Hostess comeback not all that sweet for some

Hostess comeback not all that sweet for some

The changing dynamics of the economy and marketplace can leave a bitter aftertaste.

It was just seven months ago when panic buyers, convinced that there soon would be no more to be had, were snatching Hostess Twinkies off the shelves.

The victim of severe financial distress, Hostess Brands had filed bankruptcy and decided to liquidate its assets. Among those assets were the various brands Hostess produced, and the buyers, a couple of private equity firms, now are producing a number of old Hostess brands, including the beloved Twinkie.

They're billing it as "the sweetest comeback in the history of ever."

That's probably overplaying it a bit. But Twinkies, Ho Hos, Ding Dongs are all back, and the producers are milking the nostalgia theme for all it's worth.

Actually, these brands were never in danger of not returning. Market demand never waned, even as Hostess Brands ran itself into the ground with bad management decisions and costly union contracts.

The new owners of the old brands aren't burdened by those legacy costs and are looking forward to operating profitably, maybe even very profitably.

Twinkies' old owners and the people they employed won't be making the same sweet comeback. Casualties of the process of creative destruction, they're being forced to find a new way to make a living.

Sections (2):Editorials, Opinion

Comments

News-Gazette.com embraces discussion of both community and world issues. We welcome you to contribute your ideas, opinions and comments, but we ask that you avoid personal attacks, vulgarity and hate speech. We reserve the right to remove any comment at our discretion, and we will block repeat offenders' accounts. To post comments, you must first be a registered user, and your username will appear with any comment you post. Happy posting.

Login or register to post comments

fathillboy wrote on July 25, 2013 at 2:07 pm

"Twinkies' old owners and the people they employed won't be making the same sweet comeback. Casualties of the process of creative destruction, they're being forced to find a new way to make a living."

 

The unions broke the old Hostess by not granting concessions.  So, I don't call these people 'casualties'.  They did it to themselves.  

Mark Ira Kaufman wrote on July 29, 2013 at 9:07 am
Profile Picture

There's an abundance of reasons for former Hostess employees to be bitter.  See "Happy Holidays from the management at Hostess." http://open.salon.com/blog/mark_ira_kaufman/2012/11/22/happy_holidays_from_the_management_at_hostess_brands