Australian Convenience Store News

Bigger size
He says sales are on the increase generally, although there still is greater demand in the colder months. The big change is towards a larger pie.

"The traditional pie from some of the traditional bakers was around 175g but theyíre now larger most around 200g. It obviously started as a marketing ploy as new players came into the market, but itís become the norm.
"Men are definitely happier with a bigger eat, so most of our range is 200g, but we do have a 210g Premium Beef, which is a chunkier style pie.

"Thereís also been a shift towards more frozen products than fresh, which has been brought about by the health regulations governing transport, storage and preparation (HACCP).

"Thatís made it very tough for the local bakers but it is more convenient for the general operator because you donít have to worry about shelf life. You just pull out as many as you need when you need them and of course, thereís a price advantage."

Fiona Keen is marketing manager for Balfours Pty Ltd, which produces a range of fresh and frozen cakes and savoury pastries, including traditional and premium pies. She says Balfours has done extensive research in the market and has discovered some important new trends in consumer demand.

Better product
"While the traditional pie is still very popular, a lot of people are looking for a better tasting, more wholesome and nutritious product. They want a chunkier pie, rather than the older mincemeat style, particularly women who, while not high-level consumers, will buy pies if they perceive them as a ëbetterí food than they were."

John Bishop is general manager for NSW-based Central Coast Pies, which makes a range of standard and gourmet-style pies. While the bulk of the business is currently fresh, the company is also moving into the frozen, par-bake area and will continue to develop its premium range because of a 12 per cent growth in demand for the gourmet range over the last year, predominantly through C-stores.

"Customers want better quality, chunkier, more variety. Price is not so much a consideration any more, so long as theyíre getting the type of pie they want and youíre satisfying the demand. They expect us to be more pro-active, to match the demand for what is, essentially, another type of fast food in a convenient casing," says Mr Bishop.

Bronwyn Brinkworth agrees. Sheís product manager for Simplot Australia which supplies the FouríN Twenty, Country Kitchen and Herbert Adams ranges of pies, pasties and sausage rolls.

"There is a trend towards a demand for a premium pie, something that is a consistent quality. Consumers prefer a product that they perceive to be ëhomebakedí on the premises, with the smell, the taste and the texture to match. They want it hot and ready to eat on the run and they expect value for money."

In terms of new product, itís hardly surprising to find the main players are constantly updating their range to attract new customers and keep the stalwart supporters happy. Theyíre also pretty keen to keep the operators happy too.

Greater variety
To this end, Patties has a new range on the market ready for autumn including Beef, Bacon and Cheese, Beef Curry and Rice, Pepper Steak and Chicken and Vegetable.

Simplotís Ms Brinkworth says the development work is ongoing, with new flavours being researched constantly and the ëold favouritesí regularly revamped.

"You always have to have something new and innovative. Weíve recently re-formulated our Country Kitchen Cheese and Spinach Rolls and the Vegetable Rolls and you can quote me," she laughs, "but I believe theyíre the best quality on the market thatís currently out there."

Simplot also offers a Four íNí Twenty ëKing Sizeí range the pie is 25 per cent larger than the standard FouríN Twenty meat pie, and the sausage roll is 40 per cent larger than the regular offering.

"It really is king-size for king-size hunger and there is a real demand for that sort of product with the use of a big brand that gives confidence to the retailer to get consumer pull-through," Ms Brinkworth says.

Quality product development
Balfours has called on the services of star chefs Geoff Jansz and Margaret Fulton to create a range of award-winning pies that will appeal to a wider market. The Bakehouse Range features a chunkier fill, flaky pastry, a bigger size (220g) and a combination of classic and new flavours such as Chunky Beef, Creamy Chicken, Roast Chicken and Beef and Smoky Bacon. Other new Balfours pies include Tandoori Chicken and Thai Beef Curry. There is also a vegetarian pasty to satisfy different consumer preferences.

"Geoff also helped develop a very different product for us. Called a ëCalzoneí, itís like a pizza folded in half with a pizza-type filling, which is baked in the oven. Itís very different and itís proving very popular," says Balfoursí Fiona Keen.

Central Coastís John Bishop says one of the most interesting new trends in the market is the ëbreakfast pieí.

"We actually produce a ëbreakfast pieí with bacon, eggs, sausage and tomato, which has become extremely popular, and we did it because weíve noticed a trend towards early morning purchases.

"But even with the traditional pie, youíve got guys heading off to work and they pop in to fill up the car and pick up a pie and some chocolate milk and thatís breakfast, or morning tea itís not just a lunch item.

"Early morning itís hot, fresh, ready and thereís no waiting. They probably jumped out of bed at five to go to work and didnít feel like eating then, but an hour later when they realise they have to fill up the car, they recognise theyíre hungry and they can grab something to eat then and there."

When it comes time to build your customer base, itís important to remember that pies tend to be an impulse purchase, no matter what time of day it is, so the smart operator will make sure people know theyíre available rather than trusting sales to luck.

Promotions & Signage
"Point-of-sale material will tell people you have pies on offer while meal deal promotions encourage a purchase because of the perception of value, particularly at specific meal periods," says Pattiesí Michael Batholomew.

He says well-placed signage (outside and above the pie warmer) will tweak customersí memories so they look for a pie when they come in, while the offer of a meal deal (pie and drink, or pie and chocolate bar) or a free pie with a certain amount of petrol will help heighten awareness of the product and its appeal.

"Itís also important to make sure you have the pie ëwarmerí or display area well stocked with a variety of products at all the peak times. Itís always a juggling act you donít want leftover stock but you do want to be able to supply all demands. The best way of doing that is researching your customers when they come in, what theyíre after and work the numbers and the varieties to suit."

Fiona Keen says Balfours has had very positive experience with meal deals and would certainly recommend the practice as a way of raising awareness of a product, and increasing sales but not without effort elsewhere.

"There really are no hard and fast rules on how to make sales except that your display must be clean and look appetising. We like to provide our vendors with information on how to display, heat and serve our product and we have our own display units to give front counter exposure.

"Obviously with the advantage of our celebrity chefs, weíve been able to heighten awareness of our new range, but the key generally is good point-of-sale material. You need to win the customer as soon as they walk into the store, so itís important to have really good-looking pictures and information about the product so it stands out from the crowd."

Simplot offers marketing support in the form of a wide range of retailer information, consumer advertising, promotions and extensive point-of-sale material to its vendors. Not surprisingly, Bronwyn Brinkworth is another industry expert who is in favour of meal deals or ëcombo bundlingí.

Presentation is the key
"We are in the fast food business. We recognise the need to be competitive and pro-active against the likes of McDonalds and KFC. That means constantly updating meal deal offers that the consumer perceives as good value.

"Combo bundling is a simple but effective method of illustrating retailer value to the consumer to maximise sales and profits by upselling.

"It makes sense for the retailer as the consumer can buy a full meal when they fill up with petrol itís one-stop shopping, rather than buying fuel and then going somewhere else for food, which is a popular concept in a time conscious society," Ms Brinkworth says.

"Presentation is the key," says Central Coastís John Bishop.

"It must look fresh and attractive or it wonít sell. Weíre not talking the old pie warmer any more itís a display cabinet with a range of interesting products in there. Pies are competing against a lot of other products so for those of us producing them, itís worth making sure theyíre properly presented and making it easy for that to happen.

"My advice to an operator who wants to maximise sales is to display their pies prominently up front, not in a corner behind the counter in an old pie warmer with a sign saying ëpiesí.

"Put it under their nose - literally. People love pies so if they see them or smell them, theyíll buy one. Make sure they can see them when they walk in because itís the product that sells itself thereís so much other signage out there that yet another poster can get lost."

The general feeling among the experts is that the pie market will continue to grow, providing the quality and variety is maintained. The trend is more towards the frozen par-baked product which can be finished on site, taking full advantage of the ëfresh is bestí philosophy and full nose appeal. The smart operator can continue to milk the timeless tradition of an Australian icon which has made the transition to the 21^st century.