Smucker's

about-banner

From a Twinkle in Their Eye to a Twinkie in their Portfolio: Smucker’s Milestone Acquisition Propelled by In-Depth Research

When longtime Material client Smucker’s was considering purchasing Hostess Brands, it didn’t want to move forward without undertaking significant research into the viability of such a major acquisition. Smucker’s approached Material to create an in-depth research insights report that would highlight how Hostess could enhance the Smucker’s portfolio, as well as uncover any potential pain points. Here’s how we helped Smucker’s move ahead confidently to seal the deal:
  • Leveraged online anthropology and conducted qualitative and quantitative research to understand the health of the overall snack food category and determine risks and opportunities

  • Uncovered customer insights related to channel and shopping behavior

  • Profiled consumers in the packaged sweet baked goods category on their attitudes, behavior, and usage

  • Leveraged syndicated research to round out our insights

  • Created a comprehensive insights report to inform Smucker’s strategy throughout a landmark acquisition process

At the conclusion of the research phase, the Material Strategy & Insights team presented its report to the CMO of Smucker’s and highlighted the opportunity to expand their portfolio by acquiring Hostess. Our research revealed that despite the recent trends for more nutritious alternatives, the packaged sweet baked goods category is growing. The report also highlighted consumer perceptions of Hostess, which helped Smucker's understand the risks and benefits of investing in the brand versus acquiring it.
  • Ultimately, the company saw the untapped potential in Hostess and the two companies announced the $5.6B transaction in Sept 2023. According to Smucker’s, the purchase expanded its offerings of “beloved brands in growing categories, accelerated its focus on convenient consumer occasions and positioned it to deliver on consumer needs across occasions with greater convenience and selection.” We’re proud to celebrate the role Material played in this milestone acquisition!


Have Questions? Get In Touch