30 minute read
Category Updates
Year-End Update
Commercial Baking checks in on the activity for categories covered in the second half of 2022.
Perimeter Cookies Dollar Share
ICED | FROSTED: 14.98%
SPECIALTY: 7.9%
ASSORTED | MULTIPACK: 6.72%
COOKIE TRAY | KIT: 5.52% TRADITIONAL COOKIES: 63.94%
HOLIDAY | SEASONAL: 0.82%
ALL OTHER: 0.15% Traditional cookies dominate the perimeter with nearly 64% of sales. However, they are not seeing the bulk of the growth. That distinction goes to perimeter cookie trays/kits with a 47% increase in dollar sales over a year ago.
Source: IRI OmniMarket Integrated Fresh Latest 52 Weeks Ending Oct. 9, 2022
In the center store, traditional cookies have the lion’s share of sales. And while cookie trays/kits have a sliver of the pie in the perimeter, their share is almost nonexistent in the center store.
Source: IRI OmniMarket Integrated Fresh Latest 52 Weeks Ending Oct. 9, 2022 Center-Store Cookies Dollar Share
TRADITIONAL COOKIES: 84.55%
ICED | FROSTED: 13.99% ASSORTED | MULTIPACK: 1.00%
SPECIALTY: 0.41%
COOKIE TRAYS | KITS: 0.04%
HOLIDAY | SEASONAL: 0.02%
Growth for center-store cookies is significantly stronger than the first half of the year, with 23.1% growth vs. a year ago, as opposed to the 7.1% increase at the 52 weeks ending May 15, 2022. However, in that same time period, centerstore assorted/multipack cookies’ 151.8% growth eclipsed the 52 weeks ending Oct. 9, 2022.
Center-Store Cookies Sales
DOLLAR SALES ($ IN MILLIONS)
TOTAL TRADITIONAL COOKIES ICED | FROSTED ASSORTED | MULTI-PACK SPECIALTY COOKIES COOKIE TRAY | KIT HOLIDAY | SEASONAL $892.14
$754.28
$124.83
$8.90
$3.64
$0.35
$0.15
Source: IRI OmniMarket Integrated Fresh | Latest 52 Weeks Ending Oct. 9, 2022 *No data provided % CHANGE VS. A YEAR AGO
23.1%
23.2%
17.5%
135.9%
59.5%
-17.1%
Compared with data reported in Q3 from the 52 weeks ending May 15, 2022, perimeter tortilla dollar sales skyrocketed from 3.7% growth to 21.4% as of the 52 weeks ending Oct. 9, 2022.
Perimeter Tortilla/Wrap/Flatbread Sales
DOLLAR SALES ($ IN MILLIONS) % CHANGE VS. A YEAR AGO
TOTAL NAAN PITA FLATBREAD TORTILLA ALL OTHER WRAPS $304.42
$169.84
$52.00
$35.61
$21.41
$14.85
$10.72 12.1%
23.6%
8.9%
-3.7%
21.4%
4.4%
-39.2%
Source: IRI OmniMarket Integrated Fresh | Latest 52 Weeks Ending Oct. 9, 2022
We’re baking up something new!
RoboStack: The next generation of robotic pan stacking
We’re putting the finishing touches on Capway’s latest innovation in bakery automation. RoboStack ensures the smooth transition of pans as they leave the production line.
RoboStack is designed and built to: • offer precision handling of multiple pan sizes • your desired pan stack height • work with most existing pan carts • maximize uptime for your production line Custom engineered conveyor systems allow for the seamless integration of our RoboStack system into your bakery’s existing footprint or new expansion. It all stacks up to the world’s most efficient operation in daily pan logistics.
Call today to be the first in line to have our new RoboStack system installed in your bakery.
877.222.7929
A Fresh Approach To Custom Automation® …
Center-Store Wraps/Flatbreads Dollar Share
PITA: 37.90%
ALL OTHER: 4.27% WRAPS: 38.83%
FLATBREAD: 10.19%
NAAN: 8.81%
In the center store, wraps and pita make up the bulk of the dollar share, offering consumers new ways to carry their sandwiches at home.
Source: IRI OmniMarket Integrated Fresh Latest 52 Weeks Ending Oct. 9, 2022
While snack cake items bar/finger and cupcakes maintained steady growth from the previous reporting period, roll snack cakes saw a slight bump in growth since the Q4 report (the 52 weeks ending Sept. 4, 2022), and nut swirls went from 5.9% growth to 8.0%.
Center-Store Snack Cakes Sales
TOTAL BAR | FINGER SNACK CAKES SNACK CUPCAKES ROLL SNACK CAKES ALL OTHER NUT SWIRLS HISPANIC SNACK CAKES
Source: IRI OmniMarket Integrated Fresh Latest 52 Weeks Ending Oct. 9, 2022 DOLLAR SALES ($ IN MILLIONS)
$2,059.46
$1,268.31
$487.95
$202.17
$69.98
$30.68
$0.36 % CHANGE VS. A YEAR AGO
14.9%
16.3%
12.6%
14.8%
9.0%
8.0%
-18.2%
CHANGING OF THE GUARD
In its 90th year, Mel-O-Cream Donuts International looks to the future under new family leadership.
BY JOANIE SPENCER
Chad Larson | VP and COO | Mel-O-Cream Donuts International
— Left (From left) Chris Larson, Chad Larson, Kelly Grant Jr. and Eric Larson.
All photos by Olivia Huels | Avant Food Media
It’s a household name around this town. People will stand in line to get donuts by the dozen from any of the five Mel-OCream Secret Recipe Donuts shops. And supermarket shoppers throughout the Midwest may not realize it, but they, too, enjoy the quality of Springfield, IL-based Mel-O-Cream Donuts International.
The signature yellow sign lights retail locations throughout Springfield, while the original commercial facility has produced its secret recipe for wholesale customers for nine decades.
In 1932, Kelly Grant Sr. bought the original donut shop for a rumored $500 and with no baking experience. He learned the trade while all six of his kids worked in the bakery through their teen years. Mel-OCream began as a retail shop, but after supply chain shortages during World War II, the retail business fell sharply postwar, and the model shifted to wholesale routes for grocery stores and restaurants.
His oldest son, Kelly Grant Jr., joined the family business, and although his father offered to give him half the company and sell him the other half, his work was cut out for him. Grant Sr. was a self-taught baker, and he expected his son to learn the same way.
“He was supposed to teach me how to make donuts, and it became very clear he wasn’t interested in that,” Grant Jr. recalled. “But if you don’t like work, you don’t want to be in the donut business.”
For 65 years, Grant Jr. owned and operated Mel-O-Cream with partner Dave Waltrip as donuts maintained a stronghold in the market, gaining momentum in the franchising trend of the ‘60s and, as the retail business waned, taking center stage during the dawn of in-store bakeries in the ’80s. “When the in-store bakeries started around Springfield, there really wasn’t anyone supplying a high-quality product,” Grant Jr. said. “We went in with our retailquality products, and from the first place we went, they bought into it right away.”
In 2019, Grant Jr. sold the company to Eric Larson, Mel-O-Cream’s head of sales. But Grant Jr. didn’t just sell the company … he also inadvertently ensured Mel-OCream would live on as a family business.
Today, Mel-O-Cream Donuts International is led by Eric Larson as president and CEO and his sons, Chad Larson and Chris Larson, as VP/COO and VP/ secretary, respectively.
The Larson family may be the new owners, but they’re no strangers to the company. One might even say baking is in their blood.
Long before the sale, Chad had joined Mel-O-Cream in 2004 as manager of quality and R&D. Shortly after came Eric, who had touched nearly every facet of baking including managing an in-store bakery, owning a donut shop and a full-service retail bakery, and selling bakery equipment and ingredients.
“Eric had a background of selling quality product, and he was good at it,” Grant Jr. recalled. “He was the only sales manager we ever had who would get behind the wheel and drive hundreds of miles to make a deal happen … and he was happy to be doing it.”
Meanwhile, Chad’s background revolved around sanitation and quality, including HACCP, having worked closely with Waltrip on achieving HACCP certification and AIB superior audit ratings. They also worked together on R&D, ideating new product development.
Since 2019, the Larson family has ensured Mel-O-Cream stays on track for growth through internal efficiencies, technology and process optimization investments.
“Mel-O-Cream had become an institution in Springfield, and we did not want to sell it to anyone who wouldn’t maintain that reputation,” Grant Jr. said, reminiscing on dozens of offers, none of which would guarantee support of the retail stores still operating in town. “I was ready to sell, but I wanted it to maintain the traditions.”
With Eric’s bakery sales experience and relationships with Mel-O-Cream customers, Chad’s expertise in bakery operations and quality, and Chris’ engineering background, the Larson family was a perfect fit. And when Chad’s daughter Samantha, his wife Christie and Chris’ son Alex came on board in operations, admin and maintenance, respectively, the Larsons formed a veritable Mel-O-Cream dream team. “They brought a combination of skills and backgrounds that made them perfect to take over and make sure it performs,” Grant Jr. said. “It was also very clear they would honor Mel-O-Cream’s traditions.”
Today, Mel-O-Cream is a frozen dough and finished-frozen operation serving primarily in-store bakeries, a model Grant Jr. built when he bought the first walk-in freezer.
When the Larsons took over on Dec. 2, 2019, they couldn’t predict the challenges that were waiting just a quarter away. Despite the COVID-19 chaos that ensued, the team got to work ensuring that Mel-O-Cream could stay on track for growth through internal efficiencies and investment in technology upgrades and process optimization. “When you buy a business and COVID hits, you burn the original plan and think about how to retool everything,” Chad said.
In its 72,000-sq.-ft. facility, Mel-O-Cream makes a variety of products for its in-store bakery product portfolio including Kelly’s Creations branded products — named after Grant Jr. — which are also sold in in-store bakeries. Meanwhile, the five retail shops still operate independently through a licensing agreement.
Currently, the plan is to focus on organic growth in the name of recovery and rebirth, then look at how to expand beyond the portfolio and the capital investments it will take to get there.
The bakery currently operates two Moline production lines that make pre-fried frozen and frozen dough products in yeast-raised and cake formats. Prior to the sale, a 32-ft. Moline fryer was added to the sheeting and makeup system for the finished-frozen products. Mel-O-Cream also kept the old 28-ft. Moline fryer because new iterations of the traditional old-fashioned donut could soon necessitate investment in building a third line, including another freezer, around that fryer.
“We’re looking at the future saying, ‘How do we build this into the process?’” Chad said. “We have this new product that we really love and want to get out there, so that could be our avenue to do it.”
For its current pre-fried products, proper filtration has been a focus of the existing line. It’s key for an operation that runs three shifts five days a week.
“We have a continuous filtration process,” Chad said. “It gives us the ability to run around the clock without having problems with the oil degrading to the point that it changes the product profile.”
When a bakery is in the business of selling a traditional product that doesn’t stray far from the norm, manufacturing becomes the point of differentiation.
“I believe that’s what makes our product better in terms of eating quality, shelf life and things like that, that our customers are looking for,” Chad said. “We can provide it without having to make a fancy product or add a lot of cost.”
In Chad’s eyes, donuts are a commodity. A bold statement to be sure, but a fair assessment when looking at the pricing structure and competition in the marketplace. For a new leadership team at a 90-yearold company, there’s no better place to shop for innovation than the International Baking Industry Exposition (IBIE), held Sept. 18-21 in Las Vegas.
The leadership at Mel-O-Cream Donuts International — Eric Larson, president and CEO; Chad Larson, VP and COO; and Chris Larson, VP and secretary — perused the aisles of the Western Hemisphere’s largest bakery show to seek the latest innovations that can help propel its operation into the future.
Overall labor shortages in the American workforce due in part to the pandemic have hit both commercial and in-store bakeries. It leaves baking companies trying to help their workforce-strapped customers overcome those shortages while simultaneously figuring out how to operate efficiently with staff deficiencies of their own.
“We wanted to look at what equipment’s out there that can streamline our process and make employees’ — and our customers’ — jobs easier and make the product better,” Chris said.
One of Mel-O-Cream’s biggest sellers is a filled Bizmark, currently a laborintensive, semi-manual, process of “punching” the dough.
“At IBIE, we found several companies who offer that solution and were reasonably priced, considering the automation that’s involved,” Chad said. “The labor market has tightened, and this is a skilled position, where the people who do it are not easily replaceable.”
Mel-O-Cream donuts are a staple in Springfield, IL, and in-store bakeries throughout the Midwest.
LABOR-SAVING DISCOVERIES AT IBIE
“A lot of companies make really great donuts, and we’ve got to be smart about how we run this business,” Chad said. “We’ve got to stay on trend and keep costs down to remain competitive for the long term.”
That’s one benefit of being a flexible operation; Mel-O-Cream can try out new varieties for their customers without disrupting the flow of consistency, quality and category management.
“Our team is really in tune with what our customers need,” Chad said. “We speak their language, and, to me, that’s what’s going to be the key to long-term success. They’re less likely to drop us because something trends higher than our product. We can have a conversation to see what we have in our wheelhouse to help them where they need it.”
That said, it’s important to watch consumer trends across the board, specifically in areas such as foodservice, where menu trends are a healthy predictor of what’s coming to the in-store bakery.
Looking ahead, Mel-O-Cream is now focused on cinching up the operation to modernize its manufacturing and further its ability to innovate for customers. With his experience working in several commercial bakeries that make a variety of products, Chad has a keen eye for the innovation the bakery needs to continue its growth trajectory.
“Getting ourselves to the next level means spending time focusing on our internal operation and core organic growth,” he said. “We have a lot of different customers with different needs that we will be able to service in the future. Innovation in our world revolves around the operational aspect and how we make our core items.” Innovation in refrigeration will be one area of focus. That’s in terms of not only production efficiency but also energy consumption. In what could be considered a global energy crisis, identifying the correct refrigeration solution is critical with several refrigerants no longer viable options.
It needs a strong fiscal strategy as well. For an exclusively frozen operation, this is arguably the most expensive area of the bakery.
That becomes a major factor at Mel-OCream when not only is one of the biggest drivers in the consumer price index energy costs but also when Springfield is facing one of the highest kilowattsper-hour rates in the country. Lowering energy costs by 10% through refrigeration upgrades can make a significant impact on the overall operation.
“We have to start with looking at how we drive costs down so customers don’t bear that in the long term,” Chad said. “Especially as we regionally sell outside of the Springfield area.”
Samantha (left) and Chad Larson are just two members of this family-owned bakery.
As the company considers refrigeration in its capital investment strategies, the team will also identify what growth opportunities will likely come with it.
“When you’re retooling a process, you get the chance to think about the bigger, more long-term picture,” Chad said. “Too often companies answer a question for today without thinking about tomorrow, but we want to make sure we’re thinking about what happens down the road and how we can grow the business.”
With a background in large-scale automation outside of baking, Chris’ perspective on efficiency is a key factor in making the right investments.
“Our processes are laid out from how the equipment runs to the products running through them,” Chris said. “It’s a donut, so there are only so many ways it can be made. A lot of my time is spent going through the operation and processes and finding spots where we can improve and get more out of our lines.”
As the Larson family leads Mel-OCream toward its centennial, Chris sees opportunities to invest capital in technology that can do more with a
Prior to the 2019 sale, Mel-O-Cream invested in a donut makeup line and 32-ft. fryer.
limited workforce, make life easier for existing labor and make strides toward waste reduction.
No matter if the bakery business is a family affair, relationships are vital to gaining best practices and new tricks for efficiency. Chad has created connections with leaders from other donut producers like Donut Peddler, Baker Boy and Clyde’s Donuts, as well as networking through associations like BEMA.
“It’s helpful to have ‘friendly partners’ and even ‘friendly competitors’ in business,” Chad said.
Tapping into a variety of resources will surely broaden the scope of innovation for these young owners of a storied operation.
While the building sits on 19 acres that provide plenty of room for expansion or even a whole new building to mirror the current one, the Larsons aren’t getting ahead of themselves.
“We have to look at how we can make things smarter,” Chris said. “There are only so many things you can improve upon, and it all comes down to time, money and energy. Working smarter, not harder, has always been a priority. Looking at what’s smart and what’s the right way to do things will be how we get the best results.” CB
INNOVATIONS FROM THE BAKERY FLOOR
For Springfield, IL-based Mel-O-Cream Donuts International, 2022 marks 90 years in business. The company has evolved from a small donut shop to a regional supplier of frozen products for in-store bakeries throughout the Midwest. To Springfield natives, it’s a name synonymous with the town itself; to customers, it’s synonymous with quality.
Below is a list of supplier innovations that can be found on the floor of this 72,000-sq.-ft. bakery.
ABI dough handling Ashworth conveyors Banner Engineering sensors Belshaw test fryer Cambridge Air Solutions air filtration Columbia Okuma robotic palletizing Diosna mixers Dorner conveyors Gemini dough handling Hytrol conveyors IJ White cooling tower Innovative Refrigeration Systems blast freezer Moline sheeting, makeup and frying Safeline metal detection San Cassiano continuous batch mixing system Topos Mondial mixers
Leaps of Faith
For Milwaukee Pretzel Co.’s Matt and Katie Wessel, delivering an authentic German experience requires balance in all things.
BY JOANIE SPENCER
Matt and Katie Wessel | co-owners | Milwaukee Pretzel Co.
As husband and wife and co-owners of Milwaukee-based Milwaukee Pretzel Co., Matt and Katie Wessel — president and COO, and CEO, respectively — understand the value of a strong partnership. It’s their foundation for taking big leaps of faith, which is also something this duo knows a thing or two about.
The Wessels’ passion for bringing authentic Bavarian pretzels to the American market is no secret. A simple Google search or a few clicks on the company website quickly reveals the brand story: The couple discovered their love for this traditional German fare after spending a year in Munich.
But what the product means to Matt and Katie is something much deeper. The pretzel they sell is a manifestation of their values as business owners, manufacturers, community members and even as a family. It’s all tied together … in a pretzel knot, if you will.
“There’s a German word, gemütlichkeit,” Katie said. “It’s not translatable into English, but it means that feeling you get when you’re surrounded by the people you love and doing something you love. That feeling was instrumental in the development of our business. For us, the experience is not just about having a pretzel; it’s about recreating what it feels like to have a pretzel in a beer garden under the chestnut trees on a beautiful day.”
Despite the high Germanic population in Milwaukee, soft pretzels were not a big part of the landscape. So, Matt and Katie felt compelled to create a pretzel that played an unmistakable role in a truly German experience. But they also felt a calling to create one that played an unmistakable role in that truly German experience. “It’s important to us as business owners to develop a brand that aligns with these warm memories that were such a big part of our life,” Matt added. “It comes from our own experiences, but we can use that to help people create their own memories when they’re eating our product.”
Bringing Bavarian pretzels to the US market was a decision that was a perfect balance between business and personal.
“Our mission was not just to sell pretzels; it was also to bring the gemütlichkeit experience to people through them,” Matt said. “Yes, we saw a business opportunity, but we also saw a way to bring something we had fallen in love with to people in our community and beyond.”
It’s what sparked the momentum for the company’s rapid growth that’s occurred just inside of a decade.
“When you’re staying up late or getting up early to put the work in, sometimes that’s what pushes you the most to succeed,” Katie said. “Passion has pushed us to grow, and it’s continued that momentum for us.”
As the company matures, the workforce is growing along with it. On one hand, Matt chalks it up to luck; then again, discovering talent — and retaining it — requires a commitment that mirrors the Wessels’ love for their product.
“As you grow, you need help,” Matt said. “And hiring people who not only can do the work but also go beyond their job descriptions and quickly grow into new roles, identify opportunities, and live and breathe the brand and mission as much as we do — that’s so critical.”
Katie Wessel | CEO | Milwaukee Pretzel Co.
Commitment also means being able to let go. For a young manufacturer — especially those whose career paths didn’t start with manufacturing as the finish line — it’s a lesson that can only come from experience.
“We realized very quickly how important it is to let go of some of that control,” Katie said. “You cannot grow without doing that; you can’t have good processes or good manufacturing without trusting your people.”
Building a network of not only leadership but also mentors and trusted advisors was also key to their success. And much of that has come from Katie, who also happens to be the company’s creator. Initially running Milwaukee Pretzel on her own, Katie built a solid coalition of experts who helped her develop the process and make incremental business and manufacturing improvements.
Trust is often born out of faith, and that has been a foundation for the Wessels’ investments. It started with the first piece of automation for the pretzels’ caustic bath, the first area of production to be impacted by the growth. Although “sticker shock” is one of the first pains a business owner must get used to, the Wessels also believe in investing for the future and designing an operation that can be grown into.
That’s also reflected in the most recent investment for a new production line in the current facility.
“We had to trust that we could do it,” Matt said. “It’s risk, but it’s a mitigated risk because you know deep down it’s going to pay off.”
The Wessels’ business acumen and community involvement has propelled each of them into the Milwaukee spot-
Photo courtesy of Milwaukee Business Journal
As a member of the Milwaukee Business Journal’s 40 Under 40, Katie Wessel is known as a thought leader in the business community.
light, as both Matt and Katie have been named to the Milwaukee Business Journal’s 40 under 40, each in separate years. Currently, Katie engages in thought leadership in the Milwaukee business community through speaking engagements and panels.
“There are so many incredible things happening around us every day, and we are learning a lot from this community,” Katie said. “There are business leaders out there often doing things very quietly, and the Business Journal brings their leadership to light. And that allows me to learn from them every day.”
As bakery owners and business leaders, the Wessels face a challenge that has haunted bakers for generations: balance.
Burnout in this industry is real, and for Matt and Katie, it comes down to a numbers game. The natural inclination is to give 100% of oneself in every aspect. While that’s mathematically impossible, the key is to prioritize what areas to go all-in and lean on resources where possible for the rest.
That might mean scaling back community involvement or business networking one month or perhaps sending a proxy to a meeting in favor of attending an important family event. Those strategic decisions often bring clarity for when the business takes the front seat.
Matt and Katie — two self-professed “Type A” personalities — see themselves as a yin and yang.
“We love our pretzels and everything we’re doing, but it all comes down to our family and each other,” Katie said. “If that’s not strong, then nothing else can be.”
That prioritization is the foundation for how the Wessels have managed Milwaukee Pretzels’ growth. From building the team to investing in automation to expanding sales into 17 states, each step was made with intention to strengthen the “family” in this family business.
“Growing more rapidly than we did would have been at the expense of those other things we prioritize,” Matt said. “The sole goal was never about ‘more, more, more’ pretzels. This company is a part of our life. But it’s not our entire life.”
That’s not to say they aren’t prepared to keep growing the brand. In fact, the ultimate goal is for Milwaukee Pretzel to have a presence throughout the entire US. Even so, the Wessels’ priorities remain the same, right down to their
Photo courtesy of Milwaukee Pretzel Co.
Matt and Katie Wessel created a pretzel to share the German gemütlichkeit, an untranslatable feeling of joy.
Matt Wessel | president and COO | Milwaukee Pretzel Co.
partnership with the March of Dimes Milwaukee chapter, specifically through the Randol Thomas Wessel Memorial Fund, established in honor of the family’s first born, who passed away in 2013.
“In growing this business, I’ve learned the importance of focus in areas we want to support,” Katie said. “The March of Dimes is important to us, and it’s something we put a lot of time and energy into. We don’t want to do anything less than 100% … we could be working with several organizations, but we wouldn’t really feel like we were contributing something meaningful.”
Ultimately, it comes back to that untranslatable, but unmistakable, gemütlichkeit. For Matt and Katie Wessel, sharing this Bavarian delicacy brings as much joy as the art of creating it. CB
The Big Sister of Innovation
Hostess Brands’ Tina Lambert has never been afraid of change — she craves it.
BY ANNIE HOLLON
Some people were shaped into the leaders they are today through the course of their respective academic and professional careers. Tina Lambert was born one. The VP of the Marketing Center of Excellence for Lenexa, KS-based Hostess Brands hit her stride as a leader early on from the very first role she held as the oldest of seven children.
Raised as an “Army brat,” Lambert is no stranger to change. She attended eight different schools between preschool and high school and spent much of her childhood traveling across the US and abroad before her father retired in Ohio. As a result, Lambert remained near her family for college. She earned her bachelor’s in marketing and international business from the University of Cincinnati Carl H. Lidner College of Business.
Her past experiences, Lambert shared, are what shaped who she is as an executive.
“I’m a very creative solutions-minded person, and I’m not someone who becomes attached to the way things are now because I spent my whole life knowing that everything was always in flux,” she said. “I’m actually not afraid of change; I crave change, and that led to a lot of the choices I’ve made with my career.”
All photos courtesy of Hostess Brands
Lambert’s path to Hostess Brands was one filled with innovation. Among the pivotal points of her career, two stand out to her as major lessons in ingenuity: a college internship with toy conglomerate Hasbro and the launch of a new snack brand under Procter & Gamble (P&G).
With her work at Hasbro’s Kenner Toys division, which included contributing to the company’s acquisition for the license of Pokémon, Lambert gained a deep appreciation for understanding the consumer.
The next came from her time at P&G on the team behind launching Torengos, a Pringles-like triangular tortilla chip stack stored in a prism-shaped can. Despite pre-launch consumer feedback praising the flavor and the company’s investment in two full production lines, marketing and capital, it ultimately failed within a year.
“Ironically, I think the failure of P&G’s Torengos brand launch is what led to focusing the rest of my career on innovation because it happened early enough that I had nothing to lose, but so much to learn,” Lambert reflected. “Seeing how such a strong idea could fail so fast — and understanding the whys behind it — was mind-opening.”
Over the years, Lambert learned that, similar to life, innovation failures both “teach you more and stick with you longer.” She would carry these lessons into future roles at companies including Kellogg’s, Kraft Foods and Tyson Foods.
It was at Tyson where Lambert first connected with Andy Callahan, current president and CEO of Hostess Brands. Through their work together in the retail and foodservice businesses at the company, Lambert was inspired by the “magical” balance of inspirational and pragmatic leadership upheld in his work.
It was this connection with Callahan that brought Lambert to lead the Marketing Center of Excellence two years ago. With the role built specifically for her, she oversees a centralized marketing support team that covers an array of matters including innovation, advertising, e-commerce, shopper marketing, consumer insights, public relations, external communications and, most recently, packaging.
Though change has led Lambert to companies across the spectrum of CPGs, one concept ties them all together: innovation. The term has been a constant throughout the roles she’s held in her career. Over time, Lambert’s definition of innovation has evolved from a product-focused point of view to one that is more organizational.
Tina Lambert (second from right) works with Hostess Brands R&D team members (from left) Talia Merriman, R&D scientist; Pete Asta, senior director of R&D; and Mike O’Mara, R&D associate scientist to create innovations such as Hostess Bouncers.
“As I think about innovation in an organizational context, there are four ingredients I always talk about: having the right people in place, the right strategy in place, the right processes in place and then the right financial support,” she said, noting that Hostess Brands continues to invest in all four.
This investment includes positioning experts to support the company’s growth through advertising and R&D in addition to innovation. These strategies are centered around the five fastest growing snacking occasions that offer a $50 billion market opportunity. Additionally, agility in process — including fewer meetings and paperwork — has paid off. In addition to the organization behind innovation, Lambert also noted key components: Plan as far ahead as you can, and to be agile when the plan goes sideways.
A case study in this strategy is Hostess Bouncers, an early project she initiated after joining the Hostess Brands team. When the bite-sized snack cakes entered the market, the team had to pivot when the launch was pushed back due to delays driven by COVID-19, labor and equipment delays.
Starting a new role at any company comes with its own set of challenges, but stepping into a newly formed position at a company that has brands that are 100 years old requires finesse and a steadfast leadership style cemented from years of practice.
Lambert has both in spades.
Remaining resilient in the face of reduced consumer confidence, a looming recession, supply chain disruption and more, Lambert celebrates that, through it all, Hostess supports what she and her team believe will drive long term growth.
“My three favorite things to do are build teams, create new strategies and tackle tough challenges,” she said. “I’m an innovator at heart, and if you give me
something meaty and challenging, that’s when I get really excited. And this role has allowed me to showcase those three things, for sure.”
Of the three, Lambert prides herself most on the team she’s built. The experts who have joined her team over the past three years — all new to Hostess Brands — are transforming the company’s brands, Hostess and Voortman, through innovative and agile marketing.
“Our advertising is 100% digital at Hostess Brands, so we’re able to read the results every few weeks and actually make adjustments to our advertising program to maximize the ROI,” she explained. “You can’t do that with a traditional TV kind of plan. But the fact that we’re 100% digital really gives us that flexibility and efficiency.”
It all comes back to that first title Lambert ever held, long before she led teams at major CPG companies: big sister. Lambert isn’t surprised that throughout her career people have described her leadership as “sisterly.”
“As a senior leader, when you’re running a team of experts, it’s all about giving them the tools they need to succeed, clearing obstacles out of their path and then getting out of their way,” she explained. “And as a big sister, it’s kind of the same thing. I’ll give you the support and help that you need, and then you’re going to run from there and be successful.”
Throughout her history of working in innovation, Lambert seems to inevitably return to one guiding mantra: The Ford Model-T wouldn’t sell today.
“I say that because what worked in the past can’t guide our future,” she said. “You have to look at three things: innovation, the advertising tactics you’re using and the advertising messages you’re delivering. They all have to be constantly evolving to meet changing consumers’ needs.”
With the wisdom of an older sister, Lambert’s learned that innovation will more likely fail if the benefit to consumers is weak. Whether it’s difficult to communicate and market or it faces challenges from competitors or distribution, innovation’s biggest enemy is often the idea itself. As she continues her work at Hostess Brands, Lambert will use her experiences, lessons and commitment to the consumer to maintain her track record of success.
“I’m an innovator at heart because my whole life I’ve been two things: an idea person and someone who prides themselves on understanding people,” Lambert said. “I think that’s where it’s helped me learn from my failures and succeed in a lot of other places.” CB
