Pie prospers in tough economy

The wayward economy might spell good news for pie companies. Faced with a tight budget, more families are eating meals in the home instead of at restaurants, and looking to reward their families with inexpensive desserts.

“We are seeing strength in traditional comfort foods. This trend is especially strong when economic conditions cause families to pull back a bit,” says Andrew Rockafellow, director of marketing, frozen desserts, Schwan Consumers Brands North America, Marshall, Minn.

As more families look for desserts they can prepare at home, convenience becomes an important consideration. According to NPD Eating Patterns in America, 2007, desserts are part of a meal 14.6 percent of the time, and 75 percent of those desserts are ready-to-eat. Given these statistics, it's no surprise bake-and-serve and thaw-and-serve pies are popular with consumers. Schwan's Edwards^® key lime thaw-and-serve pie always is a strong seller, Rockafellow notes. Marie Callender's, New York City, recently introduced a new pie to its thaw-and-serve line: Razzelberry Satin pie. The pie consists of a crisp, chocolate-cookie crumb crust filled with red raspberry cream filling, and topped with whipped topping and semi-sweet chocolate curls. Marie Callender's also introduced a bake-and-serve lattice cherry pie. The company's new flavor choices fit with trends.

“Many customers are being very successful with seasonal or limited edition, in-and-out type flavors, such as peach, raspberry, apple cherry, apple blueberry,” says Leland Smith, Vicorp Restaurants Inc., director, sales and marketing. Traditional pies, such as apple and cherry, also continue to be hot sellers.

Packaging

Environmental-packaging and sustainability are buzzwords heard more often throughout the baking industry and will only continue to become more important to consumers. J. Horner's removed 1 lb. of paperboard from each case of its fruit pies, which received a positive reaction from consumers, Smith says. It called the packaging reduction “Go Green.” “Retail packaging is an area that has not changed in many years and is one that could benefit the total category from some new and innovative packaging,” Smith adds.

Pie portions

As for portion-size, 9-in. pies remain most popular with consumers, although 8-in. pies draw attention because of their price/value offering, Smith says. With more consumers on-the-go and eating solo these days, slices of pie and half pies are finding success in the freezer section.

Edwards is offering Singles, a new single-serve product that combines a baked treat with ice cream. Each two-pack includes two individual servings and can be baked in the microwave in less than one minute. Schwan's decided on the concept after noting that consumers are seeking convenient dessert options with no mess that can be baked quickly, as well as sweet snacks combined with ice cream that can be prepared at home. Individual portions allow family members to choose their favorite flavor. Single serve, or slice options also appeal to diet conscious consumers. While consumers continue to crave indulgence, they are still drawn toward healthful label claims, such as trans fat-free, low-fat and sugar-free.

All good news for pies, which continue to thrive in 2009.

TOP10 Brands: $ Sales (millions)

PiesBrand Names	Dollar Sales	% Change Year Ago
Private Label	$123.5	3.0%
Rocky Mountain	7.9	244.0
Entenmann's	7.6	↓ 14.9
J Horner's	6.3	↓ 3.71
Bonert's	5.6	↓ 16.7
Harlan Bakeries' (Kyger)	5.1	45.6
Nobrand	4.5	0.2
Cyrus Oleary's	3.7	4.5
Nancy's	3.3	19.1
Country Baker	3.3	28.1

TOP10 Brands: Unit Sales (millions)

PiesBrand Names	Unit Sales	% Change Year Ago
Private Label	26.2	↓ 4.5%
Entenmann's	1.8	↓ 19.3
Rocky Mountain	1.4	255.6
Bonert's	1.3	↓ 19.0
Harlan Bakeries' (Kyger)	1.1	34.5
J Horner's	1.1	↓ 8.3
Country Baker	1.1	23.4
Harvest	.8	1.4
Nancy's	.7	8.8
Specialty Bakers	.6	↓ 14.3

Fresh Bakery Products

	52 weeks ended Jan. 25: $ Sales	% Change Prior Year	52 weeks ended Jan. 25: Unit Sales	% Change Prior Year
Bread	$6,517,619,000	↑ 4.7%	3,071,848,300	↓ 4.4%
Crackers	3,608,526,000	↑ 3.3	1,481,040,000	↓ 0.9
Cookies	3,581,644,700	↓ 11.9	1,534,608,320	↓ 15.1
Rolls/Buns/Croissants	2,190,445,000	↑ 6.9	1,181,303,000	↓ 2.3
Cupcakes/Brownies	924,974,700	0.0	512,658,400	↓ 4.9
Pastry/Danish/Coffeecake	647,926,400	↓ 0.4	283,473,800	↓ 1.8
Donuts	626,678,300	↓ 4.3	251,384,500	↓ 7.4
English Muffins	534,700,600	↑ 7.6	220,407,100	↑ 1.9
Bagels/Bialys	520,252,500	↑ 6.1	178,443,200	0.0
Muffins	306,455,400	↑ 10.2	102,164,100	↑ 2.3
Pies (excl Snack Pies)	203,642,600	↓ 6.4	44,896,690	↓ 12.2
Cakes (excl snack/coffee)	50,653,030	↓ 0.7	132,678,800	↓ 3.6

Frozen Bakery Products

	52 weeks ended Jan. 25: $ Sales	% Change Prior Year	52 weeks ended Jan. 25: Unit Sales	% Change Prior Year
Bread/Rolls/Biscuits/Pastry Dough	$533,223,500	↑ 4.8%	209,501,300	↑ 1.7%
Pies	345,042,900	↓ 1.5	85,930,940	↓ 4.8
Sweetgoods (excl Cheesecakes)	210,299,100	↑ 3.9	57,788,420	↑ 4.8
Bread/Rolls/Pastry Dough	117,535,600	↑ 3.4	40,334,610	↓ 1.4
Pies/Pastry Shells	114,721,000	↑ 0.3	50,324,020	↓ 5.7
Cheesecakes	72,292,980	↓ 2.1	14,029,160	↓ 5.3
Bagels	55,298,960	↑ 16.5	35,833,460	↓ 1.1
Muffins	18,548,100	↑ 154.2	5,878,371	↑ 215.7
Cookie Dough	5,413,434	↑ 96.3	1,419,822	↑ 143.9
Cookies	72,378	↓ 16.8	23,167	↓ 16.3

Refrigerated Bakery Products

52 weeks ended Jan. 25: $ Sales	% Change Prior Year	52 weeks ended Jan. 25: Unit Sales	% Change Prior Year
Cookie/Brownie Dough	$386,942,500	↓ 4.5	137,077,400	↓ 6.1%
Biscuit Dough	356,484,400	↓ 1.7	290,391,700	↓ 3.5
Pastry/Dumpling Dough	306,267,700	↑ 4.9	134,108,100	↑ 2.5
Bread/Rolls/Bun Dough	259,118,600	↑ 2.1	128,798,800	↓ 1.0
Cakes (excl Snack/Coffee)	70,847,840	↓ 2.6	9,061,341	↓ 5.0
Bagels/Bialys	55,861,780	↑ 3.7	39,072,860	↓ 4.8
English Muffins	35,914,010	↑ 5.9	18,795,340	↑ 2.4
Pies (excl Snack Pies)	22,308,570	↓ 18.9	4,204,797	↓ 21.3
Snack Cakes/Donuts	8,463,746	↑ 12.5	1,966,648	↑ 9.8
Pastry/Danish/Coffeecakes	6,647,637	↑ 24.4	1,755,994	↑ 7.6
Bread	4,082,871	0.0	1,457,139	↑ 3.7
Dinner/Sandwich Rolls/Croissants	1,406,231	↑ 12.3	679,525	↑ 10.6
Muffins	60,413	↑ 16.3	13,919	↑ 31.3

Source: ADG February 24, 2009