I. Executive Summary

The Products
• Two Product Categories
• Industry Product Classifications
• Federal Government Classifications Are Divergent
• Federal Regulations
• A Law on Labels
• FDA Loosens the Reins
• Nutrition Facts
• Serving Size—One Slice or Two?
• Terms for Product Claims

The Market
• Retail Sales Exceed $21 Billion in 1997
• Packaged Breads at 4.5% Annual Growth
• Bakery Bread at 7.0% Annual Growth
• Growth Without Bite
• Retail Sales to Top $26 Billion in 2002
• Sales of Packaged Breads to Increase at 4%-5%
• Bakery Sector Continues Edge in Growth
• Table 1-1: U.S. Retail Sales of Bread by Category: Packaged vs. Bakery, 1993-2002 (dollars)
• Tortillas on a Roll
• Bagels Energize Sales
• Market Composition Varies Regionally

The Marketers
• A Handful of Giants Lead Market
• Private Label Combined Is #1
• Wonder Claims 8.6% Dollar Share of Branded Bread
• Key Trends
• Freshness, Consistency, Quality
• Nutrition as Sales Pitch
• White Bread Slips
• Pillsbury the Big Advertising Spender
• Ads Aim at Mom

Distribution and Retail
• Major Methods of Distribution
• Suppliers to In-Store Bakeries
• Share of Bread Sales by Outlet Type
• Grocery Store and Supermarket Shares of Packaged Breads
• Retail Pricing
• Name-Brand versus Private-Label Shares
• The Leading Supermarket Operators
• Franchises with a Focus

The Consumer
• White and Whole Wheat Are Staples
• Figure 1-1: Purchaser Overview by Bread Type, 1997 (percent): 11 Bread Types
• Largest Share Are Light Purchasers of Bread
• Wonder Claims 16.5% of Principal Shoppers
• Purchasers of Wonder and Home Pride
• Families Make the Most of Dough
• Fresh versus Frozen Bagels
• Medians for English Muffins
• Fresh versus Frozen Croissants

Scope and Methodology
• Market Parameters
• Report Methodology

II. The Products

Introduction
• Market Definition
• The Staff of Life
• Modern Bread
• Multi-Purpose Bread
• Nutritional Value

Bread Ingredients
• Primary Ingredients: Flour, Liquid, Leaven
• The Milling Process
• Nonwheat Flours
• Leavening: Where the Action Is
• Sugar and Other Sweeteners
• Butter and Fat
• Everything Else
• Enrichment
• Preservatives
• The Baker's Percentage

Making and Selling Bread
• Pan vs. Hearth Breads
• Factory Bread Baking
• Shapes and Sizes
• On-Site Baking: From Scratch to Thaw
• Cost and Freshness Drive Packaging
• Labeling Emphasizes Nutrition
• Prolonging Shelf Life
• Refrigerated or Frozen Breads and Doughs
• Unit of Sale
• Package Design

Product Categories and Classifications
• Two Product Categories
• Industry Product Classifications
• Federal Government Classifications Are Divergent
• White Bread
• Wheat Bread
• Rye and Pumpernickel Bread
• Variety Breads
• Artisan Breads
• Bagels
• Bran Bread, High-Fiber Bread
• Biscuits
• Boston Brown Bread
• Children's Bread or White Wheat Bread
• Croissants
• Crusty Breads: French and Italian
• Dietetic Breads
• English Muffins
• Flat Breads
• Light and Low-Calorie Breads
• Oat and Oat Bran Breads
• Pita Bread, Pocket Bread
• Raisin Bread
• Rolls and Buns
• Sourdough Breads
• Stone-Ground Breads
• Sweetened Breads
• Tortillas
• Value-Added Bread
• 100% Whole-Grain Bread

Government Regulations
• Federal Regulations
• A Law on Labels
• FDA Loosens the Reins
• Nutrition Facts
• Serving Size—One Slice or Two?
• Labeling Nutrition
• Terms for Product Claims
• Exemptions—In-Store Bakeries Benefit Most
• State Regulations

III. The Market
Figure 3-1: The U.S. Bread Market: Estimated Retail Sales, 1993-1997 (dollars)

Market Size and Growth
• Retail Sales Exceed $21 Billion in 1997
• Table 3-1: Estimated U.S. Retail Sales of Bread by Category: Packaged vs. Bakery, 1993-1997 (dollars)
• Packaged Breads at 4.5% Annual Growth
• Bakery Bread at 7.0% Annual Growth
• Growth Without Bite
• Tortillas on a Roll
• Table 3-2: U.S. Retail Sales of Packaged Tortillas, 1993-1997 (dollars)
• Bagels
• Energize Sales Table 3-3: U.S. Retail Sales of Packaged Bagels, 1993-1997 (dollars)
• Boom in Boutique Bakeries
• Table 3-4: U.S. Retail Sales of Boutique Bakery Bread, 1993-1997 (dollars)

Market Composition
• Packaged Breads Claim 77% of Sales
• Figure 3-2: Share of U.S. Retail Sales of Bread: Packaged vs. Bakery, 1993 vs. 1997 (percent)
• Pan Bread Is Core of Industry
• Rolls and Buns Rack Up One-Sixth of Retail Sales
• Frozen Bread Garners 4%-5% of Sales
• Share of Bread Sales by Outlet Type
• Figure 3-3: Share of U.S. Retail Bread Sales by Outlet Type, 1997 (percent): Supermarkets, Grocery Stores, Other Retail Bakeries, Other
• Market Composition Varies Regionally
• Table 3-5: Regional Distribution of Bread Users by Bread Type (number and percent): 16 Factors
• Bread and Boston

Factors Affecting Market Growth
• A Mature Market
• Bread Expenditures Edge Up
• Table 3-6: Average Annual Expenditures by U.S. Consumers on Bakery Products, 1990-1995 (dollars)
• Pendulum Swings to Pricier Breads
• Some Cooling of Hot Spots
• Prices Hit Historic Highs
• Battling Private Label
• Saturation of In-Store Bakeries
• The Boutique Appeal
• Figure 3-4: The U.S. Bread Market: Projected Retail Sales, 1997-2002 (dollars)

Projected Market Growth
• Retail Sales to Top $26 Billion in 2002
• Sales of Packaged Breads to Increase at 4%-5%
• Table 3-7: Projected U.S. Retail Sales of Bread by Category: Packaged vs. Bakery, 1997-2002 (dollars)
• Bakery Sector Continues Edge in Growth

IV. The Marketers

Marketer Overview
• Tiers of Marketers
• The Private-Label Factor
• Few Truly National Marketers
• Licensing Creates National Brands
• Licensers Sell More than Rights
• Cooperatives Carry Brand Names Across Nation
• Holdover Brands Link Old to New
• Licensing, Co-Ops Not Limited to Small Bakers
• Old-Fashioned Ways Still Work
• Table 4-1: The U.S. Market for Bread: Selected Marketers

Marketer and Brand Shares
• Note on Estimates
• A Handful of Giants Lead Market
• Table 4-2: Top 10 U.S. Packaged Bread Marketers, 1997 (dollars)
• Top Packaged Bread Marketer Shares
• Table 4-3: Top 10 U.S. Packaged Bread Marketers by Dollar Share, 1997 (percent)
• Private Label Combined Is #1
• Wonder Claims 8.6% Dollar Share of Branded Bread
• Table 4-4: Top 10 Packaged Bread Brands in U.S. Supermarkets: Dollar Share vs. Unit Share, 1997 (percent)
• Two Brands Claim One-Third of Tortilla Sales
• Lender's Has Bagels in the Hole
• Figure 4-1: Top Brands of Frozen Bagels in U.S. Supermarkets, 1997 (percent): Lender's/Big 'N Crusty, Sara Lee Corp., Private Label, Other
• Winn-Dixie Tops in In-Store Bakeries

The Competitive Situation
• Key Trends
• An Attack on Tradition
• Price and Value Competition
• The In-Store Bakeries
• The Yuppies and the Middle Level
• Marketers on the Move
• Weak Loyalty to Brands, None to Marketers
• Quick Penetration Difficult for Newcomers
• Strategies for Growth Shaped by
• Niches Niche Get-Rich-Quick Classics
• The Search for Novelty

Competitive Profile: Bestfoods
• Corporate Overview
• Corporate Structure
• From Cornstarch to Kraft
• Recent History
• Legal Troubles Past and Present
• Brands and Trademarks

Competitive Profile: Campbell Soup Co. (Pepperidge Farm)
• Corporate Overview
• Campbell Structure: Condensed Version
• Corporate History
• Recent Campbell Moves
• Pepperidge Farm
• Brands and Trademarks

Competitive Profile: Earthgrains Co.
• Corporate Overview
• Corporate Background
• Earthgrains Takes Root
• Beating the Odds
• Brands and Trademarks

Competitive Profile: Flowers Industries, Inc.
• Corporate Overview
• Corporate Structure
• From Georgia Roots to Keebler Cookies
• Other Recent Acquisitions
• The Best Year Ever
• Company Brands

Competitive Profile: Gruma Corp. (Mission Foods)
• A Tortilla Leader
• Gruma Structure
• The World's Biggest
• Tortilla Factory Tortillas a Boom Business for Mission
• Brand Names and Trademarks

Competitive Profile: Interstate Bakeries Corp.0
• Corporate Overview0
• Corporate History0
• The Continental Acquisition1
• Brand Consciousness1
• Major Brands2

Competitive Profile: Kellogg Co. (Lender's)3
• Corporate Overview3
• A Famous History3
• Tough Times3
• The Lender's Gambit4
• Best-Known Brands4

Competitive Profile: Sara Lee Corp.5
• Corporate Overview5
• History Goes Back to a Daughter5
• Expanding and Contracting6
• Sara Lee Sales Fluctuating6
• Major Brands6

Competitive Profile: Specialty Foods Corp.7
• Corporate Overview7
• Company Structure7
• A Short History7
• Specialty Bread Business Declining8
• Bread Brands8

Competitive Profile: Winn-Dixie Stores, Inc.9
• Company Overview9
• The Marketplace Format9
• The In-Store Bakery
• Trend Towards Self-Service
• ISB Production Method: Primarily Bake-Off

Marketing and New Product Trends1
• Freshness, Consistency, Quality1
• Nutrition as Sales Pitch1
• White Bread Slips
• Against the Usual Grain
• New Flavors Expand Options
• Table 4-5: The U.S. Bread Market: Selected New Product Introductions, 1996-Spring 1998

Advertising and Promotion Trends
• Pillsbury the Big Spender
• Ads Aim at Mom
• Naturally Good Tasting
• A Pro-Family Platform
• If You've Got It, Flaunt It
• Couponing Still Most Common Promotion
• Joint Promotions
• Trade Advertising Is Sparse
• Trade Promotions

V. Distribution And Retail

At the Distribution Level
• Major Methods of Distribution
• The Store-Delivery System
• Store Delivery Has Marketing Advantages
• Computerization of the Delivery System
• Warehouse Delivery Cuts Costs
• Suppliers to In-Store Bakeries

At the Retail Level
• Share of Bread Sales by Outlet Type
• Table 5-1: Share of U.S. Retail Bread Sales by Outlet Type, 1997 (percent): Supermarkets, Grocery Stores, Other Retail Bakeries, Other
• Grocery Store and Supermarket Shares of Packaged Breads
• Grocery Stores as Bread Retailers
• Warehouse Clubs: The Frills Are Gone
• Thrift Shop Bargains
• Specialty Store Selections
• Independent Retail Bakeries
• Restaurants and Hotels Enter Market
• Number of Suppliers
• Retail Display
• Retail Pricing
• Retail Prices for Recent Product Introductions
• Table 5-2: Suggested U.S. Retail Prices for Selected Bread Products

Retail Focus: Supermarkets
• Super Means Large and Varied
• Shelf Space
• SKUs and Product Mixes
• Product Lines
• Top Store-Level Brands
• Private-Label Products
• Name-Brand vs. Private-Label Shares
• Table 5-3: Supermarket Overview of Name-Brand Bread by Product Type, 1996 (percent and dollars): 4 Product Types
• Supermarket-Brand Shares
• Table 5-4: Supermarket Overview of Private-Label Bread by Product Type, 1996 (percent): 4 Product Types
• Packaged Bread Margins Average 35%
• Slotting Allowances
• Promotions Aimed at Supermarkets

Retail Focus: On-Site Bakeries
• Baking in a Niche
• The Small-Scale Danger Zone
• Independents Not a Major Threat
• Franchises with a Focus
• More Sweets than Loaves
• Boutiques as Trailblazers
• The Leading Supermarket Operators
• Not for Supermarkets Only
• Production Methods Much Like Home
• Packaged vs. Bakery
• A Trend Toward Self-Service

VI. The Consumer

Overview of Data
• Simmons Consumer Survey
• Simmons Data on Bread

Consumer Patterns by Bread Type
• White and Whole Wheat Are Staples
• Purchasers of Oat, Fiber, and Pita Breads
• Purchasers of French/Italian, 100% Whole-Grain, and Rye/Pumpernickel Breads
• Purchasers of Sourdough, Raisin, and Light/Low-Cal Breads
• Table 6-1: Purchaser Overview by Bread Type, 1997 (% principal shoppers, median age, and median household income): 11 Bread Types
• Table 6-2a: Demographic Characteristics Favoring Purchase of Bread by Type: White vs. Whole Wheat, 1997 (U.S. Principal Shoppers)
• Table 6-2b: Demographic Characteristics Favoring Purchase of Bread by Type, 1997 (U.S. Principal Shoppers): French/Italian, 100% Whole Grain, Rye/Pumpernickel
• Table 6-2c: Demographic Characteristics Favoring Purchase of Bread by Type, 1997 (U.S. Principal Shoppers): Sourdough, Raisin, Low Cal/Light
• Table 6-2d: Demographic Characteristics Favoring Purchase of Bread by Type, 1997 (U.S. Principal Shoppers): Oat/Oat Bran, Fiber/High Fiber, Pita

Consumer Patterns by Usage Level
• Largest Share Are Light Purchasers
• Table 6-3a: Purchaser Overview by Usage Level, 1997 (% principal shoppers, median age, and median household income): Heavy, Medium, Light
• Heavy Purchasers Mostly Young Families with Children
• Table 6-3b: Demographic Characteristics Favoring Purchase of Bread Loaves by Usage Level, 1997 (U.S. Principal Shoppers): Heavy, Medium, Light

Consumer Patterns by Brand
• Wonder Claims 16.5% of Principal Shoppers
• Purchasers of Wonder and Home Pride
• Table 6-4: Purchaser Overview by Bread Brand, 1997 (% Principal Shoppers, median age, and median household income): 27 Bread Brands
• Variations by Brand
• Table 6-5a: Demographic Characteristics Favoring Purchase of Bread by Brand: Wonder, 1997 (U.S. Principal Shoppers): Wonder/Any, Wonder, Wonder Light
• Table 6-5b: Demographic Characteristics Favoring Purchase of Bread by Brand: Home Pride, 1997 (U.S. Principal Shoppers): Home Pride/Any, Home Pride, Home Pride Light
• Table 6-5c: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Sunbeam, Country Hearth, Colonial
• Table 6-5d: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Roman Meal, Pepperidge Farm, D'Italiano
• Table 6-5e: Demographic Characteristics Favoring Purchase of Bread by Brand: Arnold, 1997 (U.S. Principal Shoppers): Arnold/Any, Arnold, Arnold's Bakery Light
• Table 6-5f: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Nature's Own, Stroehmann's, Beefsteak
• Table 6-5g: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Holsum, Earthgrains, Rainbo
• Table 6-5h: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Oroweat, Brownberry, Bran'nola
• Table 6-5i: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Grant's Farm, Taystee, Weight Watchers
• Table 6-5j: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Sahara, Oatmeal Goodness, Francisco/Sunmaid
• Table 6-5k: Demographic Characteristics Favoring Purchase of Bread by Brand, 1997 (U.S. Principal Shoppers): Levy's, August Brothers, Kilpatrick's

Consumer Focus: Refrigerated or Frozen Dough
• Families Make the Most of Dough
• Table 6-6: Purchaser Overview for Refrigerated or Frozen Dough Products, 1997 (% principal shoppers, median age, and median household income): 6 Dough Types
• Table 6-7: Demographic Characteristics Favoring Purchase of Dough Products: Refrigerated vs. Frozen, 1997 (U.S. Principal Shoppers)
• Bread Sticks Are Upscale Products
• Younger, More Affluent Shoppers Are Light Users
• Table 6-8a: Demographic Characteristics Favoring Purchase of Refrigerated or Frozen Dough Products by Type : Biscuits vs. Dinner Rolls, 1997 (U.S. Principal Shoppers)
• Table 6-8b: Demographic Characteristics Favoring Purchase of Refrigerated or Frozen Dough Products by Type: Bread Loaf vs. Bread Sticks, 1997 (U.S. Principal Shoppers)
• Table 6-9: Demographic Characteristics Favoring Purchase of Refrigerated or Frozen Dough Products by Usage Level, 1997 (U.S. Principal Shoppers): Heavy, Medium, Light

Consumer Focus: Bagels
• Not Just for New Yorkers Anymore
• Fresh vs. Frozen Bagels
• Bagels by Brand
• Table 6-10: Purchaser Overview for Bagels, 1997 (% principal shoppers, median age, and median household income): 8 Bagel Classifications/Brands
• Table 6-11: Demographic Characteristics Favoring Purchase of Bagels, 1997 (U.S. Principal Shoppers)
• Table 6-12: Demographic Characteristics Favoring Purchase of Bagels by Type: Fresh vs. Frozen, 1997 (U.S. Principal Shoppers)
• Table 6-13a: Demographic Characteristics Favoring Purchase of Bagels by Brand: Lender's vs. Sara Lee, 1997 (U.S. Principal Shoppers)
• Table 6-13b: Demographic Characteristics Favoring Purchase of Bagels by Brand, 1997 (U.S. Principal Shoppers): Brooklyn Bagel Boys, Uncle B's, Store Brand

Consumer Focus: English Muffins
• English Muffins Draw Broad Demographics
• Purchasers of English Muffins by Brand
• Medians for English Muffins
• Resisters by Brand
• Table 6-14: Purchaser Overview for English Muffins, 1997 (% principal shoppers, median age, and median household income): 12 Brands
• Table 6-15: Demographic Characteristics Favoring Purchase of English Muffins, 1997 (U.S. Principal Shoppers)
• Table 6-16a: Demographic Characteristics Favoring Purchase of English Muffins by Brand, 1997 (U.S. Principal Shoppers): Thomas', Wonder, Pepperidge Farms
• Table 6-16b: Demographic Characteristics Favoring Purchase of English Muffins by Brand, 1997 (U.S. Principal Shoppers): Oroweat, Earthgrains, Bays
• Table 6-16c: Demographic Characteristics Favoring Purchase of English Muffins by Brand, 1997 (U.S. Principal Shoppers): Sunmaid, Wolferman's, Arnold
• Table 6-16d: Demographic Characteristics Favoring Purchase of English Muffins by Brand: Dunberry's Finest vs. Oatmeal Goodness, 1997 (U.S. Principal Shoppers)

Consumer Focus: Croissants
• Croissant Purchasers Tend to Middle Age, Middle Class
• Fresh vs. Frozen
• Demographic Skews by Brands
• Resisters by Brand
• Table 6-17: Purchaser Overview for Croissants, 1997 (% principal shoppers, median age, and median household income): 8 Classifications/Brands
• Table 6-18: Demographic Characteristics Favoring Purchase of Croissants, 1997 (U.S. Principal Shoppers)
• Table 6-19: Demographic Characteristics Favoring Purchase of Croissants by Type: Fresh vs. Frozen, 1997 (U.S. Principal Shoppers)
• Table 6-20a: Demographic Characteristics Favoring Purchase of Croissants by Brand: Sara Lee vs. Pepperidge Farm, 1997 (U.S. Principal Shoppers)
• Table 6-20b: Demographic Characteristics Favoring Purchase of Croissants by Brand, 1997 (U.S. Principal Shoppers): Entenmann's, Thomas', Vie de France

Appendix I: Advertisements. This appendix appears in bound editions only.
Appendix II: Addresses of Selected Marketers and Bread and Baking Associations