Tracking What’s Fresh in Private Brand Bakery

April 3, 2018

With nearly 20 years of experience working for Daymon, Jill Tomeny, Senior Manager of Fresh for Daymon’s Category Solutions Team, knows a thing or two about what works in private brand. Retail News Insider sat down to get her insights on one of the “best bet” trends revealed in Daymon’s recent Private Brand Intelligence report: a renewed interest in fresh bakery.

RNI: What do you think is driving the renewed interest we’re seeing in private brand bakery?

JT: I think it has a lot to do with what’s going on in the discount world—specifically with Lidl, but also Aldi to a degree. Lidl has had success attracting higher-income customers in Europe with their fresh bakery selection. People who have been to Lidl in the U.S. have also noted the experience is very different from Aldi. So now Aldi has started experimenting with fresh bakery in some stores, and I suspect we’ll see that branch out. As such, it becomes a category traditional grocery retailers need to pay more attention to.

RNI: Most mainstream grocery retailers already have a bakery section. How is this different?

JT: It’s about the execution and creating a different experience. Lidl stores have a wall of baked goods and the smell of freshly baked rolls and bread hit you as soon as you walk in. In contrast, a lot of mainstream grocers have chosen to take labor out of the bakery and have moved to more prepackaged products. The discounters entering this space will force them to reconsider that.

RNI: Are there any specific trends grocers should be looking at for bakery items?

JT: There are four key trends retailers should be paying more attention to:

  • Single serve—They should have items such as slices of cake or single serve dessert cups that are displayed not only in the bakery, but also as part of a meal solution.
  • Indulgent and healthy—Grocery bakery often doesn’t do a great job of addressing both indulgent and healthy. They have to be sure that they’re offering whole grains, taking out artificial ingredients and so on.
  • Transparent communication—Grocers should promote their private brand fresh bakery items and call out their clean label ingredients. They should create signage to talk about it and take credit for what they’re doing. Anything that’s sold by the piece or that has a scale label on it today should be branded with their private brand.
  • Excitement and appeal—The bakery is a place where it’s really easy to have fun. It could be as simple as changing up the toppings on a donut, bringing in flavor trends like mango glaze or salted caramel. You don’t have to do everything special. Just look for a few things that are appealing to your customer. And if you can target it to the local community, even better. That’s something discounters can’t do.