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Wonder Bread maker going all-natural

Interstate Bakeries releasing all-natural bread line as first post-bankruptcy marketing move

Freshly emerged from bankruptcy, the maker of Wonder Bread is doing an about-face and introducing a new national brand of all-natural breads.

Interstate Bakeries Corp. planned Monday to begin selling Nature's Pride products, which include no artificial flavors or preservatives, no high fructose corn syrup or trans fats.

Rich Seban, chief marketing officer for the Kansas City-based company, said that several competitors already sell natural bread products, appealing to consumers increasingly demanding alternatives to standard white bread. But he said those are limited to certain regions of the country or are part of product lines that include breads with artificial ingredients.

"Natural wasn't an afterthought; it was the whole point," Seban said.

The company will sell eight 24-ounce premium hearty varieties and two 20-ounce traditional soft varieties under the brand. Six of the varieties, including whole wheat and 12-grain, will be sold nationwide while another four varieties, including potato and buttermilk, will be sold regionally.

Loaves will sell for between $2.99 and $4.29, making them pricier than standard bread. But Seban said he believed the products can survive the rocky economy.

"We're really confident that the interest there is in all-natural products is not a fad, it's a lifestyle," he said.

The market for so-called natural products, including food, beverages and other household products, has continued to grow. Research firm Mintel International in Chicago said total sales of natural products increased 10 percent last year to $20.4 billion and has increased 45 percent since 2005.

"It's kind of required now because this type of bread is designed for making sandwiches and parents are looking for a natural, healthier product to put in their kids' lunches," said Marcia Mogelonsky, Mintel's senior specialty foods analyst. "It's a wise move."

Mogelonsky cautioned, however, that Interstate Bakeries will face stiff competition in regional markets and will have to win over skepticism that, unlike "organic" products, there is no industry definition of what "all-natural" means.

"They say there's no artificial preservatives but they also say it's (going to be) distributed nationally, so you wonder where it is being made and how fresh it will be," she said.

The product launch is considered an important first step for Interstate Bakeries, which emerged last week from more than four years of bankruptcy.

While the company was not known for innovation in the years leading up to its filing for Chapter 11 bankruptcy protection in September 2004, it has pushed a number of new products since then, including 100-calorie snack packs of its Hostess Twinkies and cupcakes and whole wheat versions of Wonder Bread.

The Nature's Pride brand is continuing the trend and, company executives hope, signals a new direction for the company's future.

"Innovation and staying in tune with industry trends and consumer demands is how we'll achieve success," Seban said. "This is a major initiative for the new IBC."

AP News |