- Hostess Brands is poised to debut a number of new products in the breakfast and snacking categories, including Bakery Petites, which are bite-sized snacks with no artificial flavors, according to Food Navigator.
- This move comes after the company acquired the Big Texas and Cloverhill brands from Aryzta LLC, as well as one of the largest individually-wrapped Danish pastry facilities in North America. This transaction expanded Hostess's breakfast lineup to include products such as Honey Buns, Danish and Cinnamon Rolls.
- Andy Jacobs, Hostess' executive vice president and COO, told Food Navigator that product innovation will boost the company's profile above the competition. "We will continually drive flavor news and form news on all our core brands, like Twinkies, Ding Dongs and Donettes, along with new products like Bakery Petites," Jacobs said.
The acquisition earlier this year of the Big Texas and Cloverhill brands was already expected to enhance the company's breakfast lineup, which Hostess would be able to manufacture at the Chicago bakery it acquired in the deal. But the sweets maker plans to offer even more.
The company's Twinkies and Ding Dongs, while popular, aren't seen as standard breakfast staples. Honey Buns, Danish and Cinnamon Rolls might fit the bill as fast grab-and-go items busy consumers seek when they don't have time to make breakfast at home. In response, Hostess said it will bring out individually wrapped multipacks of breakfast pastries during the fourth quarter of this year.
Although breakfast has become a growth opportunity for food makers, consumers are also wanting morning options offering fiber, zero additives and better-for-you snacks. According to a recent Packaged Facts study, 46.9% of them see nutritional value as the most important factor, so Hostess will need to make sure its new breakfast items respond to that clean-label priority.
Whether it's all-day snacking items or breakfast products, Hostess brings a number of assets to its latest innovation plans that could enhance success in these competitive categories. Not only does it now have the Chicago in-house bakery, which has already made a positive difference to the company's otherwise lackluster bottom line, but it has a widespread distribution network for its established brands and access to numerous sales channels.
Nevertheless, Hostess will face a plethora of competitors as it pushes further into the breakfast space. Among them are Quaker's single-serve Overnight Oats and Bob's Red Mill oatmeal cups, plus Just Crack an Egg, a single-serve diced vegetable, meat, cheese and potato scramble product from Kraft Heinz that only requires adding an egg and heating in a microwave. And while ready-to-eat cereals have lost some ground with consumers in recent years, General Mills is trying to combat that trend by selling some of its cereal products in bar form. Kellogg has cut sugar and boosted vitamin D in some of its cereals and promoted others as snack items. Hostess will likely need to meet the changing demands of consumers with its new products to keep up in this competitive market.