Operations

Cost

Consumers are becoming increasingly knowledgeable about the products they consume. This interest in, and awareness of, the products they consume mean that they demand better quality products from outlets and manufacturers.

IFFCO Ingredients junior marketing manager Uzair A. Sheikh says: “With the internet growing and becoming a knowledge hub, consumers have become more aware of ingredients used in bakeries and their impact on health. On the basis of this, they have re-defined their food consumption patterns and have chosen a healthier organic diet, which is a relatively expensive route for current manufacturers.”

In addition to the operational difficulties desserts always presented, further challenges have emerged as customers continuously demand the freshest ingredients and no additives and/or preservatives. According to Clinton St. Baking Company operations manager Deon Oberholzer: “This has led to an even wider span of challenges mostly due to higher ingredient costs and time constraints based on the short shelf life of dessert items.”

SugarMoo co-founder Raki Phillips echoes this sentiment, saying: “There are several challenges in the industry ranging from hiring talent to increasing costs and the availability of longer shelf life products that include ingredients such as premixes which we understand could bring down our costs considerably; however, it’s very important for us to use ingredients that are good for us and made freshly in-house on a daily basis. In the long run, our customers choose us because of our quality of ingredients and efficiency of ordering whether it be via our online website or through our app and this is where we will continue to stand out.”

Convenience

The region and specifically the GCC, has seen a rising affluence and hectic lifestyles which have resulted in a shift in preference towards quick and easy meal options. This shift in consumer preferences has impacted the bakery industry significantly.

Sheikh says: “A swift move towards bakery mixes and ingredients is observed as a result of these trend. The challenge to meet the ‘quick and easy’ proposition at a given quality is an innovation test for bakery experts and requires their constant attention.”

Logistics

Another challenge facing regional dessert manufacturers is the over-dependency on imported products which leaves them open to supply volatility, resulting in price hikes which need to either be absorbed or passed on to the consumer.  This can lead to manufacturers resorting to low quality alternatives such as the use of products containing vegetable oil in order to substitute premium dairy products from Europe.

“To overcome this challenge, the governments of GCC countries have played an important role by subsidising staple food items, which has increased demand for local produce, and local bakery manufacturers are encouraged to participate,” explains Sheikh.

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