesecake) 313,810,368 0.9% 116,666,552 1.6%
Bread/Rolls/Biscuits/Pastry Dough 127,050,960 -8.8% 47,850,208 -10.0%
Pies 321,046,464 4.0% 84,716,528 2.6%
Bagels 66,921,224 -18.2% 53,086,508 -21.0%
Cheesecakes 85,034,736 2.3% 19,342,984 2.2%
Pies/Pastry Shells 111,040,248 2.0% 56,821,508 -3.1%
Baked Bread/Rolls/Biscuits 438,615,136 1.9% 185,564,832 0.1%
Cookie Dough 4,901,259 -32.9% 1,137,268 -45.7%
Muffins 4,559,913 -19.8% 2,208,633 -21.5%
Cookies 61,158 -27.2% 16,974 -29.4%
Source: Information Resources Inc.
Refrigerated Bakery Products
Biscuit Dough 391,796,736 -5.9% 354,682,944 -9.5%
Pastry/Dumpling Dough 249,088,352 -4.9% 118,605,408 -7.7%
Bread/Roll/Bun Dough 233,657,856 -2.6% 122,046,344 -4.5%
Cookie/Brownie Dough 408,414,528 3.9% 151,485,216 0.3%
Cheesecakes 92,874,360 5.4% 17,342,304 0.7%
Bagels/Bialys 68,411,840 -3.3% 48,964,452 -7.0%
English Muffins 27,436,464 -5.6% 17,452,420 -7.9%
Cakes (excl. snack/coffeecakes) 61,422,12 4 3.6% 7,774,192 -4.4%
Pies (excl. snack pies) 31,452,754 -9.7% 6,828,939 -12.2%
Bread 5,631,006 -2.6% 2,830,014 -5.5%
Pastry/Danish/Coffeecakes 4,438,222 10.4% 1,629,239 -9.9%
Snack Cakes/Donuts 6,027,572 -9.7% 1,864,861 -20.0%
Croissants/Dinner Rolls 850,220 29.1% 394,978 29.4%
Muffins 39,052 3.0% 12,006 3.3%
Source: Information Resources Inc.

Statistics for this chart were supplied by Information Resources Inc., a Chicago-based firm whose scanner data covers more than 11,300 supermarkets, and represents 90% of all supermarket volumes.

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