Thursday July 18, 2013
Rabobank: Twinkies Signal Snack Cake Growth Potential
New York — During a time when “good for you, better for you” trends dominate the snack market, the new owners of Twinkie are capitalizing on the brand’s unchanged, iconic and indulgent characteristics. Rabobank says by using these tactics, there’s potential for growth in the snack cake market.
Rabobank offers four “Twinkie Takeaways,” one of which suggests that despite the health food craze, consumers still find room for treats in their diet.
“According to Information Resources, Inc., around 60 percent of the population view snacks as an opportunity to splurge, with most consumers preferring to eat what tastes good rather than what is healthy,” Rabobank reports. “Similarly, the Hartman Group found that although most consumers think it is important for snacks to be healthy, the desire for an indulgent treat tops all other snacking triggers.”
Using Flowers Foods’ turnaround of the TastyKake brands as an example, Rabobank says rather than modifying iconic brands to appeal to consumers seeking healthier products, companies should instead introduce a separate brand.
“For example, Flowers’ has its Nature’s Own product line for consumers who want to eat healthily, but they also provide indulgent foods, such as TastyKake and Mrs. Freshley’s products, for those who want to consumer sweet goods on occasion,” according to Rabobank.