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Brewster calls for innovation in cookie category


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At this year's Biscuit & Cracker Manufacturers' Association's 79th Annual Technical Conference, Daryl Brewster, Kraft Foods Inc.'s group vice president and president, U.S. Snacks Sector, gave a rousing speech about the crumbling cookie category and what needs to be done to reverse recent downward trends. According to statistics from Information Resources Inc., cookie dollar sales for the 52-week period ended September 5, declined 4.6% to $3.54 billion. For the same period, unit sales fell 6.5%.

"For the first time in decades, sales of cookies and crackers have declined," Brewster stated during his presentation. "To restore growth top bakers must get cooking."

In the last two years, cookie sales have been negatively impacted by a slew of bad news, including transfatty acids and reduced carbohydrate mania. Even more detrimental has been the category's lack of innovation. Brewster said the slow down in innovation has failed to broaden the cookie category's appeal.

To increase sales, Brewster said that cookie manufacturers must increase innovation, enhance quality and decrease costs. Kraft Foods' Nabisco brand has put a renewed focus on innovation with the launch of several new products. The company is servicing consumers concerned with health and wellness with its CarbWell cookies and its 100 Calorie Packs of snacks. These offerings are designed to bring consumers back to the cookie aisle.

Brewster also stated that the category's top brands, Nabisco and Keebler, must start producing positive results to propel the category forward. To accomplish this, Brewster says that Kraft must " create value by translating consumer needs into product and package improvements."

Fresh Bakery Products 52 Weeks Ending Sept 5 Dollar Sales % Change Prior Year 52-week
Unit Sales
% Change Prior Year

Bread

5,740,181,504 -0.4% 3,422,391,424 -4.4%
Cookies 3,538,989,824 -4.6% 1,651,627,520 -6.5%
Crackers 3,159,538,944 -0.6% 1,451,895,168 -2.7%

Rolls/Buns/Croissants

1,760,206,080 0.1% 1,198,448,128 -3.1%
Cupcakes/Brownies 800,422,016 1.4% 590,864,832 -2.9%
Pastry/Danish/Coffeecakes 627,313,088 -5.6% 311,847,552 -4.0%

Donuts

779,646,272 7.9% 342,149,696 1.5%
Cakes (excl. snack/coffeecakes) 576,084,416 -3.1% 126,879,360 -4.2%
Bagels/Bialys 425,807,264 1.9% 170,409,744 -1.7%

English Muffins

375,392,608 -6.2% 189,109,632 -6.9%
Muffins 217,833,936 0.5% 85,013,344 2.3%
Pies (excl. snack pies) 184,088,112 -5.9% 47,250,472 -5.9%
Source: Information Resources Inc.
Frozen Bakery Products 52 Weeks Ending Sept 5 Dollar Sales % Change Prior Year 52-week
Unit Sales
% Change Prior Year

Sweetgoods
(excl.
cheesecake)

312,696,352 0.9% 115,998,304 0.4%
Bread/Rolls/Biscuits/Pastry Dough 125,881,736 -9.4% 47,353,964 -10.6%
Pies 321,416,224 3.4% 84,726,304 2.0%

Bagels

77,741,120 -2.4% 58,943,204 -9.4%
Cheesecakes 84,472,864 0.2% 19,120,420 -0.3%
Pies/Pastry Shells 110,947,504 1.6% 56,684,972 -3.2%

Baked Bread/Rolls/Biscuits

439,232,128 1.2% 185,130,480 -0.8%
Cookie Dough 5,123,858 -24.2% 1,162,627 -39.4%
Muffins 4,464,765 -19.0% 2,165,868 -20.4%
Cookies 51,654 -40.8% 14,350 -42.4%
Source: Information Resources Inc.
Refrigerated Bakery Products 52 Weeks Ending Sept 5 Dollar Sales %Change PriorYear 52-week
Unit Sales
% Change Prior Year

Biscuit Dough

389,794,368 -6.4% 353,107,776 -9.2%
Pastry/Dumpling Dough 249,474,048 -4.7% 118,702,912 -7.1%
Bread/Roll/Bun Dough 233,153,712 -2.6% 122,146,040 -3.9%

Cookie/Brownie Dough

414,370,080 4.2% 152,902,048 0.4%
Cheesecakes 93,423,656 6.1% 17,319,590 2.2%
Bagels/Bialys 66,181,692 -7.3% 47,863,520 -9.0%

English Muffins

27,359,132 -5.0% 17,297,802 -7.5%
Cakes (excl. snack/coffeecakes) 60,666,476 0.3% 7,583,244 -7.7%
Pies (excl. snack pies) 31,023,382 -9.9% 6,706,840 -13.0%

Bread

5,508,905 -4.4% 2,761,684 -6.5%
Pastry/Danish/Coffeecakes 4,416,308 8.0% 1,565,777 -14.6%
Snack Cakes/Donuts 5,625,476 -19.6% 1,676,282 -32.2%
Croissants/Dinner Rolls 857,285 22.3% 399,128 22.6%
Muffins 37,006 -14.9% 11,269 -16.1%
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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© 2009 Penton Media Inc.


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