Focus On Bakery
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Focus On Bakery
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Over-promotion has left the bakery sector flat and white bread is still losing favour. But suppliers remain stoic, looking to innovation to grab market share. Nick Hughes reports
Although the volume of wrapped bread sold grew by 1.9% in the year to February 2011, value sales fell back 1.5%, representing a second consecutive year of decline.
Against a backdrop of seemingly perpetual rises in wheat prices, which suppliers concede has heaped cost pressures on the sector, the fact bakers are selling more but earning less from bread should raise serious concerns over the future profi tability of the market.
A continued decline in demand for white bread was partly responsible for the fall in sales, but perhaps even more to blame is a culture of promotional excess that is having a damaging effect on category value.
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