SAN FRANCISCO — Just Desserts expanded its organic and vegan offering, which will be featured at IDDBA in Houston, Texas. “We have strong demand for our organic and vegan offering—particularly ‘grab and go’ products,” noted Mendes. “Our organic cakes are well received by discerning consumers seeking premium, organic, GMO free cakes using cage free eggs. These hand crafted, baked from scratch cakes carry the superior taste and texture of our original cakes introduced over 40 years ago. Our new flavors include single serve chocolate mini bundt and a range of organic cupcakes.”
Organics represent over 5% of food sales and drive double digit growth, expanding nearly four times faster than the food category in 2014. Mendes believes organic consumption can grow much larger, but is constrained by supply. “Consumers want quality and integrity in the food they and their families eat. It is difficult to source organic ingredients, and segregate production processes to meet organic certification requirements. Most large traditional bakeries are unwilling to assume this burden.” Organic certification requires suppliers to prove use of organic ingredients and avoid contamination during processing. “While our traditional products feature wholesome natural ingredients, and do not use artificial flavors or fillers, organic certification offers an additional level of scrutiny that many consumers value.”
Organic products have the highest penetration amongst Millennials. 40% of Millennials recognize organic products are highly regulated and 60% report purchasing organics within three months. Baby Boomers (who in many cases determine which products go into retail) may be slower to recognize the appeal of organics however, perceptions are evolving. “Organics have the greatest penetration in produce, representing 36% of all organic food, with 12% of all produce consumed being organic. One reason for this success is the modest premium consumers pay. For example, organic packaged salad is only 10-15% more than non-organic.” Due to the complexity of sourcing various organic ingredients, shorter shelf life, and limited supply, organic packaged goods prices are often 40% to 70% higher than non-organic. “We put extensive effort into collaborating with vendors and carefully formulating products. As a result, we can offer organic products at a reasonable premium (about 20%) vs our traditional offering—making us more accessible to value conscious consumers.”
Source: Just Desserts
