Donut sales stay steady as consumers give in to their sweet tooth.
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.
| 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