Retail

Bakeries within supermarkets offering an assortment of bakery products, such as breads, viennoiserie, cakes, pies, doughnuts and muffins... are called in-store bakeries (ISBs). Unlike the bread aisles with long-life packaged goods, ISBs generally have a dedicated counter space with staff to assist customers and often bake products on-site.

As the quality of in-store bakery products has increased consumer’s interest for these products has also grown, allowing them to do all their grocery shopping at the same place. Ideally placed at the entrance of the store, this area drives purchase with its enticing smells and attractive products. In the US, bakery is one of the biggest drivers of in-store grocery trips, bringing shoppers to the store nearly once a week according to the Power of Bakery report from the Food Marketing Institute and the American Baker's Association.

 

Three notable trends are at the core of ISB success : convenience, freshness and indulgence (Mintel study on ISB market in the US).

“The strong performance of bakery breakfast comes largely from efforts to provide easy and convenient grab-and-go options – whether single-portion or multipacks. The segment may also be benefitting from impulse purchases, as these are easy to pick up for a fresh and quick breakfast on the run or during a shopping excursion.

Freshness is also a strong driver because of organoleptic qualities but also as consumers generally associate freshly baked offerings with a degree of health, and with natural. For retailers, highlighting premium ingredients as “real” and recognisable and including origin will confer an artisanal aura to products, further elevating the standard.”

The Power of Bakery report also shows that “whole grain and multigrain are the most sought-after ingredients, driven by baby boomers, while millennials are found to pay more attention to carbs, protein and gluten. Yet, while it’s important to meet consumers’ needs in functional attributes, health and well-being and transparency, treating yourself is a key driver in sales—particularly impulse ones.”

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