Milling & Baking News - December 18, 2018 - 30

Sweet Goods Update

SATISFYING
sweet cravings

HOSTESS BRANDS

FLOWERS FOODS

he sweet goods category is often the P. Callahan, president and chief executive Madison Chocolate Cremes; Dolly Madiperfect place for grain-based foods officer, said during a Nov. 7 conference call son Golden Creme Cakes; Dolly Madison
Chocolate Cupcakes; and Dolly Madison
manufacturers to introduce season- with analysts.
"We are focused on three key areas: In- Coffee Cakes.
al items. With a few changes to icings or
Hostess's efforts helped key a 2.8%
fillings a product can take on a new look, novating our core, premium innovation
and innovation into adjacencies," Mr. increase in bakery snacks dollar sales to
feel and taste that appeal to consumers.
It is this seemingly endless array of Callahan said. "Our core innovation em- $690,361,564 in the 52 weeks ended Nov.
new products that keeps the sweet goods phasizes new flavors of iconic products to 4, according to I.R.I.
Bakery snacks have encountered a rough
category churning out year-over-year leverage the brand's power and expand
the core. We believe Hostess is highly patch at Flowers Foods, Inc., Thomasville,
dollar and unit sales gains.
In the 52 weeks ended Nov. 4, dollar profitable for our customers supported by Ga. In the 52 weeks ended Nov. 4, dollar
sales in the bakery snacks segment totaled our brand strength and large lists on dis- sales totaled $278,513,434, down 5.2% from
$3,404,768,664, up 0.1% from the same pe- play. We are also focusing our energy on the same period a year ago.
In a Nov. 8 conference call
riod a year ago, while unit sales
with analysts, Allen L. Shivincreased 1.3% to 1,836,253,400,
er, president and c.e.o., said
according to Information ReTop-selling bakery snacks vendors
Flowers continues to work
sources, Inc., a Chicago-based
Dollar
% change
Unit
% change
on unlocking the profitabilmarket research firm.
sales from year ago sales from year ago
ity and growth of its cake
McKee Foods Corp., CollegMcKee Foods Corp.
$829,582,980
-0.8
498,300,157
-2.3
business.
edale, Tenn., sustained a 0.8%
Hostess Brands L.L.C.
$690,361,564
+2.8
343,586,448
+3.0
"We are going back to the
decline in dollar sales during
Flowers Foods, Inc.
$278,513,434
-5.2
164,949,452
-5.0
basics and taking actions to
the period to $829,582,980. The
Grupo Bimbo S.A.B. de C.V. $243,195,849 +14.8
91,790,878
+9.7
right-size this business," he
decline was not from lack of
Private label
$689,528,124
-0.7
391,212,873 +10.6
said. "This year, the focus
innovation, though.
has been on product assortIn late October, the company
52 weeks ended Nov. 4, 2018
Total U.S. multi-outlet with c-store (grocery, drug, mass market, convenience, military and
ment, pricing and quality.
put a seasonal spin on Drake's
select club and dollar retailers)
To be sure, we are offering
Devil Dogs snack cakes in a
Source: Information Resources, Inc.
items with clear consumer
new limited-time offering.
feel. With this work as the
Drake's Mint Creme Devil
Dogs feature a pair of devil's food cakes premium innovation in an effort to attract foundation, our plan is to build new innew consumers at higher price points like novation and packaging platforms startwith a mint creme filling.
"We asked Devil Dogs fans to create their we have done with our Bakery Petites pre- ing next year."
Part of that product assortment inown Devil Dogs, and Mint Creme was the mium snacking platform.
"We are excited to launch two new cluded the launch of several Tastykaketop flavor suggestion," said Chip Stenberg,
branded items to coincide with
flavors of our Cake Delights,
Drake's associate brand manager.
spring. The limited-time ofThe Drake's brand also was at the cen- strawberry and caramel, in
ferings included Lemon Mini
ter of another major move at McKee dur- the fourth quarter as well as
Donuts featuring a lemon-flaing 2018. The company, which has owned expand distribution of Bakery
vored cake donut dusted with
the Drake's brand since 2013, in the late Petites into the club and dola powdered sugar coating,
summer said Drake's Coffee Cakes would lar channels as we continue to
Peach Sweet Rolls featuring
return to store shelves. The Coffee Cakes build out this platform. Lastly,
a sweet roll with peach fillhad been discontinued in the fall of 2017. we are working to expand the
ing topped with creamy icing,
Coffee Cakes are made with a cinnamon Hostess brand to new conand Strawberries and Creme
streusel topping and were first introduced sumer segments to drive inGlazed Pies featuring a glazed
in 1930. McKee acquired the Drake's brand cremental growth like we are
pie crust and a strawberries
from Hostess Brands L.L.C. after that com- doing with Hostess Totally
and creme flavored pie.
Nutty peanut butter wafer
pany declared bankruptcy in 2012.
Flowers also was faced with a food safeMcKee Foods also hopped on the "uni- bars and our new Hostess Danish, Jumbo
ty scare during the summer. On July 18,
corn" trend with the Donettes and other new products."
Earlier in 2018, Hostess relaunched its the company issued a voluntary recall on
debut of Little Debbie
Unicorn Cakes, which Dolly Madison brand for distribution in Swiss Rolls sold under the brand names
Mrs. Freshley's, Food Lion, H-E-B, Baker's
are "sparkling straw- the vending and micro market channel.
Hostess said the brand, which was in- Treat, Market Square and Great Value due
berry" snack cakes.
Innovation will con- troduced in 1937, will include an expand- to the potential presence of Salmonella.
Flowers said the ingredient recall was
tinue to be a growth ed lineup of sweet goods, including Docatalyst for Kansas nut Gems in powdered, frosted, crunch initiated by a third-party whey powder
City-based Hostess and glazed varieties; Zingers in Iced Dev- manufacturer and supplier. MBN
Brands, L.L.C., Andrew il's Food and Iced Vanilla varieties; Dolly
- Eric Schroeder

MCKEE

FOODS

30 / December 18, 2018

Milling & Baking News

bakingbusiness.com / world-grain.com

http://www.bakingbusiness.com http://www.world-grain.com

Milling & Baking News - December 18, 2018

Table of Contents for the Digital Edition of Milling & Baking News - December 18, 2018