New Twinkies aren't exactly the old Twinkies
Cost-cutting measures started by the snack cake's previous owner mean the revived version is less than it seems.
In the days leading up to Monday's nationwide relaunch of Hostess Brands' cream-filled sponge cakes, it became clear that this wasn't going to be the same Twinkies that disappeared during a brand-killing labor dispute in November. The workforce making them has been slashed, the cakes themselves are being shipped frozen in some instances, and now there's word that they might be smaller than their predecessors.
The snack cake's original weight loss apparently took place just before the previous Hostess Brands went bankrupt in November. Boxes in stores at that time weighed 13.5 ounces, which makes the current boxes slightly heavier. However, considering the new parent companies are a budget beer brewer and a private equity firm, it should come as no surprise that each would try to squeeze as much sweet profit as possible out of their spongy new acquisition.
Despite owning a brand that has shed its union presence and has fewer employees and factories than it did in November, the new owners saw little need to roll back the cost-cutting measures of their predecessors. As a result, folks who waited in line at Wal-Mart (WMT) last weekend for the first bites of the revived snack cake got not the Twinkies of their youth but the Twinkies of a cash-strapped company on the brink.
The thinking is simple: The consumer outcry over Hostess' demise last year led Hostess' buyers to believe that consumers would embrace the cakes' return in any form. Since their previous owners' tweaks were designed to beef up the margins anyway, why not combine them with the reduced overhead of a downsized infrastructure and workforce and gorge on the profits?
It's not a conspiracy -- it's a business plan. Older generations will recall Coca-Cola (KO) using a similar tactic to swap sugar for cheaper high fructose corn syrup in its original recipe back in the 1980s. It was the New Coke gambit, and Twinkies' makers used that vein of nostalgia to bleed buyers again.
So congratulations, social media-savvy snack cake lovers. You got your Twinkies back. They're smaller, possibly pre-frozen, and not creating as many jobs as they used to. But what were you supposed to do? Settle for Little Debbie Cloud Cakes?
Three years ago Hostess came to the union members and told them that the company was doing bad and if they could take a pay cut and freeze pensions. Unions agreed to help company out and pensions were froze and took an 8% pay cut. Then became public that upper management raises and bonuses. Next, company went back to the union and asked for more pay cuts.....union said hell no. There was an union vote and decided not on their watch.
Question to all....If your boss asked you to take a cut with your pension and pay to help out because the company was doing poorly and you agreed. Then you find out your boss just got a big **** bonus and comes up to you and asks for another pay cut....WHAT WOULD YOU DO??
All of you union haters have to know the whole story. The unions could of taken another cut but they stood together and said no...knowing full that it could cost them their jobs. In bankruptcy there was still $300 million missing that was handed out between management.
Learn whole story before taking the easiest route and blame the unions. The management of Hostess were greedy and got the company in trouble...not the unions. Instead of throwing blame at the wrong people read and find out who got millions and who got laid off.
Liked 'em as a kid when my taste buds liked anything sweet. Now, they just taste like sugary crap.
Twinkies are now just like everything else made these days. They are smaller, cheaper quality, and cost exactly the same or even more.
No big surprise here.
Anyone that didn't think they were going to be smaller different, must have blinders on...
can't even get a fair deal buying a heart attack! , bury 'em , Eat real food and we will all benefit .
I fixed my families craving for twinkies, cupcakes and such.. I just bought a twinkie baking pan with the recipes and the filling bag set.
Now I can make any flavor cupcake with my kind of healthy filling. Can also use a chocolate glaze on top. The flavor combos are endless. At least I will know what goes in them and they will be cheaper too.. Found my set on Ebay.
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
[BRIEFING.COM] The major averages finished the session on a modestly higher note, but not before heavy selling pressure sent the Nasdaq Composite (+0.3%) for a test of its 200-day moving average. The S&P 500, meanwhile, added 0.7% with all ten sectors posting gains.
Equities climbed at the open with the advance built on the relative strength of biotechnology and other momentum names. Despite the solid early gains in those areas, the market began fading from its high as multiple ... More
More Market News
The company has made at least 4 acquisitions in the space, and few people have paid any attention.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'