KISSIMMEE, FL — The landscape of bakery manufacturing has certainly changed over the past three years, and pie production is no exception.
During a panel discussion at the American Pie Council’s 26th Annual National Pie Championships, held May 1-2 in Kissimmee, FL, a group of industry experts weighed in on some of the segment’s biggest issues, including key manufacturing considerations.
The panel, hosted by Emily Bowers, VP of education and operations for BEMA, included Keith Edwards, director of sales — national accounts, for Harlan Bakeries; Jessica Tolar, fresh bakery breakfast and pie merchant for Walmart; and Stephanie Ortmann, senior brand manager, foodservice, for Sara Lee Frozen Bakery.
While the COVID-19 pandemic rocked every aspect of manufacturing, one key disruption was ingredient sourcing. Many baking companies that had previously relied on single sources for ingredients were turning to two or three different suppliers to get the items they needed.
“We went from single sourcing for particular ingredients to dual or even triple sourcing,” Ortmann recalled. “That really threw us for a loop.”
One major implication in changing an ingredient source is the impact on packaging, or more specifically, labeling.
“For large-scale manufacturers, that’s not a quick process, and it’s not cheap,” she added.
While supply-related challenges like that are starting to even back out, there are still longer-lasting impacts that remain key considerations.
Transportation and logistics have been high on the radar for retailers as challenges persist.
“Surety of supply is one of the biggest issues for our team,” Tolar said. “We have all the typical metrics, but if we get through a meeting without touching on surety of supply, then it probably wasn’t a critical meeting.”
Tolar advised pie producers that disruption in transportation and logistics means attention to detail is critical for getting product onto bakery shelves.
Additionally, she noted, as commodities continue to feel the effects of supply chain challenges, pie producers must stay on top of those conversations.
“If you don’t have someone on your team who understands the commodities game, it’s going to be tough to stay competitive over the next six to eight months,” Tolar said. “Having a great procurement team and a great logistics team will be really important for any pie manufacturer.”
Pie is a mostly seasonal product, so coming out of pie season — which runs roughly August to November — it’s immediately time to plan for the next season. Staying ahead is critical to keeping pie operations moving.
“Because of longer lead times for things like packaging and ingredient sources, you have to immediately talk to your retailers to see if they have any packaging changes for the upcoming year,” Edwards said. “You’ve got to start having those conversations immediately.”
Before supply chain disruption, those conversations may have taken place in July. But now, Edwards said, they’re taking place closer to January or February.
“It’s extended that talk, which, in the end, is a good thing,” he said. “It’s the best way to ensure accuracy in the numbers.”
Edwards also noted a shift in capacity for baked pies, which poses operational challenges for manufacturers producing private label pies.
“We’re seeing it slowly go from unbaked to baked,” he said. “One thing COVID did was accelerate that for retailers.”
That’s due in part to the labor challenges that have greatly impacted consistency at the store level, making finished pies much easier to manage in the perimeter. But with a limited number of commercial bakeries producing finished baked pies, it creates huge capacity constraints.
“It makes that planning even more important,” he said. “This is a pivotal time in our industry.”
With all these challenges come opportunities, whether for product innovation or creative operational solutions. To overcome the challenges and capitalize on the opportunities, pie producers must have open communication — with their customers and suppliers — and be open to the prospects that come their way.
