Smaller size, bigger rewards

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January may have ushered in a new decade, but, unfortunately, it didn't bring along a new economy. While things aren't as bleak as they were one year ago, customers are still watching their expenditures carefully and looking to get the most bang for their pastry, Danish and coffeecake buck.

“We are seeing an interest in more upscale, European-style laminated pastries, such as croissants and Danish,” says Frankie Whitman, vice president of marketing, Full Bloom Baking Co., Newark, Calif. “Customers want to upgrade but are still stressing value. Customers are very concerned about dollars right now.” National sales figures from the year ending Nov. 29, 2009, confirm this, with private label sales for the pastry, Danish and coffeecake segment leading the pack and boasting a nearly 2 percent increase from the previous year.

Accompanying a greater emphasis on value is a demand for more nutritionally beneficial products. Scott Kolinksi, general manager for Lantmannen Unibake USA, Lisle, Ill., predicts this demand will increase through the year. “Whole grain will continue to grow along with other more nutritious ingredients, and there will be a continued push for all-natural products.”

Whether customers will pay a higher price for more healthful items remains to be seen, although Whitman has spotted signs that customers can be persuaded. “When it comes to actually putting their money where their mouth is, often the healthier options get pushed aside,” she explains. “That said, we are getting excellent reception to some good-for-you items we have introduced this year. Consumers seem to appreciate the healthy, satiating items.”

Smaller servings and mini sizes also are rising in popularity as people strive to moderate their eating habits. Kolinksi and Whitman have both seen increased interest in portion control. “There seems to be a demand for smaller portions with better flavor,” Kolinski says. “[Lantmannen Unibake is] well positioned for that. From a Danish pastry standpoint, our portions are smaller than the traditional American-style Danish.”

Even though customers remain cautious, the good news is they appear to be willing to spend when they perceive greater value, increased nutritional benefits or controlled portions in their pastry, Danish and coffeecake purchases.

Source: Infoscan Reviews, Information Resources, Inc. (IRI), Nov. 29, 2009

Source: Infoscan Reviews, Information Resources, Inc. (IRI)