New York Bagel says Brits are ready for pretzels after overcoming ‘bagel barrier’
The New York Bagel Company is planning to expand into other categories inspired by New York bakeries, such as pretzels, after overcoming the “bagel barrier” in the UK and becoming the number one bagel brand.
The brand’s head of marketing Karen Revel-Chion told Marketing Week that the company is looking at launching other bakery products in the UK that it can “put a New York twist to”, starting with pretzels.
“It’s in line with our ongoing strategy to be more than a bagel company,” she said.
She adds that other products could include deli breads, such as submarines.
The brand recently launched Bagel Sandwich Thins, an effort to respond to a growing demand for lighter bread alternatives after 2014 U&A research showed that consumers find standard bagels too filling.
“There’s room in the market for both, but for people with a smaller appetite Thins are a good solution,” Revel-Chion added.
The ‘sandwich alternatives’ category, which includes thins, pita bread and wraps, is now valued at £212m and grew by 11% year on year to 28 February according to Nielsen data cited by the brand.
“Sales of sliced bread have gone down as people are looking for more interesting lunches, and bagels are leading the way,” Revel-Chion said.
While the brand’s closest competitor, Warburton’s, has also launched a Sandwich Thin product, New York Bagel is “by far the leader in the core bagel market” according to Revel-Chion.
The brand is promoting the Thins launch with its highest spend to date, £2.5m, on its “A Taste of New York” campaign across TV, print, outdoor, social and digital, created by agency Now.
The activity follows the brand’s 2013 campaign which focused on “overcoming a barrier to purchase” in the UK by targeting the many consumers who were unsure how to use a bagel. The new campaign is an attempt to add an “emotional attachment to the brand”, according to Revel-Chion.
New York Bagel, owned by bakery company Grupo Bimbo, is worth £62m in sales according to U&A data cited by the brand, and has 84% share of the bagel market.
It claims its bagels are also bought by 19% of UK households.