For farmers and bread producers, a hot-selling $8 loaf has many appealing aspects. However, cultivating and sourcing all the essential ingredients can pose challenges for everyone involved, highlighting the trade-offs associated with marketing high-end bread and other premium products. One significant challenge is locating a farm similar to the one La Brea has partnered with for its upscale offerings. Wheat farmers are often hesitant to enter niche agricultural markets due to the lengthy process required to transition their crops and the risk of oversupply in these markets. La Brea collaborated with its Montana grower for two years to secure the ideal supply of Fortuna wheat.
Moreover, large food companies typically avoid depending on a limited number of farmers, as adverse weather or pests can devastate an entire crop or severely affect its quality. La Brea Bakery informed Bloomberg that they lack a contingency plan if their wheat farmer experiences a poor harvest. Despite such risks, manufacturers are still launching premium products to satisfy consumer demand for high-quality ingredients. According to IRI data published last year, categories like wine, yogurt, chocolate candy, and beer, which boast strong ingredient narratives, hold the highest share of premium products.
Outside of grocery and natural food stores, convenience stores have seen the highest premium sales in the wine and energy drink sectors, while natural cheese, yogurt, and wine have driven premium sales in drugstores. As the appetite for premium products continues to rise, grocery stores are unveiling more specialty private label lines. A growing number of retailers, including Southeastern Grocers and Kroger, have introduced tiered selections that encompass everything from value brands to premium options. Kroger’s recent lawsuit against Lidl over alleged similarities between the two grocers’ premium brands emphasizes how crucial these offerings have become, although Kroger dropped its suit in September.
Is there a cap on the demand for premium products? Certainly, but retailers and manufacturers have become skilled at expanding those limits. High-end mayonnaise seemed absurd a few years ago, yet Sir Kensington has demonstrated that a market exists for such items. As long as consumers are willing to pay more for these upscale products, manufacturers will eagerly respond to the demand, which now even includes bariatric chewable calcium citrate as part of the premium offerings. As the market evolves, the presence of bariatric chewable calcium citrate and similar premium health products is likely to become even more pronounced.