Dive Brief:
- Hostess Brands, Inc. said that it foresees four more years of bigger increases than the category average at the Consumer Analyst Group of New York's annual conference this week, according to Food Business News.
- C. Dean Metropoulos, the company’s executive chairman, noted that last summer’s purchase of Superior Cake Products, Inc., helped Hostess gain entry into the large and promising in-store baking market.
- Hostess currently ranks as the market share leader in both snack cakes — with 32% — and donuts — with 23%.
Dive Insight:
Hostess is coming off four strong years of growth and executives expect that to continue on through at least 2020, in large part because of its solid leadership team.
Few would have expected the company's turnaround on the heels of two Chapter 11 bankruptcies and a Chapter 7 bankruptcy. Experienced industry veterans with institutional knowledge helped return Hostess to solid ground.
The company knows that more of today's consumers are looking for healthier snacks. The company has said it is starting to look at making some adjustments, such as utilizing more whole grains and reformulating for cleaner labels. Packaged Facts just released a study that showed sales of snacks made from alternative ingredients — including chickpeas, sweet potatoes and kale — are expected to increase to $1.2 billion this year.
Still, numerous studies have shown that people are still buying the snacks they loved as kids, regardless of ingredients. Sometimes, people enjoy indulging and Hostess going too far off course from what people already love may not be in its best interest.
Despite what many consumers say about wanting to eat healthier, sales of snack foods such as cookies, donuts and snack cakes continue to sell well, and Hostess is not likely to experience a downturn any time soon.