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C-Store Bakery Trends Trends and Insights for Partnership Opportunities Report Contents C-Store Bakery Trends Trends and Insights for Partnership Opportunities Report Contents Trends and Insights • Dessert Trends • Top Desserts in C-Stores • Financials in Retail Sales ARYZTA Solutions • Grab n’ Go Foods for C-Stores • Ready to Bake Foodservice Solutions for C-Stores • Food and Merchandising Solutions for Expanded Operations 2 Datassential A1: When was the very last time you had a dessert item? Select one. 3 Datassential A1: Thinking back to this last dessert item you had, what was it? Select one. 4 Source: Datassential Desert’s Sweet Spot, February 2019 4 B19: Which of the following best describes the way that your CAKE and/or CHEESECAKE consumption has changed over the past year? D10: Which of the following best describes the way that your PIE/COBBLER consumption has changed over the past year? E10: Which of the following best describes the way that your COOKIE consumption has changed over the past year? 6 A3: Still thinking back to this very last dessert item, where was it from? Select one. A4: Still thinking back to this very last dessert from home/purchased from a grocery or retail store, which of the following best describes it? Select one. A5: For this last dessert that you got from a restaurant or other eating establishment, where did you get it? Select one. 7 A3: Still thinking back to this very last dessert item, where was it from? Select one. A4: Still thinking back to this very last dessert from home/purchased from a grocery or retail store, which of the following best describes it? Select one. A5: For this last dessert that you got from a restaurant or other eating establishment, where did you get it? Select one. 4 Top Dessert Dishes in C-Stores Growth % over Dishes the last year 1 LTO COOKIES 14.3% 2 CINNAMON ROLL/STICKS 43.8% 3 BROWNIE 0.0% 4 CHOCOLATE CHIP COOKIE 8.3% 5 MILKSHAKE/MALT 8.3% 6 DONUT/BEIGNET 0.0% 7 ICE CREAM SANDWICH/BAR -13.3% 8 ICE CREAM -15.4% Source: Technomic Ignite menu data Base: 220 Menu Items across 29 operators with 5 Year Historical Menus in Q4-18 to Q4-19 9 Financials in Retail Sales Foodservice in C-Stores 10 Foodservice Retail Sales by Segment Foodservice Retail Sales Equivalent by Segment Retailers (includes supermarket foodservice, convenience All Other stores and all other retailers) Foodservice (0.6%) (8.7%) All Other $4.6B Retailers $71.9B (19.0%) $13.6B Travel & Leisure (10.5%) $86.1B 2019 Retailer 2019 Total Convenience Stores Foodservice RSE: $821.2B (31.5%) $71.9B Supermarket $22.6B Foodservice Noncommercial (49.5%) (15.1%) $35.6B $124.3B Restaurants & Bars (65.1%) $534.3B Retail sales equivalent includes: foods, nonalcohol beverages and nonfoods (alcohol beverages excluded) *Noncommercial segment includes: business & industry, education, healthcare, refreshment services, military and corrections Source: Technomic, Inc. May 2019 Wallchart 11 Convenience Store Revenue Share In-store revenue, by product type Candy 3% Beer 6% Center Store 7% Tobacco 38% Packaged Beverages 15% Food & Beverage 23% Source: NACS State of the Industry Report 12 Retail Foodservice Retail Foodservice has added an additional $1.75 Billion in Sales since 2015 $12,529 $12,202 $11,999 $11,623 $10,781 7.8% 3.2% 4.3% 1.7% 2.7% 2,101 2,223 2,267 2,226 2,247 2015 2016 2017 2018 2019 Dollar Sales Unit Sales Source: IRI Total Store View + Perimeter, 52 weeks ending March 13 Retail Sales by Fresh & Packaged Bakery In total, Fresh and Packaged Bakery is up 1.5% (+$692M) Insights While Fresh Bakery is much $6.1 Bn smaller than the Packaged $6.3B $40.0B Bakery Department, accounting for roughly 13.6% Fresh Packaged $ sales, it did outpace Packaged Bakery in 2018 growing +7.3%. Products positioned as fresh, local, authentic, less processed and simple continue to gain 7.3% +3.8% 0.7% -0.9% momentum which Fresh Dollars +$426m Units Dollars +$266m Units Bakery meets many of those needs. Source: IRI Total Store View + Perimeter, 52 weeks ending March 14 ARYZTA Grab n’ Go Packaged Solutions Cookies, Muffins, Danishes, Loaf Cakes, Cinnamon Rolls 15 Grab n’ Go Packaged Solutions Thaw & Serve Individually Wrapped Otis Spunkmeyer® Cookies Varieties Available: Chocolate Chunk, Double Chocolate Chip, Oatmeal Raisin, Peanut Butter, White Chunk Macadamia Nut 16 Grab n’ Go Packaged Solutions Thaw & Serve Individually Wrapped Otis Spunkmeyer® Muffins Super-Premium Quality Premium/Gourmet Tier • 4 oz. - 5 flavors – Blue, Choc, Berry, Apple • 3 sizes: (0.9 oz., 2.25 oz., 4 oz.) Cinnamon, Banana Bread • 6 Flavors & Variety Pack • 1.75 oz. 3 flavors – Crème Cake in Blueberry, Banana Nut, Coffee Cake 35-day shelf life for individually wrapped muffins, 14-day shelf life for standard bulk muffins, and 7-day shelf life for Supreme muffins 17 Grab n’ Go Packaged Solutions Thaw & Serve Individually Wrapped Otis Spunkmeyer® Danishes and Loaf Cakes 18 ARYZTA Foodservice Solutions Ready to Bake Frozen Cookie Dough, Bake Up Brownies, Mette Munk, Artisan Breads and Sandwich Carriers 19 Otis Spunkmeyer® Supreme Indulgence Frozen Cookie Dough Made of 100% cream butter for premium taste, our Supreme Indulgence All Butter Cookie Dough says goodbye to the funky stuff and hello to real ingredients. Everyone loves fresh baked cookies, so why not provide patrons with a cookie they can indulge in AND still feel good about eating? Supreme Indulgence™ Frozen Cookie Dough provides a look and taste so good that nobody can resist them and everybody wants more of them! Cookie Flavors Chunky Chocolate Supreme Sugar 55900 – 2 oz. 55904 – 2 oz. 55800 – 3 oz. Oatmeal CinnaRaisin Chocolate Peanut Cravin’ Butter Flutter 55903 – 2 oz. 55812 – 3 oz. 58803 – 3 oz. Cranberry White Nutty White Chocolate Duo Chunk Delight 55824 – 3 oz. 55907 – 2 oz. 55807 – 3 oz. Peanut Butter Double Chunky 55905 – 2 oz. Chocolate Dream 55801 – 3 oz. 20 Otis Spunkmeyer® Sweet Discovery Frozen Cookie Dough Picture yourself biting into a warm fresh-baked cookie. Ok, sales pitch over. How many do you want? More importantly, how many will your customers want? We think a lot of them because, well, we’re the #1 frozen cookie dough in America after all. Our cookies are loaded with the finest ingredients. If one of our warm fresh- baked cookies isn’t the perfect sweet treat, we’re not sure what is. SKU # Sweet Discovery Cookie Flavor Pack Size APPROXIMATELY 241 COOKIES PER CASE 20489 NFS Chocolate Chip 241/1.33 oz. 20490 NFS Double Chocolate Chip 241/1.33 oz. 20491 Oatmeal Raisin 241/1.33 oz. 20492 NFS Butter Sugar 241/1.33 oz. 20493 NFS Peanut Butter 241/1.33 oz. 20498 NFS Carnival 241/1.33 oz. 20497 NFS White Choc Mac Nut 241/1.33 oz. 21 Bake Up Brownies Otis Spunkmeyer® Bake-Up Brownie nuggets are made from irresistible chocolate brownie dough filled with premium ingredients. Brownie lovers can now enjoy freshly baked bite-sized brownies in minutes, without the mess of cooking from a mix, and without the added preservatives of packaged, store-bought brownies. Otis Spunkmeyer® Bake-Up Brownies Arriba Chocolate – Distinctive flavor and aroma of fine cocoa originating from Ecuador 104 EA/3 oz. Chocolate Walnut – Features a classic duo of chocolate chips and chunks of walnuts 96 EA/3.2 oz. Brownies are frozen in pre-portioned pucks that are ready to place, bake and serve. Brownie Rounds contain 0 grams trans fat, no added preservatives, are certified Kosher, and are made with cage-free eggs. 22 Mette Munk Portfolio Mette Munk Danish pastries are premium, freezer to oven, and incredibly delicious. Imported from Odense, Denmark...made with the heritage and craftsmanship of a 165 year-old baking tradition for the foodservice, convenience and in-store bakery markets. Raspberry Vanilla Apple Cinnamon Maple Crown Crown Crown Whirl Pecan Rich and aromatic Vanilla Custard with real Made with Sweet and Filled with Cinnamon Caramelized Remonce Real Raspberries Bourbon Vanilla Juicy Green Apples Remonce filling, real maple syrup and topped with pecan nuts Light and flaky Danish pastries with delicious fillings and tasty toppings to ensure a superbly flavorsome experience. • Individual Pack includes a Pack of 24 • The Variety Pack Includes a Pack of 120 23 ARYZTA Food and Merchandising Solutions For expand your opportunities with Otis Spunkmeyer® and La Brea Bakery 24 Otis Spunkmeyer® Oven Program Make a lot of dough with our Otis Spunkmeyer® Oven Program. Everyone loves and can afford freshly baked cookies. Create additional sales without adding any space or people. You’ll be surprised at how they can add to your profitability. In addition to the oven, Otis Spunkmeyer ® provides a comprehensive support program; including complimentary merchandising equipment and point-of-purchase materials to drive profitable impulse cookie sales and check averages. Window Cling Ceiling Dangler 94260 99309 Cookie Oven Poster 96200 99310 Display Case 96200 Crew Button 94257 25 Otis Spunkmeyer® Merchandising Options Properly display your Otis Spunkmeyer® Cookies, Muffins and Loaf Cakes with counter top displays, shelf-ready packaging and wire racks. You can display your delicious desserts prominently with branded packaging and signage. Shelf Ready Packaging Counter Displays 92176 Clear Bag 94208 Otis Cookie Tin 834530 Counter Top Displays Counter Displays 813851 Wire Racks 26.
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