From Our Print Edition

Up 3.8% during the 12 weeks ended Oct. 6, the frozen bread and dough category continues to outperform the frozen department as a whole. The convenience offered by these products is obvious, but manufacturers say they also offer the value sought by many consumers. For example, frozen dough costs a half to a third less than pre-baked bread (but the aroma of bread baking in the oven is free). However, even frozen heat-and-eat garlic toast and rolls offer savings over shelf-stable alternatives because consumers never have to toss them because they got stale. Do you have signage or shelf tags that call out those savings?

Shoppers’ continued interest in saving money is highlighted by strong private label growth in both the fresh baked (+11.1%) and dough (+62.5%) subcategories. It’s the number one brand in frozen fresh baked but only owns about 7% of the frozen dough segment. So if you don’t have ample store brand options in both subcategories, you may want to consider expanding your assortment.

At the other end of the spectrum, manufacturers see opportunity in the premium frozen bread and dough segment. High-end options won’t ever outsell conventional items, but they will bring in a new consumer and increase basket size. Unique, gourmet and flavor-forward products can also become trip drivers. And once those consumers are in your store (and in your frozen aisle), they’re likely to pick up other groceries, too.

Retailers are also seeing increased demand for more ethnic options such as naan and bao, which haven’t always been available in frozen form. But as consumers’ exposure to global cuisines grows (for example, a third of Americans have dined in an Indian restaurant), so, too, does their desire to recreate ethnic meals at home. Yes, shelf-stable options are typically more readily available, but they often include preservatives and dough conditioners that take away from authenticity — and put off consumers interested in clean labels.

In fact, retailers and manufacturers agree that clean ingredient panels are practically table stakes these days. Frozen bread and dough doesn’t necessarily have to be healthy, but consumers do expect it to be made with real butter and dairy. What about gluten-free and allergen-friendly items? Opinions are mixed. Some say retailers gave too much space to “better-for-you” breads and doughs a few years back, but disappointing sales forced them to return a lot of that real estate to conventional items that continue to drive the majority of sales.

However, one study shows that nearly 25% of consumers follow a gluten-free diet, and the gluten-free food market is expected to reach more than $13 billion by 2027. As a result, even some big players have jumped in with gluten-free versions of top sellers. Still, there’s some evidence that the category is becoming over-saturated (29% of new frozen bread and dough items launched last year carry gluten-free claims, according to Mintel), suggesting a shakeout may be coming. As a result, retailers need to proceed with caution. Make sure you have enough (but not too many) gluten-and allergen-free options, and make certain the ones you do offer meet consumer expectations around taste and texture. And definitely call out specialty items with shelf tags so shoppers can find them in an integrated set.

CROSS-MERCHANDISING UNDERUTILIZED

Only 10.9% of frozen bread and dough volume is sold with merchandising support, highlighting a significant opportunity to boost sales without necessarily lowering prices. Secondary displays during peak selling seasons (i.e. Thanksgiving through Easter) are a no-brainer because they help prevent out-of-stocks. But cross-merchandising with complementary products — either in a shared endcap or just in an ad — is perhaps the most underutilized strategy for growing sales.

Merchandising frozen garlic bread with lasagna is a classic example, but what about pie crust with apple pie filling, naan with Indian entrees, biscuits with gravy, or pizza dough with cheese and sauce? The possibilities are endless! And don’t forget to include frozen bread in meal deals as well as occasion-based displays (think Brazilian cheese bread and other bite-size options with game-day snacks, cinnamon roll dough with breakfast fixins and dinner rolls with holiday meal components).

Finally, say manufacturers, retailers should consider bringing in seasonal LTOs that can create excitement in the frozen bread and dough category and drive awareness of new brands. The strategy has been utilized successfully by refrigerated dough brands for decades, so why not try it in frozen as well?