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Report: Walmart, Kroger among bidders for Hostess brands
WLS-AM ^ | December 14, 2012

Posted on 12/14/2012 11:50:28 AM PST by 2ndDivisionVet

Who's looking to snatch up Hostess Brands following the company's plans to liquidate? According to Bloomberg, Walmart and Kroger are among the two dozen bidders interested in the maker of Twinkies, Ho Hos and Wonder Bread.

Citing a person familiar with the matter, Bloomberg reports the two companies, along with Grupo Bimbo and Alpha Baking, have placed bids on Hostess' assets.

The source says some of the bids are for all of the assets, while others are just for the cakes or breads businesses. Some bidders, meanwhile, are only seeking to acquire Hostess' plants.

Should the liquidation sale go through, it could generate $1 billion for Hostess' creditors.

The company decided to move forward with its liquidation plans last month after it failed to reach a new labor agreement with its bakery workers.

The bakers union went on strike on Nov. 9, when the company imposed a contract that would cut workers' wages by 8 percent. The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) said the contract would also cut benefits by 27 to 32 percent.

Days later, Hostess announced it would be liquidating the entire company because not enough striking employees had returned to work by a deadline the company had set.

"We deeply regret the necessity of today's decision, but we do not have the financial resources to weather an extended nationwide strike," Hostess CEO Gregory Rayburn said in a statement...

(Excerpt) Read more at wlsam.com ...


TOPICS: Business/Economy; Food
KEYWORDS: food; hostess; kroger; unions; walmart

1 posted on 12/14/2012 11:50:34 AM PST by 2ndDivisionVet
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To: 2ndDivisionVet

Interesting. Kroger is a unionized company and Walmart is very anti-union.


2 posted on 12/14/2012 11:54:47 AM PST by BBell (And Now for Something Completely Different)
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To: BBell

“Interesting. Kroger is a unionized company and Walmart is very anti-union.”

Problem is Walmart will make their products in China. Twinkies last forever so they will easily make the trip overseas.


3 posted on 12/14/2012 12:01:19 PM PST by EQAndyBuzz (You cant bring something to its knees that refuses to stand on its own)
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To: BBell

All all Kroger stores Union? For some reason I thought some were non-Union.


4 posted on 12/14/2012 12:03:08 PM PST by matt04
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To: matt04

According to the UFCW Kroger has 338,000 employees of which about 208,000 were UFCW members. These numbers are from 2010 so they may vary.


5 posted on 12/14/2012 12:19:09 PM PST by BBell (And Now for Something Completely Different)
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To: 2ndDivisionVet

You may have heard that Hostess Bakery plants shut down due to a workers’ strike. But you may not have heard how It was split up. The State Department hired all the Twinkies, the Secret Service hired all the HoHos, the generals are sleeping with the Cupcakes and the voters sent all the Ding Dongs to Congress.


6 posted on 12/14/2012 12:28:29 PM PST by SkyDancer (Live your life in such a way that the Westboro church will want to picket your funeral.)
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To: 2ndDivisionVet

Walmart suddenly has an interest in owning once-famous brands. White Cloud toilet paper is now a captive Walmart brand.


7 posted on 12/14/2012 1:42:29 PM PST by Buckeye McFrog
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To: BBell

Interesting. Kroger is a unionized company and Walmart is very anti-union.
*******************************************
Whoever wins will produce the cakes in Mexico , Grupo Bimbo does ... and it’s for one very simple reason ,, we tax the living sh*t out of sugar here ... it’s far cheaper to bake in Mexico and ship it here.


8 posted on 12/14/2012 2:42:02 PM PST by Neidermeyer
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To: Neidermeyer
Whoever wins will produce the cakes in Mexico , Grupo Bimbo does ... and it’s for one very simple reason ,, we tax the living sh*t out of sugar here ... it’s far cheaper to bake in Mexico and ship it here.

That is not entirely correct. Grupo Bimbo has a bakery in Elkhart, IN. I imagine they have bakeries all over this country. In Elkhart they make Thomas English muffins.

9 posted on 12/14/2012 3:10:12 PM PST by BBell (And Now for Something Completely Different)
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To: Neidermeyer

BTW, I thought you were killed in Vietnam by your own troops?


10 posted on 12/14/2012 3:13:09 PM PST by BBell (And Now for Something Completely Different)
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To: BBell

I guess it’s not still true but years ago, Kroger was the “union” grocery and Foodland (owned by the same parent company) was the “non-union” grocery.


11 posted on 12/14/2012 3:56:21 PM PST by scrabblehack
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To: 2ndDivisionVet

Well somebody better do something! These “Tastykakes” are awful, and don’t get me started on Dolly Madison.

I want them to bring back the vanilla pudding pie too.


12 posted on 12/14/2012 4:46:15 PM PST by LifeComesFirst (http://rw-rebirth.blogspot.com/)
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To: Neidermeyer
Whoever wins will produce the cakes in Mexico , Grupo Bimbo does ... and it’s for one very simple reason ,, we tax the living sh*t out of sugar here ... it’s far cheaper to bake in Mexico and ship it here.

Thank you! It's not enough to say that we tax sugar here. We have a tariff on sugar and the amount we are allowed to import is limited.

I welcome all the protectionists on FR to explain to me what benefits have accrued to us as a nation from this policy.

13 posted on 12/14/2012 4:59:20 PM PST by BfloGuy (Workers and consumers are, of course, identical.)
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To: SkyDancer

Very good.


14 posted on 12/14/2012 7:26:48 PM PST by OldPossum
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To: OldPossum

Yeah, kinda cute I thought.


15 posted on 12/14/2012 7:29:00 PM PST by SkyDancer (Live your life in such a way that the Westboro church will want to picket your funeral.)
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To: BBell

Grupo Bimbo has a bakery in Elkhart, IN. I imagine they have bakeries all over this country. In Elkhart they make Thomas English muffins.
***************************************
I don’t believe English Muffins contain much sugar... I buy Bimbo’s premium “Little Bites” muffins sold under the Entenmanns name , they are made in Mexico by “Orograin Bakery Products, Inc.” as are many other sweet products that are packaged and have a fairly long shelf life , “normal” breads would be baked locally or regionally.


16 posted on 12/14/2012 9:56:18 PM PST by Neidermeyer
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To: BfloGuy

I welcome all the protectionists on FR to explain to me what benefits have accrued to us as a nation from this policy.
*********************************************
You know the answer , it gives politicians more power... It used to buy some campaign donations from the sugar plantations in Miami until the EPA shut them down ,, The corn farmers don’t really care anymore about the sugar tariff .. it used to make them wealthy by keeping the HFCS prices up ,, now with another gov’t program aimed at buying corn farmer votes in place (ethanol) it does absolutely nothing but harm about 350 million of us.


17 posted on 12/14/2012 10:02:30 PM PST by Neidermeyer
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To: Neidermeyer

What you said makes sense to me. BTW I read somewhere else, I don’t remember where, that because Grupo Bimbo is a Mexican owned company they can use their own sugar in this country, avoiding the high cost of sugar here. If this is true I do not know.


18 posted on 12/15/2012 9:25:23 AM PST by BBell (And Now for Something Completely Different)
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To: 2ndDivisionVet
Con Agra and Flowers Foods are among the companies that have expressed interest in Hostess, but Mexican company El Grupo Bimbo may have an edge, the Christian Science Monitor reported Saturday. Grupo Bimbo, headed by Mexican billionaire Daniel Servitje Montull, is the largest bread-baking company in the world.

For when you absolutely, positively just have to have a bimbo ... and nothing else will do ...

19 posted on 12/15/2012 9:29:51 AM PST by x
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To: 2ndDivisionVet
"The Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM) "

I'm close to someone who works with unionized tobacco workers and others who raise tobacco.

The Union workers have a high percentage of lazy, milking the benefits to the bone slugs who would quit after the first day if they had to do tobacco farm work.

20 posted on 12/15/2012 10:00:56 AM PST by Rebelbase
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To: Neidermeyer
You know the answer , it gives politicians more power...

Yep.

21 posted on 12/15/2012 3:02:03 PM PST by BfloGuy (Workers and consumers are, of course, identical.)
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To: BBell

Kroger is not union in Mississippi


22 posted on 12/15/2012 7:24:35 PM PST by Sybeck1 (Exodus 20:17)
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