News and insights on the snacks and confectionery industry, covering everything from chocolate and candies to chips, nuts, and other snack foods. Explore product launches, market trends, and consumer preferences shaping this vibrant segment.
Tous les Jours, the bakery café chain offering over 300 pastries, cakes, coffee, tea, and desserts baked in-store daily, has announced a lineup of seasonal treats just in time for pumpkin season, available at participating locations nationwide and while supplies last.
“Nothing marks the season of autumn like a cup of pumpkin spice matcha in hand,” said Sue Han, marketing manager for Tous les Jours. “Our fall beverage collection, with its warm spices and rich pumpkin flavor in every sip, is sure to be a cozy delight. Make it a perfect fall day with our Pecan Croissant Flattie, a unique spin on the classic croissant, a perfect snack or treat any time of day. Now is the time to try our new fall treats, available only for a limited time.”
Tous les Jours’ new Croissant Flatties are flattened, buttery croissants, pressed and rolled out, infused with buttery delight, and topped with a sugar glaze, creating that perfect crisp in every bite. For those with a sweet tooth and still craving the crisp texture, the seasonally-inspired Pecan Croissant Flattie are infused with the rich, nutty flavor of pecans. This spin on the classic croissant is priced at $3.75 or $3.95 each.
Additionally, the new seasonal collection features Pumpkin Spice Cream Cheese Pastry, a treat with the rich flavors of pumpkin spice and creamy, tangy cream cheese ($3.75), and a Pumpkin Pie Macaron, a flavorful macaron infused with the classic taste of pumpkin pie ($2.85).
Sow Good Inc. has added a series of products to its lineup: Limited-Edition Pumpkin Marshmallows, Lemon Puffs, and Mini Sweet and Sour Bites.
The lineup includes:
According to a recent report, the freeze-dried food market is predicted to reach $71.7 billion by 2030. On the forefront of this growth, Sow Good harnesses the power of its proprietary freeze-drying technology and product-specialized in-house manufacturing facility to transform traditional candies into novel and exciting everyday confectionaries.
“As the demand for freeze-dried candy continues to rise, we’re constantly keeping a pulse on trendy flavors and shapes that will excite our fans,” says Claudia Goldfarb, CEO and co-founder of Sow Good. “We keep a robust pipeline of steady innovation to ensure that we’re catering to a wide range of consumers whether they’re sweet and sour lovers, or simply looking for some holiday cheer. All of our offerings can serve as delicious, convenient, and satisfying staples in just about anyone’s pantry.”
Sow Good offers an extensive collection of additional candies such as Sweet Worms, Peach Perfect, andSweeter Geeks. The brand’s treats can be purchased at major retailers nationwide including Five Below, Target, Kroger, HEB, Amazon, and on at thisissowgood.com.
Allergen compliance has become a critical issue, with lives at stake when producers fail to meet standards. How far has the industry progressed since the introduction of Natasha’s Law and what are the true costs of getting it wrong?
In recent years, the tragic deaths of Natasha Ednan-Laperouse, Hannah Jacobs, Celia Marsh, Owen Carey and Megan Lee have underscored the life-threatening dangers posed by food allergens.
These cases represent a profound failure in allergen compliance within the food industry. This has significant ramifications, as non-compliance not only carries devastating personal costs but also significant financial, legal and reputational risks.
The tragic cost of non-compliance
Hannah Jacobs, a 13-year-old with a severe dairy allergy, died in February 2023 after consuming a hot chocolate at Costa Coffee, which she believed had been made with soya milk. Despite her mother informing staff of her daughter’s allergy, the drink was allegedly prepared with cow’s milk, leading to anaphylaxis and her subsequent death.
This tragedy mirrors other high-profile cases, including that of Natasha Ednan-Laperouse, whose fatal allergic reaction to sesame seeds in a Pret-a-Manger baguette in 2016 prompted significant changes in the UK’s allergen labeling laws, now known as Natasha’s Law.
These deaths illustrate the human toll that allergen mismanagement can take, emphasizing the need for businesses to improve compliance, training and transparency.
“A single death from undeclared or mismanaged allergens is one death too many,” said Jessica Merryfield, head of Policy for Chartered Trading Standards Institute (CTSI).
“It’s devastating to hear of another life cut short due to a lack of understanding the needs of a food hypersensitive consumer. The tragic death of Hannah Jacobs is an unwelcome reminder that all businesses must take their responsibilities seriously when it comes to allergens.”
Tragic deaths highlight need for improved allergen labeling
Celia Marsh (41) died in 2017 after suffering an allergic reaction to a vegan wrap from Pret a Manger; the same year, Owen Cary, who was celebrating his 18th birthday, died after consuming a chicken containing buttermilk from Byron Burger. On New Year’s Day 2017, 15-year-old Megan Lee died from peanuts in an Indian takeaway; and in 2016, Natasha Ednan-Laperouse (15) died after having an allergic reaction to sesame seeds in a baguette from Pret.
Added Merryfield, “CTSI has a wealth of multi-language information that business can access for free to help them understand their responsibilities and put good allergen control and information measures into practice.”
Allergen-related deaths in numbers
UK: Between 1998 and 2018, ASA recorded 152 deaths due to food-induced anaphylaxis, according to FSA.
US: The Centers for Disease Control and Prevention estimates that food allergies cause 150-200 deaths annually.
Australia: The Australasian Society of Clinical Immunology and Allergy (ASCIA) reports increasing rates of food-induced anaphylaxis, with fatalities especially among teenagers.
Peanuts and tree nuts are the most common triggers for fatal anaphylaxis, but closely followed by milk, shellfish and sesame. Many deaths are linked to accidental cross-contamination in food preparation areas or mislabeling of food products.
Financial and legal ramifications
Pic: GettyImages/serggn
The costs of failing to comply with allergen regulations extend beyond the tragic human consequences.
Businesses that don’t properly manage allergens face severe financial penalties and lawsuits. Pret a Manger, for example, was fined £800k following the death of Celia Marsh, who suffered an allergic reaction to a dairy ingredient in a vegan wrap. Beyond fines, the financial costs of failures include potential lawsuits, loss of consumer trust and damaged reputations.
How tragedy sparked change
Pret a Manger wasn’t fined following the death of Natasha Ednan-Laperouse because at the time, UK laws did not require full ingredient labeling on pre-packaged foods made onsite. However, the teen’s death led to significant changes in allergen labeling laws, resulting in the introduction of Natasha’s Law, which came into effect in 2021.
Anita Kinsey, senior technical & safety manager for Pret, emphasizes the importance of robust allergen management systems.
“Over the past six years, Pret has established an industry-leading approach to helping customers with allergies, including developing the Pret Allergy Plan,” she told Bakery&Snacks.
“We were the first food-to-go business to introduce full ingredient labels on all freshly made products, two years ahead of the Government’s legislation. Through the Plan, Pret has played a leading role in developing allergen policies, which it has shared across the food-to-go industry.
“This has involved looking at our processes end-to-end: reviewing our supply chain, product development, kitchen processes and our in-shop experience. Alongside the introduction of full ingredient labels, all Team Members undergo allergy awarenesses courses and our managers take supervised allergen exams.
“Our goal is to help every customer get the information they need to make the right choice for them. Allergen management should be constantly reviewed to ensure it’s as effective as possible. Sharing best practices on allergen management, communication and education is key, which is why Pret has always encouraged collaboration through our Industry Exchange Group, set up in 2019. We’re always open to new approaches to better support people with allergies, and we’re proud to support the Natasha Allergy Research Foundation’s work.”
The law requires all foods prepacked for direct sale (PPDS) – such as sandwiches ad cakes packed on site – to include a full list of ingredients, with allergens clearly emphasized. It came in response to the failure to properly label allergens in pre-packaged food, which contributed to Natasha’s death.
“Since the introduction of Natasha’s Law, we have seen a positive impact for consumers,” Dr James Cooper, deputy director of Food Policy at Food Standards Agency (FSA), told this site.
“FSA and Food Standards Scotland (FSS) play an important role in ensuring that consumers with food hypersensitivities are protected. “In the lead-up to the introduction of Natasha’s Law, we worked with the food industry, allergy charities, local authorities and academics to prepare businesses and consumers for these new changes by producing practical tools and guidance.
Since its introduction, there has been progress in the food industry. Large retailers and food-to-go chains have adapted, investing in new labeling technologies and staff training.
Despite these improvements however, there are still challenges, especially for small businesses, many of which have struggled to afford the costs of new labeling technologies and the rigorous training required for compliance.
“We continue to work closely with partners to ensure that our guidance for businesses is robust, ensuring that consumers are to be able to enjoy food with confidence and have confidence in the choices they make”.
Challenges and area for improvement
Pic: GettyImages/john dory
While the introduction of Natasha’s Law has brought about positive changes, gaps remain in allergen management.
One of the most pressing issues is inconsistent communication about allergens in non-prepacked foods, especially in restaurants and smaller establishments.
Advice for food producers
“Food producers – from major manufacturers to small food-to-go independents – should ensure that allergen information is accurately and prominently displayed on all packaging, menus and online platforms, making it easy for customers to make informed decisions and identify potential allergens,” said Allergy UK’s Miles.
“This clarity should be maintained at every stage, including when sourcing ingredients from suppliers to avoid cross-contamination. Additionally, well-trained staff play a critical role in communicating allergen information effectively, as this helps them confidently address customer inquiries.”
Simone Miles, CEO of Allergy UK, explained, “The most significant challenge for people with food allergies is insufficient and inconsistent allergen information.”
She also highlighted the need for comprehensive staff training across the food industry.
“There is a need for comprehensive allergy training for employees at every level of food service. This should be mandatory to ensure that everyone in the food service chain understands the complexities of allergen management.”
She added, “The most significant challenge for people with food allergies is insufficient and inconsistent allergen information. Confusing blanket ‘may contain’ statements, inconsistent labeling formats and coded ingredient listings that make it difficult for someone with an allergy to feel confident that the product is safe to eat.
“This issue is particularly acute in the bakery aisle of major supermarkets, where many products carry broad ‘may contain’ warnings for the top 14 allergens, effectively making this section off-limits for those managing food allergies.”
Moreover, cross-contamination remains a significant risk in food preparation areas. Allergy UK continues to advocate for stricter controls and clearer labeling to mitigate these risks and protect consumers. The organization has played a crucial role in raising awareness of the ongoing challenges faced by individuals with food allergies and in pushing for stronger regulations.
The role of consumer advocacy
Consumer watchdogs have been instrumental in driving changes in allergen legislation. The introduction of Natasha’s Law was a direct result of the campaigning efforts by Natasha’s family and organizations like the Natasha Allergy Research Foundation. Advocacy remains a critical force in enforcing the importance of clear, transparent labeling and consistent allergen management practices across the industry.factbox
These groups provide a vital voice for individuals with food allergies, helping to ensure that their needs are met and that businesses take their responsibilities seriously.
The way forward
Pic: GettyImages/Ljupco
The food industry has made considerable progress in allergen compliance since the introduction of Natasha’s Law, but there is still much work to be done. As Dr Cooper noted, “We continue to work closely with partners to ensure that our guidance for businesses is robust.”
Ongoing education, enforcement, and technological innovation will be key to reducing the risks associated with food allergens and ensuring that consumers can enjoy food safely.
Ultimately, as the tragic deaths of youngsters like Hannah Jacobs and Natasha Ednan-Laperouse remind us, the cost of getting allergen compliance wrong is far too high. Businesses need to prioritize allergen safety, not only to avoid legal penalties and guard brand reputation, but most importantly, to protect the lives of their customers.
The fine balance of reformulation
Too many people are consuming large amounts of foods high in fat, sugars and sodium (HFSS) and this is causing 8 million premature deaths globally every year, according to the WHO. This has caused policymakers and governments to ramp up action to make the food environment healthier – placing the onus on the shoulders of the food industry – producers, foodservice and retailers – to help consumers eat smartly.
Food reformulation is the process of altering the processing or composition of a product to improve its nutritional profile. It usually takes place through gradual, unobtrusive changes to recipes to, for example, to remove allergens, adjust ingredients, or to reduce ‘harmful’ nutrients such as salt, saturates and sugar.
However, it’s a process that requires more than just eliminating or swapping out an ingredient and poses many technical challenges for manufacturers. One of the biggest challenges, too, is the relatively poor understanding of how to change behavior for the good and in the long term. It’s a concept that no producer can afford to ignore – but what is all the fuss?
Watch out for Bakery&Snacks’ webinar on Reformulation going live on October 25.
Insomnia Cookies just dropped its two new menu additions that are sure to have Insomniacs excited for those crisper fall nights: a Pumpkin Spice Latte Classic cookie and a Fruity Cereal N’ Milk Filled Classic cookie.
The new cookies are available at bakeries nationwide in-store and for local delivery from September 3–23. Availability varies by location. They include:
In recent years, French bakery products have experienced a significant rise in popularity across the US, driven by consumers’ increasing demand for artisanal food experiences. Among the brands capitalizing on this growing trend is Le Macaron French Pastries, which is making strategic moves to expand its presence in the US, including its recent franchise entry into Colorado.
A rising appetite for French delicacies
Pic: GettyImages/stockfour
America’s affinity for French bakery can be attributed to several factors, including the growing appreciation for authentic and premium food offerings. French bakery items, known for their artisanal quality and meticulous craftsmanship, fit perfectly into this niche.
There is also a broader trend towards health-conscious eating. French bakery are typically made with natural ingredients following time-honored techniques, appealing to consumers looking for healthier alternatives to mass-produced goods. Items like croissants, éclairs and macarons have become staples in upscale bakeries and cafés across the country.
Le Macaron French Pastries
Pic: GettyImages/evrim ertik
Founded in 2009 by Rosalie Guillem and her daughter Audrey Saba, Le Macaron has emerged as a key player in the US market. After leaving France and opening its first location in Sarasota, Florida, in 2012, the brand quickly gained popularity for its signature macarons.
The company’s focus on authenticity is a significant part of its success, following a traditional French recipe to deliver the same experience as one would have in a patisserie in France. This commitment to quality has helped build a loyal customer base and establish a strong presence in the competitive US bakery market.
Le Macaron’s business model combines the appeal of French luxury with a streamlined franchise approach, selecting partners who are as passionate and committed to maintaining the high standards set by the company. With a focus on expanding into regions where there is a clear demand for premium French products, Le Macaron today sports a network of 64 locations across the country, with another 11 under construction.
Targeting Colorado
Le Macaron recently signed on a new franchise partner in the Denver Area, Colorado. The state, with its diverse population and strong economy, offers a fertile ground for Le Macaron’s growth. The brand’s focus on authenticity is likely to resonate with local consumers, who are known for their love of artisanal and gourmet foods.
“As we continue to grow, we’re focusing on markets where consumers are driving demand for elevated desserts and experiences,” said Guillem.
“We believe Colorado has an ideal mix of communities and a vibrant, growing population. We’re looking forward to bringing Le Macaron to Colorado and building on the success we’ve seen in other regions across the country.”
With an emphasis on community engagement, Le Macaron aims to become a staple by offering residents a taste of France in their own backyard. Its elegant specialty retail café showcases French culture through an array of macarons, pastries, gelatos and coffees.
The business model is easy to follow and scalable, making it appealing to franchisees who also benefit from comprehensive training, support and resources for rapid growth and success. Simplified operations, including a centralized confectionary, ensure consistency and convenience, promoting a balanced work-life experience for franchisees.
“With over 60 locations, 15 years in operation and two million macarons made each year, our size and scale really showcase our success,” added Guillem.
“We are dedicated to providing our franchisees with comprehensive support and training to set them up for success. We look forward to finding more franchisees in Colorado and continuing to build the brand and the Le Macaron family.”
Business opportunities for US entrepreneurs
Pic: GettyImages/Gary Yeowell
The success of Le Macaron French Pastries in the US highlights the growing opportunities in the bakery café segment.
According to IBISWorld, revenue in the Patisserie and Cake industry is expected to rise an annualized 2.2% to $5.4bn by 2029. The sector has benefited from growing consumer income, but has had to contend with falling sugar consumption as the health trend kicks in. To the industry’s benefit, consumers are not willing to forgo indulgence completely and are still willing to splurge on patisseries.
Bridor is a prestigious French bakery brand, known for combining traditional French baking techniques with high-quality ingredients. Its expansion into the US includes advanced production facilities and partnerships with distributors, making its products widely available to upscale restaurants, hotels and gourmet retailers. Bridor’s commitment to quality and innovation has fueled its popularity, reflecting a growing American appetite for authentic, artisanal baked goods.
These brands showcase the rich tradition of French baking while adapting to American tastes, offering a delicious variety of options for bakery enthusiasts across the country.
Using fancy finishes to create an attractive, good-enough-to-eat product is a core consideration for manufacturers when developing luxurious chocolates and candies. And while confectionery’s success has long hinged on the popularity of permissible indulgence, today’s consumers are calling for better-for-you, healthier alternatives.
Now a new study suggests that confectioners’ glazes can achieve both.
To traditional glaze – usually made with a combination of fat and sugar – the researchers added samples of raspberry, apple, carrot, beet and vegetable powders.
During the study, the researcher identified that the glaze’s yield stress increased as the fruit and vegetable powder content increased from 3% to 15%. The exact amount this increased by differed depending on the ingredient’s fat-absorbing capacity.
The study also noted that adding these additive powders changed the glaze’s crystallisation characteristic. As the solidification temperature decreased by 1-2°C, the crystallisation duration increased by 27%- 40% compared to its control sample. The end-product contained a dietary fibre content of 9 grams per 100 grams and reduced the amount of added sugar within its formulation, meaning glazes can now be considered a useful player in the reformulation for health equation.
Other ways brands can boost functionality
As well as looking to reformulate using functional finishes, manufacturers have other methods for improving the nutritional value of their products. Here’s how:
Add seeds, nuts and dried fruit to confectionery goods as finishing touches
Use sweet proteins to increase confectionery’s nutritional value. Brands like Luker Chocolate and Oobli are using ingredients like pea, chicory roots and tapioca fibres.
Opting for vegan-friendly confectionery choices by using plant-based ingredients. Kakoa and Candy Kittens have launched vegan confectionery ranges while others like Lindt are creating plant-based alternatives to their classic products. Lindt launched its Lindor truffles plant-based range earlier this year.
Source: Food Systems
doi: 10.21323/2618-9771-2024-7-2-268-275 “Technological aspects and requirements to raw materials for increasing the nutritional value of glaze”
“While there is evidence of a link between processed and ultra-processed foods and health, the evidence base in relation to processing remains uncertain and of insufficient quality to propose changes to existing dietary recommendations at the moment,” said FSS senior public health nutritionist Alana McDonald.
“In contrast, there is robust evidence that diets high in calories, fats, sugars and salt increase the risk of many chronic diseases, including heart disease, stroke, type 2 diabetes and many types of cancer,” she added.
However, the organisation’s five UPF facts did not demonise processed ultra-processed foods, but advocated they could play a role in a healthy lifestyle.
“Not all processed foods are equal and there are some which can play a role in helping us achieve a balanced diet that are both nutritious and convenient, such as whole grain breads and tinned beans,” said Public Health Scotland organisational lead for food and physical activity Claire Hislop.
Five key facts about UPF foods:
UPFs aren’t all bad
Processed and ultra-processed foods are not all unhealthy. The terms ‘processed’ and ‘ultra-processed’ are used to describe how a food is made and not its nutritional value.
Processing means safety
Food and drink manufacture relies on processing and additives to ensure food safety. Preservatives, emulsifiers and antioxidants help to extend shelf life. Additives are deemed safe to use following strict assessments.
UPF impacts aren’t fully known
Evidence linking foods with high fat, sugar and salt content (HFSS) is concrete. However, said FSS, “the jury is still out on whether it’s the processing itself or the HFSS content that’s to blame”.
All the information is available
In the UK, colour-coded front-of-pack labelling shows whether a food or drink product is high or low in various nutrients. The red, amber and green traffic light system shows whether something is high, medium or low in HFSS ingredients.
Make small changes
Consumers who consume too many UPFs were advised to make small, manageable changes that could “lead to big improvements” in health over time.
The PMCA Production Conference Program Committee has named James Walsh, food scientist, nutrition and bakery at Tate & Lyle, as the twenty-seventh recipient of the Marie Kelso Memorial Award. Walsh presented Formulation Challenges & Solutions in Reduced Sugar Gummies Wednesday, April 17 during the 77th Annual Production Conference. The award will be presented at the 78th Annual Production Conference, April 7–9, 2025, in Lancaster, PA.
Walsh joins the ranks of the 26 previous award winners (in ascending order); Edward S. Seguine, Mars Snackfood, Susan L. Hefle, Ph.D., University of Nebraska, Marlene B. Stauffer, Blommer Chocolate Company, Harold H. Schmitz, Ph.D, Mars Snackfood, Nicole Staniec, Firmenich, Bill Dyer, Blommer Chocolate Company, Greg Ziegler, The Pennsylvania State University, Jeffrey Fine, AAK USA, Joe Smillie, Quality Assurance International, (QAI), Cindy Cosmos, Bell Flavors & Fragrances, Richard Hartel, University of Wisconsin – Madison (awarded twice), Tracey Duffey, World Cocoa Foundation, Kurt Muentener, Keymount GmbH, Abdoulaye Traore, Mars Chocolate, Jordana Swank, The Hershey Company, Joseph Bell, Joseph Bell Consulting, Kerry Kaylegian, The Pennsylvania State University, Mark Kline, The Hershey Company, John Ashby, California Natural Products, Jeffrey Bogusz, Ferrara Candy Company, Carly Meck, Blommer Chocolate Company, Nina Puch, Knechtel, Inc., Sarah Houle, Ghirardelli Chocolate Company, Pam Gesford, The Hershey Company and Jenna Derhammer, Blommer Chocolate Company.
About the award:
The PMCA Board of Directors established the Marie Kelso Memorial award in 1997. It is given each year to the author of the paper presented at the previous year’s annual production conference that most significantly contributes to industry knowledge, thus honoring the memory of Marie Kelso and her faithful dedication and unwavering belief in the value of the production conference for the industry.
Marie Kelso served as secretary to the Production Conference Committee for 38 years, and indeed her name became synonymous with the event itself. In her youth, she was secretary to Hans Dresel, a salesman for Felton Chemical Company in Philadelphia, PA. As her boss worked tirelessly to organize and promote PMCA’s Annual Production Conference, as well as AACT events, she organized and managed tirelessly as well. After she left her job at Felton Chemical, the production conference became her life’s work. Kelso was also active for many years in the Philadelphia Section of AACT. She passed away in September 1995.
Beckhoff Automation has opened a new regional office in Greater Atlanta. With more than 5,000 square feet, the facility will boost sales, support, and training capabilities in addition to accommodating customer meetings, seminars, and other events. Strategically located in Alpharetta, GA, the office will help ensure Beckhoff continues its strong customer and market share growth across the Southeast U.S.
The new Atlanta-area facility features a state-of-the-art training room to keep customers and employees up to date on the latest advances in automation software, networking, and motion control. To support special projects and proof-of-concept validation for customers, the office also has a research and development room stocked with technologies that Beckhoff engineers can use to collaborate with experts across industries.
Known as the “Technology City of the South,” Alpharetta is home to more than 600 tech companies, which employ a significant percentage of the area’s residents. Alpharetta also maintains a strong talent pool of recent graduates of the area’s top universities. The new Beckhoff office is conveniently located in the Sanctuary Park, a lush business campus that resides on a 150-acre nature preserve. The location also offers convenient transportation to downtown ATL and Hartsfield-Jackson Atlanta International Airport.
“The new Atlanta office has already become the home base for our Georgia-based team of sales and application engineers and the main hub for our Southeast Region,” says Buck Tanner, business development manager at Beckhoff USA. “Beckhoff continues to experience significant market share growth across industries in Georgia and surrounding states, with many customers who are excited to redefine what’s possible through adaptive automation technologies like XTS and XPlanar. With the new facility in Alpharetta, we’re not only creating opportunities for our team to collaborate and share knowledge, but we’re also demonstrating a firm commitment to our customers and their success.”
In addition to the expansion in Atlanta, Beckhoff has opened new or relocated U.S. facilities in 2024 in Los Angeles, Chicago, and Austin, TX. Along with its U.S. headquarters in the Minneapolis area, Beckhoff maintains numerous regional offices in key metropolitan areas across the U.S.
“There’s a lot of interest from European bakeries in going to North America,” said Garyth Stone, an MD in investment bank Houlihan Lokey’s consumer group. “It’s a good opportunity to expand because a great ability to grow in premium, European-quality par-baked and bake off.”
Stone speaks following the publication of his business’s bakery market review that dove into the rampant opportunities for European bakeries in the States. Market conditions across the pond were ripe with potential as the sector burst with optimism, the report said, while Stone told FoodNavigator the opportunity for Europe’s bakers in the States was still in its infancy.
European bakery’s opportunity lies within the frozen market where bakers in the states couldn’t compete on quality and could therefore take market share. “Manufacturers have done a fantastic job of doing par-baked products that consumers can’t tell apart from scratch products,” said Stone.
European bakeries have perfected frozen, par-baked. Source: Getty
Logistically, it made more sense as it was often difficult and expensive to send product from Europe and cross-continent in North America, “so there’s been a lot of M&A with businesses buying in new countries and companies see North America as an area they can grow with reason and legitimacy”, he continued.
European bakery businesses had a “right to win” in the market because of the quality of product they made, a result of years honing machinery and techniques to create frozen bake off products that tasted like their fresh counterparts, a skill North America had yet to perfect.
Europe’s ‘right to win’ Stateside
“The USA hada head start in frozen, but quality in certain categories in bake off tends to be limited whereas in Europe manufacturers have perfected the technology,” said Stone. “Whether it’s butter croissants, danish pastries, artisan bread, ancient grains, etc… they have very high-quality products and few businesses in North America that can make them to the same standard”
When buying facilities, European bakery businesses sought ones of a medium size, worth tens or low hundreds of millions of dollars – not billions – and ideally where little additional investment was needed. However, Stone reiterated Europe’s quality baked goods were a result of long-perfected tech, so there could be need for investment in a facility’s production, “but they [European bakers] don’t want to have to double their investment by doing more than necessary”.
“They prefer to start off on the east coast, which is closer physically [to Europe] and easier to communicate with. California is a great market with higher spenders and more wholefoods on the coast than in the middle,” said Stone.
While Europeans have the upper hand on classic bakes, Americans did excel in other areas, such as within sweet baked goods for casual dining. “No one in US foodservice makes desserts from scratch. It’s largely thaw and serve,” he said.
How the US does dessert better than Europe
American foodservice does ‘pile-it-on’ indulgent desserts with a higher margin. Source: Getty
“Dessert Holdings is an example of this where they create indulgent and elaborate desserts. In the UK, you might have a slice of brownie with some ice cream, but in the US they wouldn’t go for that,” Stone explained.
“They prefer elaborate desserts – consumers there love them. Americans want indulgence and something extravagant and the producers make a good margin on those types of desserts.”
Such a concept didn’t exist in Europe to the same degree, although could be an opportunity for the sector to increase revenues, predicted Stone. “The closest we have is Mademoiselle Desserts, but it’s still predominantly a retail business and nothing like as indulgent or complicated as it is in US, and therefore lower margins.”
Other areas to monopolise included brand partnerships, such as Baker & Baker’s tie-up with Mondelez, which manufactures branded products for the US-owned chocolate maker under license in Europe. “They’re making more exciting products by using licenses and you can educate the consumer to pay a higher price for more high-quality and indulgent products that way.”
