SIC 2052 Cookies and Crackers

Contenidos

• NAICS CODE(S).
• INDUSTRY SNAPSHOT.
• ORGANIZATION AND STRUCTURE.
• BACKGROUND AND DEVELOPMENT.
• CURRENT CONDITIONS.
• INDUSTRY LEADERS.
• WORKFORCE.
• AMERICA AND THE WORLD.
• RESEARCH AND TECHNOLOGY.
• FURTHER READING.

SIC 2052

This category includes establishments primarily engaged in manufacturing fresh cookies, crackers, pretzels, and similar "dry" bakery products. Secondary products that are part of this industry include biscuits, graham crackers, saltines, cracker meal and crumbs, cracker sandwiches made from crackers, wafers, and ice cream cones and cups.

NAICS CODE(S)

311821

Cookie and Cracker Manufacturing

311919

Other Snack Food Manufacturing

311812

Commercial Bakeries

INDUSTRY SNAPSHOT

Although mom is still America's favorite cookie maker, the bakeries that attempted to make cookies and crackers as good as mom's was a huge industry. The industry, riding high in the baby-boomer years, began to decline as the adult boomers reassessed their nutritional sources and cut their consumptions of "empty" fat and sugar calories from processed snack and dessert foods. Notwithstanding, the industry vowed to meet the challenge by offering consumers more healthy cookies and crackers, with lower amounts of sugar, calories, and hydrogenated fats.

ORGANIZATION AND STRUCTURE

In the major bakery companies, the cookies and crackers segment of business often operates as a separate division. Many bakery companies are divisions of holding companies that are also involved with other consumer products that include food, beverages, and, in the case of RJR Nabisco, Inc., tobacco.

Other manufacturers of cookies and crackers operate strictly under the bakery goods heading. Companies such as Mrs. Field's Cookies and Famous Amos at one time operated exclusively out of their own retail outlets. They later expanded to supermarkets and specialty stores. A number of these private label companies work through distributors that handle a number of varied products. Many of the larger companies handle their own distribution, working directly with supermarkets and retailers.

BACKGROUND AND DEVELOPMENT

The U.S. Chamber of Commerce noted that cookie and cracker manufacturing was the fastest growing segment of the bakery industry in 1992. Shipments of all bakery products rose an average of 1.3 percent per year from the years 1987 to 1992. Sales of cookies and crackers for the same years, however, increased by rates of 2.3 percent. The primary reason given for the projected increase in sales was the recent introduction of low-fat, low-calorie, low-cholesterol cookies and crackers.

In the late 1980s, bakery goods showed a consistent increase in sales, but consumption of sweet baked goods began to decline around 1992. Consumers changed their buying habits and sought bakery products that were lower in calories. Cookie and cracker sales also slowed by 1992, but showed signs of growth due to the availability of the new low-fat varieties.

An important reason for declines in Nabisco's cookie and cracker business is that Nabisco aggressively increased its prices in the 1980s until consumers started buying less. Nabisco still holds the lion's share of the business. However, private labels began to cut heavily into Nabisco's market share. Nabisco is said to be working overtime to undercut its private label competition. In an effort to bolster its market, Nabisco is making an effort to gain market space in discount outlets and convenience stores. Nonetheless, private labels are slowly making inroads in all the major cookie and cracker markets.

The private labels appear to be pointing their big guns at Nabisco because it is still the leader in the cookie and cracker industry. There are a number of upscale private lines available, including Sam's Choice, a line sold at Wal-Mart stores, and Master Choice, sold at A & P stores. One of the front-runners, and a leader of the upscale private label pack, is President's Choice. Produced by Canada's Loblaw Companies, the chocolate chip entry is beginning to close the lead that Nabisco's Chips Ahoy! Brand enjoys.

A number of companies introduced products to suit a changing market of health-conscious consumers. Nabisco introduced a new line of fat-free cookies and crackers called Snackwells. As reported in Advertising Age, Nabisco management insists that "The company is placing substantial corporate emphasis behind product categories that health-wise consumers are increasingly demanding." The company added that Snackwell cookies have one gram of...