Picture a donut. A traditional glazed type likely comes to mind, or perhaps one covered in chocolate frosting. Classic varieties like these are top sellers for the category, but manufacturers are finding additional success by putting elevated twists on these fan favorites.
“We’re seeing more and more that the products we sold for many years that were just plain old glazed or iced donuts now have Froot Loops on them, or some type of commercial product that people recognize that gives them an upscaled belief, and it changes the revenue,” explained Chad Larson, vice president and chief operation officer of Mel-O-Cream Donuts, Springfield, Ill.
Larson cited a recent example where the bakery’s sales team decorated a tray of donuts for a customer and priced them at roughly $2.75 a donut, which is on the very high end for the category.
“They sold out faster than the other trays did,” he said. “They simply put googly eyes on them or made them look like the Cookie Monster, and it really changed how they did.”
Kelsey Olsen, food and drink analyst, Mintel, shared this view, noting simple spins on traditional offerings drive growth. She pointed to Winston-Salem, NC-based Krispy Kreme’s new Kit-Kat assorted donut pack, which features Kit-Kat candy pieces atop flavors like traditional glazed, cookie dough and salted caramel brownie.
Hostess, a subsidiary of Orville, Ohio-based J.M. Smucker Co., has taken a similar approach with the launch of HoneyBun Donnettes, a mashup of the two popular Hostess Snacks.
“We know that snack lovers are increasingly seeking new flavor combinations, and the melding of distinct tastes and textures offers a unique snacking experience,” said Chris Balach, vice president of marketing for the Sweet Baked Snacks unit at The J.M. Smucker Co.
Shipley Donuts, Houston, similarly partnered with Chicago-based Mondelez International to launch Cookies N’ Dream donuts featuring Oreo pieces.
Globally inspired varieties such as churros and beignets are expanding as well, noted Bill Heiler, senior manager, customer marketing, Rich Products. According to Datassential MenuTrends, churros have increased 36% on menus over the past four years while beignets have grown 22%.
“We’re also seeing flavors used to elevate donut case variety, such as cookies and cream, birthday cake, pistachio, s’mores, dulce de leche and salted caramel,” he said. “This combination of elevated global flavors and nostalgic options are taking donuts into new occasions and dayparts that are more dessert-oriented.”
In the center store, flavors like lemon, devil’s food, cinnamon, maple and old fashioned are showing strong unit growth, said Melissa Altobelli, senior vice president, client insights, dairy and bakery vertical, Circana. Cinnamon, strawberry, vanilla and raspberry are increasing in the perimeter.
Texture innovation, such as Hostess’ Crunch Mini Donuts, is another way for producers to enhance their products in a way that isn’t too divisive to consumers, Olsen said.
“Additionally, hybrid baked goods can bring a new twist on traditional flavors, too, like donut muffins,” she said.
Horsham, Pa.- based Bimbo Bakeries USA’s Entenmann’s brand, for example, released its first-ever baked donut cakes, available in Double Chocolate Chip and Cinnamon & Sugar varieties.
“Our research shows that consumers are looking for indulgent, individually wrapped snacks for on-the-go snacking, so we wanted to deliver in the sweetest way,” said Richard Link, senior director of marketing at Entenmann’s. “Our latest innovation, Entenmann’s Donut Cakes, are truly the perfect blend of an old-fashioned donut with a modern twist.”
This article is an excerpt from the July 2024 issue of Baking & Snack. To read the entire feature on Donuts, click here.