Bakery market grows by over £1bn in five years
Published:  03 October, 2008

Latest trends in bakery, revealed in the Warburtons Bakery Review, first published five years ago, show that, during that time, the size of the total bakery market has grown from £2.5 billion to £3.6bn (TNS Worldpanel).

The increase has come from wrapped rolls and wrapped occasions, which have grown from 31% to 39% of the market. But while wrapped bread used to account for 69% of volume sales, now it is 62.1%. During the five years, Warburtons has grown its own brand share from 24% of wrapped bread sales to 33%, making it the second-biggest grocery brand in Britain (behind Coca Cola). The best-selling white bread on the market is Warburtons 800g White Toastie, with annual sales of nearly £124m.

Sarah Miskell, national accounts director for Warbur-tons, said the bakery occasions sector had seen enormous growth over the past five years and showed no signs of slowing. For example, annual sales of crumpets were worth £35m compared to over £63m today.

Significant growth was also shown in the grains and seeded bakery market which was worth £60m five years ago. This has now rocketed to £194m. Year-on-year trends show that there is a strong value growth in white 'plus' bread with a 20% yoy increase. There has been a strong move towards 400g loaves, with 11% value growth and rolls, with 7.3% value growth, as many households become smaller.

Brett Warburton told British Baker: "There is tremendous strength behind the brand in terms of innovation, marketing, merchandising and promotions. Becoming a national brand has really helped with this."

l See 17 October issue for a full report.

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=== In Short ===

== Joint buying force ==

Waitrose and northern supermarket chain Booths are to form a new buying alliance, enabling them to negotiate better prices for branded goods. The deal will involve the sharing of cost prices and deal structures for branded food purchased by both Waitrose and Booths on a range of products. Central bakery buyer at Waitrose Teresa Lindley said it won't affect the bakery sector in the short term, as the alliance will start with products within the chilled food sector.

== Ketchup celebration ==

Heinz Foodservice is celebrating over 100 years of "tomato expertise". Through its Seeds campaign, it aims to highlight the fact that Heinz Tomato Ketchup is Grown, Not Made. The firm is also reinforcing its no nasties message, with ketchup containing no artificial colours, flavours, preservatives or thickeners.

== Green packaging ==

Wales' Knobbly Carrot Company has launched a new range of eco-friendly packaging with the help of Ecodesign Centre Wales. The company, which specialises in 100% organic soups, sandwich fillings and salads, has employed initiatives such as replacing tubs with pouches, printing labels using vegetable dyes and recycled paper and sharing deliveries with other companies.

== Waste guidance ==

A free online guidance tool on waste issues has been launched on Netregs.gov.uk. It has been created in response to research which revealed that less than 31% of small and medium-sized businesses in the food and drink manufacturing industry are able to name one piece of environmental law without being prompted.

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=== Warburtons' ===

latest TV advertising campaign will air for the first time tomorrow (4 October) on satellite and terrestrial TV.

The 60-second ad will describe Warburtons as "Britain's favourite family baker", depicting a businessman visiting Britain for the first time. Shorter 10-second clips will support the minute-long ad, while press ads will focus on quality. Category director Sarah Miskell said: "We are delighted with the new ad campaign as it explains our family ethos in an amusing and creative way."

The TV campaign is part of a larger, £22m investment in the brand.




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