Dive Brief:
- Hostess Brands, L.L.C. has teamed up with Kerry Convenience to enter the hot dispensed beverage category, according to Food Business News.
- Through the partnership, Hostess has introduced Twinkies Cappuccino for the convenience store channel. Inspired by its classic Twinkie, the drink features a combination of milk, sponge cake flavor and a hint of coffee.
- Currently, the drink is available in Sheetz Northeastern c-stores and will soon be available in convenience stores nationwide.
Dive Insight:
Hostess, which went public in 2016 just four years after filing for bankruptcy, has been activity using its platform of classic treats to expand into new markets. It recently announced a partnership with Nestle's Dreyer’s brand to produce a new ice cream. And Hostess also has supplied its deep-friend Twinkies to Wal-Mart. The company is continuing its innovative ways with this deal to offer a cappuccino.
With its Twinkie-like taste and the Hostess name behind it, analysts believe that the hot drink could appeal to the public. The company has already become the No. 1 snack cake of choice for c-store customers, so it’s a good bet that these customers will try the new drink. Hostess has been showing significant growth since emerging from bankruptcy, and innovation like this should maximize that growth potential even more.
The company's decision to tap into existing, well-known brands is a trend that has been growing throughout the food industry. PepsiCo. has expanded its snack chips business by adding new flavors to Doritos and other brands. Yum Brands' Taco Bell introduced shells made of Doritos. Kellogg, which offered Special K Crustless Quiche last year, has created vanilla latte Dunkin Donuts-flavored Pop-Tarts. Mondelez recently introduced a Peeps-flavored Oreo.
New products using old brands not only opens a potential market for the creation, particularly among trendy millennials, but helps draw attention to already popular brands. While many of the new concoctions are unlikely to endure, developing new products — particularly if they are in limited release — attracts shoppers to the stores where they can fill their carts with other food items.