Tortilla and flatbread innovation is trending

KANSAS Metropolis — Tortilla and flatbread gross sales noticed robust development in the early phases of the coronavirus (COVID-19) pandemic as at-house cooking amplified, and now that eating places have reopened and customers have returned to regular pursuits, the foodservice side has picked up.

“In 2021, places to eat came back again, but not essentially at the cost of at-household cooking,” stated Jim Kabbani, main govt officer, Tortilla Industry Affiliation. “What we’re viewing now is a condition where retail and at-property tortilla usage stays strong, even though foodservice has occur again. And the additive consequence of individuals two traits is an general enhance in consumption.”

Complete retail dollar income for tortillas and flatbreads decreased somewhat, falling .3% to just beneath $3.8 billion, according to IRI knowledge for the 52 weeks ending Dec. 26, 2021. Tortilla gross sales fell .9% to about $3 billion, whilst flatbread profits rose 4.8% to $365 million. Most of the expansion for tortillas and flatbreads was in the perimeter/new food area, with sales leaping 8% to around $256 million.

“That fresh area is only 7% of tortilla and flatbread gross sales, so it is really modest, but it’s developing more rapidly than in aisle,” defined Melissa Altobelli, principal, client insights, dairy and bakery vertical, IRI. “That’s due to the fact a great deal of self-provide parts are open now, and also shoppers are going out and celebrating a lot more, purchasing products and solutions for parties or holidays.”

Dollar profits for both groups grew in the previous quarter while quantity profits lessened, which Ms. Altobelli characteristics to inflation. She expects this pattern to continue into early 2022 in advance of leveling out later in the 12 months.

“Volume will possibly go on to show decrease due to inflation,” Ms. Altobelli reported. “Higher charges imply people today have to slash back again, and improved consumer mobility signifies people are taking in out more. But as we go back again to places to eat and obtain other sites to acquire these merchandise, there will be a softening in volume decreases, way too. We feel by the finish of 2022, tortillas and flatbreads will have returned to ordinary, pre-2019 costs of volume.”

Flatbreads flourish

Flatbreads’ balanced development in 2021 was pushed by a handful of brands that productively launched new uses and types of the bread to consumers.

Toronto-based mostly FGF Brands’ Stonefire brand name drove most of the category’s progress, Ms. Altobelli explained. The bakery posted 40.4% progress for a total of $64.8 million in gross sales in 2021, in accordance to IRI. The brand name delivers a preferred line of naan breads, which arrive in unique, roasted garlic and complete grain, as very well as mini naans and naan dippers.

Naan is just one particular instance of producers properly introducing flatbreads from diverse culinary backgrounds to meet consumer demand.

“We’re looking at a ton of new global designs emerging and attaining prominence with audiences that are fewer acquainted with them,” reported Claire Lancaster, senior strategist, foods and consume, WGSN. “Manakish, which is a spherical flatbread kind of like an Arab pizza, is viewing a large amount of growth. We’re seeing northern Chinese flatbreads popping up, Italian flatbreads, even some African styles.”

For instance, Ridgefield, NJ-dependent Toufayan Bakeries features tandoori, an Indian-model flatbread. The bakery is experimenting with adding Mediterranean flavors to its flatbreads as perfectly.

“Introducing Mediterranean flavors like zaatar with your flatbread, I could see as a doable development for 2022,” mentioned Karen Toufayan, vice president of marketing and income, Toufayan Bakeries. “So it’s not just a simple tandoori, but a zaatar-flavored tandoori.”

As the flatbread classification expands, individuals will be released to loads of new variations and flavors from all over the world.

“There’s a good deal of various types of flatbreads that are considerably less common to the North American audience ideal now that we imagine will expand in attractiveness in the upcoming handful of a long time,” Ms. Lancaster reported.

Increasing the healthier halo

Tortillas and flatbreads are perceived by lots of shoppers as healthier than classic breads, irrespective of the simple fact they are usually increased in energy, salt and extra fat when in comparison side by side. At the exact same time, consumers are obtaining savvier — analyzing their product or service labels to better recognize what they’re taking in and what’s perceived as healthier. Buyer need for gluten-free of charge, vegan and minimal-carb tortillas and flatbreads has improved as a result.

In response, bakeries are introducing goods that meet these needs and manage the category’s wholesome halo. Toufayan Bakeries has seen great good results with its nutritious offerings.

“Our gluten-totally free tortilla wrap is our No. 1 seller online, and a extremely close 2nd is our total wheat pita bread,” Ms. Toufayan said. “The most important traits are Wise Grain and very low carb, no doubt.”

The bakery also features low-carb Clever Pockets, which Ms. Toufayan describes as a common American version of a pita bread, built with sprouted grains like their low-carb wrap.

Mission Foods, Irving, Texas, also features “Carb Balance” tortillas that appear in flour, full wheat, spinach herb and sundried tomato basil. The tortillas gain an great resource of fiber assert and have as minor as 3 grams of web carbs. The well known line amplified its gross sales by 26.9% in the most up-to-date time period to $307.4 million, in accordance to IRI. Gruma SAB de CV, Monterrey, Mexico, which owns Mission Foodstuff, stated it strategies to introduce more of these healthier products.

“The customer foundation we have been able to create for our better-for-you line has enabled us to develop some steady ranges of advancement for these products, which is section of our approach to boost their composition in the portfolio from solitary digits to 25% at present,” reported Adolfo Fritz, Gruma’s investor relations officer in an earnings phone previous October. “Our program is to continue to keep on pushing ahead to more broaden the composition with these solutions, creating our portfolio even much more financially rewarding over time.”

Flour and corn varieties even now dominate the tortilla classification, but producers are now supplying more healthy grain-cost-free options.

Mission lately expanded its improved-for-you line with almond flour and cauliflower tortillas that are gluten-free of charge and vegan helpful. And Siete Loved ones Food items, Austin, Texas, which grew its dollar profits by 54.5% in 2021, also offers almond, chickpea and cassava flour tortillas.

Flatbreads have been a bit slower to the grain-absolutely free and vegan house, Mr. Kabbani noted. But this is commencing to alter. For case in point, Trader Joe’s now presents a cauliflower skinny, a flatbread cauliflower substitute which is gluten-absolutely free.

Toufayan Bakeries is also paving the way with its superior-for-you flatbreads.

“All of our flatbreads are the natural way vegan. We’re quite a lot the only vegan naan bread which is out in the market, in addition to our the natural way vegan wraps, pita breads and tandoori,” Ms. Toufayan reported. “We unquestionably look at off the box for a demand, and there is a need for plant-primarily based foodstuff.”

Over-all, the wellness promises that posted strong dollar advancement for tortillas and wraps incorporate large fiber (20.8%), no sugar (26.9%), sweetener-totally free (23.3%), no artificial components (10.9%) and gluten-cost-free (7.8%), according to IRI. Very low-calorie statements also saw major growth for tortillas, with 5 to 40 energy getting the most (84.1%).

Searching for authenticity

Healthier tortilla and flatbread possibilities are in superior need, but the stresses of the pandemic have also still left quite a few shoppers wanting to indulge.

“Consumers for the duration of this pandemic are hoping to handle themselves a bit and look for exceptional preferences,” Ms. Altobelli stated. “People are hunting for premiumness and authenticity.”

Stonefire has had fantastic success advertising its flatbreads around words and phrases like these.

“[Stonefire products] do not have a large amount of health claims like very low-carb or superior fiber, but what they tout is that they are a premium brand, which is evident by their packaging and that they are oven-baked with genuine taste,” Ms. Altobelli said.

Consumers benefit high quality, as well as simplicity when it comes to their tortillas and flatbreads. Greater-for-you components are significant, but just as vital to numerous individuals is an component listing they can understand.

Tortilla Land, Springdale, Ariz., highlights its tortillas’ simplicity, labeling them as easy to prepare dinner and made with just five easy components. Publishing 13.9% growth in the newest interval, Tortilla Land’s achievement shows that a lot less is oftentimes more in this category.

Stepping outside the house the box

Although common breads are found as a flexible foundation component that can be used in all types of dishes, a lot of individuals nevertheless assume of tortillas as a food items unique to Mexican cuisine. The exact same is genuine for flatbreads like pitas and naans as Mediterranean or Indian staples.

Producers are hoping to modify this, however, building it recognised that tortillas and flatbreads are far a lot more than their spot of origin and can be each individual bit as multipurpose.

“A couple many years ago, we began contemplating of tortillas as a meals delivery system as opposed to just foodstuff itself,” Mr. Kabbani explained. “And that correct there broadens how persons believe about tortillas.”

CraftMark Bakery, Indianapolis, applies the exact philosophy to its flatbreads and wraps.

“The natural beauty of flatbreads and wraps are in their versatility,” stated Liz Rayo, the bakery’s senior vice president of marketing and innovation. “They are literally a blank canvas for so many menu ideas.”

Flatbreads are rightfully appreciated as a international foods with roots in the Mediterranean and Asia, but Ms. Rayo observed a ton of the bakery’s emphasis is on demonstrating people that flatbreads can also be utilised in place of standard bread goods.

“Part of this education and learning is supporting folks have an understanding of how they can include flatbreads into their each day meal ideas,” Ms. Rayo defined. “As an accompaniment to a salad or soup, as an different to bread or rolls for sandwiches. There is so much you can do with flatbreads and wraps to create exciting, delicious, unique foods and treats.”

Toufayan Bakeries makes use of social media promoting for quite a few of its products.

“Whether it’s Instagram, Fb or TikTok, we’re regularly putting it out there,” Ms. Toufayan reported. “We’ve got a database of thousands of shoppers, and we’re regularly bombarding our shoppers with recipe suggestions.”

These unique strategies consist of employing pita bread to make a dessert with cooked apple, cinnamon and sugar, or applying a gluten-free wrap as the base of a pizza crust.

“You can use the naan bread, which is usually imagined of as an Indian foods, to make a definitely fantastic Italian panini out of,” Ms. Toufayan explained. “You set it in your panini push, where by you increase fresh mozzarella, meat and marinara, and you’re superior to go. We’re regularly producing recommendations so that our shoppers know that each and every products is extremely versatile.”

1 factor is certain — producers want consumers to stage exterior the box with tortillas and flatbreads. If this carries on, with producers growing their products’ usage and health and fitness statements, the category will proceed to increase.

Adapting to market issues

Tortillas and flatbreads have viewed solid progress thanks to increases in at-dwelling cooking and demand for more healthy products, but there is however a lot of pressure on the market as very well. Cost boosts, source chain difficulties and labor shortages continue to be problematic for brands like Brooklyn, NY-based mostly Aladdin Bakeries.

“Trucking was after a little percentage of each individual transaction. Now, it is normally complicated to locate carriers, and if we do, the charges have usually increased far more than we have been in a position to take into account in our pricing,” stated Theresa Watkinson, Aladdin Bakers’ main running officer. “We often have aimed at presenting pricing stability, but this is not probable anymore. It is frustrating for us and our consumers. The good thing is, we are not in this scenario by itself, so our buyers have been being familiar with.”

Ridgefield, NJ-primarily based Toufayan Bakeries has faced very similar troubles.

“It’s getting increasingly difficult to get other supplies this kind of as bags and bins, and a ton of that is owing to not having the manpower in your factories,” discussed Karen Toufayan, vice president of marketing and advertising and income, Toufayan Bakeries. “The cost of earning a package deal of bread has also really skyrocketed, so we’re working with a large amount of concerns when it arrives to pricing and increase of prices.”

Each bakeries have managed to develop inspite of these issues, emphasizing the worth of keeping on leading of operations and preserving marketplace associations in situation the going will get hard.

“We are surely dealing with provide chain difficulties like each and every other meals producer, but we have fantastic relationships with our vendor-partners and have so considerably managed to grow our business enterprise and maintain 100% fill premiums to our clients,” Ms. Watkinson reported. “It is hard, but we have a excellent crew, and we have been capable to stay away from quite a few of the pitfalls of our competitors. Currently being positioned in Brooklyn has gains, such as a superior labor source and proximity to several key suppliers in our location.”

Toufayan Bakeries’ potent romantic relationship with bag and box suppliers has aided it by way of the latest supply shortages.

“We’re a quite large consumer for a good deal of people folks, and we normally spend our bills on time, so we discover ourselves to be a ton of occasions at the front of the line when it comes to finding bags and boxes,” Ms. Toufayan mentioned. “And really frankly, we just check out to source out as a lot of box and bag men and women as there are out there.”