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Hostess Brands confirms investment firms' $410 million offer is lead bid for Twinkies...
http://www.dallasnews.com ^ | 30 Jan 2013 | Staff

Posted on 02/01/2013 1:33:48 PM PST by Red Badger

NEW YORK — Hostess has picked a lead bidder for its famous Twinkies.

The bankrupt Irving company said late Wednesday that it has selected a joint offer from two investment firms — C. Dean Metropoulos & Co. and Apollo Global Management LLC — as the lead bid for its Twinkies and other snack cakes.

Hostess says the two are offering to pay $410 million for the snack-cake business and five bakeries.

The "stalking horse" bid would set the floor for an auction process that lets competitors make better offers. A judge would have to approve any final sale.

After years of management turmoil and turnover, Hostess declared in November it was going out of business and selling its brands. The company already announced separate lead bidders for its other brands including Drake's cakes and Wonder bread.

The offer sets the stage for the return of Twinkies and other Hostess cakes to supermarket shelves under new management, which could mean stepped up marketing for the spongy yellow cakes with mysterious cream filling. Although supermarkets saw a run on Twinkies when news hit in November that Hostess was going out of business, the company's sales had been declining amid changing tastes and a lack of investment in marketing.

In bankruptcy proceedings, Hostess has stressed that it needs to move quickly in the sale of its brands to capitalize on the outpouring of nostalgia and media coverage prompted by its demise. The longer the cakes and breads are off shelves, the more people will become accustomed to eating cakes and breads by rivals, the company has said.

Still, Hostess cakes generated significant sales to the end. For its final year, Twinkies pulled in about $76.2 million, according to Hostess. Hostess Donuts brought in $384.6 million and CupCakes brought in $138.1 million.

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


TOPICS: Business/Economy; Culture/Society; US: Texas
KEYWORDS: dingdongs; hohos; hostess; twinkies; wonderbread

1 posted on 02/01/2013 1:33:56 PM PST by Red Badger
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To: Red Badger; SunkenCiv

Not a big fan of Twinkies but I love their cupcakes. Fortunately they’re still available in Canada, made under licence by Saputo in Montréal.

BTW given their shelf life this may be a good topic for SunkenCiv ;)


2 posted on 02/01/2013 1:39:56 PM PST by Squawk 8888 (True North- Strong Leader, Strong Dollar, Strong and Free!)
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To: Squawk 8888

Cupcakes - so jealous. Also, I need a cherry pie.


3 posted on 02/01/2013 1:42:16 PM PST by donna (Pray for revival.)
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To: Red Badger
Twinkies are OK but I've always been a fan of the chocolate cupcakes.Now that they're gone I miss them terribly.I really hope they return.
4 posted on 02/01/2013 1:42:55 PM PST by Gay State Conservative ("Progressives" toss the word "racist" around like chimps toss their feces)
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To: Squawk 8888

None can replace Tastykake.


5 posted on 02/01/2013 1:46:44 PM PST by boomop1 (term limits will only save this country.)
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To: donna
Also, I need a cherry pie.

I was a huge fan of the cherry pies way back when.But on doctor's orders I gave up things like that for a long time.Then,in a moment of weakness,I bought a couple a year or so ago.The quality had plummeted.....didn't enjoy the "new" ones at all.

6 posted on 02/01/2013 1:47:18 PM PST by Gay State Conservative ("Progressives" toss the word "racist" around like chimps toss their feces)
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To: Gay State Conservative; Squawk 8888

http://www.browneyedbaker.com/2013/01/17/homemade-hostess-cupcakes/


7 posted on 02/01/2013 1:53:59 PM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: Gay State Conservative

You know, I think I agree with you. It’s kind of like Kraft Macaroni and Cheese - it’s an emotional attachment, LOL.


8 posted on 02/01/2013 1:56:36 PM PST by donna (Pray for revival.)
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To: Red Badger
What will happen to the "Twinkie Speculators", those who paid insane prices on the net for "the last Twinkies"? I heard Twinkies were bringing $20 for a three-pack and $100 for an unopened 12-pack (the local convenience store pulled all of their stock and sold it on the net).

Wonder what they're worth now? I expect the price to crash when word gets out they're back in production (maybe it has already).

9 posted on 02/01/2013 1:58:34 PM PST by ZOOKER ( Exploring the fine line between cynicism and outright depression)
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To: ZOOKER

They will go the way of Beanie-Babies............


10 posted on 02/01/2013 2:01:37 PM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: Red Badger

Twinkies I can do without. Hostess Fruit Pies on the othe rhand, especially the Lemon ones, totally rocked!


11 posted on 02/01/2013 2:03:34 PM PST by AzSteven ("War is less costly than servitude, the choice is always between Verdun and Dachau." Jean Dutourd)
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To: boomop1

From thr link:

Hostess Brands Inc. has been filing the bids for its brands in stages. Flowers Foods Inc., which makes Tastykakes and a variety of breads, was picked as the lead bidder for six of Hostess’ major bread brands, including Wonder.


12 posted on 02/01/2013 2:03:58 PM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: AzSteven

http://www.circle-b-kitchen.com/food-and-recipes/2012/11/18/my-homage-to-hostess-and-some-little-fruit-pies.html


13 posted on 02/01/2013 2:07:35 PM PST by Red Badger (Lincoln freed the slaves. Obama just got them ALL back......................)
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To: Red Badger

It’s a win-win for whatever buyout gets the Hostess brand.

A MASSIVE amount of their revenues come from government assistance: EBT “Snap” cards and other food programs, that continue to expand by billions of $$$$ under the Obama regime.


14 posted on 02/01/2013 2:13:41 PM PST by wolficatZ (Hey blue states....Got Food?)
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To: ZOOKER

“... wonder what they’re worth now?”

For kicks and grins, I checked out Ebay. An unopened box goes from $9 to $20.


15 posted on 02/01/2013 2:15:18 PM PST by momtothree
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To: ZOOKER

I cleaned out my local grocery store - got my Twinkies dirt cheap, too.

Also got sick of the space they were taking up at the house, so Twinkies were shipped out with family Christmas gifts.

It was the surprise hit gift of the season


16 posted on 02/01/2013 2:18:10 PM PST by LadyBuck (Illegal aliens are like sperm. Millions get in but only one works....)
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To: Red Badger

I love the soft texture of Wonder Bread. Almost all the white breads are now whole grain and are as hard as a rock. Ok maybe not quite as hard as a rock but it is like eating stale bread.


17 posted on 02/01/2013 2:41:06 PM PST by heylady (“Sometimes I wish I could be a Democrat and then I remember I have a soul.”( Deb))
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To: Red Badger; All

Be real interesting to see what happens with the two unions, the idiots that caused this in the first place. The contracts are still in effect, I believe...but there is no way that any new buyer would touch this without first renegotiating the contracts..


18 posted on 02/01/2013 2:45:42 PM PST by ken5050 ("One useless man is a shame, two are a law firm, three or more are a Congress".. John Adams)
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To: Squawk 8888

Snowballs MMMMMMMMMMMMMM.


19 posted on 02/01/2013 3:20:21 PM PST by traderrob6
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To: ken5050
Be real interesting to see what happens with the two unions, the idiots that caused this in the first place. The contracts are still in effect, I believe...but there is no way that any new buyer would touch this without first renegotiating the contracts..

The contracts are with Hostess, the corporation. The buyers aren't buying the corporation, they're buying the assets (trademarks, recipes, etc.). So the buyer will not be subject to the union contracts.

20 posted on 02/01/2013 3:22:03 PM PST by Lurking Libertarian (Non sub homine, sed sub Deo et lege)
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To: Lurking Libertarian

Are you sure? The NLRB is still sitting


21 posted on 02/01/2013 3:36:10 PM PST by ken5050 ("One useless man is a shame, two are a law firm, three or more are a Congress".. John Adams)
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To: ZOOKER

I should’ve run a truckload across the border when I had the chance- they never stopped production in Canada.


22 posted on 02/01/2013 3:36:59 PM PST by Squawk 8888 (True North- Strong Leader, Strong Dollar, Strong and Free!)
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To: momtothree

I should open an ebay store then- the retail price here is $3-$3.50, and as a bonus they’re fresh.


23 posted on 02/01/2013 3:41:21 PM PST by Squawk 8888 (True North- Strong Leader, Strong Dollar, Strong and Free!)
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To: heylady

Any chance you’d try baking your own bread? Its not all the difficult and it’s way better than store bought.


24 posted on 02/01/2013 4:11:29 PM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: heylady

Should add that we started with a bread machine and expanded after we became experienced.


25 posted on 02/01/2013 4:13:16 PM PST by Caipirabob (Communists... Socialists... Democrats...Traitors... Who can tell the difference?)
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To: Caipirabob

When the kids were growing up, before bread machines were popular, we would make our own bread but we still bought Wonder bread for sandwiches.


26 posted on 02/01/2013 4:49:37 PM PST by heylady (“Sometimes I wish I could be a Democrat and then I remember I have a soul.”( Deb))
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To: wolficatZ
I work in an inner city region for a competitor snack food company. You would be amazed at the extent Cheetos, Little Debbie cakes, hot fries, Doritos, etc. serve as food staples for EBT recipients. Little wonder why American “poor” are the fattest people in the world.
27 posted on 02/01/2013 5:09:30 PM PST by Tail Gunner John
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To: Red Badger
"After years of management turmoil and turnover"

I see.. so it was MANAGEMENT that killed the company, not those union goons who refused to accept a reasonable offer.

28 posted on 02/01/2013 6:00:49 PM PST by Mr. K (There are lies, damned lies, statistics, and democrat talking points.)
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To: Squawk 8888

Sorry, but GGG only pertains to the historical legacies of cultures. ;’)


29 posted on 02/01/2013 6:41:20 PM PST by SunkenCiv (Romney would have been worse, if you're a dumb ass.)
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To: Tail Gunner John
Little wonder why American “poor” are the fattest people in the world.

That's why America had to re-elect Baraq. 4 years wasn't enough for MooseChelle to work her magic and transform them into specimens with "fabulously toned arms".

30 posted on 02/01/2013 6:50:01 PM PST by nascarnation (Baraq's economic policy: trickle up poverty)
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To: Red Badger

Might be a bad investment based on all the hoopla surrounding the situation. Any idea of how many Twinkies were being sold on an annual basis? More of a nostalgia item for those of us born in the ‘50s-’60s. Of course, if I was a business genius I wouldn’t have so many concerns about finances as things fall apart around us.


31 posted on 02/02/2013 3:51:52 AM PST by trebb (Allies no longer trust us. Enemies no longer fear us.)
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