Hostess Brands is stepping its way into the in-store bakery category with a completed acquisition of Superior Cake Products, Inc.
“We see significant growth potential in the in-store bakery channel and believe that the Superior on Main products bring the same commitment to high quality and best-in-class baking that Hostess exemplifies,” said Bill Toler, CEO of Hostess Brands, LLC. “We welcome with excitement the addition of Superior on Main to the Hostess family.”
Superior Cake Products has been producing sweetened bakery goods for more than a century under the brand “Superior on Main.” Additionally, Superior also makes baked goods which are sold through in-store bakeries at retailers, according to a recent press release.
“Superior on Main and Hostess share a mutual excitement for the expanding in-store bakery segment,” said Terence Dalton, CEO of Superior Cake Products, Inc. “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.”
According to Nielsen Perishables Group FreshFacts data, the in-store bakery segment has seen a growing rise of 13 percent in brownies and dessert bars, a 7 percent increase to the cookie category, and a 4.5 percent rise for cakes in 2015.
Hostess stated that this acquisition comes as a result to extend past its current offerings into a wider variety of freshly-baked products. The announcement comes on the heels of the company’s forays into new products, and a fresh partnership with the Mars brands for candied toppings.
“This is 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,” added Toler.
Superior on Main has a specialty bakery in Southbridge, MA, where its baked goods and pastries are innovatively created by expert bakers. Hostess said that this acquisition marks the first for the company since it returned to the market in 2013 under new ownership.
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