Cookie & Cracker Manufacturing

Cookie & Cracker Manufacturing

Brief Excerpt from Industry Overview Chapter:

Companies in this industry make cookies, crackers, ice cream cones, and similar bakery products. Major companies include Campbell Soup Company, Kellogg's and Mondelez International (all based in the US); other leading firms include ARYZTA (Switzerland), Britannia Industries and Parle Biscuits (both based in India), Want Want Holdings (China), and Yildiz Holdings (Turkey).

COMPETITIVE LANDSCAPE

Demand is driven by population growth, consumer tastes, and health considerations. The profitability of individual companies depends on efficient operations, effective marketing, and a strong sales force. Large companies have advantages in purchasing, distribution, and marketing. Small operations can compete effectively by manufacturing allergen- and sugar-free products, high-end cookies and crackers, or products containing unusual ingredients. The US industry is highly concentrated: the top 50 companies account for more than 95% of industry revenue.

PRODUCTS, OPERATIONS & TECHNOLOGY

Major products are made up of saltines (about 25% of US industry revenue) and cracker sandwiches (about 15%). Other products also include nonchocolate-type bar goods (about 5%), bread (about 5%), and other sweet goods (about 50%). Popular cookies include chocolate chip, oatmeal, crème-filled, and sandwich varieties. Other products classified with cookies include toaster pastries, ice cream cones, and wafers for ice cream sandwiches. Major types of crackers include saltines and graham crackers. In English-speaking countries outside of the US, cookies and crackers are often called biscuits.