case study on bakery business

Center for Agroecology

Case Study No. 1: Alvarado Street Bakery

• Thistlethwaite, Rebecca ;
• Brown, Martha

Developed by the UCSC Center for Agroecology & Sustainable Food Systems, this series of case studies focuses on the social and environmental efforts of innovative U.S. food system businesses across different geographies, scales, legal structures, and points along the food supply chain. While these represent only a handful of the thousands of socially and environmentally responsible food businesses across the nation, they have many features that others can learn from in developing sustainable businesses that incorporate the triple bottom line of people, planet, and profits.

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How the World’s Largest Bakery Puts Execution Before Strategy

• Mauro F. Guillén
• Esteban García-Canal

Execute first, analyze later.

In today’s world, all companies need to be able to function in chaotic, unpredictable business environments. Emerging multinationals already know how to do that — it’s what they’re used to. Take Bimbo, the world’s largest bread baker. The company, founded in 1945 by a Spanish immigrant to Mexico, uses execution excellence to adapt to rapidly changing circumstances and customer preferences.

• Mauro F. Guillén is a vice dean at the Wharton School and the author of the new book, The Perennials: The Megatrends Creating a Postgenerational Society .
• Esteban García-Canal ( [email protected] ) is a professor of management and international business at the University of Oviedo in Spain.  He is the co- author of  Emerging Markets Rule: Growth Strategies of the New Global Giants  with  Mauro F. Guillén.

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Business challenges

• Effectively replace the baking business’s current quoting, order-taking, and payment processing systems.
• Make the SaaS platform for bakery businesses user-friendly and attractive, with design emphasizing the brand’s image.
• Optimize the custom bakery website for both desktop and mobile devices.
• Integrate Google Maps and Google Places API services to help customers find cake makers nearby.
• Create a convenient messaging system to simplify communication between cake makers and customers.

Value delivered

• Developed a clear and simple quote system to send the cake request to the baker and a convenient messaging system. These systems greatly simplify the interaction between cake makers and buyers.
• Integrated the Google Places and Google Maps APIs. These services allow customers to see more cake makers and the possible delivery radius. So they have all the information to make a deliberate choice.
• Created convenient search filters. So the customers can find exactly what they are looking for very quickly.
• Optimized the SaaS-based platform for mobile devices. So, the bakery solution looks amazing on both desktop and smaller mobile screens.
• Implemented a modern and secure payment system, Stripe. Thus, the users can be sure their payments on this custom bakery website are protected.
• Created a neat and appealing bakery website design, making it user-friendly, which impacts users’ involvement.

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Case Study on Bakery

Bakery case study:.

Bakery is an establishment and a form of business which is specialized in the production of the flour-based food and confectionery. As a rule, bakeries not only produce but also sell their goods in the bakery shops. Generally, the typical choice of goods in bakeries is quite vast. One can purchase bread, cakes, cookies, pies, sweat rolls, etc. Bakeries function for the different sort of customers and for the different occasions.

The establishment is popular among the individuals, couples of people, who want to have a tasty snack and among the people who want to make their party brighter. For example, there is hardly a birthday or a wedding without a great decorated cake. Birthday and wedding cakes are generally great layer-cakes which rich decor and specific weird shapes. Bakeries can produce their own styles of such cakes but more often the customer imagines his own shape and theme of the cake. Nearly every bakery has a cafe and offers tea, coffee, juice, etc for its customers who want to spend time somewhere in a cosy place. Bakeries have always been popular in the world, because the quality and the choice of their products are higher than of the ones from the supermarkets.

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In many countries which have established ancient traditions of baking bakeries are the part of the culture and tradition, so the tourists generally visit such bakeries to try their goods made according to the ancient recipes.Bakeries have always existed in the human civilization and provided people with flour-based food and some of them managed to develop to high extent and receive enormous profits. It is interesting for every student to research the structure of the common bakery and learn about the possible ways of its development and growth. A well-organized bakery case study is supposed to be informative, logical and interesting. A student should learn about the suggested problem related with the bakery and define the reason of this problem. Moreover, it is important to find out about the effect of the problem and weigh its consequences for the business.

If a student wants to demonstrate his professional skills, he should brainstorm the most effective methods which will solve the problem once for all.If one does not have case study writing experience, he should take advantage of the high-quality writing assistance of the Internet. There one can find a good free example case study on bakery and improve his knowledge about the topic and the ways of paper writing. Moreover, if a free sample case study on bakery is written by an expert, it is will be a good experience for students who have troubles with formatting and composition of the paper.

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State of the Industry 2024: Bakery snacks offer small indulgences

The category’s products continues to serve as ‘little treats’ for consumers..

Courtesy of Otis Spunkmeyer (Aspire Bakeries)

Consumers are still looking for indulgences, despite the fact that many products now have health halos. However, in our current era of “little treat culture,” the bakery snacks category—aka smaller servings of snack cakes and pies—continue to be popular.

MARKET DATA

Bakery snacks have overall shown modest growth, according to Circana (Chicago) data from the past 52 weeks, ending on March 24, 2024. The exception is the perimeter snack cakes subcategories, which showed growth ranging from 16.9% to 82.7%.

In the center store bar/finger snack cakes subcategory ($2.2 billion in sales, a modest 1.2% uptick), McKee Foods stole the show, with $531.6 million in sales and growth of 9.6%. The J.M. Smucker Co. followed ($322.6 million, 5.4% increase), and Grupo Bimbo took in $140.2 million, with a slight decline of 1.4%.

The center store snack cupcakes subcategory unfortunately was overall disappointing—as a whole, it was down 7.5%, and most of the companies listed were also in the red, including Smucker again ($254.3 million, down 5.2%), Flowers Foods ($79.6 million, 15.1% in the negative), and private label ($41.6% in sales, down 7.4%). 

Other brands of note: Elvan Food Ind. Co. , in the center store roll snack cakes subcategory (only $5,557 in sales, but up 2,256.9%); Starbucks , in the all other center store snack cakes subcategory ($19.5 million, with a nice 69.2% increase); and a few very high growth numbers in the all other perimeter snack cakes subcategory, such as Bon Appetit Danish Inc. , with $2 million in sales but an uptick of 302,014.7%.

LOOKING BACK 

“Within the snack cakes and snack pies segment, we see bakers getting more creative as consumers become more comfortable trying new flavors and products,” says Raoul Dexters, country commercial manager, Vandemoortele USA . “For Vandemoortele in this category specifically, this means expanding our turnover line. While we have the classic All Butter Apple Turnover, we also have salted caramel cream-filled and raspberry-filled to offer flavor variety and, therefore, reach additional consumers.”

“Also, we’ve seen customers continuously lean toward fresh flavor. While many snack pies and snack cakes are ready-to-serve, Vandemoortele’s turnovers are designed to be baked fresh for a satisfyingly crisp texture and warm flavor. The easy-to-bake convenience also allows for the snack cakes and snack pies to be enjoyed at their optimum status throughout the day, which is another major category trend we see,” Dexters adds. “While these treats used to be seen as a morning time offering, COVID-19’s disruption caused a shift to all day snacking and on-the-go mealtimes. Since bakeries, delis, coffee shops, etc. are continuing to be an all-day food option, they need products that can be appetizing from morning breakfast to midday snack time. Our pre-proofed turnovers can be quickly and easily baked based on high-traffic times, providing warm, fresh bites throughout the day.”

Vandemoortele recently announced the acquisition of a majority share in Banneton Bakery, marking its first production facility in the U.S. “The acquisition continues to prove the company’s commitment to bringing French flavor to the U.S., and we’re excited to see the growth that’s coming,” Dexters comments. “Additionally, our foodservice business has increased. The foodservice space slowed dramatically due to the effects of COVID-19. However, now that business has picked up but labor shortages have continued, more food service outlets are looking for quality solutions. Our Bake’Up line and pre-proofed products meet foodservice operators where they are—removing the need for specific baking equipment, intense preparation, or extra training while still serving a delicious, high quality product.”

Paul Stippich, director of marketing, Otis Spunkmeyer ( Aspire Bakeries ), says workers are heading back to the office post-COVID, so they’re packing their own lunches more often—and looking for individually wrapped treats that can be grabbed easily, but wanting and expecting high-quality, great-tasting snack items. 

“Citrus flavors, including lemon, continue to grow in popularity, particularly as we get closer to the summer. The tart flavor contrasts and balances the sweetness of bakery snacks such as our loaf cakes,” he notes.

Stippich advises that while chocolate’s popularity endures, the cocoa market is creating challenges. 

“We are starting to see a resurgence of non-chocolate flavors throughout the category, into which the Otis Spunkmeyer Lemon Iced and Cinnamon Crumb Loaf Cakes fit. It's no secret: consumers are embracing the nostalgia of traditional flavors, and what’s more classic than lemon and cinnamon? Data from food research company Puratos shows that interest in those classic flavors grew by 22% in 2023 compared with the year prior, and they expect to see that growth continue,” Stippich shares.

Otis Spunkmeyer recently reintroduced its individually wrapped Loaf Cakes, which come in Lemon Iced and Cinnamon Crumb flavors. They can be purchased at in-store bakeries, convenience stores, and vending.

Chris Balach, vice president, marketing, sweet baked snacks, The J.M. Smucker Co. , says the brand is excited about opportunities in the sweet snacks business. 

“Snacking continues to be ubiquitous and to grow year after year—and the amount of snacking taking place throughout the day is growing, compared to traditional sit-down meals. Research tells us that 70% of consumers are eating at least two snacks per day, and 45%--nearly half!—of consumers are eating more than three. Younger consumers are snacking even more than that,” Balach shares. “That’s good news for the Hostess brand, as [our] primary growth target is Millennial parents, and we know they are always looking for new snacks. Variety is important to them, so we want to keep innovating and evolving to meet their changing needs. 82% of parents are looking for new snacking options for their family, and that’s one of the reasons why innovation is a key factor in our long-term, sustainable growth strategy.”

Hostess has introduced several offerings so far this year to meet evolving consumer demands, says Balach. “Our new Hostess Meltamors is a combination of flavors and textures inspired by warm restaurant desserts. Available in Double Chocolate and Chocolate Creamy Caramel flavors, these soft, fluffy mini-cakes with a chocolate-flavored drizzle and a chocolatey- or caramel-flavored melting center offer an indulgence for snack lovers. While Meltamors is delicious right out of the package, it’s our first snack that we developed specifically to be warmed in the microwave for a truly transformative snacking experience.”

Looking forward Dexters says year after year, the real European butter and clean label ingredients of Vandemoortele’s Banquet d’Or All Butter Croissant shine through, landing the pastry at No. 1 in consumer testing and trending as a best seller.

“We currently offer the All Butter Croissant filled with chocolate, apricot or raspberry, but we’re expanding that line. Later this spring, we are launching some decadent flavor additions and enhancements to the line. These filled croissants can be marketed to consumers the same way a hand pie can be, providing the same satisfying flaky pastry with delicious filling,” he promises.

Balach notes in November 2023, Hostess Brands was acquired by The J.M. Smucker Company , adding Hostess and Voortman to the Smucker family of brands.

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Liz Parker is the senior editor of Candy Industry  and  Snack Food & Wholesale Bakery,  and has worked at BNP Media since 2012. She has written for CBS Detroit as well as for her own blogs. She earned a Bachelor of Arts in Creative Writing from the University of Michigan. Liz can be contacted at (248) 839-7156 or at  [email protected] .

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The Delivery Business Shows Why Unions Are Struggling to Expand

The Teamsters union has made little headway in organizing workers at Amazon and FedEx despite wage and other gains it secured at UPS last year.

By Peter Eavis

Peter Eavis covers the delivery services and the logistics industry.

Last year, two unions representing workers at three large automakers and UPS negotiated new labor contracts that included big raises and other gains. Leaders of the unions — the United Automobile Workers and the Teamsters — hoped the wins would help them organize workers across their industry.

The U.A.W. won one vote to unionize a Volkswagen factory in Tennessee last month and lost one this month at two Mercedes-Benz plants in Alabama. The Teamsters have made even less progress at UPS’s big nonunion rivals in the delivery business, Amazon and FedEx.

Polling shows that public support for unions is the highest it has been in decades . But labor experts said structural forces would make it hard for labor groups to increase their membership, which is the lowest it has been as a percentage of the total work force in decades. Unions also face stiff opposition from many employers and conservative political leaders.

The Teamsters provide an instructive case study. Many of the workers doing deliveries for Amazon and FedEx work for contractors, typically small and medium-size businesses that can be hard to organize. And delivery workers employed directly by FedEx in its Express business are governed by a labor law that requires unions to organize all similar workers at the company nationally at once — a tougher standard than the one that applies to organizing employees at automakers, UPS and other employers.

Some labor experts also said the Teamsters had not made as forceful a push as the U.A.W. to organize nonunion workers after securing a new contract with UPS.

“You didn’t have that energy that you saw with the U.A.W.’s leaders,” said Jake Rosenfeld, a sociologist who studies labor at Washington University in St. Louis.

Teamsters officials said the UPS deal, which increases the average annual compensation, including benefits, of a UPS driver to $170,000 from $145,000, was helping them gain members. At DHL, a delivery company where the union has long had a big presence, the union added 1,100 members last year and is pushing to gain another 1,500. The Teamsters are also pursuing a legal challenge against Amazon that could allow them to gain ground at the company and its contractors.

“It’s been very helpful for us to mobilize,” Sean O’Brien, the Teamsters’ president, said in an interview, referring to the UPS contract. “We’ve set the standard in the industry.”

But the union has also suffered losses. Yellow, a trucking company that employed 24,000 Teamsters, shut down and filed for bankruptcy protection last year.

Amazon and FedEx said they were confident in their approach to managing and compensating workers. Amazon said it had made investments that bolstered pay and benefits at its delivery contractors. FedEx said its nonunion model allowed it to quickly increase pay whereas UPS’s union employees were bound by the terms of five-year contracts.

“Our culture, built and tested over 50 years, is based on the philosophy that if we take care of our people, they will deliver outstanding service for our customers, which will drive business results for our company,” Tracy Brightman, FedEx’s chief people officer, said in a statement.

Around 310,000 UPS employees belong to the Teamsters. Many of them see FedEx and Amazon drivers on their routes and talk about pay, benefits and working conditions.

“We make much more money than anyone else in the industry,” said Essence Carlisle, a part-time package handler at UPS’s hub in Louisville, Ky. “I definitely intend to make a career here.”

The UPS deal gave part-time employees, over half the company’s unionized work force, a 26 percent raise, to at least $21 per hour. Ms. Carlisle makes close to $24 an hour and works around 20 hours a week, giving her time to run a bakery on the side, she said. Her friends who have full-time driving jobs at Amazon make around $19 an hour, she said.

As big as the raises at UPS were, they did not increase pay by a lot more than inflation. The top wage rate immediately after the latest deal, $44.25 per hour, was 22 percent higher than five years earlier. Over that period, consumer prices rose 21 percent.

And UPS typically hires new union workers into part-time jobs, which they hold for a few years. As a result, some people may be unwilling to seek a job at the company.

Even so, last year’s Teamsters contract was widely discussed online, spawning memes of UPS drivers arriving at customers’ doors in designer clothing.

“Joking or not, everybody was like, ‘Hey, man, I need a job at UPS,’” said Juan Martinez, a UPS driver in Southern California.

Under the new contract, Mr. Martinez expects to earn $110,000 to $120,000 a year, depending on how much overtime he gets, he said. He said his income allowed him to spend more on his children’s education.

Under the Teamsters’ deal with UPS, the top hourly wage will increase to $49 by the end of the five-year contract. Amazon said in January that the average pay of workers at its delivery contractors was $20.50 in the United States. FedEx declined to provide an average wage rate for its delivery workers.

Despite UPS’s superior pay over the years, the Teamsters have not made many inroads at FedEx or Amazon.

The high turnover of delivery and warehouse workers at Amazon and FedEx — where each part-time position was on average filled and vacated twice last year — makes it difficult to organize them.

Another challenge is that delivery workers at Amazon, and drivers who deliver for FedEx Ground, are employed by contractors. Mr. Rosenfeld, the labor academic, said trying to organize a few dozen people at each contractor could be time consuming and costly.

Last year, 84 workers at an Amazon contractor near Los Angeles joined the Teamsters. But days earlier, Amazon terminated the contract with the operator, Battle-Tested Strategies, the company said, for failing to follow proper safety procedures, among other things.

The Teamsters asked the National Labor Relations Board to rule that Amazon was a joint employer of the workers and order the company to reinstate the contract. The board has yet to rule.

A favorable ruling would be “a massive deal” and an “inspiration for thousands of other workers across the country,” said Randy Korgan, a Teamsters official.

Johnathon Ervin, the owner of Battle-Tested Strategies, said he believed Amazon had terminated the contract, which led to job losses for all his employees, because of the unionization effort. An Amazon spokeswoman, Mary Kate Paradis, disputed that.

Mr. Ervin said the minimum pay for his workers under the Amazon contract was $19.75. “If you are asking people to make this a career, you should have better work conditions and pay the drivers more,” said Mr. Ervin, a 26-year Air Force veteran.

Amazon didn’t respond directly to that criticism. The company noted that its contractors, which it refers to as delivery service partners, had created 279,000 driving jobs over the last five years.

“Helping D.S.P.s create a good overall working experience is important to us, which is why we’ve invested more than $8 billion in state-of-the-art technology, safety features, rates, programs and services for Amazon D.S.P.s and their drivers,” Ms. Paradis said in a statement.

Labor groups have made some gains at Amazon, including organizing workers at a Staten Island warehouse. But Amazon is challenging the election there, and that union has been embroiled in infighting .

At FedEx there is another potential barrier to unionization.

FedEx was founded as an airline, and employees of its Express business come under the Railway Labor Act, which requires unions to organize nationally, across a whole company, at once. Union officials say it’s easier to hold individual votes at each company location as allowed under the National Labor Relations Act, which governs workers at UPS and automakers.

Even so, some FedEx employees do belong to a union. Nearly 6,000 pilots at FedEx Express are represented by the Air Line Pilots Association . The Teamsters are trying to organize the mechanics who work on the company’s planes.

FedEx said its delivery workers had benefited from not being in a union because the company raised wages significantly during the home-delivery boom of 2021 and 2022, when UPS workers’ raises were set by an agreement reached before the pandemic. A FedEx spokeswoman noted that the company incurred an additional $1.4 billion in labor costs in its 2022 fiscal year.

Peter Eavis reports on the business of moving stuff around the world. More about Peter Eavis

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For safe food and healthy eating

Healthier bakery fund

A partnership between Food Standards Scotland and Food and Drink Federation Scotland which supported business with reformulation in Scotland.

Visit FDF Scotland's website to find out more

In 2023, we partnered with the Food and Drink Federation Scotland (FDFS) to provide businesses in Scotland with funding and support so that they could make their products healthier in a way that works with their brand, budget and longterm goals. 

To make products healthier, businesses can:

• enrich products with fibre, fruit or veg
• reduce calories, fat and sugar content

The Healthier Bakery Fund provided 13 businesses across Scotland with up to £5,000 to help make their products healthier through:

• accessing nutritional testing and technical support
• working with ingredient suppliers to try out innovative solutions
• developing new marketing and promotional materials

The FDFS  Reformulation for Health  programme supports all types of food businesses and has a wide range of support and guidance available. 

Case studies

Hame bakery.

Nestled on Scotland’s North East coast, Hame Bakery in Peterhead has been proudly serving the community for 22 years across two locations. 

Patrick Jackson, owner and baker at Hame Bakery, says they make a full range of products in-house from bread rolls to wedding cakes, as well as local delicacy - the buttery. Butteries are an established and much-loved bakery staple in many North East households, where the product originated, and are traditionally made with flour, yeast, salt, and a large amount of lard/fat.  

“The main aim was to make a healthier buttery by incorporating wholegrain flour and more seeds, but we made real progress in reducing the fat."

The funding supported Patrick with the time and space to focus on recipe development – all of which has been done in-house. 

On a roll: North East bakery creates new ‘healthier’ buttery

Read more about Hame Bakery's reformulation journey.

Aulds Delicious Desserts

Aulds Delicious Desserts is a frozen dessert manufacturer producing traybakes, cheesecakes, fudge-cakes, pastries and tarts for the food service market across the UK. With an aim to provide their customers with a healthier dessert option on their menu, they applied to the Healthier Bakery Fund. 

Fiona Jackson, Head of Operations at Aulds says that “We wanted to find alternative ingredients to reduce fat, sugar and salt but still maintain the indulgence and high-quality that is associated with our products.”

“One project where we’ve seen positive results is with our baked vanilla cheesecake. We’ve found that by using a different cheese the fat has reduced by 36% and we are waiting on external analysis to confirm results.”

Fiona says that the journey of reformulation has been one of trial and error, and is conscious that replacements or reductions will have an impact on flavour. 

“For us, this project and funding is about the ability to give our customers something different - a quality dessert that can be healthier - and meet a gap in the market.” 

Stockan's Oatcakes

Stockan’s Oatcakes, based in Stromness, is a 4th generation family-owned business that manufactures a range of traditional Scottish oatcakes for UK retail and export. 

Stewart Crichton, General Manager of Stockan’s Oatcakes, says they have successfully reformulated one of their recipes through their participation in the Healthier Bakery Fund. 

“Our aim was to reformulate a standard recipe to create a product for a retailer that would benchmark well in terms of taste and texture, but also increase protein while reducing fat and sugar.”

"This funding has given us the confidence to do other reformulation projects with other current and potential customers.”

The Heathier Bakery Fund’s support was spread across different areas of Stockan’s reformulation journey. 

“We used the funding to test production batches, conduct nutritional analysis, and some of it went towards the final pack design. 

Three Sisters Bake

As the name suggests, Three Sisters Bake was set up by sisters Nichola, Gillian and Lynsey Reith 12 years ago.

Nichola Reith says they heard about the Healthier Bakery Fund through Scottish Bakers and started planning how they could incorporate reformulation into their business. 

“Reformulation doesn’t just have to be about changing recipes. We are a bakery that prides itself in handmaking everything. When we first heard about the fund we had various ideas about how it could benefit our business.” 

With their empire biscuit a firm favourite, Nichola knew investment in equipment could make a real difference. 

“Our empire biscuits are one of our best sellers and one thing that struck me is that we have always rolled out the biscuit dough by hand, creating a real size variance.  

“We have been able to better control portion size and, as a result, reduce the biscuit’s overall weight by 25%, while keeping the diameter the same, which is a pretty big achievement through one change."

“When we were hand-rolling, no matter how experienced you are, we can’t be as consistent as a machine. So, with the grant from the Healthier Bakery Fund we decided to invest in new equipment that rolls out dough. The rationale was that by introducing this machine we could set a height for the dough and as a result achieve a consistent biscuit.” 

More on this topic

The out of home environment.

Research undertaken to understand the availability, behaviour and attitudes to food eaten outside the home.

A Case Study Regarding Asset Management at a Bakery Processing Industry and the Challenges Presented for the Maintenance of Its Industrial Equipment

• Conference paper
• First Online: 29 May 2024
• Cite this conference paper

• João Garrido 14 ,
• Ana C. V. Vieira 14 , 15 , 16 , 17 &
• José T. Farinha 14 , 15  

Part of the book series: Mechanisms and Machine Science ((Mechan. Machine Science,volume 152))

Included in the following conference series:

• International conference on the Efficiency and Performance Engineering Network
• International Conference on Maintenance Engineering
• International Workshop on Defence Applications of Multi-Agent Systems

The strict normative and regulatory requirements to which the food industry is subject, present challenges to its assets management. For these companies, proper maintenance management and organization of their industrial equipment is essential. It is important to guarantee the necessary safety and security conditions, supported in detailed and updated information regarding assets, aiming to manage its life cycle, namely the operation phase. The preceding permits to increase the competitiveness, because the production is directly related to the equipment’s Availability. In this context, this paper presents activities carried out at a bakery company at Portugal, with the main objective of introducing an asset management policy supported by preventive maintenance and continuous improvement of processes, such as issuing work orders and managing of spare parts, through a Computerized Maintenance Management System (CMMS), thus increasing the productivity of tasks inherent to the team. In the preparation of the preventive maintenance plan, the well-known and most common failures in the equipment, the criticality of the assets as well as the knowledge of maintenance technicians who worked with this equipment from the beginning of its life cycle were considered, based on the historical information available in the system. Connecting these plans with a perspective of continuous improvement growing within the organization, it was possible to set goals and strategically plan the management of these assets, focusing on maximizing their availability, adjusting tasks and periodicity preventing possible breakdowns.

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ISO 55000: Asset Management—Overview, Principles and Terminology (2014)

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Parra, C., González-Prida, V., Candón, E., De la Fuente, A., Martínez-Galán, P., Crespo, A.: Integration of asset management standard ISO55000 with a maintenance management model. In: Márquez, A.C., Komljenovic, D., Amadi-Echendu, J. (eds.), 14th WCEAM Proceedings, pp. 189–200. Springer, Cham (2021). https://doi.org/10.1007/978-3-030-64228-0_17

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Garrido, J., Vieira, A.C.V., Farinha, J.T. (2024). A Case Study Regarding Asset Management at a Bakery Processing Industry and the Challenges Presented for the Maintenance of Its Industrial Equipment. In: Ball, A.D., Ouyang, H., Sinha, J.K., Wang, Z. (eds) Proceedings of the UNIfied Conference of DAMAS, IncoME and TEPEN Conferences (UNIfied 2023). TEPEN IncoME-V DAMAS 2023 2023 2023. Mechanisms and Machine Science, vol 152. Springer, Cham. https://doi.org/10.1007/978-3-031-49421-5_44

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Food-as-medicine case study: Ahold Delhaize USA shares multi-discipline approach for successful programs

28-May-2024 - Last updated on 28-May-2024 at 14:45 GMT

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Ahold Delhaize USA operates several grocery chains on the East Coast, including Giant Food, Hannaford, Food Lion and Stop & Shop. Ahold Delhaize USA serves 30 million customers a week in both rural and urban settings, said Steven Jennings, stakeholder relations and brand lead, health and sustainability and founder for the retailer.

Ahold Delhaize USA ditches the food as medicine naming convention, uses ‘Foodcare’ instead 

When Ahold Delhaize USA developed its food-as-medicine discipline, executive leadership and stakeholders worried how consumers might interpret the phrase "food as medicine," Jennings admitted. 

Instead, the retailer decided to use its own terminology and called the overall strategy Foodcare, he said. The debate on whether or not to use the food as medicine phrase was a reoccurring point of discussion in various event sessions, including the opening panel ​.  

“Food as medicine sounds a little scary for some of our internal partners or stakeholders. ... We are there to hold their hands on this journey, and Foodcare is about inspiring and empowering consumer choice on their healthier living journeys. It is not about shaming. It is not about pointing to this or that. It is about meeting our customers and associates where they are on their specific healthcare living journey," he said.

Echoing the sentiment,   ​Mandy Katz, director of healthy living at Giant Food, explained that Foodcare helped her team communicate with executive leadership about the goals of various programs and receive executive approval for projects.   

Ahold Delhaize USA’s Foodcare initiative focuses on three core pillars — guide, curate and nourish   ​— he added. 

Giant Food food-as-medicine wins: Incentive buying, Produce Rx programs ​

Katz shared "two really big wins” for Ahold’s Foodcare strategy and the lessons her team learned in the process.

Giant Food’s customer incentive program rewards consumers for purchasing healthier food was one success, Katz explained. Additionally, Giant Food’s first Produce Rx Program ​ — where Medicaid recipients received a $20 coupon to purchase fresh fruits and vegetables at Giant stores — helped the organization understand how best to develop a food-as-medicine program moving forward, she added.

“We learned how those little vouchers that we started with do not work in our stores. We learned about gift cards and how gift cards are lovely ... but you cannot filter them, and you do not know if the partners who are getting and buying those cards are actually able to distribute them, and the people receiving them are using [the gift cards] for the things they want, or are they buying other essentials like toothpaste and toilet paper — which is just as important — but it does not go towards the programming," she said.

Using Guiding Stars to make shopping for healthier foods easier 

Ahold Delhaize USA partnered with nutrient-density scoring company Guiding Stars Licensing Company to provide a visual cue in-store for consumers searching shelves for healthier foods, said Elizabeth Marble Caton, brand and nutrition manager at Guiding Stars Licensing Company. 

Guiding Stars takes nutritional information for foods and beverages sold at Giant Food stores and assigns the product a 1-3 star ranking for good, better and best to inform consumers on what is the most nutritious, Carton explained. The ranking is depicted by an apple icon with the corresponding number and is displayed next to a price tag in Giant Food stores.  

Guiding Stars not only helps consumers find better products, but it helps inform how Ahold Delhaize USA markets healthier and more nutritious foods and beverages, Katz noted. 

"Guiding Stars is our love language that we speak constantly to our merchandising team. ... [Our healthy merchandising manager] is constantly working with Elizabeth, figuring out why products may or may not earn stars, but she is also helping us to look at the way we market health in-store,” she added.   

Partnering with IT for successful food-as-medicine programs

In developing its Foodcare programs, Ahold Delhaize USA addressed several technology limitations, which impede the implementation of several programs, the panelists shared. 

When Ahold Delhaize USA started accepting a health benefits card from a third-party vendor, the retailer’s payment system was unable to process the card transaction, which frustrated consumers, Jennings explained. 

The Ahold Delhaize USA Foodcare team requested and received “a non-budgeted IT upgrade to the tune of ... several million dollars" to make the benefit cards work with the retailer’s payment system, he said.

The Foodcare team used this experience to shore up its communication and collaboration with Ahold Delhaize USA’s IT team and technology partners, including electronic-voucher company iQPay, to ensure this issue would not happen again, Jennings said. 

“We cannot invest that money on the slim margins that we operate on for every single card that comes along the way. So, this is when working with our IT partners, we created internal teams [to do] discovery around what are all the cards of market [and] what are the most common systems."

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