Lesser Demand for Processed Ingredients Negatively Affects Baking Mixes Industry

Published Date : Feb 09, 2016

With growing awareness about health and surging demand for less-processed, healthier, and convenient food, the baking industry is witnessing a slump in sales of products such as refrigerated dough and baking mixes. For key industry players such as General Mills, this means implementing new strategies to stabilize sales. General Mills’ baking business includes Pillsbury refrigerated dough, Betty Crocker baking mixes, and Toaster Strudel. In the last six months, the significant decline in sales has led the industry giant to cut down its prices to match its competitors.

Baking Mix Companies Employing New Strategies to Tap Consumers

Most of the players in the industry emphasize on the experiential factor associated with baking at home with their products. Apart from marketing their products with this message through direct advertising, companies are also supplementing that message by teaching consumers how to use their products in new ways.

  • General Mills is promoting its products through online recipe resources such as Betty Crocker recipe videos on YouTube and BettyCrocker.com. Recently, the company also ran a campaign “24 Days of Cookies” showcasing a new recipe with their products everyday for 24 days.
  • With growing demand for less processed ingredients in baking mixes, Simple Mills has incorporated natural ingredients in its products to stand apart in the competition.

The demand for natural ingredients in food is turning away consumers from buying processed baking mixes. The impact is so strong that General Mills had to sell its Green Giant frozen and canned vegetable business last year. Consumer packaged goods companies are taking a relook at their portfolios to shed off businesses dealing with processed food products.