International Markets Bureau AMERICAN EATING TRENDS REPORT JULY 2012 PANCAKES, WAFFLES AND FRENCH TOAST Unless otherwise stated, all of the information in this report was derived from the NPD Group’s National Eating Trends database, updated to November 2010, and reflects the eatings (defined by NPD as the number of times any particular category/item is eaten by an individual in a specified location or time period) of a product at home or carried away from home. These figures do not reflect purchases of food products made through foodservice establishments, or the consumption thereof. NPD monitors the eating habits and attitudes of American consumers by surveying 5000 individuals reporting on 14-day’s continuous consumption of all meals and snacks. Pancakes, waffles and French toast have seen an increase in popularity as consumers seek inexpensive and simple meals at home, rather than dining out. The pancake and waffle mix segment and the ready-totoast waffle and pancake segment both experienced strong growth in 2009 (Mintel 2012). CONSUMPTION DEMOGRAPHICS Pancakes, waffles and French toast were popular among various segments of the U.S. population, and all three products remained a preference in households with children between 6 and 12 years old. Core Markets (at least 20% above average consumption rate) Pancakes Household Income Waffles US$10,000-US$19,999 US$50,000-US$69,999 French Toast Under US$10,000 US$30,000-US$39,999 Household Composition Age/Gender Under 25; 35 to 44 n/a 25 to 34 Family Type Children 0 to 12 Children 6 to 12 Children 0 to 12 Size 4 to 5 members 3 to 4 members 3 members Education / Employment / Occupation n/a White collar n/a Race/Ethnicity Black,non-hispanic Asian n/a Region n/a West Central Single parents Traditional families Working parent Affluent traditional families n/a 75+ years old Single parent Affluent traditional families Single active seniors; 75+ years old Lifecycle Four-member traditional family. Source: Shutterstock, 2011. PANCAKES, WAFFLES AND FRENCH TOAST JULY 2012 Underdeveloped Markets (at least 20%) below average consumption rate Pancakes US$20,000-US$29,999 US$40,000-US$49,999 Waffles French Toast US$10,000-US$19,999 US$70,000 and over Under US$10,000 45+ 55 to 64 Households with no children Households with no children 1 to 2 members 2 members 1 member Education / Employment / Occupation n/a Professional Professional Race/Ethnicity Other non-White Black/non-Hispanic Black/non-Hispanic Hispanic Asian Region n/a South South n/a n/a Affluent singles Low/Mid income singles Empty nesters Empty nesters Affluent singles n/a Low/mid-income empty nesters Single active seniors Married active seniors Household Income Household Composition Age/Gender Family Type Size Lifecycle Under 25 45 to 54 Households with no children Single active seniors Single active seniors PAGE 2 PANCAKES, WAFFLES AND FRENCH TOAST JULY 2012 CONSUMPTION BY REGION Eatings of pancakes, waffles and French toast varied throughout the country. East North Central states had the highest consumption of both pancakes and French toast, compared to any other region in the United States. Residents of the Mid-Atlantic states ate more waffles than any other sub-region in the U.S. Overall, pancakes were most popular in the Southern region, accounting for 32.5% of total U.S. pancake eatings. Residents of the Central region consumed the highest share of waffles (28.3%) and French toast (almost 40%) nationwide. Eatings by U.S. Region (%) Region Pancakes Waffles French Toast East New England 3.4 4.0 7.3 Mid-Atlantic 13.9 17.8 11.8 East North Central 20.1 17.2 31.3 West North Central 10.0 11.1 8.3 South Atlantic 18.5 13.6 13.4 East South Central 8.6 4.4 8.2 West South Central 5.4 7.4 3.9 Mountain 9.9 9.8 7.3 Pacific 10.1 14.5 8.5 Central South West Source: NPD Group. Source: NPD Group. CONSUMPTION LOCALE When prepared at home, pancakes, waffles and French toast were consumed in-house. Rarely were they carried away from home. PAGE 3 PANCAKES, WAFFLES AND FRENCH TOAST JULY 2012 CONSUMPTION CALENDAR Sundays and Saturdays were the most popular days of the week for the consumption of pancakes, waffles and French toast. Aside from the weekend, the preferred day to consume pancakes was Friday. The preferred day for waffle consumption was Thursday, while the preferred day for French toast eatings was Wednesday. Waffles tended to be consumed during the week, accounting for 65% of all eatings. French toast saw a slight increase in consumption during the spring months (March, April, May), while the consumption of waffles and pancakes increased slightly during the fall months (September, October, November). PLATE COMPOSITION When consumed at home, pancakes, waffles and French toast were eaten as a main meal on 90% of eating occasions. The rest of the time, they were consumed as a side dish and, occasionally, as a dessert. Pancakes, waffles and French toast were consumed for breakfast on 88% of meal occasions. On the remaining occasions, they were consumed for lunch (4.5% of the time) or for dinner (6.4% of the time). When carried away from home, a rare occurrence, they were consumed for lunch. PREPARATION METHODS Pancakes, waffles and French toast were prepared warm 90% of the time. The remaining 10% of meal occasions were also prepared warm, but were not registered by surveyors. Various methods were used to heat each product: Pan fried was the preferred method for pancakes. It was used 32% of the time, followed by a warmed/heated stove top, which was used 13% of the time. Microwaves were another main heating method, used 18.4% of the time. Waffles were heated in a toaster or toaster oven 66% of the time. Microwaves were also used 8% of the time. French toast was mostly pan fried (30% of the time) or heated using a microwave oven (23% of the time). PAGE 4 PANCAKES, WAFFLES AND FRENCH TOAST JULY 2012 PRODUCT POSITIONING From January 2011 to March 2012, a total of 69 products were launched in the U.S., according to Mintel. These products included the words “pancake,” “waffle,” or “French toast” in their product descriptions. The majority of these new launches were new products and new varieties of products, showcasing the increasing popularity of these convenient breakfast meals. The majority of these products were shelf stable, 16 were frozen, and two were chilled. Of the new products launched, 65% were classified under the “Baking ingredients and Mixes” sub-category, while 20% of products were classified as “Pastries and Sweet Goods.” Unflavoured/Plain was the prefered flavour for pancakes, waffles and French toast. This was followed by buttermilk, chocolate, cinnamon, and pumpkin and spice. Top Five Companies that Introduced New Products, January 2011 to March 2012 New Products by Launch Type Jan. 2011 to March 2012 Golden County Foods 5 Supervalu 4 Aldi 4 Blake’s All Natural Foods 3 Greystar products 3 Source: Mintel, 2012. New Variety/ Range Extension 46% Re-launch 3% New Packaging 7% New Product 44% Source: Mintel, 2012. Pancake, Waffle and French Toast new launches by Top Five claims, January 2011 to March 2012 30 25 20 15 10 5 0 Kosher Ease of Use Microwaveable Time/Speed Ethical Environmentally Friendly Package Source: Mintel, 2012. PAGE 5 PANCAKES, WAFFLES AND FRENCH TOAST JULY 2012 NEW PRODUCTS Trader Joe's Chocolate Filled French Toast is new to the range. This microwavable toast is made with rich brioche dough in small batches, which is then stuffed with dark chocolate and baked. This product is ready to heat and serve and is retailed in a 10-oz. pack containing two pieces of French Toast. Positioning claims: Ease of Use, Microwaveable. Archer Farms Red Velvet Pancake & Waffle Mix is made with vanilla bean and cream cheese frosting. The premium product is said to bring a festive flavour to the breakfast table. It is prepared with added eggs, milk, and butter. It is available during the holiday season. This mix retails in a 17-oz. pack. Positioning Claims: Ease of Use, Premium, Seasonal. Batter Blaster Buttermilk Ready To Cook Pancake & Waffle Batter is now available in a newly designed 18-oz. recyclable pack. This certified kosher product makes light and fluffy pancakes or crispy waffles with no mess. It contains no chlorofluorocarbons (CFCs), which deplete the ozone layer. The pack is easy to clean by simply rinsing with warm, running water. Positioning Claims: Convenient Packaging, Ease of Use, Ethical-Environmentally Friendly Package, Kosher, EthicalEnvironmentally Friendly Product. Carbon's Golden Malted Blueberry Pancake & Waffle Flour is made with premium malt. This certified kosher product retails in a 16-oz. pack, which makes approximately eight pancakes. Positioning Claims: Kosher, Premium. Source for all: Mintel, 2012. PAGE 6 PANCAKES, WAFFLES AND FRENCH TOAST JULY 2012 MARKET OPPORTUNITIES Retaining Key Markets Children aged 0 to 12 years proved to be leading consumers of pancakes, waffles and French toast. Products with claims directed to this segment of the population, and products like frozen waffles made with whole grains or youth-friendly flavours such as chocolate, would help maintain consumption amongst children and teenagers, while satisfying parents’ need for healthy breakfast options. Products with “easy to prepare” and “convenient” claims, as well as those with discounts or cheaper options could maintain low- to middle-income households and single and working parent households as consumers. Larger families and households consumed the most pancakes, waffles and French toast. Companies could maintain these high rates of consumption by designing claims, package sizes and discounts targeted to larger households and families. Extending the Market Products aimed at teenagers would allow the preference established in childhood and the tweenager years to continue throughout adolescence. Families with income between US$20,000 and US$50,000 could be targeted with discounts and other pricing tactics. Single households and households with more than two or three members could be enticed with convenient and easy-to-prepare pancakes, waffles and French toast. Healthier, organic and better-for-you versions of pancakes, waffles, and French toast could attract those between 45 and 70 years old. KEY RESOURCES Global Trade Atlas (2011). Mintel Global New Products Database (2011). The NPD Group National Eating Trends database, for the year ending November 2010. United States Department of Agriculture (2011). Foreign Agricultural Service. © Her Majesty the Queen in Right of Canada, represented by the Minister of Agriculture and Agri-Food Canada (2012). The Government of Canada has prepared this report based on primary and secondary sources of information. Although every effort has been made to ensure that the information is accurate, Agriculture and Agri-Food Canada assumes no liability for any actions taken based on the information contained herein. For more information, or to request additional copies or an alternate format of this publication, please email infoservice@agr.gc.ca or contact the International Markets Bureau - Agriculture and Agri-Food Canada, 1341 Baseline Road, Tower 5, 4th floor, Ottawa, ON Canada K1A 0C5 PAGE 7