Just Desserts CEO Michael Mendes Announces Expanded Organic and Vegan Offering to Be Featured at IDDBA

SAN FRANCISCO–(BUSINESS WIRE)–Just Desserts expanded its organic and vegan offering, which will be
featured at IDDBA in Houston, Texas. “We have strong demand for our
organic and vegan offering—particularly ‘grab and go’ products,” noted
Mendes. “Our organic cakes are well received by discerning consumers
seeking premium, organic, GMO free cakes using cage free eggs. These
hand crafted, baked from scratch cakes carry the superior taste and
texture of our original cakes introduced over 40 years ago. Our new
flavors include single serve chocolate mini bundt and a range of organic
cupcakes.”

Organics represent over 5% of food sales and drive double digit growth,
expanding nearly four times faster than the food category in 2014.
Mendes believes organic consumption can grow much larger, but is
constrained by supply. “Consumers want quality and integrity in the food
they and their families eat. It is difficult to source organic
ingredients, and segregate production processes to meet organic
certification requirements. Most large traditional bakeries are
unwilling to assume this burden.” Organic certification requires
suppliers to prove use of organic ingredients and avoid contamination
during processing. “While our traditional products feature wholesome
natural ingredients, and do not use artificial flavors or fillers,
organic certification offers an additional level of scrutiny that many
consumers value.”

Organic products have the highest penetration amongst Millennials. 40%
of Millennials recognize organic products are highly regulated and 60%
report purchasing organics within three months. Baby Boomers (who in
many cases determine which products go into retail) may be slower to
recognize the appeal of organics however, perceptions are evolving.
“Organics have the greatest penetration in produce, representing 36% of
all organic food, with 12% of all produce consumed being organic. One
reason for this success is the modest premium consumers pay. For
example, organic packaged salad is only 10-15% more than non-organic.”
Due to the complexity of sourcing various organic ingredients, shorter
shelf life, and limited supply, organic packaged goods prices are often
40% to 70% higher than non-organic. “We put extensive effort into
collaborating with vendors and carefully formulating products. As a
result, we can offer organic products at a reasonable premium (about
20%) vs our traditional offering—making us more accessible to value
conscious consumers.”

Contacts

Media requests:
Just Desserts
Ana Speros, 415-780-6870
asperos@justdesserts.com