It used to be that cake offered just two serving options: a single slice or the entire round. Today, things are a little different. Snack cakes changed how consumers could eat cake, as well as when and where, and they have evolved from a clever novelty into something of an institution. As evidenced by the popularity of items such as The Twinkies Cookbook and the snack cake quiz on culinary blog Slashfood, consumers have embraced this diminutive dessert and made it a snack staple.

Even potentially worrisome developments like the government's campaigns against sugar, salt and fat could be parlayed into positives. The snack cake industry has already capitalized on the recent wellness trend, spinning off health-driven product lines that play up the cakes' individual portions and reduced calories. A snack cake niche even has emerged within the weight-management market.

“Often, dieting is more defined by what you can't have instead of what you can,” says John Rzeszut, senior brand manager for Dawn Food Products, Jackson, Mich., which manufactures the Weight Watchers line of bakery products. “But it's possible to have great-tasting products that can fit soundly within a weight management plan.”

Given the longevity of the health and wellness trend and consumers' continued interest in more healthful offerings, the snack cake market will continue to focus on the better-for-you angle.

“It seems to have less to do with styles and flavors of cakes and far more to do with changing consumer focus,” says Jon Silvon, director of marketing for Tastykake, Philadelphia. “Consumers think about their diets within the context of their entire life. Consumers want to live longer and are proactive — especially with regards to diet — to ensure their best chance to do so.”

Tastykake's wellness platform includes a sugar-free line and is responsible for nearly 10 percent of the company's sales. Flowers Foods, Thomasville, Ga., has found success with its health-focused SnackAway line, which retails under its Mrs. Freshley's banner. And unsurprisingly, the 100-calorie pack has proved a natural fit in the segment; Hostess' 100-calorie snack cake line was even named one of the “100 Best Packaged Foods for Women” by Women's Health magazine.

The health-focused snack cake niche has taken some knocks from decreased consumer spending, as evidenced by the double-digit drop in sales over the past year, but Rzeszut thinks the market has a lot of potential for growth.

“Compared to other categories in-store, such as ice cream, the better-for-you segment within the snack cake category is relatively under-developed,” he explains. “The key to further growth of this segment is believability, both that a product will deliver against the stated nutritional or health-related claims and that the offering will actually taste good.”

TOP10 Brands: Dollar and Unit Sales (millions)

Snack Cake Brand Names	Dollar Sales	% Change Year Ago		Unit Sales	% Change Year Ago
Little Debbie	$151.1	↑	5.2%	98.4	↓	9.2%
Private Label	128.6	↑	9.1	44.8	↑	8.7
Hostess	83.2	↑	11.6	49.2	↑	19.8
Hostess Twinkies	44.3	↑	11.0	18.2	↑	18.5
Little Debbie Cosmic Brownies	38.9	↑	6.9	24.4	↓	2.0
Weight Watchers	29.1	↓	16.4	8.5	↓	16.1
Little Debbie Zebra Cakes	28.0	↑	31.3	16.6	↑	19.0
Tastykake	26.4	↑	9.1	13.4	↑	9.6
Hostess 100 Calorie Packs	24.9	↓	22.2	7.3	↓	18.1
Homestyle Two-Bite	24.8	↑	16.3	7.1	↑	27.0

Source: Infoscan Reviews, SymphonyIRI Group, June 13, 2010

Fresh Bakery Products	52 weeks ended Jun. 13: $ Sales	% Change Prior Year		52 weeks ended Jun. 13: Unit Sales	% Change Prior Year
Cakes (excl snack/coffee)	$738,277,500	↑	3.5%	140,216,500	↑	3.0%
Pies (excl snack pies)	227,520,800	↑	7.5	47,811,120	↑	9.9
English Muffins	519,454,800	↓	5.4	218,256,900	↓	1.3
Bread	6,503,972,000	↓	2.8	3,026,250,000	↑	0.5
Rolls/Buns/Croissants	1,157,105,000	↑	17.1	481,974,500	↑	15.2
Bagels/Bialys	563,927,300	↑	1.7	195,095,400	↑	6.7
Donuts	677,569,000	↑	3.4	274,756,000	↑	8.1
Muffins	305,272,100	↓	1.3	104,140,700	↑	0.2
Pastry/Danish/Coffeecake	642,787,000	↓	3.5	268,479,600	↓	2.2
Cookies	3,672,161,000	↑	0.6	1,447,029,000	↑	0.1
Crackers	3,768,868,000	↑	1.3	1,475,495,000	↑	3.2

Refrigerated Bakery Products	52 weeks ended Jun. 13: $ Sales	% Change Prior Year		52 weeks ended Jun. 13: Unit Sales	% Change Prior Year
Bagels/Bialys	$59,169,160	↓	1.4%	36,795,130	↓	2.6%
Bread	3,513,926	↓	6.0	1,147,509	↓	6.6
Cakes (excl snack/coffee)	96,970,810	↑	25.6	12,550,220	↑	27.03
Dinner/Sandwich Rolls/Croissants	796,114	↓	28.9	320,673	↓	32.9
English Muffins	38,352,890	↑	1.5	18,779,080	↓	0.8
Muffins	49,599	↓	43.6	9,610	↓	43.2
Pastry/Danish/Coffeecake	8,309,643	↑	10.7	2,442,884	↑	24.3
Pies (excl snack pies)	24,536,960	↓	2.6	4,365,963	↓	0.6
Snack Cakes/Donuts	5,505,602	↑	9.8	1,437,027	↑	28.8
Cheesecakes	111,669,500	↑	1.3	15,036,460	↑	7.1
Biscuit Dough	380,058,200	↓	0.3	291,041,500	↑	0.4
Cookie/Brownie Dough	360,372,900	↓	9.0	128,527,700	↓	5.1
Bread/Rolls/Pastry Dough	261,245,500	↓	3.4	125,004,800	↓	2.1
Pastry/Dumpling Dough	307,737,700	↓	4.4	129,953,600	↓	3.1

Frozen BakeryProducts	52 weeks ended Jun. 13: $ Sales	% Change Prior Year		52 weeks ended Jun. 13: Unit Sales	% Change Prior Year
Bread/Rolls/Pastry Dough	$182,714,900	↑	3.2%	57,425,280	↑	2.8%
Cookie Dough	2,874,841	↑	11.0	535,410	↑	16.5
Fresh-Baked Bread/Rolls/Biscuits	503,754,800	↓	2.4	191,151,100	↓	3.4
Bagels	60,485,120	↓	17.9	30,858,070	↓	19.5
Muffins	33,981,840	↑	34.2	8,243,251	↑	8.8
Cookies	273,626	↓	15.3	67,205	↓	18.6
Cheesecakes	66,143,360	↑	1.0	11,743,130	↓	3.7
Pie/Pastry Shells	205,076,400	↓	4.9	51,278,380	↓	7.2
Pies	131,939,100	↑	4.5	50,878,180	↓	0.9
Sweetgoods (excl cheesecakes)	335,089,900	↓	0.3	74,625,420	↓	0.8

Source: Infoscan Reviews, SymphonyIRI Group, June 13, 2010