Save The Twinkie

 Hostess In Trouble By Scott Jarrel and Michael Joos

Bankruptcy  Hostess filed for bankruptcy with $1.4 billion in debt  $500 million in Assets, $1 Billion in Liabilities  Also filed for bankruptcy in 2009  Filed for a Chapter 11  19,000 employees & 12 different Unions

Marketing Efforts  Founded in 1930  Twinkie, Snowballs, Ding Dongs, Donettes,Mini Muffins, Fruit Pies, Zingers, Suzy Q’s, Cupcakes, and 100 Calorie packs  Started with Twinkie the Kid Started with Twinkie the Kid  “Where’s The Cream Filling” commercialsWhere’s The Cream Filling  Sold 36 million Twinkies in 2011, down 2% from 2010  Extended Shelf Life

Hostess Hurtles  Consumer Health Trend  Consumers favor healthy foods over Hostess products  Rising Labor and material costs  High Union Demands (pension/medical benefits)  Outdated business model (unnecessary costs)  No Interested Buyers of the company (Hershey, Pepperidge Farm, and private equity companies)

How Big can Hostess Make You?  Current Customers Current Customers

Questions  Do you think that Hostess is too big to fail and needs a government intervention?  Do you think it’s morally wrong for hostess to target children?  If Hostess changed their product offering to healthier foods would they be successful?

Sources  Press, Associated. "Twinkies Maker Hostess Seeks Bankruptcy Protection - WSJ.com." Business News & Financial News - The Wall Street Journal - Wsj.com. The Wall Street Journal, 12 Jan Web. 04 Feb  "Products." Hostess Snack Cakes. Hostess Company. Web. 04 Feb  Protess, Ben. "Hostess, Maker of Twinkies, Files for Bankruptcy - NYTimes.com." Mergers, Acquisitions, Venture Capital, Hedge Funds - DealBook - NYTimes.com. NY Times, 11 Jan Web. 04 Feb <