Dive Brief:
- Hostess is back in the freezer section with the launch of Molten Lava Ding Dongs, the company said in a statement. The chocolate-covered snack cake goes from ice cold to molten in the middle after 20 seconds in the microwave. The Molten Lava Ding Dongs feature a 30% larger cake with 60% more creme filling and 20% more chocolate coating than original Ding Dong, according to the company. They will come in boxes of 10 individually wrapped cakes and are available nationwide.
- This is one of Hostess Brands' latest foray into the freezer isle, which included last summer’s partnership with Walmart to introduce Deep Fried Twinkies.
- “The introduction of Molten Lava Ding Dongs ... demonstrates Hostess’ commitment to expanding its presence in the frozen food category,” Burke Raine, Hostess Brands’ senior vice president and chief marketing officer, said in a statement. “With this new product, Hostess continues to push the envelope of innovation, bringing consumers restaurant-ready versions of their favorite snack cakes which can be enjoyed at home in seconds.”
Dive Insight:
Even though many consumers say they are turning away from highly processed foods in favor of natural, healthier and organic fare, Hostess Brands continues to have success turning out sugary, highly processed innovations to its marquee cakes.
In January this year, it debuted a line of Hostess treat-inspired ice cream flavors in partnership with Nestle's Dryer’s Ice Cream brand. Last summer, Hostess collaborated with Walmart to offer frozen Deep Fried Twinkies. Consumers can’t seem to get enough of these new takes on old favorites — and Hostess is wisely taking notice.
After filing for bankruptcy in 2012, Hostess has made an impressive comeback. By 2016, the owners of Hostess Brands announced they had agreed to sell a majority stake in the company to an investment firm for about $725 million. That’s quite a turnaround in four years.
Twinkies, Ho Hos and Ding Dongs are nostalgic guilty pleasures for many consumers, and Hostess is more than happy to meet that need. These new product innovations keep enough of the familiar product while adding some new twist to peak shoppers interest in the brand. That new interest grabs the attention of the consumer, and spurs additional interest in the decades-old classics.
Despite healthy eating trends and low-carb diets, Hostess continues to thrive. A Twinkie or Ding Dong is the very essence of an indulgent treat or comfort food. Shoppers know the sugar-packed, artificially flavored, processed cake is bad for them. Lucky for Hostess, that doesn't seem to matter.
Hostess should only be careful not to overextend itself with all of these innovations. When the company first filed for bankruptcy protection in 2004, the company blamed excess capacity as one of the reasons for its troubles. At the time, the cake maker had 57 bakeries and 33,000 employees. Hostess, which slimmed-down during its time in bankruptcy, hopefully will have learned from its mistake and not repeat history in trying to keep up production of these new treats.
One challenge for the company is that last week it announced Bill Toler, its president and CEO, will be retiring on March 1, 2018. He was instrumental in overseeing increases in Hostess sales and profits, expanding its distribution network and pioneering new innovations. It's uncertain what his departure will mean for Hostess, or the future of other new novel products from the storied snacks maker.