It’s truly a blessing that I’m allergic to dairy. I’ve never been able to try a Twinkie…and that’s probably for the best.
As someone with a serious sweet tooth, I know that if I could eat them, it would probably be dangerous. There’s something about that golden, spongy cake with its creamy filling that’s always looked tempting on the grocery store shelf.
That said, as I’ve gotten older, my taste buds have changed (full-blown health girlie now).
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These days, I find myself craving less artificially sweet things and more simple, whole-food treats—a dark chocolate square, fruit, or a homemade baked good.
Apparently, I may not be the only one.
Across the snack food world, consumers are starting to rethink their choices. While there will always be a market for indulgent treats, there’s growing interest in foods with cleaner labels, lower sugar content, and more natural ingredients.
That changing palate may be taking a toll on some of the most iconic brands in the American snack aisle — including one that’s been a staple for nearly a century.
Hostess, J.M. Smucker’s sweet snacks segment faces sales trouble.
Image source: The Image Party / Shutterstock
J.M. Smucker’s sweet snacks segment faces headwinds amid shifting consumer trends
J.M. Smucker (SJM) , the parent brand of Hostess Brands, reported earnings this week that spotlighted a growing challenge in its sweet snacks segment — a sign that shifting consumer preferences are impacting even the most nostalgic brands.
In its fiscal fourth quarter, sales in the segment — including Hostess cakes, donuts, and other snack cakes — fell sharply.
Total sales declined 26%, and even when excluding certain divested brands, the segment was still down 14%. The company pointed to lower demand for snack cakes, donuts, and private-label products.
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The company said it sold fewer sweet snacks overall, with volume and mix declining by 9%. On top of that, more discounting and lower prices across the Hostess portfolio contributed another 4% revenue drop.
Segment profit also plunged, falling 72% compared with the same quarter last year. Rising costs and the shift toward less-profitable products contributed to the steep decline.
The Hostess acquisition, which Smucker completed in November 2023 for $5.6 billion, was meant to expand its presence in the snacking category.
Now, more than half a year later, the sweet snacks segment is facing headwinds — and the company is under pressure to adapt.
Shifting consumer trends challenge sweet snacks brands
The sales slump underscores a larger trend taking shape in the food industry. Consumers are growing more mindful about what they eat, and that’s creating challenges for brands built on nostalgia and indulgence.
According to the International Food Information Council’s 2024 Food & Health Survey, 76% of consumers are trying to limit or avoid sugars.
In the U.S., demand for “better-for-you” snacks continues to rise. NielsenIQ reports growth in categories like plant-based snacks, fruit-based treats, and products with simplified ingredient lists.
Hostess is not alone in feeling the impact. Major snack brands across the board are rethinking their portfolios, introducing products with lower sugar and cleaner labels to meet changing expectations.
For J.M. Smucker, the challenge is balancing the iconic status of the Hostess brand with today’s evolving tastes. The company has an opportunity to innovate — but it will need to act fast to stay competitive.
As for me? I’ll stick to my dark chocolate and fruit. But I’ll be watching closely to see if Twinkies can win over the next generation of snackers.
