Creative flavors trending in cookie innovation
To cope with the impact of the coronavirus (COVID-19) and at-home lifestyles, people turned to nostalgic treats, which drove sales of packaged cookies over the past year. Last December, TOP Data reported that American cookie consumption increased by more than 25% during the pandemic with 1 in 5 Americans admitting to consuming three or more cookies on an average day.
“Variety was the recipe for success last year, making packaged brands King of Cookies,” said Sally Lyons Wyatt, executive vice president and practice leader, client insights, IRI. “The cookie category finished the year strong with 7% growth, despite perimeter cookie offerings taking a hit as in-store bakeries remained closed or had limited service.”
Consumers not only bought packaged cookies, which make up the majority of cookie sales, but they also drove triple-digit sales growth of frozen cookie dough. Deerfield, Ill.-based Mondelez International noted the rise in at-home baking as many of its snack products were being used as ingredients in recipes.
Innovation breeds success
Retail cookie sales are expected to reach nearly $13 billion by 2024, according to the Packaged Facts “US Food Market Outlook 2020” report. Consumers are looking for decadent products with distinctive flavors and combinations, and it seems cookie companies received that message loud and clear. Established producers got busy innovating their longstanding iconic staple brands, creating cookie products that are resonating and stimulating growth.
Brands like Norwalk, Conn.-based Campbell Snacks’ Pepperidge Farm Milano cookies increased dollar sales by 14.9% for the 52 weeks ending Jan. 21, 2021, according to IRI’s quarterly retail sales data for the category. Mondelez International’s Nabisco Oreo and Chips Ahoy! brands saw double-digit growth as well (17.1% and 18.7%, respectively).
Overall, Nabisco brands, primarily Oreo and Chips Ahoy!, control about 40% of the market, according to Packaged Facts. The company has discovered that new flavor innovation excites Oreo cookie fans and engages new customers. In February, Oreo added Java Chip to its permanent lineup featuring coffee-flavored creme with chocolate chips sandwiched between the two chocolate wafers.
“Packaged cookies continue to do well in 2021,” Ms. Lyons Wyatt said. “Again, diversity of choices are what consumers want, such as limited time offers, experience, fun flavor combinations and co-branding creating a retro or exciting twist on old favorites.”
Since the acquisition of Keebler brand, Chicago-based Ferrara Candy Co., a subsidiary of The Ferrero Group, has revamped the iconic cookies, creating new formulations, packaging and marketing strategies. The brand overhaul included new recipes for Chips Deluxe, Fudge Stripes and Sandies cookies, removing high fructose corn syrup and adding ingredients like ‘more real chocolate’ to the Chips Deluxe and ‘real Madagascar vanilla’ to the Sandies.
“Prior to the pandemic, there were some consumers who would only buy fresh-baked, less-processed items, and they will continue to do so,” Ms. Lyons Wyatt said. “However, packaged cookie producers can respond by cleaning up ingredient labels, removing artificial preservatives, and using only wholesome, quality ingredients for their cookie brands.”
In February, Product of the Year USA, a consumer-voted award for product innovation, recognized 41 items as part of its 2021 Product of the Year Awards, including Ferrara Candy Co.’s Keebler Chips Deluxe Original in the cookie category.
“When we set out to revitalize the brand and improve the quality and freshness of our cookies, like adding more real chocolate to Chips Deluxe Original, we did it for our customers, and we’re so happy to see that they are enjoying the changes to our cookie portfolio,” said Daniel Vera, head of cookies R&D at Ferrara, responding to the Product of the Year recognition.