Page 27 - Deli Business June/July 2020

Bread Ups
Delis’ Ante
Incorporating bread in the department properly can lead to increased register rings.
BY LISA WHITE
Today’s delis may be missing out on a key category that can bring a lot to the mix—bread. Although not without its challenges, it is a natural fit for sandwich fixings, as
a meal component and can even be posi- tioned as a snack with spreads, meat and cheeses.
According to the Madison, WI-based International Dairy Deli Bakery Association’s (IDDBA) 2019 What’s in Store report, bagels and muf ns, in particular, experienced sales growth recently.
While bread with clean labels has come to the forefront, so has the prevalence of cross merchandising in the deli, according to the report.
There are definite staples in the deli ver- sus other areas of the store.
“The most common breads have always been your sandwich staples—white, wheat and rye,” says Paul Baker, co-founder of UK-based St. Pierre Groupe Ltd. “However, in recent years, there has been a growing demand for expanded options like artisanal rolls, sourdough, brioche, different kinds of seeded breads as well as options that appeal to the health-conscious con- sumer like gluten-free breads and wraps.”
There’s no disputing that selling bread in the deli encourages impulse purchases.
“It offers the shopper the added conve- nience of having everything in one place, so they can pick up their deli meats, bread and condiments without running around the store,” says Baker. “As a brand, we’ve seen a major uplift in sales if a retailer stocks us in both the bakery area and the deli. It expands opportunity for awareness and impulse purchases.”
Deli vs. Bakery
Ethnic breads, including pita, flatbreads, wraps and naan/tandoori, have become popular deli items.
“Like deli meats, cheeses and spe- cialty items sold in the deli department, the breads in the deli are perceived as fresher and more exciting than those sold in the grocery aisle,” says Karen Toufayan, vice president of marketing and sales at Toufayan Bakeries, based in Ridgefield, NJ. “They tend to appeal to a more discrimi- nating group, since many healthier breads, such as organic, gluten free, sprouted grains, etc., can be found there, as well.”
Many breads in the deli cannot be found in the grocery aisle in most stores.
“I see a lot of panini, pita, long and round rolls and specialty bread like rye and pum- pernickel, in the deli department,” says Warren Stoll, marketing director at Kontos Foods, Inc., located in Paterson, NJ. “When dealing with most retail accounts, buying departments have exclusivity, because retailers get a higher margin in the perimeter of the store.”
Although the majority of Kontos’ breads are found in the grocery aisle, retailers can put a free-standing unit in the deli to get a premium price.”
“But you can’t just decide to bring gro- cery items to the deli,” he says. “Once it’s set up, you’re locked, and they’re set up differently.”
The deli also is the place to find a blend of utilitarian staples, such as kaiser rolls and sub rolls, demi loaves and club rolls, along with more ethnic varieties. “It is a great area to test new items,” says James Viti, vice president, sales/marketing/product development, DeIorio Foods, Inc., Utica, NY. “Successful deli introductions not really found in the bread aisle include naan, ciabatta, gluten free rolls, etc.”
In addition, this area of the store pro- vides the potential for higher bread rings.
JUN/JUL 2020 DELI BUSINESS 27
MERCHANDISING REVIEW