Milling & Baking News - January 10, 2023 - 26

TUES | 01 10 2023
Hostess, Krispy Kreme fill holes
in donut selling opportunities
T
wo donut powerhouses, Hostess
Brands, Inc. and Krispy Kreme
Inc., are propelling donut consumption
into more dayparts and points
of access, especially internationally.
Hostess Brands in 2022 introduced
Hostess Bouncers available in three
varieties - Twinkies, Ding Dongs and
Donettes. The bite-size snacks fit well
into the lunch boxes of children. The
cinnamon Donettes feature a sweet filling
inside a glazed cake donut hole. Each
multi-pack box of Hostess Bouncers contains
five packable, portable pouches with
three Bouncers per pouch.
" Consumers increasingly are looking
for snackable, pop-able, shareable treats
that offer a sweet reward without the
mess, and that's exactly what Hostess
Bouncers deliver, " said Christopher
Balach, general manager of Hostess
Brands. " We're excited to roll out mini
variations of some of our most-loved
creations as the perfect sweet
surprises in any lunch box. "
The company also added
Hostess Boost Jumbo
Donettes in chocolate
mocha and caramel macchiato flavors.
Each donut contains between 50 to 70 mg
of caffeine.
DOUBLE-DIGIT SALES INCREASE
US retail sales of center-store, full-size
donuts for Hostess Brands reached $646
million in the 52 weeks ended Dec. 4,
2022, which was up 27% from the previous
52-week period, according to IRI,
a Chicago-based market research firm.
Unit sales rose 11% to 250 million. The
center-store, full-size donut category
overall had sales of $1.93 billion for the
52 weeks ended Dec. 4, which was up 21%
from the previous 52-week period. Unit
sales increased 7% to 696 million.
Doughnut Peddler, Chandler, Ariz.,
broke into the top 10 of center-store, fullsize
donut vendors. Sales rose 295% to $31
million over the 52-week period, ranking
Doughnut Peddler at No. 7 among vendors.
Unit sales increased 212% to 16 million.
Doughnut Peddler items may be found
in Arizona, Alabama, Florida, Georgia,
Kentucky, Louisiana, Mississippi, North
Carolina, South Carolina, Tennessee,
Texas and Virginia. Jon Dairman, director
TOP 5 LEADING FULL-SIZE DONUTS VENDORS
DOLLAR SALES
UNIT SALES
% CHANGE
FROM
CURRENT
Hostess Brands LLC
Grupo Bimbo SAB de CV
McKee Foods Corp.
JAB Holding
Flowers Foods LLC
Total
Source: IRI
26
MILLING & BAKING NEWS
$646,485,093
$385,442,154
$271,282,318
$193,855,113
$114,886,166
$1,928,035,478
YEAR AGO
27.0%
13.0%
18.5%
8.6%
7.6%
CURRENT
250,494,887
99,020,568
140,984,262
27,739,612
49,749,418
20.9% $695,506,139
% CHANGE
FROM
YEAR AGO
11.3%
-0.9%
0.5%
-7.2%
-6.0%
7.3%
52 weeks ended Dec. 4, 2022
Total US - Multi Outlet w/C-store (Grocery, Drug, Mass Market, Convenience, Military and Select Club & Dollar Retailers)
of innovation, facilities and equipment,
was named 2021 Operations Executive of
the Year by Baking & Snack, a sister publication
to Milling & Baking News.
MORE POINTS OF ACCESS
Krispy Kreme donuts found their way
into foodservice in 2022. The company
partnered with McDonald's to offer
donuts at nine McDonald's restaurants
in Louisville, Ky., and the surrounding
area. The three donuts offered were
Original Glazed, chocolate iced with
sprinkles and raspberry-filled.
Krispy Kreme executives detailed
company plans to expand during a Dec.
15, 2022, investor day. The company had
about 11,700 global points of access at
that time and expected to increase that
number to about 18,500 by 2026. Krispy
Kreme soon will be in six continents
since it has plans to open in South America,
said Michael J. Tattersfield, chief
executive officer and president.
" I'd say our next step with the point of
access is going to be north of 75,000 right,
where we're going to be building 10% to
15% of points of access on a yearly basis
from 10 to up to 25 hubs, whether it's
equity or partnership that's involved in
that, " he said.
Krispy Kreme will continue to target
special occasions, said David W. Skena,
chief brand officer. The company asked
consumers in Australia and New Zealand
whether they would like to be married
at Krispy Kreme on Valentine's Day.
" And honestly, we thought we'd get a
few people, " he said. " It's got to be a few,
right? Over 340 couples have asked,
please, yes, I would like to be married at
Krispy Kreme on Valentine's Day, which
is really cool. " MBN
- Jeff Gelski
bakingbusiness.com
DONUTS update
BUSINESS WIRE AND HOSTESS BRANDS

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Milling & Baking News - January 10, 2023

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