Baking & Snack - August 2020 - 12

King Arthur Flour rebrands
as King Arthur Baking Co.

Opening economy provides
relief to Hostess
The selective reopening of the US economy has given Hostess a
peek into what kind of recovery may be expected for its business
as people return to work, and the indications appear positive, said
Andrew Callahan, president and chief executive officer of Hostess
Brands, Inc., Kansas City, Mo.
Mr. Callahan offered an update on Hostess' performance in the
midst of the coronavirus (COVID-19) pandemic, gave a status report on the integration of the Voortman Cookies Ltd. business acquired for $320 million in January, and shared insights on several
COVID-related matters, including surprisingly persistent tightness in the US labor market and how the company has slowed its
pace of new product introductions. Part of the 2020 Evercore ISI
Virtual Consumer & Retail Summit, the discussion also included
Brian Purcell, executive vice president and chief financial officer
of Hostess.
"It's unmistakable that when they opened up and consumers are
getting back to work, we're seeing sales bounce back right away,"
Mr. Callahan said.
From a historical perspective as well as measured specifically
by what is occurring in the marketplace at present, Hostess is well
positioned for this moment in time, Mr. Callahan said.
"This brand historically does very well in booming economies
and declining economies," he said.
Powerful COVID-related trends identified by Hostess management during the first-quarter earnings call in May included a shift
in consumer purchases toward multi-packs and away from higher-margin single-serve. Sales of the latter products were down between 10 and 15%.
Since then, multi-pack sales have enjoyed strong growth,
and single-serve business has shown signs of recovery,
Mr. Callahan said.
"The majority of our single-serve business has seen steady and
consistent improvement since I would say the middle of April," he
said. "We see consumers coming back. We see take away coming
back, and we also see our distributors who had pulled back purchases to preserve cash in the short term, filling back inventories
and consumption growing."
- Josh Sosland, Milling & Baking News

12 Baking & Snack August 2020 / www.bakingandsnack.com

King Arthur Flour, Norwich, Vt., has rebranded to become King
Arthur Baking Co., reflecting the company's identity of being "a
company of bakers who believe in the power of baking to forge
community and bring joy."
"King Arthur has always been a baking company at heart," said
Karen Colberg, co-chief executive officer of King Arthur Baking
Co. "The rebrand reaffirms our belief in the power of baking, and
our commitment to inspiring bakers through every single touchpoint, including our teaching and our products. Our mission is
rooted in building stronger communities, fostering the connections that come from baking and sharing. The new positioning as
a baking company will enable us to continue to grow and welcome
all bakers, from passionate lifelong bakers to beginners."
The result of an 18-month brand research and creative strategy
process, King Arthur's moniker makeover includes a new logo,
which features a wheat crown to celebrate the brand's commitment to baking.
"We set out to design a logo that's equal parts premium, authentic and joyful to reflect the essence of the brand and strengthen
the emotional connection bakers have with us," said Ruth Perkins,
senior creative director at King Arthur Baking Co. "The logo,
combined with our name change, harnesses who we are. We are
bakers, and we revel in the joy of baking."
The refreshed logo and company name will appear on new
product packaging rolling out in stores throughout the fall.
- Rebekah Schouten, Milling & Baking News

HOSTESS SINGLE-SERVE
product sales dropped

10-15% in Q1.

http://www.bakingandsnack.com

Baking & Snack - August 2020

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