Snacks & Candy

New Hostess Brands Makes First Acquisition

Snack-cake maker acquires in-store bakery company

KANSAS CITY, Mo. -- Tapping into the rapidly expanding in-store bakery category, Hostess Brands LLC has completed its acquisition of Superior Cake Products Inc., an in-store bakery company. This is the company’s first acquisition since the Hostess brand returned to the market under new ownership in 2013.

Superior Cake Products eclaires

Superior Cake Products, Southbridge, Mass., produces a range of sweet goods including Éclairs, Madeleines, Brownie Bites, Black and White Cookies and other offerings made under the brand name Superior on Main. The company also makes premium baked goods that are sold through in-store bakeries at retailers.

“We see significant growth potential in the in-store bakery channel,” said Bill Toler, CEO of Hostess Brands.

The strategic acquisition comes on the heels of Hostess’s recent innovation efforts to extend its offerings beyond the Twinkies, Ho Hos, CupCake, Zingers and Donettes brands, to fill a pipeline of premium, freshly baked products. Since its return, the company has embraced creative flavors and concepts, introducing an array of seasonal snack cakes such as Pumpkin Spice Twinkies and Peppermint Ho Hos, as well as adding permanent fixtures such as candy-topped brownies through a partnership with Mars’s M&Ms and Milky Way brands.

“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,” said Toler.

Since being acquired by Metropolous & Co. and Apollo Global Management in 2013, Hostess has become a billion-dollar retail brand. The company is based in Kansas City, Mo.

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