Duncan Hines Creates Keto-Friendly Cake Line

Conagra Brands’ Duncan Hines is making keto versions of its staple cake products this year and will be co-branding its new dessert line in a partnership with Oreo, according to Baking Business.

In addition to keto-friendly cakes, Duncan Hines will also experiment with new packaging and flavors, as well as expand their line of shelf-stable and frozen products.

Last year the company received gains on its share price after focusing on shelf-stable baking mixes in the first half of the fiscal year and hopes the expansion of its keto line will increase profit margins further in the second half.

“We’re building on this momentum by introducing more innovation in the second half, including on-trend, keto-friendly cakes, and co-branded Oreo cake cups,” said Sean M. Connolly in an earnings call which discussed second-quatre financial results.

Conagra’s attempt to bolster itself into the new food categories dates back to 2018 when it acquired Pinnacle Foods, a packaged food company that specializes in shelf-stable and frozen products, for $10.9 billion. The acquisition gave Conagra access to Pinnacle’s three largest brands: Ducan Hines, Birds Eye, and Wish-Bone.

As diet trends continue to flourish, a growing number of younger consumers are experimenting with different types of health regimes, one of which is the keto diet: a high-fat low carb diet that excludes carbohydrates and focuses on calorie intake from fats and protein.

According to Technavio, the global keto diet market is expected to grow by $1.11 billion between 2019 to 2023 at a compound annual growth rate of 5 percent.

In addition, another study reported by food brand Keto and Co indicates 15 to 25 million people in the US are on the keto diet. The report also claims there are limited quick and convenient food items for consumers on this diet to choose from.

With a bullish market predicted ahead, alongside the demand for more conveniently placed products, Duncan Hines’ new keto-friendly version of its classic cake line looks like a promising and innovative source of revenue for the year 2020.