Look out Wonder Bread, it looks like your previous owner Hostess is taking another stab at the bread business.
Twinkie-pioneer Hostess has revealed it will now be adding bread and buns to its product line-up, in hopes of becoming a one-stop shop for distributors of baked goods.
A spokeswoman for the company said executives weren't ready to discuss the new product lines at this time, but The Wall Street Journal reported that the claims were, in fact, true.
According to surveys conducted by Hostess, many consumers already thought the company had a bread brand even before this announcement. This probably is because Hostess actually used to own Wonder Bread before the company’s liquidation and sale to Flowers Foods.
Hostess Chief Executive Officer Bill Toler shared with The Wall Street Journal the decision came in part because retailers are interested in buying both bread and baked goods from one source. "Anytime you can walk into a huge category with a new brand,” he said, “it's a huge opportunity.”
Hostess has also been considering adding other new baked goods, including brownies, Toler told the source, adding, “There are things we can keep doing with this business. There also are questions around cookies, but we don't want to go too far afield.”
These expansion plans come on the heels of the company’s recent turnaround. After being bought by two private equity firms in 2013, Hostess was able to streamline its snack cake production and trim costs. The Wall Street Journal now confirms that sales are now almost at the company’s pre-liquidation level.
Keep watching DeliMarket News to learn more on what’s to come for Hostess and more.