Hostess shift in promotion focus proving successful | 2020-09-11

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KANSAS CITY — The power to adapt has served Hostess Manufacturers, LLC effectively in the course of the coronavirus (COVID-19) pandemic.

“We traditionally had been event-driven,” Andrew P. Callahan, president and chief government officer, mentioned throughout a digital presentation on the Barclays World Client Staples Convention on Sept. 10. “And now we’re utilization occasion-driven.”

Hostess’ merchandise, particularly the candy baked items it’s recognized for, historically have been marketed as a multipack providing for occasions: holidays, back-to-school, film premieres. Customers have been in a position to replenish on Twinkies and CupCakes in multipacks as a solution to put together for the aforementioned occasions.

In gentle of the pandemic, although, Hostess has proven the power to adapt. As an alternative of huge promotions round particular occasions, the corporate has shifted its promoting and promotion to concentrate on consuming at house and on-the-go comfort.

“A yr in the past, we had the most important, largest back-to-school occasion we’ve ever had,” Mr. Callahan mentioned. “We’ve smoothed out merchandising as a result of … it’s extra about being at house and a extra household event.”

One other instance is Hostess’ merchandising round Halloween. Prior to now, the corporate has had a powerful limited-time-offering program tied to the trick-or-treating side of the vacation. This yr, the technique has shifted to bringing Halloween house.

“We’re accelerating the place we’ve already been robust and retailers responded to that straight away,” he mentioned. “Now we’ve some channel combine, however retailers responded to that straight away. In order that utilization development goes to be superb for us, and we’re extending that thought.”

Wanting forward, Mr. Callahan outlined Hostess’ method to Valentine’s Day and Easter.

“Valentine’s could also be much less about being within the restaurant and extra about the way you entertain at house, Easter and spring vacation leisure,” he mentioned. “So it’s extra of an ongoing day-after-day versus huge back-to-school occasions, and it’s altering the way in which we expect. And we expect that habits and utilization with shoppers, which will probably be ongoing, is nice for us. So the mixture of that mobility, we expect, places us in an excellent place.”

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