CHICAGO — The pandemic has obviously had an effect on the commercial baking industry, and perhaps in no bigger way than how consumers choose to indulge. IRI data revealed a mixed bag of headwinds and tailwinds for the cake category, and while progress may have slowed in certain areas, many producers in the cake category never faltered.
We spoke to a variety of bakers who produce snack cakes, muffins, cheesecake, layer cakes and bites to gain insight into the biggest challenges facing this category and the keys to overcoming them.
In 2020, many people didn’t know if they would make it back to work, if their family vacations or holiday celebrations would take place, or what was to become of their favorite restaurant. This uncertainty had a profound impact on the cake category and its producers.
Cake bakers rely on adaptability now more than ever. “There’s a lot of opportunity,” said Marc Schulman, president of Chicago-based Eli’s Cheesecake. “You just have to pivot.” He also noted the importance of identifying the needs of customers tangential to the base market they serve.
We spoke to a variety of bakers who produce snack cakes, muffins, cheesecake, layer cakes and bites to gain insight into the biggest challenges facing this category and the keys to overcoming them.
Mexico City-based Grupo Bimbo sees the desire for cake create crossover opportunities in several categories. “Consumers want to enjoy their favorite cookies with a cake experience or enjoy their favorite bars with cake-like texture,” said Jorge Zarate, global senior VP of operations for Grupo Bimbo. “This can impact the manufacturing process when crossing over to another category and maintaining texture and mouthfeel in the experience.”
Consumer demand for cake that also fits specific dietary needs is a whole other proposition, but not unattainable, according to Michael Mendes, CEO and managing partner of Northern California-based Just Desserts, which sells premium layer cakes, cupcakes and bites.
“It’s like a math equation,” Mendes said. “You need to have enough of the components to have the architecture of what people love about baked goods. Then you have to adjust for the demand for paleo and gluten free.”
Just Desserts has spent several years refining formulations for vegan products and a new gluten-free line, which launched earlier this year in retail outlets nationwide. All things considered, R&D for these types of products was less daunting for some products like muffins and bites, where textural challenges are a little bit easier.
“Our products tend to be richer and denser, and we’ve found some really good gluten-free flour blends and combined that with other natural gluten replacements,” Mendes said. “We’ve been able to develop some very interesting gluten-free products that have delivered on the texture front.”
Texture also has been important for Grupo Bimbo when developing cake products that offer wellness options such as clean label, and Zarate has seen increased equipment innovation to achieve those goals. “There has been supplier innovation with batter texturizers and hybrid heating system ovens, which help get specific textures to final products,” he said.
Not unsurprisingly, speed to market becomes critical with consumer demand for an indulgent product in a time of high demand for health and wellness, limited consumer budgets and expectations for immediate gratification.
For Eli’s, speedy commercialization is baked into its DNA. “It really starts with our product development; we have a very strong process with that,” Schulman said, noting a marked increase in customers’ creativity for the kinds of products they want … and the expectation for a fast turnaround. “Speed to market is at a premium right now. Whether it’s a product we’re developing ourselves or one we’re co-developing, we know how to make a quick turnaround and still deliver a consistent product.”
The new era of cakes, no matter what kind, is the shared experience. The cake category is not without its challenges, but these bakers are up for it. Socialization and celebrations are still evolving, and that means more opportunities for all.