In channels such as c-stores and the prepared foods department in supermarkets, bakers can insert their breads and desserts as components of a meal.

Part of a larger picture
Incorporating baked foods as a component of a meal can also create new pockets of opportunity. This could be as the bun on a sandwich or a piece of cake for dessert. Prepared foods in c-stores, the deli counter in supermarkets and the tray of food ordered at a fast-casual restaurant — all these categories are driving growth in their specific channels, and bakery items can easily be a part of that expansion.

In the supermarket, the perimeter of the store has been driving sales for several years. While in-store bakeries have benefitted from this shift, the deli department has seen the strongest growth. This department represents a $25 billion market that experienced 2% growth in both dollar sales and volume in the past year, according to Nielsen.


The deli department is one that offers shoppers a wide variety of foods — meat, cheese and, most notably, prepared foods. People looking to purchase fresh meals can find them here. With more consumers outsourcing their meal preparation, the deli department offers supermarkets a clear place to innovate to grab extra sales dollars. This also offers bakers an opportunity.

“Meal solutions and meal kits in the deli-prepared department are the perfect outlets for including baked goods with an order,” said Matt Lally, manager, analytics and insights, Nielsen Fresh, in “What’s In Store 2018.” “Eighty-six per cent of shoppers said they would like a dessert added to their meal kits.”


This is an obvious opportunity for bakers to get their products in the hands of shoppers in a new way.

Seizing this opportunity can even be a matter of effective merchandising and moving some baked foods to the deli department.

“When shoppers go into a store and only go for prepared foods, they aren’t exploring other parts of the store,” Mr. Hanson explained. “If the baked goods aren’t there to see, people are going to exit the store without buying them.”

The supermarkets most successful at selling baked foods are those that place products throughout the store.

“If a consumer is looking for dinner rolls, they’re not only in center aisles and the in-store bakery but also in the prepared foods department,” he said. “Bakery manufacturers could work with supermarkets to help them execute from a merchandising standpoint.”