The Retail Bakeries Industry report contains the most recent data and analysis on the industry’s key financial data, cost and pricing, competitive landscape, industry structure. Also updated are the latest trade, shipment, and inventory data available through January 2013. This update provides the data necessary to make informed forecasts and business planning after the recent seasonal changes in output. This 165-page report includes the most recent information on the domestic market, global market and overseas growth opportunities.
This report provides the most current data available, such as shipments, inventory and trade data available through January 2013, and sophisticated forecasts up to 2017 accounting for the affects of the recent economic recession. Industry analysts consider this report the most comprehensive and consistently updated guide to the industry. * Enquire before Buying * Send to a Friend The Retail Bakeries Industry report contains the most recent data and analysis on the industry’s key financial data, cost and pricing, competitive landscape, industry structure.
Also updated are the latest trade, shipment, and inventory data available through January 2013. This update provides the data necessary to make informed forecasts and business planning after the recent seasonal changes in output. This 165-page report includes the most recent information on the domestic market, global market and overseas growth opportunities. This report provides the most current data available, such as shipments, inventory and trade data available through January 2013, and sophisticated forecasts up to 2017 accounting for the affects of the recent economic recession.
The Term Paper on Maritime industry
1. Define economics and trace briefly its evolution. Discuss allocation, distribution, and movement of factors of production in the domestic and international economy. Economics is the social science that analyzes the production, distribution, and consumption of goods and services. The term economics comes from the Ancient Greek οἰκονομία (oikonomia, “management of a household, ...
Industry analysts consider this report the most comprehensive and consistently updated guide to the industry. In this report, you will find industry data on the following major categories: Executive Summary — Quick Industry Statistics: 2-page overview for the CEO on the run — Supply & Demand with Capacity Utilization — 2012-2017 Forecast Industry Income Statement — All relevant financial data including: Revenue, Cost of Materials, Labor Costs, Gross Profit, SG&A, Net Income, etc. — 4-year Financials Comparison and Trends
Industry Balance Sheet — Traditional key elements of Assets, Liabilities, and Equity — Inventory fabrication stages — Calculated balance sheet ratios Capital Expenditure — Plant additions and expansions — Computer and IT investments — Machinery and Equipment for production and material handling Industry Cost Analysis — Upstream Industries and the cost allocations towards producer, wholesale, retail, and freight — Materials and their percentage share of total material costs Industry Pricing Analysis – Producer Pricing Indices at industry, wholesale, and retail levels for comparison and trend forecasting — Pricing Distribution among Downstream Industries differentiated at producer, wholesale, retail, and freight categories Industry Foreign Trade — Detailed Import/Export Data by commodities and by countries — Mode of Shipment and insurance and freight costs Industry Structure — Labor and Compensation Structure: productivity indices, hourly wages, production hours, output index, HR structure — Establishments: Trends, Employee Statistics, State by State numbers — Valued added statistics: industry GDP contribution
Competitive Landscape — Industry Concentration: HHI, number of companies, size distributions, market shares — Major Players: company profiles and market size ranges (Please see the full table of contents for more details) Preface Introduction — Definition — Related Industries — Comparison to U. S. Manufacturing Sector — Scope — History Executive Summary — Quick Statistics — Supply, Demand & Capacity Utilization — 2012 Preview —– Shipments & Inventories — 2013-17 Forecast —– Shipments —– Spending Per Capita —– Spending Per Household Industry Income Statement – Revenue (Value of Shipments, Net Sales) — Compensation (Payroll & Fringe Benefits) —– Salaries —– Wages —– Fringe Benefits —– Compensation Distribution — Cost of Materials —– Materials Cost Excluding Fuel & Energy —– Electricity Cost —– Fuel Costs —– Materials Consumption Breakdown — Gross Profit — Other Costs —– Administrative, Sales and Marketing Expenses —– Current and Deferred Taxes — Net Income —– Income (or Loss) From Operations (EBIT) —– Other Non-Operating Income —– Income (or Loss) Before Income Taxes (NIBT) —– Income (or Loss) After Income Taxes —- Earnings before Interest, Depreciation & Taxes (EBIDT) Industry Balance Sheet — Assets —– Cash and Government Securities —– Accounts Receivable —– Inventories —– Inventories Stage of Fabrication Ratios —– Total Current Assets —– Current Assets Distribution Chart —– Property and Other Non-Current Assets — Liabilities —– Current Liabilities —– Total Liabilities — Equity —– Stockholders’ Equity —– Profit on Stockholders’ Equity before Income Tax —– Profit on Total Assets before Income Tax —– Total Current Assets to Total Current Liabilities —- Total Cash & Government Securities to Total Current Liabilities Capital Expenditures — Building & Structure — Machine and Equipment Expenditures (including Automobile & Computers) — Computers — Automobile & Highway — Other Machine & Equipment Product Market Sizes Cost Analysis — Upstream Industries Pricing Analysis — Producer Price Indices —– Industry-Level Producer Price Indices —– Manufacturing Sector PPI —– Producer Price Index – Wholesale Sector —– Producer Price Index – Retail Sector —– Consumer Price Index – All Items —- Consumer Price Index – Durable Goods —– Consumer Price Index – Non-Durable Goods —– Consumer Price Index – Electricity —– Consumer Price Index – Gasoline — Pricing Distribution — Downstream Industries Industry Foreign Trade — Import —– Import Process —– Harmonized Tariff Schedule —– Top Import Commodities Analysis —– Ranking – Countries US Imported From —– Top 5 Countries US Imported From —– Top 25 Countries US Imported From —– Importing Insurance and Freight Cost Index by Country —– Import Total Value from 2002 to 2014 —– Import Total Quantity from 2002 to 2014 —- Import Export Total Value Comparison from 2002 to 2014 —– Import Export Total Quantity Comparison from 2002 to 2014 —– Import Price Indices from 2002 to 2014 —– Comparison of Import & Export Price Indices from 2002 to 2014 — Export —– Domestic Exports —– Foreign Exports (Re-exports) —– Export Statistics Summary —– Top Export Commodities Analysis —– Ranking – Countries US Exported To —– Top 5 Countries US Exported To —– Top 25 Countries US Exported To —– Export Total Value from 2002 to 2014 —– Export Total Quantity from 2002 to 2014 —– Export Price Indices from 2002 to 2014
The Research paper on Cumberland Metal Industries Pads Cmi Market
I. Case Analysis Overview Cumberland Metal Industries (CMI) is one of the largest metal manufacturers in the world. The company evolved from selling metal as a finished product to one that used it as a raw material, increasing sales from $250, 000 in 1963 to over $18, 500, 000 in 1979. Currently, CMI relies heavily on Slip Seal, which is used as a high-temperature sealant in automobiles. Although ...
The Term Paper on Total Cost of Ownership
Examples include: return on investment, internal rate of return, economic value added, return on information technology, and rapid economic justification. A TCO analysis includes total cost of acquisition and operating costs. A TCO analysis is used to gauge the viability of any capital investment. An enterprise may use it as a product/process comparison tool. It is also used by credit markets and ...
Industry Structure — Labor and Compensation —– Trend —– Production Workers —– Production Workers to Total Employees Ratio —– Hourly Wages —– Production Hours Trend —– Contribution (Revenue) per Production Worker —– Annual Wage per Production Worker —– Production Worker Contribution (Revenue) Ratio —– Revenue to Number of Workers —– Labor Productivity (output per hour) —– Labor Input Index (total labor hours) —– Output Index —– Unit Labor Cost Index —– Labor Compensation Index —– Output per Worker Index —– All Worker Index —– Human Resources – Occupations – Establishments —– Trend —– Average Number of Employees per Establishment —– Contribution (Revenue) per Establishment —– Establishment Sizes by Number of Employees —– Establishments by U. S. States — Value-Added — Sustainability Competitive Landscape — Industry Concentration — Industry Aggregate — Major Players Appendix A – Additional Foreign Trade Statistics — Trading Countries’ Rank — Top 5 US Trading Countries and Other — Top 25 US Trading Countries Appendix B – Industry U. S. States’ Statistics — Production Workers Ratio — Average Hourly Wage — Average Annual Salary – Cost of Materials Ratio — Capital Expenditure Ratio — Industry Shipment Ratios — Electricity Consumption and Environmental Impact — Fuel Consumption and Environmental Impact Appendix C – Additional Links — Trade Associations — Trade Publications — Trade Shows — Industry Standards — Legislation, Regulation, Tax and Environmental Related Issues —– Industry Specific Regulatory Agencies —– Non-Industry Specific Regulatory Agencies Appendix D – Industry’s 4-Year Financial Statement Appendix E – Report Methodology — Data Sourcing — Data Collection & Integration — Data Analysis — Data Presentation – Human Factors Legal Definition & Classification This U. S. industry comprises establishments primarily engaged in retailing bread and other bakery products not for immediate consumption made on the premises from flour, not from prepared dough. This 6-digit NAICS industry (311811) is under the hierarchy of Bread and Bakery Product Manufacturing Industry (31181), Bakeries and Tortilla Manufacturing Industry Group (3118), Food Manufacturing Subsector (311), and the Manufacturing Sector (31-33).
The Term Paper on Economic Geography Industry Location Cost
... -related industry concentrations, availability of reliable infrastructure to reduce transport costs and enhance market access, ... specialization which focus on one industry, the diversity index considers the industry mix of the entire ... commonly used in the analysis of trade between regions and countries (Even net ... making inter-temporal comparisons difficult. 12 Data quality has been examined by cross ...
Its SIC equivalent code is: 5461 – Retail Bakeries (bread, cake and related products baked and sold on premise).
Revenue, Profitability & Foreign Trade Preview The industry’s revenue for the year 2012 is currently projected at $xx,xxx,xxx,xxx. The industry’s revenue for the year 2011 was reported at $3. 0 billion USD, with an estimated gross profit of 29. 6%. The industry used a projected 61 percent of its full production capacity in 2011. The industry could have increased its total shipment value to $5. 0 billion USD under full production capacity. This industry did not have direct foreign trade statistics. The report nevertheless depicted relevant foreign trade data from a higher level NAICS industry or industry group.
The Essay on Industry Group Data Variables Measures
INTRODUCTION There are two distinct variables that will be analyzed in this paper. These variables were taken from 20 industries and 140 sub industries in the United States. The first variable to be studied is the Industry group. The industry group variable consists of numbers from 1 to 20 to denote the industry group to which the particular sub industry belongs. The second variable to be studied ...
Report Summary This 165-page report contains unparalleled industry market research in breadth and depth, providing a comprehensive view of the industry within the context of the overall manufacturing economy. The report’s supply and demand data covers U. S. shipments and international trade while also considering the industry’s capacity utilization. The industry level income statements, balance sheets, and capital expenditure analysis contain all the necessary data for financial benchmarking. In the cost analysis section, 56 upstream industries are analyzed to offer insight into the supply chain cost structure.
For the channel and pricing structure, 30 downstream industries are analyzed. The competitive landscape section reports on the number of firms and their industry revenue share, market concentration, and a list of major players. Related trade associations, industry standards, and trade publications are also listed. Our clients include Fortune 500 companies, manufacturers, international top consulting firms, major retailers and wholesalers, professional trade associations, financial corporations, universities, governmental entities, start-ups and individuals.
We are committed to providing the highest level of quality to all our clients and assure your satisfaction in the report delivering as promised. Ark Restaurants Corp. , Franz Bakery, Hostess Brands, Inc. , Krispy Kreme Doughnuts, Inc. , Maple Leaf Foods Inc. , Nonni’s Food Company, Perkins & Marie Callender’s Inc. , The Cheesecake Factory Incorporated, The Penn Traffic Company This latest Commercial Bakeries Industry report provides the most updated market research on the industry.
The Term Paper on Introducing King Crab To The Trade
Professor Frédéric Brunel, with the assistance of Deborah Utter, wrote this case solely to provide material for class discussion. The authors do not intend to illustrate either effective or ineffective handling of a managerial situation. The authors may have disguised certain names and other identifying information to protect confidentiality. Ivey Management Services prohibits any form of ...
Its scope contains analysis on the industry’s key financial data, competitive landscape, shipment and inventory data, upstream and downstream industries, and trade data. This 2013 report’s 170 pages and over 150 charts and tables cover the domestic market, global market and overseas growth opportunities. Find the latest data on shipments, inventory, international trade, and essential industry price indices available through January 2013. Relying on over a decade of historic data and sophisticated forecasting, the report projects industry trends through 2017.
The report’s broad scope includes topics from foreign trade to industry structure, while also diving into the details such as market sizes of products and players. Industry experts consistently subscribe to this quarterly-updated market research report. * Enquire before Buying * Send to a Friend This latest Commercial Bakeries Industry report provides the most updated market research on the industry. Its scope contains analysis on the industry’s key financial data, competitive landscape, shipment and inventory data, upstream and downstream industries, and trade data.
This 2013 report’s 170 pages and over 150 charts and tables cover the domestic market, global market and overseas growth opportunities. Find the latest data on shipments, inventory, international trade, and essential industry price indices available through January 2013. Relying on over a decade of historic data and sophisticated forecasting, the report projects industry trends through 2017. The report’s broad scope includes topics from foreign trade to industry structure, while also diving into the details such as market sizes of products and players. Industry experts consistently subscribe to this quarterly-updated market research report.
In this report, you will find industry data on the following major categories: Executive Summary — Quick Industry Statistics: 2-page overview for the CEO on the run — Supply & Demand with Capacity Utilization — 2012-2017 Forecast Industry Income Statement — All relevant financial data including: Revenue, Cost of Materials, Labor Costs, Gross Profit, SG&A, Net Income, etc. — 4-year Financials Comparison and Trends Industry Balance Sheet — Traditional key elements of Assets, Liabilities, and Equity — Inventory fabrication stages — Calculated balance sheet ratios Capital Expenditure – Plant additions and expansions — Computer and IT investments — Machinery and Equipment for production and material handling Industry Cost Analysis — Upstream Industries and the cost allocations towards producer, wholesale, retail, and freight — Materials and their percentage share of total material costs Industry Pricing Analysis — Producer Pricing Indices at industry, wholesale, and retail levels for comparison and trend forecasting — Pricing Distribution among Downstream Industries differentiated at producer, wholesale, retail, and freight categories Industry Foreign Trade – Detailed Import/Export Data by commodities and by countries — Mode of Shipment and insurance and freight costs Industry Structure — Labor and Compensation Structure: productivity indices, hourly wages, production hours, output index, HR structure — Establishments: Trends, Employee Statistics, State by State numbers — Valued added statistics: industry GDP contribution Competitive Landscape — Industry Concentration: HHI, number of companies, size distributions, market shares — Major Players: company profiles and market size ranges (Please see the full table of contents for more details) Preface
Introduction — Definition — Related Industries — Comparison to U. S. Manufacturing Sector — Scope — History Executive Summary — Quick Statistics — Supply, Demand & Capacity Utilization — 2012 Preview —– Shipments & Inventories — 2013-17 Forecast —– Shipments —– Spending Per Capita —– Spending Per Household Industry Income Statement — Revenue (Value of Shipments, Net Sales) — Compensation (Payroll & Fringe Benefits) —– Salaries —– Wages —– Fringe Benefits —– Compensation Distribution — Cost of Materials —– Materials Cost Excluding Fuel & Energy —- Electricity Cost —– Fuel Costs —– Materials Consumption Breakdown — Gross Profit — Other Costs —– Administrative, Sales and Marketing Expenses —– Current and Deferred Taxes — Net Income —– Income (or Loss) From Operations (EBIT) —– Other Non-Operating Income —– Income (or Loss) Before Income Taxes (NIBT) —– Income (or Loss) After Income Taxes —– Earnings before Interest, Depreciation & Taxes (EBIDT) Industry Balance Sheet — Assets —– Cash and Government Securities —– Accounts Receivable —– Inventories —– Inventories Stage of Fabrication Ratios —- Total Current Assets —– Current Assets Distribution Chart —– Property and Other Non-Current Assets — Liabilities —– Current Liabilities —– Total Liabilities — Equity —– Stockholders’ Equity —– Profit on Stockholders’ Equity before Income Tax —– Profit on Total Assets before Income Tax —– Total Current Assets to Total Current Liabilities —– Total Cash & Government Securities to Total Current Liabilities Capital Expenditures — Building & Structure — Machine and Equipment Expenditures (including Automobile & Computers) — Computers – Automobile & Highway — Other Machine & Equipment Product Market Sizes Cost Analysis — Upstream Industries Pricing Analysis — Producer Price Indices —– Industry-Level Producer Price Indices —– Manufacturing Sector PPI —– Producer Price Index – Wholesale Sector —– Producer Price Index – Retail Sector —– Consumer Price Index – All Items —– Consumer Price Index – Durable Goods —– Consumer Price Index – Non-Durable Goods —– Consumer Price Index – Electricity —– Consumer Price Index – Gasoline — Pricing Distribution — Downstream Industries
Industry Foreign Trade — Import —– Import Process —– Harmonized Tariff Schedule —– Top Import Commodities Analysis —– Ranking – Countries US Imported From —– Top 5 Countries US Imported From —– Top 25 Countries US Imported From —– Importing Insurance and Freight Cost Index by Country —– Import Total Value from 2002 to 2014 —– Import Total Quantity from 2002 to 2014 —– Import Export Total Value Comparison from 2002 to 2014 —– Import Export Total Quantity Comparison from 2002 to 2014 —– Import Price Indices from 2002 to 2014 —- Comparison of Import & Export Price Indices from 2002 to 2014 — Export —– Domestic Exports —– Foreign Exports (Re-exports) —– Export Statistics Summary —– Top Export Commodities Analysis —– Ranking – Countries US Exported To —– Top 5 Countries US Exported To —– Top 25 Countries US Exported To —– Export Total Value from 2002 to 2014 —– Export Total Quantity from 2002 to 2014 —– Export Price Indices from 2002 to 2014 Industry Structure — Labor and Compensation —– Trend —– Production Workers —– Production Workers to Total Employees Ratio —- Hourly Wages —– Production Hours Trend —– Contribution (Revenue) per Production Worker —– Annual Wage per Production Worker —– Production Worker Contribution (Revenue) Ratio —– Revenue to Number of Workers —– Labor Productivity (output per hour) —– Labor Input Index (total labor hours) —– Output Index —– Unit Labor Cost Index —– Labor Compensation Index —– Output per Worker Index —– All Worker Index —– Human Resources – Occupations — Establishments —– Trend —– Average Number of Employees per Establishment —- Contribution (Revenue) per Establishment —– Establishment Sizes by Number of Employees —– Establishments by U. S. States — Value-Added — Sustainability Competitive Landscape — Industry Concentration — Industry Aggregate — Major Players Appendix A – Additional Foreign Trade Statistics — Trading Countries’ Rank — Top 5 US Trading Countries and Other — Top 25 US Trading Countries Appendix B – Industry U. S. States’ Statistics — Production Workers Ratio — Average Hourly Wage — Average Annual Salary — Cost of Materials Ratio — Capital Expenditure Ratio — Industry Shipment Ratios – Electricity Consumption and Environmental Impact — Fuel Consumption and Environmental Impact Appendix C – Additional Links — Trade Associations — Trade Publications — Trade Shows — Industry Standards — Legislation, Regulation, Tax and Environmental Related Issues —– Industry Specific Regulatory Agencies —– Non-Industry Specific Regulatory Agencies Appendix D – Industry’s 4-Year Financial Statement Appendix E – Report Methodology — Data Sourcing — Data Collection & Integration — Data Analysis — Data Presentation — Human Factors Legal Definition & Classification This U.
S. industry comprises establishments primarily engaged in manufacturing fresh and frozen bread and bread-type rolls and other fresh bakery (except cookies and crackers) products. This 6-digit NAICS industry (311812) is under the hierarchy of Bread and Bakery Product Manufacturing Industry (31181), Bakeries and Tortilla Manufacturing Industry Group (3118), Food Manufacturing Subsector (311), and the Manufacturing Sector (31-33).
Its SIC equivalent codes are: 2051 – Bread and Other Bakery Products, Except Cookies and Crackers; and 2052 – Cookies and Crackers (unleavened bread and soft pretzels).
Revenue, Profitability & Foreign Trade Preview The industry’s revenue for the year 2012 is currently projected at $xx,xxx,xxx,xxx. The industry’s revenue for the year 2011 was reported at $26. 5 billion USD, with an estimated gross profit of 41. 67%. The industry used a projected 78 percent of its full production capacity in 2011. The industry could have increased its total shipment value to $34. 0 billion USD under full production capacity. This industry did not have direct foreign trade statistics. The report nevertheless depicted relevant foreign trade data from a higher level NAICS industry or industry group.
Report Summary This 170-page research report covers the industry with a comprehensive view and delivers a depth of information in key areas. Supply and demand data covers U. S. shipments and international trade in the context of the industry’s capacity utilization. Industry level income statements, balance sheets, and capital expenditure analysis allow for financial benchmarking. In the cost analysis section, 56 upstream industries are analyzed to offer insight into the supply chain cost structure. For the channel and pricing structure, 30 downstream industries are analyzed.
The competitive landscape section provides the number of companies and their respective revenue share, the market concentration, and a list of major players. Important trade associations, industry standards, and trade publications are also listed. Over 150 labeled charts and tables are organized to best convey the large amount of data within the report. Our clients include Fortune 500 companies, manufacturers, international top consulting firms, major retailers and wholesalers, professional trade associations, financial corporations, universities, governmental entities, start-ups and individuals.
We are committed to providing the highest level of quality to all our clients and assure your satisfaction in the report delivering as promised. Industry report: This industry comprises establishments primarily involved in manufacturing frozen bakery products other than bread and bread-type rolls. Products include frozen cakes, croissants, doughnuts, pies, and sweet yeast goods. Manufacturers of frozen bread and bread-type rolls are classified in SIC 2051: Bread, and Other Bakery Products. Except Cookies and Crackers. The 179 establishments in the $3. billion miscellaneous frozen bakery products employed 12,700 workers. Although approximately 80 percent of companies had 100 or fewer employees, the 20 percent of the companies that employed more than 100 people claimed 86 percent of the employees and 95 percent of industry revenues. The top two companies alone, which had a combined 2,400 employees and $2. 47 billion in sales, accounted for 19 percent of employees and 69 percent of revenues. New York led in terms of revenues earned, with $2. 48 billion in sales, followed at a distance by New Jersey with $658 million and Texas with $90 million.
In the late 2000s and into the early 2010s, the frozen pie category was battling conflicting trends, serving as an industry benchmark. U. S. consumers, hurt by a poor economy, were eating in more, thus looking for the convenience and comfort of the frozen pie section. On the other hand, they were also watching their budgets and their diets, which kept many of them walking right on by the frozen food aisle. Frozen pies come in eight or nine inch sizes in either bake-and-serve or thaw-and-serve varieties. Top frozen pie flavors were apple and pumpkin.
To appeal to the health-conscious consumer, companies began to offer low-fat pies. In the late 2000s, the top three vendors in the frozen pie market were Schwan Food Co. , with an estimated 50 percent market share; Sara Lee Corp. , with about 23 percent; and American Pie Co. at around 19 percent. Frozen pies were valued at $335 million, frozen dessert cakes at $128 million, and cheesecakes at $98 million. Frozen cookie dough jumped in popularity in the early 2000s, due in large part to the introduction of Mrs. Fields frozen cookie dough, and continued to benefit from new product introductions.
Otis Spunkmeyer was the top brand of gourmet frozen cookie dough in 2009. Breakfast foods were also popular in the late twentieth and early twenty-first centuries. The late 1990s saw the beginnings of a breakfast foods war among manufacturers of frozen and fresh products. Kellogg’s added more flavors of waffles, while Pillsbury introduced Toaster Scrambles in three varieties (cheese and egg; cheese, egg, and bacon; and cheese, egg, and ham).
Sara Lee redirected its marketing efforts to its new fresh division in an attempt to tap into the $300 million supermarket bagel business.
New product launches continued into the early 2000s as Kellogg’s began pushing its healthier breakfast options, such as Eggo Nutri-Grain Waffles, which saw sales increase by 27. 2 percent in 2003. The firm also launched Eggo French Toaster Sticks, its first French toast product, in the early 2000s, hoping to gain access to the rapidly growing French toast stick sector that grew by 32 percent in 2003. According to Foodservice Research Institute (FSRIN) survey data, nearly 50 percent of all breakfast food and beverage items were considered portable by the mid-2000s.
Frozen breakfast foods had become a $1 billion industry sector by 2004. Frozen waffles, long the favorite of this sector, accounted for $481. 3 million in sales from April 2004 to April 2005, but, unlike previous years, waffles failed to produce over half of frozen breakfast food sales. The combination of frozen breakfast sandwiches, pancakes, and French toast reached $513. 6 million in the April 2004 to April 2005 period, a 10 percent increase over the previous year. By 2008, total frozen breakfast food sales were up to $1. 3 billion, according to The Food Institute Report.
Tim Smith of Jimmy Dean (a Sara Lee subsidiary) attributed the increase in frozen breakfast food sales in part to consumers’ growing interest in foods containing protein, a trend that was expected to continue into the 2010s. In 2009, the frozen breakfast food industry grew to $1. 4 billion. According to a report by Information Resources, certain segments of the industry saw particular growth. For example, in fiscal 2009, sales of frozen bagels increased by over 42 percent. The smaller segment of frozen muffins ($26 million) nonetheless experienced an increase in revenues of 62 percent over the same period.
Meanwhile, frozen breakfast entrees and waffles grew by 4. 6 percent and 3. 8 percent, respectively. One of the first companies to offer frozen bakery products to the American marketplace was Sara Lee, founded in 1949 by Charles Lubin. The company originally offered a line of premium, fresh-baked products and made shipments within a 200-mile radius of its Chicago location. In 1953, to accommodate the needs of long-distance clients, the company pioneered freezing methods, and nine years later made the decision to switch its production exclusively to frozen products.
Sara Lee Corp. had sales of $12. 88 billion in 2009 and 41,000 employees worldwide. Kellogg Co. , with Mrs. Smith’s and Eggo products as market leaders in their categories, employed 31,000 and had overall sales surpassing $12. 58 billion in 2009. Privately-owned Schwan Food Co. produced the popular Edwards line of frozen pies and cheesecakes; Schwan had revenues of $3. 53 million in 2009. American Pie Company of Syosset, New York, sold the second largest money-maker, the Marie Callender brand. 7 Companies in this industry * NAICS 311812: Commercial Bakeries Industry report:
This industry is comprised of establishments that make fresh or frozen breads or rolls and perishable bakery products such as cakes, pies, and pastries. Manufacturers of dry bakery products such as cookies and crackers are classified in SIC 2052: Cookies and Crackers. Establishments involved in manufacturing frozen bakery products other than bread are classified in SIC 2053: Frozen Bakery Products, Except Bread. On-premises, retail bakeries are classified in SIC 5461: Retail Bakeries. Industry Snapshot The value of goods shipped by the commercial bakery industry in 2008 was approximately $24. billion. Although consumers were buying less bread than in previous decades by the mid-2000s, they were buying more expensive, higher-profit labels. As a mature industry, bakeries generate most of their growth through higher-end specialty breads. Cost cutting and industry consolidation also have helped to buoy profits. During the 2000s, trendy sandwich shops, bakery cafes, and high-end bakeries became increasing popular, which opened new markets for local and regional bakeries that could provide “hot-out-of-the-oven” European-style breads.
In addition, once the diet research moved away from saturated fats and toward whole foods, the low-carb craze lifted the industry’s profits back up, since bakers make the least profit on white bread and the most on whole grain, low-carb varieties, which the low-carb diets promoted. In the late 2000s, there were an estimated 4,400 commercial bakeries in the U. S. with industry-wide employment of 112,100 workers. The majority of commercial bakeries that made fresh or frozen breads or rolls and perishable bakery products such as cakes, pies, and pastries were located in California (655), Texas (463), New York (396), and Florida (234).
Collectively, these four states were responsible for nearly 40 percent of industry share. Bread, cake, and related products category accounted for 41. 4 percent of the industry total, followed by the doughnuts, except frozen, category. Organization and Structure Historically, the baking industry established itself close to population centers. Because bread and cake products were perishable, proximity to a customer base was a primary concern. One way growing bakeries overcame this geographic constraint was through the purchase of companies in other areas.
Many acquisitions and mergers within the industry during the last decades of the twentieth century transformed baking establishments with regional shipping systems into large conglomerates with national distribution networks. In addition, large baking establishments often attracted the attention of other investors. Since 1960, many of the nation’s top wholesale bakeries had been purchased by food processing companies. The practice of buying or merging with existing firms had benefits in addition to overcoming problems related to delivering fresh products to the marketplace.
Buying and refurbishing existing facilities was often less expensive than building new plants. Buying also helped avoid problems associated with creating excess capacity in specific geographic areas. Despite the trend toward building large corporations, many independent family-owned bakeries remained successful. In 1987, an estimated 56. 3 percent of all wholesale bread and cake plants operated with fewer than 20 employees. These small establishments, however, captured only 2. 3 percent of the industry’s total sales. The baking industry was monitored and regulated by several governmental agencies.
For example, the U. S. Department of Health, Education and Welfare set the definitions and standards used to identify wheat and related products. The Food and Drug Administration (FDA) regulated product quality and mandated procedures by which food additives were to be approved prior to use. Finally, the National Research Council’s Food and Nutritional Board (along with the American Medical Association’s Council on Foods and Nutrition) published guidelines for enriching bread products with nutrients. Background and Development
The oldest existing written record of a baked grain product dates back to about 2600 B. C. The earliest known breads were flat and were baked on smooth stones or clay plates. According to a theory held by some historians, the ancient Egyptians created the world’s first leavened breads. Leavened bread was made with ingredients possessing the chemical properties necessary to make dough rise. By contrast, unleavened breads were made from doughs that did not rise. The ability to bake leavened breads may have been developed along with the ability to brew beer, as both processes relied on fermentation.
Fermentation refers to a complex chemical process in which organic compounds are broken down into simpler substances. In alcoholic fermentation, the yeast converts a mixture’s sugar or starch into carbon dioxide and alcohol. Recipes with sufficient liquid produced beer-like beverages. In mixtures with less liquid, the carbon dioxide produced by the fermentation process made the dough rise. Fermentation of wheat and water mixtures was accomplished through the incorporation of yeast. Yeast is a member of the fungus family.
Although an individual “yeast” is a single-celled organism, it lives and grows by multiplying into cultures consisting of thousands of cells. In order to grow, the cells eat the sugar and starch in dough mixtures. Early yeasts were incorporated into recipes by letting doughs sit out for a period of time to “sour. ” These wild yeast cultures, once established in a dough mixture, were carefully maintained through a process whereby some dough from each batch was saved to incorporate into the next batch. Before the development of commercial yeast, all leavened bread was made from sourdoughs.
Sourdough breads are still made from flour, water, yeast, and bacteria. Although many grains and other products could be fermented, wheat flours were the only ones to exhibit leavening. Wheat possessed a type of gluten (plant protein) unlike the gluten of other grains. Wheat gluten, when kneaded, formed an elastic structure that had the unique ability to trap the carbon dioxide given off by the yeast and to stretch and expand as more gas was created. When leavened doughs were baked, the heat killed the yeast but the dough’s expanded structure remained.
As a result, leavened breads were lighter and more airy than their unleavened counterparts. The ancient Egyptians are also sometimes credited with inventing ovens. According to one theory, the first “ovens” were earthen pots. Early bakers discovered that when dough was placed inside preheated pots, it cooked more evenly than it did when placed on top of a heat source. The construction of permanent oven structures soon followed. Along with the development of ovens came the development of bread varieties as bakers experimented with different shapes and different ingredients.
Sweet cakes first appeared in the twelfth century B. C. During the classical era, the Greeks modified oven designs and introduced the use of more innovative ingredients including milk, oil, wine, cheese, and honey. Commercial bakeries first appeared in the Roman Empire. Under early Roman rule, baking progressed to an art form. As the Empire began to crumble, however, bakeries were taken over by the government, and commercial baking became virtually nonexistent. White flour was a luxury available only to royalty. During the Middle Ages, only monasteries and manor houses baked large quantities of leavened products.
Monasteries also were credited with the development of pie crusts, an early pastry product. Although pie crusts were originally used only with meat dishes, they gained popularity for dessert items when sweetening ingredients were used. Early sweeteners in baked goods consisted of honey, raisins, and other types of dried fruits. The use of sugar was introduced during the 1500s. Innovative bakers using sugared batters and doughs developed cakes and pastries. Commercial baking as a trade began to rise again during the urbanization that accompanied the early Industrial Revolution.
Innovations of the late nineteenth and early twentieth century enabled the mass-production of baked goods. As a result, large baking facilities began to supplant small local establishments. One of the most important innovations was the development of “tame” yeast because these yeast cultures produced uniform, predictable results. Wild yeast cultures were too time consuming and too unpredictable to make automatic production feasible. The first yeasts used by commercial bakers were obtained from brewers and, in 1868, Charles Fleischmann made a compressed, distiller’s yeast.
The selective breeding of pure yeast cultures began in 1883 and, by the early 1900s, fast-acting yeasts were well established. Another innovation that helped shorten the time required to make bread was the mechanization of dough kneading. Kneading was necessary to develop gluten elasticity. The introduction of harder wheat hybrids that produced stronger flours enabled bakers to formulate doughs capable of withstanding the stress of mechanical kneading. The practice was introduced in the 1920s and had gained widespread acceptance by the 1950s.
The automation of milling and baking practices, however, did not produce uniformly beneficial results. In the 1930s, the U. S. Department of Agriculture (USDA) conducted nutritional surveys and found extensive thiamine and riboflavin deficiencies in some segments of the population. The deficiencies were attributed to milling methods that yielded finer white flours with diminished nutritional value. For example, stone-ground white flour contained 60 percent of the grain’s original thiamine content, and roller-milled white flour contained only 12-20 percent of the wheat’s original thiamine content.
Concomitant with the surveys that identified these nutritional deficiencies, researchers developed the ability to synthesize vitamins. During the 1940s, efforts were made to restore the vitamins lost by milling practices. In 1941, the National Research Council recommended enriching white flour and white bread. Within a year, an estimated 75-80 percent of the nation’s white bread was enriched on a voluntary basis. During World War II, bread enrichment was mandated by the federal government and, to ensure continuation after the war, 27 individual states passed enrichment regulations.
The Food, Drug, and Cosmetic Act, which became law in 1952, defined minimum and maximum levels for thiamine, riboflavin, and niacin enrichment. Congress gave the Food and Drug Administration (FDA) the responsibility of establishing guidelines concerning the practice of adding nutrients to food products. According to recognized standards, the word “enriched” meant adding B-vitamins, iron, and optionally calcium to flour or cereal grain products. “Restored” referred to the practice of replacing natural nutrients that were lost during processing. “Fortification” involved the addition of nutrients not naturally present in a food.
A few well-known examples were the addition of vitamin D to milk or iodine to salt. During the early 1980s, an estimated 90 percent of all standard commercial white bread was enriched. Three bread-making techniques produced most of the commercial bread in the United States. These were called the straight dough process, the sponge method, and continuous production. In the straight dough process, all ingredients, including the yeast, were combined. The resulting dough rested during the fermentation process. Following fermentation, mechanical means were used to form loaves, and the loaves were permitted to rise again before baking.
The sponge method was based on traditional bread making techniques but employed highly mechanized procedures. Recipes were based on ingredient weight rather than volume measurements. Flour was mixed with yeast and water to make a dough or “sponge,” which was then permitted to ferment for several hours. After fermentation, other ingredients and additional flour were added, and the dough was remixed. Following a time of rest, the dough was cut into pieces and placed in pans. After placement in pans, the dough was allowed to rise and was then moved to an oven for baking.
Typical fermentation resulted in a five-fold volume increase. Resting times averaged 20-30 minutes, and rising times were approximately one hour. The continuous production method was also highly automated. Flour and other ingredients were fed into a production line under carefully monitored conditions. The resulting dough was extruded through dies, pressed (or cut), and placed in pans. The pans moved by conveyor through a large oven. Slicing machines cut finished loaves and packaging machines blew wrappers open with a puff of air to receive the finished product.
The commercial baking industry produced two basic types of breads–yeast breads and quick breads. Yeast breads were leavened with yeast. Quick breads used other leavening agents such as baking powder. Baking powder, which also worked by producing carbon dioxide, produced results more quickly than yeast. Quick breads included such products as muffins, loaves, and biscuits. According to Ed Wood, a researcher of the history of bread making, 75 percent of the bread consumed in industrialized nations is produced by large commercial bakeries. The Wheat Flour Institute calculated that during the early 1980s, U.
S. bakers produced approximately 250 million pounds of bread every week. Bread products were available in many varieties; some individual bakers’ lines exceeded 200 different products. The most popular kind of bread is white bread made from white flour. French breads are made without milk, sugar, and shortening. Their characteristic texture is created by injecting steam into the oven during baking, and the flavor comes from the wheat itself. “Whole wheat breads” are made from whole wheat flour, and “wheat bread” is made from a blend of white flour and whole wheat flour.
Cracked wheat breads are made from white flour and crushed wheat meal. Other bread varieties are made with white flours of varying coarseness. Rye breads are made with a mixture of rye flour and wheat flour because rye flour by itself does not possess the chemical properties necessary to produce a leavened product. Two types of rye flours are used to produce different rye breads. Light rye is made from the grain’s endosperm; dark rye is made from the entire kernel. In addition to its bread products, the baking industry also produces cakes. Cakes are typically made from pourable batters.
The basic ingredients are flour, liquid, eggs, and leavening agents–plus flavorings and sometimes fat. The rising action of a baking cake is similar to the leavening action of bread. When a cake bakes, steam and gases cause the batter to expand. Different types of cakes are classified according to how they are leavened and whether they contain fat. Two broad cake classifications are foam cakes and butter cakes. Foam cakes, typically airy and mild, are primarily leavened with air. One way in which this is accomplished is by beating egg whites and folding them into the mixture.
Examples of foam cakes include angel food cake and sponge cake. Butter cakes rely on leavening agents such as baking powder, baking soda, or yeast. Butter cakes are typically more tender and possess a smoother texture than foam cakes. Examples include layer cakes and pound cakes. Other types of cakes do not easily fit these traditional distinctions. Chiffon cakes use egg whites and baking powder for leavening. Tortes are similar to sponge cakes but rely on ground nuts or crumbs to replace some or all of their flour. According to figures for 1990, annual per capita consumption of bread products was increasing slightly. The average U.
S. citizen consumed 28 pounds of white bread, 23 pounds of variety breads, 23 pounds of rolls, 15 pounds of cake, and four pounds of doughnuts and other sweet yeast products. Dinner roll consumption tapered off when pasta products gained popularity as bread substitutes. Sales of large pies, snack pies, full-size cakes, and cake-type doughnuts slackened as part of a national trend toward health consciousness. Some analysts noted that the increased consumption of sweet yeast doughnuts and snack cakes was contrary to the general trend toward more healthy products. They attributed the continuing popularity of these items to convenience.
As the bread and cake industry entered the 1990s, most of the products produced by commercial bakers were sold through grocery stores, where breads and rolls represented the fifth-largest-selling category of grocery items. Despite its ubiquitous presence, however, the bread and cake industry faced several challenges. One was increased competition from in-store bakeries. Although goods baked on the premises were often priced higher than prepackaged goods, they held several advantages. Customers perceived them as fresher, and on-premises bakeries could offer specialty cakes and breads that were not available from mass producers.
In-store bakeries often promoted products as impulse items, placing them near the front of the store to take advantage of baking aromas. To meet the competition from in-store bakeries, commercial wholesalers began offering more variety in single-serving packages and increasing the assortment of specialty products. Industry analysts disagreed about the long-term effect in-store bakeries would have on traditional distribution networks. Although sales from in-store bakeries increased from $4. 9 billion in 1986 to $8. 0 billion in 1990, the rate at which they were being developed slowed during the early 1990s.
Wholesalers also faced increased competition from prepared mixes. Prepared mixes were marketed to customers who wanted the convenience of purchased items and the freshness of newly baked goods. Competition from prepared mixes came not only within the household market but also in the institutional market as users such as restaurants turned increasingly toward mixes. Another challenge facing the industry during the early 1990s was increased concern about the environment. During the leavening process, ethyl alcohol was released into the atmosphere.
As a result, Southern California’s South Coast Air Quality Management District Board ordered smog controls on the ovens of twenty-four large commercial bakeries. In addition, some environmental groups criticized the industry for its use of excess packaging. Officials countered the charges with claims that the packaging was necessary to prevent spoilage. To ameliorate the criticism, bakery wrapper recycling programs were instituted in some areas. The bread and cake industry also has faced the challenge of producing products for a nation caught up in a conflict between health consciousness and a desire for taste gratification.
Many items have been reformulated to eliminate ingredients viewed as unhealthy. These include such ingredients as tropical oils and other fat, sugar, and salt. The elimination of fat from many classes of bakery items was a difficult accomplishment, because the fat incorporated in batters and doughs served many technical and aesthetic functions. Technically, it assisted the leavening process by incorporating air into mixtures, enabling the even transfer of heat during baking, and giving moisture to the final product. Aesthetically, the fat produced a favorable texture and added flavor.
To reformulate recipes without fat, different types of fat replacers were studied. Entenmann’s Bakery, a subsidiary of CPC Baking Inc. , was the first national company to offer a line of fat-free products. It began test marketing them in 1989 and reported sales of $200 million during the first full year of production. To honor Entenmann’s achievement, the American Marketing Association awarded the company with the 1990 Edison Award for New Product Marketer of the Year. Entenmann’s also received the grand prize from the Gorman’s New Product Contest. The introduction of fat-free items helped to increase consumption mong consumers who traditionally skipped dessert items. A new form of lecithin was developed by Riceland Foods in 1998. Bakers had used liquid lecithin for years, but it contained about 35 percent oil. The new powdered lecithin contained only two percent oil, making it useful for low-fat baking. Lecithin supplies the good taste and moistness to low-fat bakery products, making them taste more like the full-fat varieties. The product also reduced the amount of egg yolks bakers need to use, without adding any cholesterol. In the late 1990s, more fresh bakeries opened for business, and more supermarkets expanded their fresh bakeries.
Despite this, commercially prepared bakery items were gaining sales overall. Information Resources Inc. of Chicago found that commercially baked pie sales in supermarkets were up 12. 5 percent and baked cake sales were up 14. 5 percent from April 1998 through March 1999. Private-label cakes rose 21. 0 percent and private-label pies climbed 7. 1 percent in sales. Some industry observers believed the quality of commercially baked goods had improved and the number of offerings had grown, thus keeping the commercial bakers in close competition with fresh-baked products.
Spurred on by the Atkins diet, which steered people away from breads and other carbohydrate-rich foods, a large percentage of the population turned from bread completely during the early 2000s. According to Shapiro Research Group, 40 percent of Americans were eating less bread in 2004 than in 2003. Consequently, industry giants such as Interstate Bakeries and Sara Lee Corp. were struggling. However, once the dieting research became more moderate, and people turned back to carbohydrates–albeit the more unprocessed kinds–the bakeries that were holding steady or seeing increases had introduced more nutritious whole grain, low-carb varieties.
These breads had the added advantage of being higher-profit items for the bakers. With strong competition from private brands for lower-end breads, national bakeries generated their growth through the introduction of super-premium, higher-end products that peppered the supermarket bread aisle. Additionally, the number of bakeries producing hand-kneaded artisan breads increased rapidly. Selling for $4 to $5 (about twice the price of a normal loaf of bread), the specialty breads provided rich texture, unique favors, and usually a thick crust, modeled after European breads.
By 2003, sales of premium breads totaled $933 million, or 16 percent of all bread sales. Although sales dropped six percent over the previous year, private brands held the lion’s share of the fresh bread market. In 2004, private labels generated nearly $1. 5 billion in sales and commanded 27 percent of the market. Wonder Bread held the second position with a five percent market share, generating $301 million in revenues, which was a five percent decrease from 2003. Rounding out the top five were Orowheat, with a 4. 5 percent market share and $251 million in revenues; Nature’s Own, with a 3. percent market share and $215 million in revenues; and Arnold, with a 3. 3 percent market share and $183 million in revenues. All revenues generated by supermarket sales of fresh bread in 2004 totaled $5. 6 billion. Whole grain blends made substantial gains in the bread market in 2005. Sales of fresh bread with whole grain claims on the packaging increased 18 percent, surpassing $1. 1 billion. Although Sara Lee Bakery sales dipped 3. 5 percent in 2005, the company introduced Sara Lee Soft & Smooth Whole Grain White Bread to great success. It used a blend of 70 percent white flour and 30 percent whole grain flour.
According to Information Resources, Inc. , the product sold 16. 7 million 20-ounce loaves, or $32 million worth, in its first six months in U. S. grocery stores, making it the best-selling loaf of bread in America in that time span. Other manufacturers also introduced bread products containing a blend of white flour and whole grain flour. Heart-healthy innovations also became more a trend in the mid-2000s as brands attempted to expand varieties to create niche markets. Manufacturers added omega-3 fatty acids, an ingredient from fish oil, to some products.
In April 2005, Arnold Smart & Healthy launched heart-healthy varieties Fibre Goodness, Omega-3 DHA/EPA, Sugar Free, and Organic Grains. Moreover, sales of fresh bread with organic claims rose 20 percent. Current Conditions In fiscal 2010, according to research firm Nielsen Co. , wheat bread was the top performer, with sales rising 0. 6 percent to $2. 6 billion, while white bread sales fell seven percent to $2. 5 billion. Consumers purchased 1. 5 billion loaves of white bread during this time, a three percent decline. However, white bread sales led in volume. Rolls, buns, and croissants grew 13 percent, while bread sales fell 4. percent. Pie bakeries enjoyed a 7. 4 percent increase in sales, and the donut category grew 5. 1 percent. While sales of muffins grew 2. 9 percent during this time, English muffin sales climbed 3. 3 percent. Cake bakeries grew by a modest 2. 4 percent, and pastry, Danish, and coffeecake sales by 2. 2 percent. High-fructose corn syrup was the latest ingredient to come under scrutiny, especially as it related to health issues like obesity. One study conducted by Princeton University and reported in the August 2010 Chicago Tribune revealed “long-term consumption of high-fructose corn syrup does lead to abnormal increases in body fat. Still, some companies, including Sara Lee, took note and were busy reformulating their products such as their popular Soft & Smooth bread brand. Sara-Lee’s bread sales plummeted 10 percent in 2009 to $359 million (not counting Wal-Mart sales), indicative of a rough business climate for midprice companies. Based on grocery store sales, Flower Foods whole wheat Nature’s Own exceeded Sara Lee in 2009. Overall bread sales were expected to remain flat, but continued demand for various whole grains would spur future growth. Industry Leaders Hostess Brands, Inc. formerly Interstate Bakeries Corp. ) based in Houston, Texas, operated 39 bakeries and about 700 bakery goods retail outlets. Its major bread brands include Wonder, Home Pride, and Beefsteak while its major snacks include Hostess fruit pies, Ho-Hos, and Twinkies. The company reported revenues of $2. 7 billion in 2009 with 21,000 employees. Flowers Foods, Inc. posted revenues of $2. 6 billion in 2009 with 8,800 employees. Its major bread brands were Bluebird, Cobblestone Mill, and Nature’s Own. The company also produced hamburger buns for national fast-food restaurant chains.
Sara Lee’s bakery division reported revenues of $2. 2 billion in 2009, with operating profit falling to $33 million. Sara Lee, which began as a frozen foods producer, purchased Earthgrains to take a bold step into the bakery market. In November 1999, Earthgrains Co. announced the acquisition of Metz Baking Co. The move put Earthgrains in the number two position in the baked goods industry. Metz was a regional player, with the number one brands of bread in Chicago, Milwaukee, and Minneapolis, while Earthgrains’ brands could be found in the South.
Sara Lee admitted in Bloomberg in July 2010 that “the unit has faced competition from cheaper store brands and regional bakeries such as Flowers Foods Inc. ” Research and Technology One of the most extensive areas of ongoing research within the industry involved investigating methods of extending shelf life and preserving product freshness. One method, modified atmosphere packaging (MAP), involved introducing a predetermined atmosphere inside special barrier packaging materials at the time products were sealed for shipping.
Nitrogen and carbon dioxide were the most frequently used gases in MAP. The technique was used to replace oxygen, a primary contributor to product staleness. According to published reports, MAP extended shelf life up to 30 days and increased freezer life up to six months. Another advanced method of controlling the atmosphere within a product package was called controlled atmosphere packaging (CAP).
CAP relied on active means of manipulating the gas in a package’s “headspace. ” Products were packed with chemical inserts to actively manipulate the environment within the package.
For example, oxygen scavengers, frequently composed of iron compounds, would absorb any oxygen remaining after a package was sealed. Eliminating oxygen from packaging was important because it inhibited mold growth. Studies indicated that CAP extended the time period in which a product would remain mold-free by 300 percent. MAP and CAP technologies presented many benefits. They eliminated the need for preservatives and reduced distribution costs by eliminating the need for freezing and chilling during transportation. They also increased customer convenience because products did not require freezing following purchase.
They also helped to maintain appropriate moisture levels so that products did not dry out. Two of the biggest problems surrounding MAP and CAP usage were customer perception and price. Customers did not view bakery products with extended shelf life as fresh, and products packaged with MAP and CAP were more expensive than those packaged with traditional methods. One industry analyst suggested that CAP and MAP technologies were best suited for wholesalers with large geographic distribution networks, rather than local baking operations. ? * NAICS 311919: Other Snack Food Manufacturing
Industry report: This category includes establishments primarily engaged in manufacturing fresh cookies, crackers, pretzels, and similar “dry” bakery products. Secondary products that are part of this industry include biscuits, graham crackers, saltines, cracker meal and crumbs, cracker sandwiches made from crackers, wafers, and ice cream cones and cups. Industry Snapshot The U. S. cookie and cracker manufacturing industry was worth about $10 billion in 2010, according to a Research and Markets report. About half of the revenue came from cookies and half from crackers.
In the major bakery companies, the cookies and crackers segment of business often operates as a separate division. Many bakery companies are divisions of holding companies that are also involved with other consumer products that include food, beverages, and, in the case of RJR Nabisco, Inc. , tobacco. Other manufacturers of cookies and crackers operate strictly under the bakery goods heading. Companies such as Mrs. Field’s Cookies and Famous Amos at one time operated exclusively out of their own retail outlets. They later expanded to supermarkets and specialty stores.
A number of these private label companies work through distributors that handle a number of varied products. Many of the larger companies handle their own distribution, working directly with supermarkets and retailers. The concern over trans-fats in the 2000s transformed the cookie and cracker manufacturing industry in a variety of ways. While a large portion of the industry vowed to meet the challenge by offering consumers more healthy cookies and crackers, with lower amounts of sugar, calories, and hydrogenated fats, another segment opted to appeal to the indulgences of adults with premium products.
Cookie advertising, long aimed at children, sought for a more mature audience with child obesity a growing concern amid the trend for healthier diets. For example, Kraft introduced its Nabisco 100-calorie packs line of portion control snacks targeting adults. Later, Kraft expanded to bring children back into the fold by offering 100-calorie packs with sports themes, labeled Sportz Cookies and Sportz Crackers that it termed “the better-for-you snacks. ” Background and Development The U. S. Chamber of Commerce noted that cookie and cracker manufacturing was the fastest-growing segment of the bakery industry in 1992.
Shipments of all bakery products rose an average of 1. 3 percent per year from the years 1987 to 1992. Sales of cookies and crackers for the same years, however, increased by rates of 2. 3 percent. The primary reason given for the projected increase in sales was the introduction of low-fat, low-calorie, low-cholesterol cookies and crackers. Consumption of sweet baked goods, including cookies and crackers, began to decline around 1992. One important reason for the declines related to pricing actions taken by Nabisco, the dominant force in the cookie and cracker industry.
Nabisco aggressively increased its prices in the 1980s until consumers started buying less. Private labels also began to cut heavily into Nabisco’s market share. These included a number of upscale private lines such as Sam’s Choice, a line sold at Wal-Mart stores, and Master Choice, sold at A & P stores. A number of companies introduced products to suit a changing market of health-conscious consumers. Nabisco introduced a line of fat-free cookies and crackers called Snackwells. By 1997, Snackwells was the top-selling brand of cookie and cracker in the country.
The brand’s popularity reflected the fact that 173 million Americans were eating reduced-fat and fat-free foods, representing an 81 percent increase from 1993. Health-conscious, label-reading consumers turned from products with potassium bromate to products that contain acceptable alternatives, such as barley malt. U. S. Industrial Outlook reported that the per capita consumption of crackers edged up mainly due to bakery companies changing ingredients to satisfy consumer demands and tastes.
The increase was thought to be a result of the elimination of questionable ingredients like tropical oils and white flour and the use of canola oil and whole wheat flour in their place. Thus the harmful role of trans-fats in the U. S. diet, found largely in baking margarines and shortenings, contributed to declining consumer interest in cookies and crackers. Effective January 1, 2006, the U. S. Food and Drug Administration (FDA) mandated labeling requirements regarding the listing of these ingredients in food items. Grams of trans-fat must be included on the nutritional label.
Even before the labeling requirements took effect, the total sales volume of the U. S. cookie market decreased by more than 8 percent from 2001 until the end of 2005, according to the market research organization Packaged Facts. Although total cookie and cracker sales decreased again in 2006, several categories within the industry showed growth. At 1. 8 billion units in 2006, cookie sales were down 3. 4 percent from 2005, but the $3. 9 billion generated represented a drop of just 0. 05 percent, according to Information Resources Inc. Meanwhile, crackers rose by ore than 6 percent in sales value, and sales of low-fat versions of crackers increased almost 25 percent. The disparity in percentage decrease between cookie unit sales and sales value can be attributed to single-serve packaging as well as consumers’ willingness to spend more for nutritionally improved products. In competition with Kraft’s Nabisco 100-calorie packs, Hershey’s entered the cookie market in the mid-2000s with a line of premium, single-serve products. Keebler and Pepperidge Farm had also introduced single-serve products. Current Conditions
The economic slowdown in the late 2000s affected many industries in the United States, including cookie and cracker manufacturing. Due partly to consumers becoming more cost-conscious, with less to spend on extra items like snacks, private label brands took an increasing share of the cookie market. In 2009, sales of private-label brands of cookies grew 16 percent to reach $583. 5 million. Nabisco’s Chips Ahoy! , Oreo, and Oreo Double Stuf held second, third, and fourth place in the cookie market, respectively. Total sales of the top 10 cookie brands reached $4. 0 billion, up less than 1 percent from the previous year.
Consumers seemed more loyal to their cracker brands, as Keebler’s Sunshine Cheez-It held the number-one spot with $335. 7 million in sales in 2009. Nabisco Ritz, Wheat Thins, and Triscuits followed, with private label brands placing eighth in the top 10 cracker brands. Americans spent approximately $4. 0 billion on the top 10 brands of crackers in 2009. Industry Leaders The cookie and cracker manufacturing industry is highly concentrated, and of the approximately 300 establishments engaged in the industry in the early 2010s, the top 50 accounted for 90 percent of the industry’s revenues.
Nabisco has been the consistent leader in the industry and in 2010 was the world’s largest cookie and cracker manufacturer. Nabisco is a subsidiary of Kraft Foods, the second largest food company in the world. In 2009, Kraft’s revenues in the confectionary and snacks divisions totaled more than $24 billion. Nabisco’s cookie and cracker division, called the Nabisco Biscuit Company, produces, distributes, and markets a broad range of cookies, crackers, and snacks. The company sells cookies and crackers under such well-known brand names as Oreo, Chips Ahoy! , Ritz, Triscuit, and Snackwell, mong many others. Another industry leader was Keebler, a subsidiary of Kellogg Company. Like Nabisco, Keebler’s products are represented in major supermarkets around the country. Keebler also produces and distributes a wide range of crackers and snacks. Keebler acquired Sunshine Biscuit in 1996, went public in 1998, and bought President Baking Co, bringing Famous Amos cookies and Girl Scout cookies under the Keebler umbrella. Other industry leaders in the early 2010s were Pepperidge Farm, which sold Goldfish crackers and Milano cookies, among a variety of other products, and Little Debbie.
A relative newcomer to the scene was Lofthouse, owned by Ralcorp Frozen Bakery Products Inc. of Downers Grove, Illinois. Lofthouse ranked fifth in the top 10 best-selling cookies in 2009 in terms of revenue. Workforce According to Dun & Bradstreet’s Industry Reports, the cookie and cracker manufacturing industry employed 27,365 workers in 2010. Most of the establishments involved in the business were small, with about 80 percent employing fewer than 25 people. However, companies with more than 25 employees accounted for almost 90 percent of total sales.
States employing the largest numbers of workers in this industry were Pennsylvania, Georgia, and California. America and the World The export trade of bakery goods is a small portion of the total bakery production in the United States because they are perishable and because of differences in consumer preference in other countries. Nevertheless, bakery exports were growing in the late 2000s. According to Supplier Relations US LLC, U. S. exports of cookies and crackers grew 16 percent annually from 2007 to 2009.
Exports consist mainly of cookies, crackers, and specialty cakes that have adequate shelf life, attractive packaging, and competitive prices. Research and Technology Concern for the environment has affected the operations of bakery companies. Most are spending more of their dollars on environmental protection. Many companies are introducing pollution-abatement equipment, especially for their ovens, and have plans to introduce other pollution-control measures. Many are converting their delivery vans so they can operate on cleaner-burning propane instead of gasoline.
It is expected that environmental control efforts will eventually increase operating costs by as much as 10 percent. Some manufacturers are employing the extrusion process used in other food industries that permits continuous blending of ingredients. It results in a greater variety of products being made available to the consumer and in less waste during production time, and it also uses less energy. Changes in ingredients and procedures are monitored carefully by the Food and Drug Administration. Nabisco has implemented an engineering information management software system called WorkPlace ActiveAsset.
This enables its many bakeries and headquarters to easily share information, such as engineering drawings. This new software allows everyone, including consultants, suppliers, and local bakeries, to access the complex engineering information. Nabisco has also created an online analytical processing (OLAP) data mart. With more than 8,000 products, the OLAP allows Nabisco to accurately track sales and consumer preferences, with the largest data mart holding sales, price discount, spoilage, transportation, and promotional information for two years. Management, financial analysts, and salespeople use this information.
For example, discontinuing the LifeSaver Christmas candy packs saved Nabisco $1 million. Not to be outdone, Keebler rolled out its IDEA Wizard (Instant Data Evaluation Access).
Because the cookie market and cracker market are distinct separate customer bases and loyalties, the IDEA Wizard allows Keebler to collect information on each segment of its markets and develop plans for specific retailers for shelf space and merchandising. The IDEA Wizard stores information from several sources, including scanners. Retailers access the information, along with audio and video clips about new products, focus groups, and marketing messages from Keebler.
In the early 2010s, cookie and cracker manufacturers continued to come up with new ways of appealing to Americans’ craving for carbohydrates while promoting healthier ingredients. For example, in 2010, Nabisco created Ritz Crackerfuls, which were similar to the Ritz Bits sandwich crackers but were presented in a more sophisticated box and contained 5 grams of whole grain per serving. Smaller companies such as New Hampshire-based HomeFree LLC also jumped on the health bandwagon. All of HomeFree’s cookies were low in sugar, free of allergy-triggering ingredients such as peanuts, tree nuts, eggs, and airy, and made in an allergen-friendly plant. Protein Bakery’s Colossal Cookies were made with all-natural ingredients and contained many of the nutrients found in energy bars but with less sugar. Industry report: This category includes establishments primarily engaged in the retail sale of bakery products. The products may be either purchased from others or made on the premises. Establishments manufacturing bakery products for the trade are classified in SIC 2051: Bread and Other Bakery Products, Except Cookies and Crackers; SIC 2052: Cookies and Crackers; or SIC 2053: Frozen Bakery Products, Except Bread.
Those purchasing bakery products and selling house-to-house are classified in SIC 5963: Direct Selling Establishments. Industry Snapshot According to the U. S. Census Bureau, there were more than 38,000 firms categorized as retail bakeries or snack and nonalcoholic beverage bars in this industry in the early 2010s. Retail bakeries controlled about 45 percent of the market, while the doughnut shop segment represented less than 33 percent and the bagel shop segment accounted for slightly more than 6 percent. The industry was valued at around $7. 6 billion.
The top bakery in the United States in the early 2010s was St. Louis, Missouri-based Panera Bread with 1,450 stores and 15,900 employees in 40 states. Panera expanded rapidly during the second half of the first decade of the 2000s, opening more than 300 new stores and nearly doubling sales, with revenues jumping from $640 million in 2005 to $1. 3 billion in 2008. Despite the economic recession, which caused a decline in the frequency of consumers dining out, Panera was one of the few food service companies that increased revenues in 2008, up 3. percent from 2007. The company battled for customers by increasing its hot food selection, cutting costs, and increasing prices of some items. By 2011 annual sales were $1. 8 billion. Other leaders in this segment included Au Bon Pain, Atlanta Bread, CoCo’s, Cosi, and Corner Bakery Cafe. Einstein Noah Restaurant Group of Lakewood, Colorado, was the largest bagel shop operator in 2011. The company, which had 730 company-owned and franchised in 40 states, reported 2011 revenues of $411. 7 million. Brands included Einstein Bros. which accounted for more than 80 percent of brand sales), Chesapeake Bagel Bakery, Manhattan Bagel, and Noah’s New York Bagels. In 2012 the firm sought to increase its presence in the Pacific Northwest by purchasing Kettleman Bagel Company and planning to rebrand five Kettleman Bagel locations in Portland, Oregon, to Einstein Bros. Bagels. The doughnut segment of the industry was led by Dunkin’ Brands, which operated more than 9,800 stores in 30 countries, including about 6,800 locations in the United States.
The company, which went public in 2011, reported $577. 1 million in revenues that year. About 65 percent of Dunkin’ Donut store sales were generated by beverages. In 2012 the store was rated number one in the Brand Keys Customer Loyalty Engagement Index in the coffee category for the sixth year in a row. While its beverage competitor, Starbucks, scaled back operations by closing nonproducing locations, Dunkin’ Donuts announced a massive expansion plan in 2009, with the goal of increasing its presence in the United States to 15,000 stores by 2020.
The company, which continued to face increased competition from fast food establishments like McDonald’s, kept its focus on mid-priced, quick-serve items but also had plans to add a line of food items aimed at more health-conscience consumers. Meanwhile, competitor Krispy Kreme Donuts, Inc. , based in Winston-Salem, North Carolina, struggled during the first decade of the 2000s. Share prices dropped from $108. 50 in November 2000 to just $1. 01 in February 2009.
The company’s revenues fell off steadily, from $709 million in the fiscal year ending January 2005 to just $384 million for the fiscal year ending January 2008. Among other economic issues, accounting credibility among investors and analysts after the U. S. Securities and Exchange Commission began a probe in 2004 into the company’s accounting practices was also a concern for Krispy Kreme. The inquiry, which was settled in March 2009, unnerved investors and led to upheaval at the helm of the company, which had four different chief executive officers in less than five years.
However, by mid-2009, the company was poised for a comeback based on smaller store formats and expansion into Asia. By 2011 the firm had 650 locations in the United States and 20 other countries with annual sales of almost $362 million. According to Nation’s Restaurant News in 2012, the firm planned to augment business by increasing beverage sales and reducing the cost of operations. President Ken May commented, “We’ll focus on reducing the cost of the box. You’ll probably see us shrink it. “
