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September 3, 2015

Otis Spunkmeyer to embark on fresh US retail push

Otis Spunkmeyer, the US baked goods foodservice supplier, is to looking to expand its presence in the country's retail stores with the launch of a wider range next year.

By Beth Wright

Otis Spunkmeyer, the US baked goods foodservice supplier, is to looking to expand its presence in the country's retail stores with the launch of a wider range next year.

The business, owned by Switzerland-based bakery giant Aryzta, has developed a line of 20 products, including muffins, cupcakes and brownies, as well as the cookies through which the company has developed a significant presence in the US foodservice channel.

The bulk of Otis Spunkmeyer's sales is through foodservice accounts but it does sell some products to convenience stores and small grocery chains. It said the fresh push would see national chains start to carry some of its lines.

"The new line will be distributed in grocery, club and convenience stores in North America beginning in early 2016," Kristina Dermody, brand president at Aryzta, said. "We have already started to build strong relationships with some of the top retailers."

Dermody said the range's "biggest differentiator" was the products would contain no artificial flavours or colours, high fructose corn syrup or partially hydrogenated oils.

Otis Spunkmeyer claims to have the number one selling foodservice cookie dough in America. Dermody suggested consumer demand had been central to the push into retail. "While food service has been successful, we have heard feedback for years that consumers wish they could find us more places," she said. "Given the positive reaction to our baked goods and cookies over the years, we have been waiting for the optimal opportunity to expand our business back into the retail space. We have the capability and decided now was our time to have our sweet baked goods in grocery retail stores for everyone to enjoy."

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She added: "Our US foodservice presence is an important part of our overall business model and an area we will continue to focus on in conjunction with the new retail expansion. Our goal is to have our foods available to more consumers than ever before, which includes a presence in retail and foodservice."

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