KANSAS CITY, MO — Companies like Collegedale, TN-based McKee Foods — manufacturer of Little Debbie and Drake’s — are capturing interest through influencers. Social media bloggers are using snack cakes as the foundation of their party treats. For example, the Party Pinching blogger uses Little Debbie snack cakes to create seasonal offerings like Fudge Round pilgrim hats, Star Crunch turkeys, Pumpkin Spice Latte rolls and Nutty Buddy fall snack mix. Drake’s has capitalized on the non-edible side of nostalgia by selling branded merchandise like t-shirts, cups, socks and wrapping paper emblazoned with the company’s signature cakes.
It’s also important for brands to take notice of label-conscious consumers. Los Angeles-based Aspire Bakeries’ Otis Spunkmeyer brand touts snack cakes made with “No Funky Stuff,” including products that are free from HFCS, PHOs and artificial flavors and colors.
Mexico City-based Bimbo Bakeries manufactures a variety of homestyle pound cakes, muffins, Nito (a chocolate cream-filled sweet roll with icing) and mantecadas (sweet Mexican muffins.)
Attention spans can be short, so it’s important that snack cake brands continually find new ways to capture consumer attention. Leaning into limited-time offers (LTOs) can keep the category fresh and add a touch of ingenuity to its tried-and-true offerings.
Lenexa, KS-based Hostess Brands is a key LTO player with its prolific Twinkie offerings. The signature sponge cake receives a timely twist with an infusion of pumpkin spice-flavored crème from September to November; red, white and blue sprinkles from May to July; mixed berry crème from December to February; cotton candy-flavored crème from February to April; and a tropical fruit-flavored crème filling in the summer months. Other Hostess LTOs include S’mores CupCakes during June and July and Iced Pumpkin CupCakes in the fall.
That said, product innovation can be greatly impacted when tightening finances also mean fewer consumers seek out premium snack cakes. Premium cakes like Starbuck’s Cinnamon Coffee Cake, Iced Lemon Loaf, Pumpkin & Pepita Loaf, and Banana Walnut & Pecan Loaf are minorities in the category.
“When looking at price and units, there are some products that can command higher prices, but it’s small compared to a Little Debbie or Hostess-type snack cake,” said Sally Lyons Wyatt, executive and practice leader, client insights for IRI. “There is room for premiumization in the category, but retailers and manufacturers need to determine if premium is the best way to go. If consumers see these premium products as a reward, it could work.”
With consumers being more careful about where and how they spend their food dollars, now is a good time to put more toward pack plans and messaging, as well as tapping into sampling to entice consumers, according to Lyons Wyatt.
“Message up what you’re providing and do this across the day because late night and morning continue to be opportunities for growth,” she said. “Look at the size and assortment to make sure it’s the right mix for the right consumers at the right place.”
This story has been adapted from the October | Q4 2022 issue of Commercial Baking. Read the full story in the digital edition here.
