The business has acquired Massachusetts-based bakery business Superior Cake Products – producer of the Superior on Main brand – as it looks to tap growth opportunities in the in-store bakery category.
Citing Nielsen Perishables Group FreshFacts data, Hostess said sales of in-store brownies and dessert bars rose 13% in 2015, with cookies up 7% and cakes up 4.5%.
“We see significant growth potential in the in-store bakery channel,” said Hostess Brands CEO Bill Toler. “This is a powerful opportunity to extend Hostess’s brand equity across categories, segments and channels, while capitalizing on the upward indulgence trend in the baked goods arena.”
Specialty bakery in Massachusetts
Superior Cake Products operates a specialty bakery in Southbridge, Massachusetts, where it makes Superior on Main products including éclairs, madeleines, brownie bites, and black & white cookies. The company also supplies baked goods to in-store bakeries at retailers.
Founded in 1908 in northeastern Connecticut, the business relocated to a new Main Street location in the 1920s that was the inspiration for the Superior On Main brand name.
“Superior on Main and Hostess share a mutual excitement for the expanding in-store bakery segment,” said Superior Cake Products CEO Terence Dalton. “I’m very pleased to join the Hostess team, and look forward to contributing the legacy of our brand to Hostess’s continued innovation efforts.”
Hostess line-up extended
Since being acquired by Metropolous and Apollo Global Management out of liquidation in 2013, Hostess has expanded its line-up with products including Pumpkin Spice Twinkies and Peppermint Ho Hos.
At last month’s Sweets & Snacks Expo in Chicago , the business unveiled a partnership to produce brownies featuring Mars confectionery brands MilkyWay and M&M's.
Headquartered in Kansas City, Missouri, Hostess operates bakeries in Emporia, Kansas; Columbus, Georgia; and Indianapolis, Indiana.
Hostess last week announced the recall of 710,000 cases of cakes and donuts over fears they may contain undeclared peanut residue.