Donuts retain staple status

With the recent boom in whole grain and all-natural products, and with the current governmental focus on sodium reduction and childhood obesity, Americans seem to be on the path to irreproachable eating. But donut sales indicate consumers aren't quite ready to ignore their sweet tooth completely.

“People are increasingly mindful of the food they eat, but they also continue to want to treat themselves to small indulgences and treats,” explains Donna Finelli, director of marketing — food, for Tim Hortons, Oakville, Ontario, Canada.

Jami Blair, marketing director for LaMar's Donuts, Lincoln, Neb., agrees that customers continue to satisfy their donut cravings, and notes that donuts can often be a better option than many traditional breakfast foods.

“We have not seen any indication of customers steering away from donuts,” Blair says. “Donuts often get a bad rap, but our signature glazed donut, Ray's Original Glazed, only has 220 calories, which is less than the average bagel with cream cheese.”

Joel Payne, Ph.D., manager for CFT product development and tech service in the bakery group of Kroger Co., says consumer demand has been growing at a rapidly accelerating pace during the past year. “At the moment, and it appears for the foreseeable future, we can't begin to produce enough mainstream donuts, either cake or yeast-raised,” he says. “We are working on adding additional donut production capacity so we can come closer to matching consumer demand in our stores.”

Market research firm Mintel confirms the figures, stating that donuts remain a market staple. Donut producers have responded to this epicurean demand with a bevy of sweet offerings. LaMar's launched a new limited edition red velvet cake donut, designed to appeal to fans of the decadent Southern dessert. Tim Hortons unveiled its Candy Bar Supreme donut, an éclair-shaped confection covered with chocolate fondant and either Heath Bar pieces or M&Ms. Krispy Kreme is currently promoting its Campfire Treats twosome — the S'mores donut and a chocolate fudge cake donut.

Despite the strong dichotomy between indulgent breakfast options and foods geared toward a more healthful diet, Mintel claims there's room for both in the market. Consumers seem to agree.

TOP10 Brands: Dollar and Unit Sales (millions)

Refrigerated Brand Names	Dollar Sales	% Change Year Ago		Unit Sales	% Change Year Ago
Hostess Donettes	$109.4	↑	10.0%	52.7	↑	20.5%
Private Label	106.1	↑	15.5	47.0	↑	26.3
Krispy Kreme	100.9	↑	0.9	28.2	↓	4.1
Entenmanns	91.1	↑	4.6	27.9	↑	10.2
Entenmanns Softees	45.3	↓	2.8	13.4	↑	3.4
Little Debbie	38.2	↑	6.0	23.2	↓	12.6
Entenmanns Extreme Popems	17.5	↓	2.7	5.3	↑	2.8
Hostess	16.5	↓	4.2	5.3	↓	1.4
Hostess Sweet Sixteen	16.2	↑	n/a	7.0	↑	n/a
Blue Bird	14.2	↑	13.8	9.5	↑	10.4

Source: Infoscan Reviews, SymphonyIRI Group, March 21, 2010

Fresh Bakery Products	52 weeks ended Mar. 21: $ Sales	% Change Prior Year		52 weeks ended Mar. 21: Unit Sales	% Change Prior Year
Cakes (excl snack/coffee)	$721,349,100	↑	3.3%	138,015,900	↑	3.4%
Pies (excl snack pies)	226,788,600	↑	9.2	48,779,350	↑	12.1
English Muffins	527,512,300	↓	4.1	219,103,300	↓	0.1
Rolls/Buns/Croissants	1,211,114,000	↑	14.5	492,685,300	↑	13.3
Bagels/Bialys	555,363,300	↑	0.6	189,893,100	↑	4.3
Bread	6,539,448,500	↓	9.0	3,030,895,200	↓	3.5
Donuts	674,235,100	↑	5.1	269,876,500	↑	8.4
Muffins	316,514,400	↓	2.0	107,543,600	↓	0.2
Crackers	3,764,426,000	↑	1.8	1,469,635,000	↑	2.6
Cookies	3,679,172,000	↑	1.6	1,451,050,000	↓	0.1
Pastry/Danish/Coffeecakes	643,570,200	↓	2.3	267,191,000	↓	3.2

Refrigerated Bakery Products	52 weeks ended Mar. 21: $ Sales	% Change Prior Year		52 weeks ended Mar. 21: Unit Sales	% Change Prior Year
Bagels/Bialys	$62,377,160	↑	5.1%	38,461,560	↑	1.0%
Bread	3,572,061	↓	10.5	1,182,784	↓	11.1
Cakes (excl snack/coffee)	85,611,100	↑	17.4	11,682,640	↑	23.4
Dinner/Sandwich Rolls/Croissants	809,286	↓	35.4	322,862	↓	41.4
English Muffins	39,173,750	↑	2.9	19,543,080	↓	0.6
Muffins	49,779	↓	56.7	9,468	↑	58.9
Pastry/Danish/Coffeecakes	8,488,016	↑	20.0	2,313,785	↓	27.5
Pies (excl snack pies)	21,879,640	↓	2.6	3,897,699	↓	2.8
Snack Cakes/Donuts	5,667,887	↑	16.3	1,404,818	↑	31.5
Cheesecakes	105,329,000	↓	1.7	14,182,420	↑	3.9
Biscuit Dough	385,965,400	↑	2.9	293,789,900	↑	1.8
Cookie/Brownie Dough	369,750,100	↓	4.7	130,765,000	↓	1.3
Bread/Rolls/Pastry Dough	266,094,000	↑	0.1	126,731,400	↑	1.0
Pastry/Dumpling Dough	312,920,800	↓	0.8	131,703,400	↓	0.4

Frozen BakeryProducts	52 weeks ended Mar. 21: $ Sales	% Change Prior Year		52 weeks ended Mar. 21: Unit Sales	% Change Prior Year
Bread/Rolls/Pastry Dough	$138,152,000	↑	9.7%	43,532,700	↑	9.3%
Cookie Dough	5,888,228	↑	3.3	1,448,368	↓	1.8
Fresh Baked Bread/Rolls/Biscuits	540,537,300	↓	1.2	202,073,900	↓	3.4
Bagels	63,103,190	↓	13.9	32,471,820	↓	17.5
Muffins	28,229,420	↑	10.0	7,339,841	↓	10.0
Cookies	288,505	↑	26.9	72,515	↑	10.9
Cheesecakes	71,578,060	↑	10.7	12,403,790	↑	0.5
Pie/Pastry Shells	131,874,500	↑	8.1	51,046,310	↑	2.1
Pies	335,144,200	↑	1.7	73,459,480	↓	1.7
Sweetgoods (excl cheesecakes)	16,073,320	↓	5.4	4,252,118	↓	6.2

Source: Infoscan Reviews, SymphonyIRI Group, March 21, 2010