Milling & Baking News - July 3, 2018 - 40

Industry Activities

Executives delve into marketing
strategies for growing donut sector
LOS CABOS, MEXICO - Even in the age
of health and wellness, donuts are having
their day. That was the topic of a panel
discussion at the 2018 BEMA Convention,
held June 19-23 in Los Cabos.
To open the panel, moderator Nick
Magestrelli, vice-president of sales for
Rademaker USA, noted that the category
is a $12 billion market and that fresh donut
sales at retail are growing at 5.2% per year.
Discussing the market trends were
David Hipenbecker, senior director of
engineering for Hostess Brands, Inc.,
and Jonathan Dairman, corporate operations manager at The Doughnut Peddler,
a fresh bakery operator serving convenience stores and specialty retailers.
As the category experiences growth,
Mr. Hipenbecker noted that his company

relies on experimentation with different
varieties to meet market needs.
"We're constantly doing market
research and looking at different
types of flavors and textures and
different formats for donuts," he
said.
He also explained that Hostess focuses on seasonal items for
innovation to lure consumers who
might not be drawn to traditional
donut styles.
Mr. Dairman noted that The Doughnut
Peddler, which focuses largely on daily
product delivery, has partnered with larger customers such as convenience stores to
identify the highest concentration of their
locations. By doing this, the company is
able to set up operations - currently the

Sweet goods producers challenged
by rapid consumer demand shifts
LOS CABOS, MEXICO - In the information age and era of health and wellness, bakers everywhere are finding
themselves chasing a moving target. This
trend couldn't be more true for bakers
of sweet goods, as consumers insist they
want to eat better-for-you products but
often find themselves unwilling to cut
ties with their beloved treats.
As fickle consumers quickly change
their minds about what they need or want,
or what their favorite flavors, shapes and
colors are, sweet goods producers find

themselves making adjustments to their
production lines, "Frankenstein" style.
This was a topic of conversation for a
group of sweet goods producers at the
BEMA annual convention, held June 1923 in Los Cabos.
"Who here hasn't felt like they were
chasing a moving target?" asked Paul
Chan, president, Kresent Plus, Guyana,
who has been baking a variety of products for more than three decades. "Who
here has not had to Frankenstein their
line? That's never going to stop."

company has facilities in nine states - to
best serve the right markets.
"By building bakeries in those areas,
we're able to better meet those customers' needs," he said.
Although donuts are a classic bakery
item, Mr. Hipenbecker noted that it's
all about consumer demand and
giving people what they want.
"Different demographics across
the country want different things,"
he said. "They want different types
of donuts and different toppings."
In this case, especially with limited-time offerings, market research
is key.
To keep a finger on the pulse of consumer habits, The Doughnut Peddler
keeps a close eye on the purchase trends.
"We also track every s.k.u. in every
store, every single day," Mr. Dairman
said. "That's how we can meet the individual needs of each store." MBN
He suggested that equipment suppliers
should look at scale from both a large and
small perspective.
"It's very difficult to scale for a small bakery, as I have in Guyana, versus a larger bakery," he said. "If you're scaling for a larger
bakery, then how can a baker like me leverage these massive systems and get them
down into a more usable system for someone making 50 or 100 cakes as opposed to
those who are making thousands?"
Brian McGuire, president, SROriginals,
Denver, noted that his company's almost
constant product development demands
rapid innovation from equipment suppliers.
"We run after new projects quite often,"
he said. "Rapid prototyping, partnerships

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40 / July 3, 2018

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Milling & Baking News - July 3, 2018

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