News | May 9, 2001

Earthgrains introduces three new bread and bun products

The Earthgrains Company, the nation's second-largest bread and bakery products producer, has introduced three new superpremium bread and bun products and has expanded distribution of several other new superpremium products as consumers continue to drive sales in the segment.

The new product introductions, including the test marketing of organic breads in California, join more than 15 successful premium and superpremium product introductions in the last five years, including sliced breads, hearth-baked loaves, and shelf-stable bagels.

Earthgrains markets superpremium products under the Earth Grains® brand across its system and also under the San Luis Sourdough and Redding French Bakery artisan labels in California. The company's superpremium sales increased by more than 10 percent in the fiscal year that ended March 27, 2001. According to data compiled by Information Resources, Inc., in accordance with segment definitions provided by Earthgrains, total category sales in the United States for superpremium bread, buns and rolls increased 10 percent for the 52 weeks ended March 11 and pound sales increased by 8.1 percent.

Earthgrains' full line of superpremium products complements the company's wide selection of popular white breads and premium wheat and variety breads, allowing Earthgrains to satisfy all consumer tastes and preferences in the bread aisle.

New Earth Grains Products

Earth Grains Organics Small Batch Bread. Five varieties of new Organics Small Batch Bread were introduced in Earthgrains' California Region in mid-April. Preliminary sales results for the wide-pan sandwich breads are exceeding expectations and have been well received by grocery retailers. The 22-ounce loaves appeal to consumers for whom health and environmental issues are a primary concern. The varieties are Multi-Grain Rolled Oat, Country Farm Hearty White, Delightfully Mild Sourdough, Whole Grain Honey Wheat, and Great Plains Cracked Wheat. Suggested retail price is $3.69 to $3.79. The breads are certified organic and meet the stringent California Organic Foods Act of 1990 and USDA organic standards.

Earth Grains Buns. Four new bun varieties are hitting the market this month in time to add some taste to the barbecue season. Just as with bread, consumers are seeking to trade up for differentiated premium and superpremium buns. Earth Grains Wheat Hamburger Buns come in eight-count 13-ounce packages. Oversize Onion Buns and Sesame Kaiser Buns come in eight-count 19-ounce packages, and Potato Hot Dog Buns come in eight-count 13.5-ounce packages. Suggested retail price is $1.99 to $2.39. The buns are being initially introduced in the Midwest and Southeast.

Earth Grains Buttermilk & Cracked Wheat Bread. This sandwich bread entered test market in Earthgrains' California Region in March and joins a successful line of specialty wide-pan breads. The new offering is exceeding expectations and combines two popular flavor varieties in the California market. Suggested retail price for the 24-ounce loaves is $3.09 to $3.19. The new variety will complement successful launches in California of wide-pan Earth Grains Buttermilk & Potato, Cornflour, 100% Stone Ground Whole Wheat, and Honey Whole Grains sliced loaves.

Earth Grains Product Expansions

Earth Grains shelf-stable bagels in Slide-Rite packaging. Earth Grains is testing consumer acceptance of the easy open-and-close feature by putting the best superpremium bagel in the most innovative packaging in the bread aisle. All varieties of bagels, including Plain, Cinnamon-Raisin, and Blueberry, will be available in the slider package that helps assure that the freshest bagels will stay that way.

The packages come with a tamper-evident design and can be reused for storing other household items. The bagels in slider bags will be tested beginning in June in Michigan, Georgia, and North Carolina. The bagels will be supported with special corrugated display units and other marketing initiatives. Suggested retail price for the six-count 19.5-ounce packages is $2.49 to $2.89.

Earth Grains Garlic & Parmesan Italian Bread. The par-baked specialty loaf, which has been successfully rolled out elsewhere in the Earthgrains baking system, will be introduced in California on May 21. Sales performance for the 10-ounce loaf offering consumers easy preparation, premium flavor, and just-baked aroma, are meeting expectations. Suggested retail price in California is $2.59 to $2.69.

Earth Grains rollout into additional Metz Baking Co. geography. The successful expansion of Earth Grains superpremium product offerings into new geography is continuing. The company began introducing superpremium products into its newly acquired Upper Midwest geography last year as a result of the purchase of Metz Baking Co. in March 2000. Earth Grains has now introduced superpremium products in the Chicago market (February) and the Salt Lake City market (March). Additional markets are scheduled for introduction this summer. Acquired markets already offering Earth Grains products include Michigan, northern Illinois, northwestern Indiana, and Wisconsin (bagels only).

IronKids Special Recipe Bread

10th Anniversary Celebration. IronKids Bread, a special-recipe white bread that offers all the fiber of whole-wheat bread and as much calcium in two slices as a glass of milk, will celebrate its 10th anniversary this year of full rollout in the United States. Starting May 14 and running through June 3, IronKids will offer five children a chance to win $5,000 for college and placement of their photographs on the IronKids Bread bag. Participants will be required to submit an essay on what it means to have a healthy mind and body. Rules and information will be contained on specially marked IronKids Bread bags.

IronKids Bread is dedicated to promoting healthy, active lifestyles for children. The IronKids Bread Triathlon Series, sanctioned by USA Triathlon, is in its 17th season, and IronKids continues to sponsor soccer clubs around the country.

New redesigned IronKids Bread web site. IronKids Bread has launched a redesigned web site ( www.ironkids.com ) that has information, games and cool sights and sounds. Visitors can register for the IronKids Triathlon Series, get information on IronKids soccer clubs, check out the schedule of IronKids Park, the touring interactive playground, test their knowledge via the IronKids Sports Challenge, or read about Hunter Kemper, a leading U.S. Olympic triathlete and former IronKids Triathlon winner who is sponsored by IronKids.

About Earthgrains

Earthgrains, which had sales of nearly $2.6 billion in fiscal 2001, operates fresh-bakery and refrigerated-dough businesses in the United States and Europe.

Earthgrains is the second-largest producer of fresh packaged bread and baked goods in the United States, operating 61 bakeries. Major company-owned brands include Earth Grains, IronKids, Grant's Farm, Colonial, Rainbo, San Luis Sourdough, Heiner's, Master, Mother's, Old Home, and Break Cake. Major franchise brands include Sunbeam, Country Hearth, Roman Meal, D'Italiano, Taystee, Holsum, Healthy Choice, Pillsbury, Mickey, and Sun*Maid.

In Europe, Earthgrains is the market-share leader for fresh packaged sliced bread, buns and packaged sweet goods in Spain and is one of the largest producers of bread and buns in Portugal. Earthgrains has 12 bakeries in Spain (including the Canary Islands) and Portugal. Major brands include Bimbo, Silueta, Semilla de Oro, Martinez, and Ortiz.

In the refrigerated-dough segment, Earthgrains is the only manufacturer of store-brand canned refrigerated-dough products in the United States and is one of the largest producers of store-brand toaster pastries. The company has two domestic refrigerated-dough plants and also markets products under its Merico brand. In Europe, Earthgrains is the largest refrigerated-dough producer in France and the only producer of canned dough in Europe. The company operates four plants in France and markets canned and rolled refrigerated-dough products under the CroustiPate brand in France and via customer brands throughout Western Europe.

More information about Earthgrains may be found on the company's corporate Internet web site at www.earthgrains.com .

Source: The Earthgrains Company