Baked by Melissa Takes Cupcake Kits to Target Shelves
Baked by Melissa, a regional dessert chain, now sells at-home baking products in Target stores. The line is exclusive to Target during the holiday season, an important stretch for retailers.
What is on the shelf
Since Sunday, Target has stocked the brand's baking kits, along with liners and a pan, all sized for its signature bite-size cupcakes. Three flavors are available: Christmas Tie-Dye, Marshmallow Hot Cocoa and Red Velvet.
The company has long discussed baking products. Founder Melissa Ben-Ishay decided to go ahead about a year ago, after visiting a Target with her children. Walking through the baking aisle, she concluded the brand "should be here."
A slow process for a fast company
Retail did not move at the pace the brand is used to. After the New York Knicks won the NBA championship in June, the company needed only a few days to make Knicks-branded minicupcakes. The retail line took twelve months, which Ben-Ishay described as "a lot of waiting and approvals and new partners."
Why Target, and why now
Founded in 2008, Baked by Melissa has nine permanent locations in the New York area and ships minicupcakes nationwide. Ben-Ishay's social media presence has built its audience outside the city. The brand's TikTok account has more than 2.8 million followers, fed by recipe videos, and she has worked with Ferrero and Wonder.
A regional chain can reach more shoppers by getting onto a national retailer's shelves. Restaurant brands are increasingly selling packaged food, a way to add revenue while dining out is under pressure. California Pizza Kitchen and TGI Fridays have put their names on licensed frozen foods for decades. Chick-fil-A and Dutch Bros came to grocery more recently. Smaller names such as Momofuku and Carbone use shelf space as a cheaper way for people to taste the food without booking a table.
Target has its own reasons. Target needs a strong November and December: its last holiday season disappointed, and it wants its core shoppers back. That shopper often looks a lot like Ben-Ishay, who said: "We started with Target because I'm a 42-year-old mom of two, and I find myself there a lot."
Our view
For a small brand, a single-retailer launch trades reach for a clear test of demand. Sales through the holiday weeks would show whether a cupcake kit can sell beyond a loyal base. No sales expectations are given, so the evidence will come from whether Target keeps the line on shelves after the season.
Source: CNBC