Twinkies go on sale again, with something missing
The snack cakes may taste as sweet, but lost on the road to their return are thousands of jobs.
Twinkies are returning after private equity firms Apollo Global Management (APO +1.44%) and C. Dean Metropoulos & Co. bought several of the old Hostess snack cake brands. But one thing about Twinkies is clearly missing as the brand comes back: thousands of jobs. Before Hostess Brands went bankrupt last year, the company employed 18,500 people. Now, upon its revival, only 20% to 25% of those jobs will be returning, CNNMoney reports, citing an estimate from IBISWorld. Even though the new company bought five bakeries, it plans to use only four, the report said.
A spokeswoman for the new venture cautioned against comparing employment numbers between the pre-bankruptcy company and the new Hostess because the private equity companies didn't buy rights to all Hostess brands, CNNMoney noted.
The earlier incarnation employed 2,500 workers producing snacks, while the new venture will use 1,800 to produce Twinkies, Ho Hos, Ding Dongs and other cakes.
Some job losses resulted from Hostess' plan to hire outside delivery companies to ship the cakes, instead of in-house truck drivers. Plus, 600 outlet stores operated by the old Hostess Brands were permanently shuttered, CNNMoney wrote.
Flowers Foods (FLO), which has agreed to purchase Wonder Bread and other Hostess brands, declined to talk about staffing because the deal isn't yet final, the piece added. (Flowers received regulatory approval this month and is expected to close the purchase in the next few weeks.)
In the meantime, Twinkies aims to again find the sweet spot in Americans' stomachs, but it's not content to appeal just to kids. The new Hostess is reaching out to young men via wider distribution in convenience stores, and its plan to outsource deliveries will allow it to reach 110,000 stores, up from 50,000 before the bankruptcy.
"We want to go beyond just the loyal fans to some of those people who should be fans," executive Dave Lubeck of Bernstein-Rien, which worked on Hostess' new ad campaign, told Time. "So we're really trying to move beyond the grocery store consumers into the c-store target, which is a younger male."
Follow Aimee Picchi on Twitter at @aimeepicchi.
That was why Kroger left Pa. Unions demanding mega-high wages, Kroger shut down, packed up and left. Unions have been great for the worker, but what you need to understand is the company pays your wages not the union. And if the company can't sustain a marginal profit it will shut down!!!
Wake up America we are going out of business because no one wants to be a worker ant.
They worked us 10 to 20 hours and then penalized you when you were late the next day. The management wanted you to give back while they brag about bonuses they received because we had to sacrifice and give back. So I blame greed, not management or unions, plain and simple.
Copyright © 2013 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.
A basic income policy can actually ensure a decent standard of living for everyone.
- People left $500,000 in coins at airports last year
- How your driving can affect your credit
- Obamacare projected to cost hundreds of billions less
- November jobs report: Winners and losers
- Student loan debt climbs for 5th year in a row
- Wall Street finally notices Bitcoin
- Part-time workers hurt by on-call system
- 5 myths about late payments and your FICO scores
- Auto loan interest rates hit record low
[BRIEFING.COM] A solid November employment report translated into a solid day of gains for the major averages. While there was some talk that the encouraging job growth raised the odds of the Fed announcing a tapering at its December meeting, the message of the markets today was either that it didn't believe there would be a tapering this month or that it doesn't fear a tapering this month.
It was just one day, yet there was ample meaning wrapped up in the connection that the 10-yr ... More
More Market News
The Fed may start tapering in just a few months. Here are a few of the likely winners and losers.