ANAHEIM, CA —With inflation at an all-time high, consumers are more strategically looking at their budgets to maximize their dollars. This means looking at things like value and convenience with a more critical eye. During the International Dairy Deli Bakery Association (IDDBA)’s 2023 conference, held June 4-6 in Anaheim, CA, Joanie Spencer, editor-in-chief of Commercial Baking, sat down with Chris Prociv, chief commercial officer for Aspire Bakeries, to discuss how these shifting trends are impacting two of Aspire’s brands, Otis Spunkmeyer and La Brea Bakery.
Joanie Spencer: Consumers today are heavily focused on a product’s value proposition, and that goes beyond looking for the lowest price. How is this sense of value proposition impacting brands like Otis Spunkmeyer?
Chris Prociv: There’s a clear expectation of top quality at a reasonable price. If you look at our individually wrapped (IW) products, the price point might be slightly higher than a per-item price in a larger pack, but people are willing to pay a little more because it satisfies what they’re seeking at that particular time with no sacrifice in quality.
That really feeds into the need for convenience, which is also trending right now.
Yes. Consumers demand grab-and-go because they’re really busy, but they certainly don’t want to sacrifice quality or taste. If they know a brand and they know it’s good quality, and the product is IW, it checks all the boxes and it lands in their shopping cart.
What channels are you seeing grab-and go perform best?
It’s interesting because opportunities are still emerging for the IW business. There are channels that we might not even realize are a perfect fit for this. Think about how many people are traveling again, on the move, taking planes. We are all back on the go in so many different ways. Otis Muffins are in Marriotts and Hiltons, available for guests to pick up in the morning. That IW growth originated with COVID, but it really stuck and from all indications, is here to stay.
Muffins are a fast-growing category right now. Are there opportunities for muffin product development when things like health are trending now, too?
Definitely. I am excited to see more of that happening because muffins are a food especially in the morning daypart. Zucchini- or carrot-based muffins as examples can really feed that need for holistic health, which allows for permissible indulgence. And this also goes back to that need for ‘presence of positive,’ as opposed to back in the day, when it was all about reduced calories or less fat. Today’s consumers are carefully looking at ingredients too. So, if we have real, wholesome, nutritious ingredients, we’re “serving up” solutions without sacrificing taste. Furthermore, in some cases, it’s also enhancing taste.
Are these trends manifesting in the La Brea Bakery brand, too?
More than ever before. La Brea Bakery stands for pure, simple ingredients, and that’s creating a wealth of opportunities from an innovation standpoint. In so many ways, we’re getting back to basics in terms of product innovation. We have several customers on the East Coast who have been asking us to resurrect our rye bread, so we’ve updated it and, in the process, made it truly authentic. And keep in mind, our rye bread is a perfect shape to slice for sandwiches, and the caraway topping provides an absolutely delicious aroma, enhanced flavor and great texture.
What about sustainability and Environmental, Social and Governance (ESG) initiatives?
We’re on the cutting edge of linking sustainability and ESG. For instance, we are working closely now with regenerative agriculture, and we are linking that to our ESG efforts. Furthermore, in both La Brea Bakery facilities, we are zero waste to landfill. We have a laser focus on eliminating waste, and that pertains to anything that comes off the line, including rework for our dough. These things are making a difference for our sustainability and ESG, and it’s also improving efficiency in the operation. We’re very proud of what we’ve accomplished in this space.
In terms of La Brea Bakery packaging, we’re making the bags a little smaller, saving money on paper and plastic. And we moved to materials that are half-and-half recyclable, so consumers can very easily separate the packaging and put the paper in one recycling and plastic in the other.
How is prioritizing sustainability impacting what you prioritize with your suppliers?
It’s a critical focus. When we buy ingredients like flour or other grains, we want to be sure that the mills being used are treating the Earth well. And with all our suppliers, cost is important, but the efficient use of resources is important too. So again, from a sustainability standpoint, there are definitely opportunities for suppliers there as well.
Issues like sustainability are definitely playing into consumers’ idea of value. But when you look at the concept of value through the La Brea Bakery lens, what are some other issues that come to light?
We are seeing consumers really focused on controlling their own waste, meaning they are only buying what they need. In fact, we have retail customers who slice and bag La Brea Bakery loaves in the store, and some have been doing half loaves. At first, we worried that this practice was sacrificing volume, but the truth is, volume loss is minimal. Some people are either buying a half loaf because it’s all they need, or they’re combining half loaves of two different varieties like whole grain and cinnamon raisin. This consumer practice not only helps consumers buy only what they need but also allows them to customize the variety of breads they desire in a more manageable amount.
When consumers’ idea of value can be so subjective, baking companies have to look at innovation through several angles, whether it’s convenience, health, sustainability or something else.
It really is a holistic value equation, and that’s something we leverage well.
