The bread derivatives market in recent years has been subject to price increases mainly due to various causes that have triggered a violent impact on wheat, one of these being the Russian-Ukrainian conflict, which has affected one of the largest wheat exporters, together with poor crop yields. To better understand the situation, we asked companies what the current situation is.
The Price of Wheat: Conflicts and Climate Change
After an increase in the price of wheat linked to the conflict in Ukraine, which had been much talked about especially at the dawn of the attacks, today, as underlined Grissitalia, there is a slight deflation regarding the cost of flours even if the situation is still very uncertain. The point of view of the commercial director of Apulian Temptations Vito Lotito, who states: "As far as wheat is concerned, the situation seems to have stabilized at the moment, even if the latest news from the Russian-Ukrainian front does not leave us thinking well and we will have to see how the new harvest goes. The hope is that speculations that impact the final consumer will not be triggered, considering that we are dealing with significant increases in olive oil, extra virgin olive oil, wine and energy costs." The lack of stability does not help the company, which finds itself having to deal with the cost of raw materials and the demands of large-scale distribution. Antonio Fiore, commercial director of Food Flower: “For a few months now, we have had confirmation on the purchase prices of flour. However, compared to the past, producers like us are experiencing a period of uncertainty regarding future short-term developments. This lack of prospects makes it difficult for us to participate in tenders, formulate medium-term offers and establish price lists to agree on sales agreements with large-scale retail trade.”
Export: how much does it impact and which countries does it involve?
Among the specialties derived from bread there are many typical products considered part of the Italian culinary tradition with regional specificities, this makes them particularly interesting products for the foreign market. "The foreign market occupies approximately 10% of the turnover of Grissitalia – the company explains – The most interesting and interested countries are Asia and America, where we are still present, however, in a marginal way. We aim to increase the presence of the brand The Good Bread also in other countries and expand by investing in new developments and foreign trade fairs. The goal by 2025 is to reach 25% of Grissitalia's turnover".
Data on the rise Apulian Temptations, which has recorded a very recent increase in exports. “I believe that in this historical moment exports are fundamental for all companies, not just for ours. Our export share is growing year after year, we have gone from 10% in 2022 to 15% in 2023. The reference markets on which we are setting our growth are, in addition to the European one, the American, Australian and Japanese ones.”
Sales director Antonio Fiore also provides data in line, but Food Flower looks especially at the Old Continent: “Our company has launched a plan to increase sales abroad, starting from this year, which currently represent 10% of our turnover. We intend to expand our international presence by offering a wider range of products in the salty snacks sector. It is clear that European countries are showing particular interest and are showing a greater propensity to consume.”
Innovation: Bread derivatives and new challenges
Although the specialties of this sector are mainly linked to regional tradition and retain the characteristic of "as it was once made", it is necessary to keep up with the times and listen to the demands of the contemporary consumer.
“Innovation for Grissitalia is of primary importance - they answer from the company - Our marketing team together with the research and development office collaborate daily to study new references and optimize existing recipes. Our goal is to guarantee maximum quality, satisfy market demands and retain our customers, never forgetting respect for tradition. We can anticipate that during the Cibus 2024 fair in Parma we will present a brand new line of long-life products: soft bread packaged in various flavors and weights, made following the traditional recipes of freshly baked bread, ideal to be consumed immediately after opening or after toasting in the oven. We will also come out with a new range of branded sweet products The Sweet Good Bread which will allow us to expand our catalog and cover a new market segment. The line will consist of Pan Brioche in 5 different recipes and small dry pastries. The company has a three-year development plan for the production efficiency of existing lines and new production lines. Between 2024 and 2026 we will invest approximately 25 million in real estate and machinery.”
Big news on the horizon in a sector, the food sector, which demands continuous updates. The commercial director Vito Lotito of Apulian Temptations highlights the importance of offering variety and proposing novelties: “Innovation is absolutely fundamental! The market itself demands it. You have to always be on the ball and not remain static. We have projects underway and we are investing in the diversification of our product portfolio, introducing new segments that can meet the needs of consumers who are increasingly attentive to health and well-being.”
Historical recipes are not left aside, indeed they are enhanced even if accompanied by less traditional products, this is the case of Food Flower which tells the company's point of view: "The core of our business is the production of high-quality taralli, following the traditional Apulian method, an art that few companies still maintain. However, in recent years we have witnessed the proliferation of new companies in the taralli sector, leading to market saturation and a trivialization of the product. To distinguish ourselves, we invest in research and development, using modern technologies to create new products that meet consumer needs. An example are the Good Why, functional snacks rich in fibre and protein, which have achieved considerable success on the market. We have recently launched the Cranciotti, BBQ and bacon-flavored crackers, which we are confident will be a hit with consumers. We are confident that these new offerings will contribute to our continued success in the market.”
