Lucks Ultimate Donuts Full Report by Lucks Food Decorating Company

The Ultimate Donut Program Report

2014

ABOUT

Lucks Food Decorating Company • We are a world class manufacturer of USA-made edible decorations. • We are a proven global leader in our industry. • We are a knowledge leader with over 45 years of experience, bringing numerous innovations to the industry, such as Edible Image® and Dec-Ons® decorations. • We are experts on trends, from design to product flavor, and we have a full understanding of how to apply trend to product. • We offer continuously updated trend-right product lines. • We provide decorating ideas that inspire creativity within our market. • We share our insights with our customers to help them create relevant products that will sell. • We create and distribute the highest quality decorating products made from the highest quality ingredients using globally recognized food-safe procedures and processes. • We are all about helping our customers easily finish cakes and other treats with great style and design while delivering real value for their money.

WHAT WE OFFER Industry Experts Our teams are the experts in edible food decorations. From sales and marketing to Q&A and manufacturing, we are the leaders. Marketing and Trend Research We take our trend research seriously. To stay relevant in an ever-changing marketplace, it’s important to grow and evolve with developing trends. We utilize various forms of research, including trend reports, trend-spotting and sales data to keep our designs unique, trend-right and profitable. Some of our methods include: • Participation in the industry’s largest and most impactful events • Purchasing trend reports from the world’s leaders in design trends and leading publication research to determine industry direction • Participation and shopping the design industry’s most important international trade shows In-House Art Department We have an incredible Art Department that enables our company to bring our customers’ ideas to life. The Art Department sets the bar for commitment to quality and detail. They work closely with our clients to develop innovative ideas and execute unique designs with every project. Knowledge Provider to Baking Industry We provide time-saving tips, tricks and solutions to the baking industry, through our annual Idea Book, seasonal Look Book, and website decorating ideas and resources. Proprietary Manufacturing Processes Lucks Food Decorating Company invented Edible Image® designs and the equipment we use to create and produce our edible decorations.

1 © The Lucks Company 2014

TABLE OF contents

3 Donut Trends 4 Donut Types 5 Essential Donuts 7 Celebration Donuts 15 Designer Donuts 19 Recommended Products: Edible Transfers 23 Recommended Products: Dec-Ons速 Decorations

25 Recommended Products: Royal Icing Roses 27 Recommended Products: Edible Image速 Designs 29 Photo Credits 30 Ordering Information

To order products featured in this report please visit lucks.com/donuts

DONUT trends

Donuts have gained serious momentum in recent years. • The Nielsen Perishables Group showed US donut sales up at 4.1% growth and representing the highest percentage of breakfast bakery share dollars in the 52 weeks ending June 30, 2012.1 Donuts are the perfect treat for every occasion and time of day. • The staying power of the donuts is tremendous. Unlike other single serving desserts, donuts are now being regarded as a snack to be enjoyed morning, noon and night.2 • Donuts made the Food Channel’s list of list of Top Dessert Trends in 2011 as a fresher idea to replace the wedding cake at receptions. • Dessert-style donuts offer ability to boost gross profit dollars and extend your donut sales throughout the day.3 Donuts become gourmet. • What was once considered the cheap eat, donuts now carry prestige as they have evolved into gourmet creations with exotic toppings and flavors. • The James Beard Foundation named artisan donuts one of its 2012 trends to watch and fancy prices seem to increase along with the demand.

Until now, grocery chains and donut franchises have stuck with traditional-style donuts, but:

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With the interest in gourmet donuts on the rise, consumers are seeking new and unique ways to celebrate with donut products. Lucks’ Ultimate Donut Program recommendations meet this need.

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Donuts aren’t just for breakfast anymore. Layered with sauces they are turned into decadent desserts; filled with fresh fruit and cream, they are a special treat. Hot donut programs that allow for all day donut consumption increase sales.

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Donuts are often chosen as the centerpiece for weddings and birthdays, stacked into towers, arranged on dessert tables and expanded into Texas-sized cakes for a crowd. Showcasing donuts for celebratory events increases demand. •

3 © The Lucks Company 2014

Gourmet donuts need to be showcased in a special way. In-store bakeries should merchandise them like a boutique bakery. Treat gourmet donuts like cupcakes, high-end and unique. Gourmet merchandising means more profit, consumers pay more for what appears to be special.

I -2 InStore 3

Buyer, Apr. 2012 InStore Buyer, Apr. 2014

DONUT

types

Donuts are perfect anytime with the exciting Ultimate Donut Program featuring… Essential donuts •

Special flavors, shapes, colors, edible decorations for a unique touch, served hot all day and in unusual ways.

Celebration donuts •

Giant-sized, stacked into cakes, built into towers, used for holidays and special events like graduations, birthdays, baby showers and even weddings!

Designer donuts •

Gourmet flavor profiles, upscale ingredients and toppings, served as dessert and offered all day…the decadent treat consumers will stand in line for.

ESSENTIAL donuts

Key to program: Anytime, multi-use donuts in exciting colors, shapes or used in unusual formats. • Create a hot donut program – increase sales by offering warm donuts as an impulse buy in the checkout lane during prime commuter time • Use donuts in unusual ways – maple bars for hot dog buns, giant donut as base for dessert pizza, donut holes with gourmet dipping sauces, glazed for hamburger buns • Add special toppings to create desserts – caramel apples, hot fudge, apple or cherry pie filling, pudding • Pair with ice cream – create sundaes, ice cream sandwiches, layered parfaits • Use fresh fillings to create unique desserts – shortcake-style desserts, prepared French toast-style • Apply unusual and seasonal flavors – spiced caramel, pumpkin, chile lime, eggnog, apple cider, root beer • Feature trendy icing colors – magenta, mustard, pale blue, soft pink, orange, bright rainbow hues • Offer shaped donuts - everyday shapes like animals, letters, hearts or people

*Photo credits on page 39

5 © The Lucks Company 2014

Essential Donuts - Kids

Essential Donuts - Licensed Characters

These amazing donuts are decorated with our DecOns® decorations. Find out more about them on page 23!

Disney

Marvel, Spider-Man and the distinctive likeness thereof is a trademark of Marvel Characters, Inc. and is used with permission. Copyright © 2014 Marvel Characters, Inc. All rights reserved. www.marvel.com BARBIE and associated trademarks and trade dress are owned by, and used under the license from, Mattel, Inc. © 2014 Mattel, Inc. All rights reserved.

Essential Donuts - Sports

CELEBRATION donuts

Key to program: Giant-sized, shaped or stacked for birthdays, holidays, special events and weddings. • A key offering in this program are “cakes” made from stacking donuts into towers – perfect for any celebration including birthdays, Father’s Day, baby showers, engagement and anniversary parties. • Spelling out birthday messages with simple letter-shaped donuts offers something different and fun for consumers. Experiment with colors, flavors and decorations. • Create giant donut cakes for an unforgettable birthday dessert! Big airy donuts iced like a cake and covered in toppings are on the rise across the nation – giant shaped donuts, seasonal and popular themes are key. • A highly popular trend in weddings – the bride and groom are forgoing the traditional wedding cake for donuts featuring icing, flowers or stacking options. • To complete the wedding dessert table, offer bite-sized donuts for appetizers and dessert. Offer in classic flavors for nostalgia and in a mini size to fit with current food trends. • Donuts are offered at celebrations as party favors – especially at weddings! • Essential donuts in seasonal flavors, colors and shapes are perfect for celebrating the holidays – include gingerbread men, Christmas trees, hearts and pumpkins.

*Photo credits on page 39

7 © The Lucks Company 2014

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Remind customers they can order their celebration donut cake with signage. Customers can order donuts designed for birthdays, seasonal events, weddings, showers or Father’s Day.

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• •

Our Top Pick idea: decorate for the party! Apply special icing colors and decorations as part of a high-end donut line meant for parties. Showcase stacked displays on the counter for maximum impact.

Offer a retail rack for celebrations with donuts. Fill with packages of birthday candles, balloons and Lucks Sugar Charms™. Customers can grab donuts for decorating at home and go!

Celebration Donuts - Father’s Day • Create special limited edition donuts for events like Father’s Day. • Simple decorating techniques and a few edible decorations make these a premium item. • Allow customers to pre-order special edition donuts for pickup on the special day!

Celebration Donuts - Graduation

Shown here is our new Geek Kit - a best seller!

• Graduations are long running events – spanning over two months in May/June. • Perfect for the dessert table at the party! • Featuring graduation-themed decorations. • Shown here on Designer Donuts for a high-end addition to the celebration.

Celebration Donuts - Baby Showers • Softer colors and themed decorations make these perfect for the dessert table. • Offer in special packaging and allow pre-ordering. • Shown here on Designer Donuts for a high-end addition to the celebration.

9 © The Lucks Company 2014

Celebration Donuts - Seasonal

Donuts become the star of the show every season with unique icing colors and themed decorations!

Celebration Donuts - Wedding • Weddings featuring donuts on the dessert table are a growing trend across the country. • Consumers love the nostalgic and unique touch this popular treat provides. • Bakeries are responding by offering donuts in different formats, flavors and icing styles. • Offer stacked wedding cake donuts and special edition donuts for the dessert table. • Don’t overlook offering donuts for wedding favors (opposite page). Our popular Royal Icing Roses are the perfect (and easy!) finish for wedding donuts. See page 25 for a full selection of our Roses.

11© The Lucks Company 2014

Offer specially decorated and packaged donuts for unique wedding favors. Add your logo to complete.

*Photo credits on page 39

Customers will pay a premium price for wedding-themed donuts for their special day! 12

Celebration Donuts – Seasonal Giant “Cakes” • Birthdays and other special events are the perfect reason to offer giant donuts to replace the traditional cake. • Ranging from 12” to 18” wide, these cakes are a unique and welcome addition to the party. • Offer in different formats: shaped, sheet cake-style, themed. • Create a special donut cake customers will love. • Licensed Edible Image® designs look awesome on a donut! • Creative or unique donut cakes become a hit on social media, driving customers to the stores.

13 © The Lucks Company 2014

Celebration Donuts – Birthday and Event Giant “Cakes”

Find out more about Edible Image® designs like these on page 27!

DESIGNER donuts

Key to Program: Gourmet ingredients and toppings, high-end presentation and creating an experience. • • • • • • • • •

High-end ingredients and toppings are key. Unusual or brand name toppings are highly popular. Presentation is important: upscale and gourmet appearance is a must. Designer donuts create buzz, customers want to have an “experience” with them – establish exciting menus with evolving flavor changes, themes or limited edition formats. Pattern donut flavor profiles and toppings after coffee drinks, alcoholic beverages, cupcakes or popular ice cream treats. Create non-alcoholic flavor profiles that mimic the real thing. Create special adult experiences like pairing them with wine, beer or whiskey. Offer in sundaes with grown up toppings like bourbon caramel sauce or cinnamon rum glaze. Donuts for fairs, carnivals or food tasting events: worth the calories, the extra cost and standing in line.

*Photo credits on page 39

15 © The Lucks Company 2014

Focus on flavors:

*Photo credits on page 39

With a high-end look:

A unique twist on the ordinary:

With playful themes:

DESIGNER donuts

Celebrate seasons and events by adding edible decorationsâ&#x20AC;Ś

All decorations shown are covered in more detail on the following pages.

17 ÂŠ The Lucks Company 2014

RECOMMENDED

Edible Transfers

Edible Transfer Sheets and Rounds for chocolate are easy to handle and do not smear. They do not contain cocoa butter, can be shipped year round and work well on milk, dark, white or coating chocolate.

Edible Transfers come in two formats: Rounds and Sheets.

• Rounds are 1 3/4” circles that can be cut with a circle cutter after application. Excess chocolate can be re-melted after application! • Sheets are repeated patterns that can be cut into shapes or shards after application as shown.

We can even create one with your logo! For another example of custom work see page 21.

19 © The Lucks Company 2014

Donuts with a Message! Edible Transfer Rounds allow consumers to say it with donuts! Wish someone a happy birthday, cheer them up or congratulate a friend or co-worker with edible messages.

Donut messages are great for birthdays and celebrations!

IN ACTION Edible Transfer Sheets and Rounds

Combine with Dec-OnsÂŽ decorations!

Messages as flavor indicators give instant polish and designer look!

21ÂŠ The Lucks Company 2014

Donuts Dressed for the Occasion

RECOMMENDED

Dec-Ons® Decorations

Dec-Ons® sugar decorations are made primarily from finely granulated sugar which is molded into various shapes and hand painted with edible food colors. • Dec-Ons® decorations are the perfect addition to any of these donut types. • Offered in themes perfect for birthdays, holidays, weddings, showers, seasons and celebrations. • Easy way to increase value of donut to customer. • Offered in nearly a hundred different designs and sizes. • New collections based on trend research. • Custom designs available!

Manly Man Collection Some of our most popular Dec-Ons® decorations especially for the guys are shown here…

Birthday Shown here is our popular Birthday Assortment which is perfect for birthday decorating!

New Trend Collections Our brand new Zombie Attack Assortment (top row) and Geek Kit Assortment (bottom row) are shown here…

Licensed Characters:

Disney

Marvel, Spider-Man and the distinctive likeness thereof is a trademark of Marvel Characters, Inc. and is used with permission. Copyright © 2014 Marvel Characters, Inc. All rights reserved. www.marvel.com TM and © 2014 Marvel BARBIE and associated trademarks and trade dress are owned by, and used under the license from, Mattel, Inc. © 2014 Mattel, Inc. All rights reserved. © 2014

Viacom International Inc. All rights reserved. Nickelodeon, Nick Jr., SpongeBob SquarePants, Dora the Explorer and all related titles, logos and characters are trademarks of Viacom International Inc. Spongebob SquarePants created by Stephen Hillenburg.

RECOMMENDED

Royal Icing Roses Our popular roses make a great addition to the Ultimate Donuts Program. • Donuts for weddings is a trend on the rise – see examples below that feature flowers. • With the popularity of using donuts for weddings, our Royal Icing Roses make it possible to create beautiful donuts worthy of any dessert table. • Donut towers can be assembled first, then spiked with Lucks Royal Icing Roses. • Our medium or small-sized roses are the perfect size for wedding donuts. • Easy to apply with dab of icing or insertion into a dollop of whipped cream on individual donuts like those shown on the opposite page.

*Photo credits on page 39

• Our roses ship all over the world and are one of our most popular product offerings. • Roses are made from viscous royal icing to create velvety-smooth consistently attractive flowers. • They come in a rich variety of pastels and rich colors to match any theme. • Roses are perfect for weddings as they can be customized.

See page 35 for ordering details!

RECOMMENDED

Edible Image® designs Our Edible Image® Decorations can be customized with logos for sports teams, fundraising or custom projects. • • •

Our Edible Image® decorations come in a variety of sizes, shapes and designs – we are always adding smaller formats (like those shown below) that are perfect for donuts! Many companies choose to create their own logos or designs for a new product line or for marketing promotion. Edible Image® decorations meld to donut surface after immediate application to wet icing.

See more mini-sized Edible Image® designs on page 32. They pair great with sprinkles and sugars!

Example of custom project

Please visit lucks.com to see our full line of Edible Image® designs!

PHOTO credits Page 5 Arizona Foothills Magazine marshallastor.com babble.com harveysdonuts.com 248am.com magazine.foxnews.com rachelloganphotography.com bacontoday.com lucks.com

Page 7 sm-artie.tumblr.com krispykreme.com blog.weddingthings.com gabriellaeng.com jarams.com ninieysitidonuts.blogspot.com activerain.com eptingevents.com

Page 12 barndoorevents.com

Page 15 foodbeast.com urlesque.com harveysdonuts.com foodspotting.com eatyourchow.com somethingswanky.com foodpluswords.com messyandpicky.com projectfoodie.com kevinandamanda.com

Page 16 twin-tables.com kailochic.blogspot.com

Page 25 cakeeventsblog.com ashlyndawson.ca onestylishbride.com wallflowerphoto.com cakesnobs.wordpress.com saphireeventgroup.com

All celebration donut cakes and designer donuts* photographed for this program were purchased from Legendary Doughnuts in Tacoma, WA. legendarydoughnuts.com *We added the Lucks decorations after purchase.

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Place an Order BY PHONE 800.426.9778 253.383.4815

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ONLINE lucks.com CUSTOM PROJECTS 800.426.9778 253.383.4815

Want to receive our annual Idea Book? Call us at 800-426-9778 or visit lucks.com and click on the ‘Contact Us’ tab to request one. We would love to send it to you!

Lucks Company 2014 All rights reserved. Edible Image®, Dec-Ons® are registered trademarks of The Lucks Company. All Lucks manufactured products are made in the USA and are Orthodox Union Kosher certified.