Hostess Brands purchased by J.M. Smucker (Score 53)

Sales lead: The acquisition may lead to spend & agency roster shifts. 

• Hostess Brands (HB) has been acquired by The J.M. Smucker Company.
• The deal is reportedly worth $5.6b, and HB's employees will join J.M. Smucker. 
• The transaction includes Hostess, Donettes, Twinkies, CupCakes, DingDongs, Zingers, CoffeeCakes, HoHos, Mini Muffins, Fruit Pies, and Voortman. 

Target demographic: Millennial parents

Now that it is under new ownership, the company will likely:

• Continue increasing digital spend
• Try new ad channels
• Review its current agency roster

Digital and social insights (digital ad spend, effectiveness, impressions, and performance)

• YTD spend: HB spent around $4.1m on digital display ads YTD, double the $2m spent in this channel during the same time period of 2022. 
• YTD data: 618.7m impressions via Facebook (57%), Instagram (35%), desktop display (5%), and mobile display (3%). 
• 2021-2022 spend: Full-year spend skyrocketed from $457.5k in 2021 to $3.8m in 2022. 
• Ad location: It placed 97% of these ads directly onto sites such as facebook.com, instagram.com, walmart.com, yahoo.com, and chicagotribune.com. It placed 3% of these ads through multiple indirect channels onto sites such as walmart.com, yahoo.com, myfitnesspal.com, fandom.com, and weather.com. 

Agency analysis:

• Opportunity: The acquisition may affect the agency roster, so get in touch now to be top-of-mind. 
• Current roster:
  • LAK PR: PR AOR

Insight Sources: Digital spend insights estimated by Pathmatics.