European Bakery Trends. ASB Conference Melbourne, 14th April 2010
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1 European Bakery Trends ASB Conference Melbourne, 14th April 2010
2 Overview Who are we? Facts & figures from Europe Bakery trends in Europe
3 Overview Who are we? Facts & figures from Europe Bakery trends in Europe
4 Our Mission Puratos aims to help bakers, patissiers and chocolatiers around the world to be successful with their business
5 Puratos at a glance Facts & figures 90 years of experience in bakery and patisserie Over 50 years of mastering bread improvement technology 84 companies spread over 56 countries 53 plants in 39 countries 5,000 employees 1 billion EUR turnover
6 Puratos in the world Headquarters Production subsidiary Commercial subsidiary Distributors Direct sales
7 Bakery technology Emulsifiers Enzymes Bread flavours Hydrocolloids IMPROVERS - MIXES O Tentic - POWDER / PASTE / LIQUID
8 Overview Who are we? Facts & figures from Europe Bakery trends in Europe
9 What do we mean by "bakery"? Gira uses the more precise term "BVP" to cover all bakery products - that relates ONLY to the following products: Bread Viennoiserie Patisserie We are not talking about biscuits and cereals today! Differentiation by product and production method Bread Consumer products Fresh bread Industrial prepacked long life bread Industrial prepacked part-baked bread "Artisanal" "Industrial" Made from scratch on the premises Bought fresh from industrial bakers Bake-off
10 The EU-27: 39 million tons and EUR 120 bn in Total BVP Consumption, 2008 Germany and France rank first in BVP consumption Romanians and Czechs eat most BVP The UK eats the least ('000t) Germany Source: Gira France Italy Poland Spain United Kingdom Romania 137 Czech Republic 58 Netherlands 92 Hungary 79 Greece Bulgaria Portugal 69 Belgium 77 Austria xx Per capita consumption (kg/year) Slovakia Sweden Denmark Lithuania Ireland Finland Latvia Slovenia Cyprus Estonia Overall, consumption should grow by an average of just 0.3% pa until 2013
11 Bread and fresh products dominate consumption BVP consumption volumes by product, 2008 BVP consumption volumes by technology, 2008 Bread and fresh BVP consumption should remain stable through 2013 viennoiserie and patisserie will show higher growth rates as well as prepacked products
12 Modern retailers dominate BVP distribution channels BVP Distribution Channels, EU-27 - by volume, 2008 but the artisan segment has resisted well in many countries and the importance of catering grows
13 Artisan bakers will continue to suffer from modern retailers Volumes and growth by distribution circuit EU-15 & NMS-12, 2008/2013 5,0% NMS Catering % volume growth pa 2008/2013 2,5% 0,0% -2,5% NMS Retailers EU-15 Retailers NMS Chains EU-15 Catering EU-15 Chains EU-15 Artisan NMS Artisan -5,0% Source: Gira Market volume 2008 ('000t)
14 BVP production methods per country BVP Production Methods: Craft versus Industrial
15 Bake-off will more than compensate for the decline in craft production Growth in BVP Production Methods, EU-15 & New Member States /2013 EU-15 NMS Bake-off growth (000t) Retailers in-store Prepacked Fresh finished Bake-off Retailers in-store Prepacked -400 Artisan bakers -800 Artisan bakers Fresh finished Source: Gira
16 Overview Who are we? Facts & figures from Europe Bakery trends in Europe
17 Our vision We believe that people will attach more and more importance to the quality of their food in the future.
18 Health Wholegrain Digestive Health Free From Low Fat Salt Reduction
19
20 Wholegrain Less Energy 5x more Fiber REFINED More Protein More Minerals UNREFINED More Vitamins More Antioxidants USDA Nutrient Database, release 2007
21 Whole Grains and Fiber Take 3 of Top 6 Spots Consumer survey, 2007 (IFIC) name a specific food or component with health benefits 1. Fruits and vegetables 2. Fish, fish oil, seafood 3. Milk 4. Whole Grains 5. Fiber 6. Oats, oat bran, oatmeal CVD Intestinal Health 2007 Consumer Attitudes toward Functional Foods / Foods for Health. International Food Information Council, October 2007
22 But, Whole Grain consumption is Low! 9/10 Americans RDI Avg. Intake = 14g fiber/day 1/3 of Adults 27% of children No whole grain foods at all! Scandinavians eat more whole grain compared to USA and UK
23 Wholegrain Bakery Products Consumers choose natural Minimal processing Wholegrain is a natural choice
24 Digestive Health Deaths from diseases of the digestive system in 2008 More digestive diseases in male population than in female population, while digestive health products have been targeting the female population so far Source: Euromonitor
25 Prebiotics & Probiotics The use of prebiotics is in its infancy in most countries, but this is likely to grow along with the rising awareness of their potential health benefits. Probiotic started in the Yoghurt market and now is moving in different sectors Source: Innova, New Nutrition Business
26 Free from Move toward more gluten-free and other free-from products Major players interested and focused more on taste and quality of these products High-quality brands are emerging positioned as easy to digest, easy on the stomach or mild. Milk Eggs Fish Soy Shellfish Wheat Peanuts Tree Nuts
27 24 million people suffering from Celiac Estimated, one in every 250 people suffering from Celiac disease worldwide, though it often goes highly undiagnosed. On the other hand, number of launches is much higher considering number of people actually suffering from food intolerance diseases: Consumer fidelity toward the whole brand Consumers positive perception of free froms
28 Low Fat The Global Obesity Epidemic is leading to a growth in the slimming and low fat products market. % of population aged Obesity Rates (BMI>30) US Mexico Australia United Kingdom Turkey Russia Canada Hungary Poland Czech Republic Brazil Finland Spain Germany Belgium Austria Netherlands Denmark Greece Italy Sweden France Ireland South Korea Switzerland Norway Taiwan Thailand Hong Kong, China China Japan Indonesia India Source: Euromonitor
29 Low Fat Growth in the number of low fat product launches. United States: Mission Whole Wheat Flour Tortillas. Premium quality. Heart healthy. 96% fat free. With added omega-3 fatty acids. 0g trans fat. No lard. No cholesterol. Increasing consumer awareness on weight issues. Italy milk breads: A new line of soft bread snack with reduced content of fats (less than 80%). A balanced aliment for all the family, particularly for students. Enriched with vitamins and calcium Source: Innova, New Nutrition Business
30 Puratos - Puraslim Puraslim is a smart alternative for traditional margarine, butter, oil & shortening in rich bread & cake applications. It allows improving the nutritional values of breads and cakes by reducing the fat levels while being cost competitive with traditional fats and being in line with consumers expectations.
31 Salt reduction Recommended sodium intake: 2,4 g/day Data from European Nutrition Health Report 2009
32 Contribution of salt to our diets Main sources of Sodium from foods Milk & Cream 5% Processed Vegetables 9% Fats & Oils 5% Fish 3% Cheese 4% Fresh Vegetables 1% Eggs 1% Fruit 0% Cereals & Cereal products (bread, cakes, pastries) 38% Other (soups, pickles, sauces) 13% Meat & Meat products 21%
33 Launches in low sodium bakery products
34 Salt Reduction Salt Reduction As a High Priority For Health is becoming more and more popular among health conscious consumers. Netherlands: Traditional recipe, as bread is meant to be. Deliciously fresh, tasty bread with a crispy crust. Skilfully made according to old traditions without additives, only for Jumbo. Crispy crust, less salt, no E additives.. Portugal: Dan Cake Tostas de Luxo Baixo Teor de Sal: Premium Whole Wheat Toasts. Source of fiber. Low-salt. No sugar added. No cholesterol. Italy: Grissini Iposodici: Low Sodium Breadsticks. Very low sodium content. Source: Innova
35 Puratos Sapore Nabucco A natural sourdough for salt reduction A ready to use sourdough Nabucco is a natural sourdough that enhances salty flavour. Consumers have confirmed the great taste; the majority of consumer taste panels cannot taste the difference. It can be used in a wide range of bakery products.
36 Convenience Time-saving Individual Packaging Simplicity
37 Convenience trends in W-Europe
38 Time-saving Changing lifestyles have tended to limit bread buying occasions to the weekends, favoring packaged/industrial bread, which tends to stay fresh longer. (Euromonitor 2008) Longer shelf lives are also interesting for waste reduction: Bread waste levels of 17% post bakery, have led to a cooperation between WRAP & Premier Foods to discover why consumers throw away bread. (Bakery and Snacks 2009)
39 Time-saving trend leads to longer Shelf Lives
40 Convenient Packaging Single serving Saving space & packaging Easy opening of airtight fresh packs
41 Increased use of simplicity The downturn is making people nostalgic for simpler times, and simpler foods. The interest in back to basics has driven interest in natural foodstuffs and less sophisticated food labels. Source: Innova
42 Consumers are more and more concerned about what they eat Consumers pay closer attention to the ingredients list during their purchase.
43 The trend comes from UK No additive food products UK No additive Bakery products UK Source: INNOVA
44 Market insights in the all natural trend With the recent negativity in the press associated with E numbers, consumers have become increasingly sceptical about exactly what is in their food. The consumer s reliance on labelling has never been so important. The no additives/preservatives types of claims onpackaging provide instant communication with the consumer of a better, more natural choice. Packaging in a transparent fashion also gives the impression of food that is more natural, and has not been tampered with too much. Short ingredient lists without additives and preservatives, natural looking food and packaging has appeal to the E-conscious consumer.
45 Pleasure Authenticity Indulgence
46 Pleasure trends in W-Europe
47 Authenticity With consumers getting the chance to travel more and more It is no longer enough to simply create a product with a regional positioning; the product should be based on ingredients from that region and ideally even produced there. Italy: traditional flat breads made with a.o. lard Source: Innova
48 O-tentic Origin O-TENTIC ORIGIN A bread with a unique taste of the good old days. Intense and complex flavour, typical of long fermentation, with a nice acidity.
49 O-tentic Durum O-TENTIC DURUM A bread with a typical Mediterranean flavour profile characterized by woody and milky notes. A unique durum flavour!
50 Indulgence Monday Tuesday Wednesday Thursday Friday Saturday Sunday Indulgence Territory Health Territory Occasions where Craving, Treats & Social activity is more likely to occur Occasions where Routine, Self- Consumption and Guilt is more likely to take place + Breakfast Lunch Afternoon Snack Dinner Source: innova/tns
51
52 Taste 80% to 90% of what we perceive as taste is due to the sense of smell. Datamonitor 2007 TASTE = the see combination of the senses of smell and touch, which smell together receive a sensation of a substance in the mouth touch Source: Datamonitor
53 Taste More than 90% of the consumers think taste is the most important purchase driver for bread Source: What s your Flavour Puratos survey
54 Puratos Sapore, A Broad Range of Flavours Sapore are flavours from around the world We ferment selected starter cultures and regional flour varieties from around the globe. Each Sapore product reflects the trends, tastes and traditions from their country of origin. Additional unique processes to create different flavour profiles. Toasting, drying.. Sapore is built around 6 flavour profiles
55 Thank you for your attention
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