Hostess Brands acquires Superior Cake

17 Jun 2016

Tapping into what the company sees as the rapidly expanding in-store bakery category, Hostess Brands has completed its acquisition of Superior Cake Products, a Massachusetts-based in-store bakery company.

Hostess Brands acquires Superior Cake

Tapping into what the company sees as the rapidly expanding in-store bakery category, Hostess Brands has completed its acquisition of Superior Cake Products, a Massachusetts-based 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, which has been in business for more than a century, 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 -- a fast-growing segment, according to Nielsen Perishables Group FreshFacts which reported substantial rises in categories such as brownies and dessert bars (up 13%), cookies (up 7%) and cakes (up 4.5%) in 2015.

“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.”

The acquisition comes on the heels of Hostess’s recent efforts to extend its offerings well beyond its CupCake, Twinkies, Zingers and Donettes, to fill a pipeline of premium, freshly-baked products. In the years since Hostess’s July 2013 comeback, the company says it has embraced creative flavours 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.

“Superior on Main and Hostess share a mutual excitement for the expanding in-store bakery segment,” said Terence Dalton, CEO of Superior Cake Products. “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.”