Stand down Twinkies hoarders, you can start eating your secret stash.
Twinkies will hit store shelves nationally by late July, Michael Cramer, executive vice president of Hostess Brands LLC told NBC News on Thursday. “We expect to be making and selling in July,” he said. “Probably the later half of the month before the product hits the stores.”
All of the classic Hostess snack brands will return, some making their return in August and September. Hostess Donettes and some of the snack cakes will be among the first to return. And “Twinkies for sure,” Cramer said.
In November, all 36 Hostess Brands, Inc., plants shut down after an extended stand-off with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union. That Hostess company has almost completely wound down its operations, selling its assets in pieces. The bulk of the Hostess Snacks brands the public knows best — Twinkies, Cup Cakes, Ho Hos, Zingers, Ding Dongs and Suzy Q’s — were purchased in April for $410 million by hedge funds Apollo Global Management and Metropoulos & Co. Other Hostess lines, such as Wonder bread, went to affiliates of Flowers Foods, while its Beefsteak bread brand was snatched up by Grupo Bimbo, S.A.B. de C.V.
It is the new company, Hostess Brands, LLC, that will start hiring this weekend to resume operations with 200 employees at the Dolly Madison Bakery in Columbus, Ga., one of the locations shuttered in November.
As the hiring resumes, it will not be in conjunction with the unions, Cramer said. “We’re sure not going to invite the unions in. We don’t have to do it,” he said. Though of course nothing prevents the workers from unionizing down the line, he said.
But when Twinkies return to the shelves after an absence of more than six months, it will find competition.
Flowers Foods, Inc., which purchased some of Hostess’ other assets, has its own Twinkies lookalikes. Its Blue Bird brand sells Bingles while its Mrs. Freshley label sells Dreamies cream-filled cakes. McKee Foods’ Little Debbie brand also makes its own Twinkies twin called a Cloud Cake. The name’s even trademarked.
A spokesman for Mexico-based Grupo Bimbo, the world’s largest bread baker and the owners of Sara Lee and Entenmann’s brands in the United States, on Wednesday declined to say whether it was considering its own Twinkies competitor in the United States. But should Grupo Bimbo decide to jump into the fray, it has a pretty good options on hand.
Bimbo already makes a Twinkies lookalike in Mexico called Submarinos, which are available with vanilla, chocolate or strawberry filling. Bimbo Bakeries USA since 1997 has been importing strawberry-filled Submarinos into the United States under its Marinela brand catering to Hispanic customers. In 2012 it started importing the vanilla ones as well, a company spokesman said.
After this story was originally published, a reader sent a picture of another Twinkies clone he said recently hit shelves in Los Angeles. The packaging of the new Golden Creme Cakes state they are made by the Sara Lee division owned by Bimbo Bakeries USA. However, a spokesman for the company declined to confirm they are new Sara Lee products.
The hard-core Hostess fan will return to Hostess, but the discretionary snackers will be the key market to regain, predicted Gary Karp, the executive vice president at Technomic Inc., a food industry research and consulting firm. “Their absence has allowed people to try a variety of products that are out there,” Karp said.
NEW YORK (CNNMoney) — A bankruptcy judge has given final approval for the sale of Twinkies, Wonder Bread and many of Hostess Brands’ other assets, clearing the way for the iconic products to return to shelves.
Hostess snacks — including Twinkies, Ho Hos, Ding Dongs and Zingers — were sold for $410 million to a joint venture of private equity firms Apollo Global Management and Metropoulos & Co. They expect to return the product to store shelves this summer.
Wonder Bread and most of Hostess’ other bread brands was purchased by baker Flowers Foods for $360 million. The company has yet to give a date for when those breads will be back in stores. On Thursday, Judge Robert Drain also approved the $31.9 million sale of the Beefsteak bread brand to baker Grupo Bimbo, a Mexico-based company that is one of the largest U.S. bakers.
None of these products have been manufactured since Hostess, which was already in bankruptcy court, went out of business during a strike by members of its bakers’ union. The company has been selling off its brands since then to try to raise money for creditors. Thursday’s sales account for more than $800 million.
Flowers is buying 20 bakeries and about 38 depots with its purchase; Apollo and Metropoulos are buying five bakeries.
Court approval is still pending for some other winning bidders, including privately held McKee Foods’ purchase of the Drake’s snack business for $27.5 million, and United States Bakery’s $28.85 million winning bid for Hostess’ Sweetheart, Eddy’s, Standish Farms, and Grandma Emilie’s bread brands, along with four bakeries.
Hostess Brands is close to announcing that it has picked two investment firms — C. Dean Metropoulos & Co. and Apollo Global Management — as the lead bidders for its Twinkies and other snack cakes, according to a source close to the situation.
The so-called stalking horse bid would be for more than $400 million, according to the Wall Street Journal. It would serve as the baseline offer for the business and could be topped by others at an auction. A judge would have to approve any final sale.
Earlier this month, Hostess chose a $390 million offer by Flowers Foods , maker of Tastykake products, as the stalking horse bid for several brands including Wonder bread and Drake’s.
On Monday, Hostess said it chose McKee Foods Corp, maker of Little Debbie snack cakes, as the initial bidder for its Drake’s cakes, which include Ring Dings, Yodels and Devil Dogs. It also chose United States Bakery as the lead bidder for four of its smaller bread brands plus bakeries, equipment and depots.
Hostess will proceed with liquidation, a bankruptcy judge ruled Wednesday, according to Bloomberg.
Ben Popken, of NBC News, also reported the news on Twitter, quoting the judge as saying “Sadly… proceed to liquidation.” The move comes just one day after a last-ditch effort at mediation between Hostess and the Baker’s Union broke down.
h/t: Huffington Post
A little liquidation scare is no reason to mess with Twinkies, according to Matt Taibbi.
The Rolling Stone contributor told MSNBC’s Ed Schultz Monday that workers and their “pensions and benefits” are getting the blame for the possible Hostess shutdown instead of the company’s management, who, he says, is actually responsible for the Twinkie-maker’s woes.
“Everybody likes Twinkies, there’s nothing wrong with the product,” Taibbi said. “The workers are doing a good job, they’re putting out a good product — it’s that management has been incompetent, and it’s unfortunate that the narrative has shifted all the blame to the workers.”
Taibbi’s assessment of the situation isn’t universal, with many people blaming the company’s demise on the American consumer’s changing tastes.
Hostess announced Friday that the company planned to liquidate and lay off all of its 18,500 workers, citing an ongoing strike that the company claimed was crippling its operations. On Monday, a bankruptcy judge ordered that Hostess enter into mediation with the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, the group representing the striking workers, saying that he had “serious questions as to the logic behind this strike.”
The Teamsters, the other union representing Hostess workers, agreed to major pay and pension cuts in September in an aim to save the company and their jobs, even though they had already taken a hit during the company’s first bankruptcy.
“It’s part of this overall mythology that we have to blame the workers for wanting benefits and wanting a living wage,” he said.
Source: The Huffington Post
Hostess Brands Inc. lived to die another day.
The maker of Twinkies and Ding Dongs said late Tuesday that it failed to reach an agreement with and its second biggest union. As a result, the company will continue with a hearing on Wednesday in which a bankruptcy court judge will decide if the company can liquidate
The talks had come as a surprise after Hostess declared last week it would move to wind down its business and start selling off its assets in bankruptcy court. After making its case to liquidate on Monday, however, the bankruptcy judge hearing the case noted the two sides hadn’t yet tried resolving their differences through private mediation. The judge noted that 18,000 jobs were on the line and urged the company and union to try to resolve their differences.
The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union, which represents about 30 percent of the company’s workers, says the company’s demise was the result of years of mismanagement, however, and that workers have already given steep concessions over the years.
Hostess Brands and the Bakery, Confectionery, Tobacco Workers and Grain Millers’ International Union agreed to mediate on Monday, according to a tweet from CNBC. The agreement will reportedly prevent a Hostess liquidation, which the company announced Friday could be imminent.
h/t: Huffington Post
BREAKING: Hostess to stay intact… for now
US bankruptcy judge says company and union agree to mediation on Tuesday in Hostess case - @reuters— Breaking News (@BreakingNews) November 19, 2012
US bankruptcy judge says Hostess case is adjourned until 11 a.m. Wednesday to make room for Tuesday’s mediation - @reuters— Breaking News (@BreakingNews) November 19, 2012
DETROIT (AP) — Twinkie lovers, relax.
The tasty cream-filled golden spongecakes are likely to survive, even though their maker will be sold in bankruptcy court.
Hostess Brands Inc., baker of Wonder Bread as well as Twinkies, Ding Dongs and Ho Ho’s, will be in a New York bankruptcy courtroom Monday to start the process of selling itself.
The company, weighed down by debt, management turmoil, rising labor costs and the changing tastes of America, decided on Friday that it no longer could make it through a conventional Chapter 11 bankruptcy restructuring. Instead, it’s asking the court for permission to sell assets and go out of business.
But with high brand recognition and $2.5 billion in revenue per year, other companies are interested in bidding for at least pieces of Hostess. Twinkies alone have brought in $68 million in revenue so far this year, which would look good to another snack-maker.
Hostess has said it’s received inquiries about buying parts of the company. But spokesman Lance Ignon would not comment on analysts’ reports that Thomasville, Ga.-based Flowers Foods Inc. and private equity food investment firm Metropoulos & Co. are likely suitors. Metropoulos owns Pabst Brewing Co., while Flowers Foods makes Nature’s Own bread, Tastykake treats and other baked goods. Messages were left for spokesmen for both companies on Sunday.
"We think there’s a lot of value in the brands, and we’ll certainly be trying to maximize value, both of the brands and the physical assets," Ignon said Sunday. He said it’s possible some of Hostess’ bakeries will never return to operation because the industry has too much bakery capacity.
Then last week thousands of members of the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union went on strike after rejecting the company’s latest contract offer. The bakers union represents about 30 percent of the company’s workforce.
By that time, the company had reached a contract agreement with its largest union, the International Brotherhood of Teamsters, which this week urged the bakery union to hold a secret ballot on whether to continue striking. Although many bakery workers decided to cross picket lines this week, Hostess said it wasn’t enough to keep operations at normal levels.
The company filed a motion to liquidate Friday. The shuttering means the loss of about 18,500 jobs. Hostess said employees at its 33 factories were sent home and operations suspended. Its roughly 500 bakery outlet stores will stay open for several days to sell remaining products.
News of the decision caused a run on Hostess snacks at many stores around the country, and the snacks started appearing on the Internet at inflated prices.
The REAL facts about why Hostess shut down.
Rush Limbaugh is blaming President Obama for the fact that Hostess could not come to an agreement with its striking employees and decided lay off 18,500 employees by closing the plant. In Limbaugh’s mind, Obama has Twinkie blood on his hands.
Transcript from Rush Limbaugh:
Rush Limbaugh: Look, here I’m already being asked, “Are you gonna talk about Hostess?” Yeah, I’m gonna talk about Hostess. You know what, 18,500 people gone, Hostess Twinkies, Ding Dongs, shut down. Some people might think it’s a buy opportunity if you want to get in the Ding Dong business. But folks, if you need an indication that the Democrats will never compromise on anything, look at this. Hostess is going out of business because of unions. Now, that’s 18,500 jobs. You would think in this economy that somebody might want to show the ability to compromise if only to fool people. They won’t even compromise on this.
Unions are the Democrat Party. Trumka is at the White House again today. Won’t even compromise to save 18,500 jobs. Are you kidding me? Obama couldn’t step in here even for the optics of it? I mean, yesterday he saved New York. Today he could save Ding Dongs. He could save Twinkies, except at the White House Michelle’s probably celebrating, ’cause this is just rotten, no good food to her. But, see, I think they wanted this, folks. I think they wanted Hostess bye-bye. And you know why? They wanted this to happen because this is just going to create more dependents on unions and the government. It’s just gonna create more dependents. So this is all fine with Barry.
I know nobody understands me. I’m doing this program with a whole different mind-set now. Snerdley’s in there panicking. I’m saying mind-set. As I do this program I’m imagining how I’m being heard by all these uneducated, ill-educated, maleducated young people, and it’s fun, and I’m sure that they’re throwing daggers at their radio because they just heard me criticize Obama on this Hostess thing. Anyway it’s a funny thing. It’s actually a build-out on some of the things that we were discussing yesterday about the battles that we face really being cultural as well as, if not more than, politics. Anyway, the Hostess thing is what it is. It’s gone. We knew it was coming. It just illustrates there’s no desire to compromise.
Limbaugh’s blaming of Obama and unions leaves out a couple of important facts.
Hostess is dead due to Bain style management that has decided to maximize their profits by liquidating the company. In short, the “job creators” decided to make more money for themselves by killing 18,500 jobs.
If President Obama would have intervened, Limbaugh would have called him a socialist who hates the free market. Since Obama didn’t intervene, he is a socialist who is trying to create more dependents on the federal government. Either way, Rush Limbaugh’s psycho interpretation of The Day The Twinkies Died is complete and utter nonsense.
Unions didn’t kill Hostess, people who believe in the Mitt Romney school of management killed Hostess. America’s so-called job creators will pocket additional millions while 18,500 workers will be out of a job. Those are facts that Rush Limbaugh and right wing media bubble cronies don’t want to discuss.
Today is a sad day for those that worked for Hostess Brands and for workers’ rights.
This morning, we have received tragic news that Hostess Brands will shut down, in retaliation for the striking workers standing up for their rights.
IRVING, Texas (AP) — Hostess Brands says it is going out of business, closing plants that make Twinkies and Wonder Bread and laying off all of its 18,500 workers.
The Irving, Texas, company says a nationwide worker strike crippled its ability to make and deliver its products at several locations.
Hostess had warned employees that it would file a motion in U.S. Bankruptcy Court to unwind its business and sell assets if plant operations didn’t return to normal levels by Thursday evening.
Workers at more than 20 Hostess plants have gone on strike after overwhelmingly rejecting the company’s demands for major wage and benefits concessions. In response, Hostess is claiming that it may have to close plants because of the strike. The Bakery, Confectionery, Tobacco Workers, and Grain Millers union has a convincing argumentThat’s a lie, though.
Of course, right-wing loons will blame this on the unions.