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post #1 of 26 Old Nov 16th, 2012, 9:32 pm Thread Starter
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Hostess - Take II

Geez Louise, the door got closed on that discussion pretty darn quickly. Not even a warning. So, let's try this again.

Speaking strictly on the merits and benefits - or lack thereof - of the typical Hostess products, which one is your favorite, and why?

In recognition of the closing down of Hostess' facilities, I had a Suzy Q this evening.


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post #2 of 26 Old Nov 16th, 2012, 9:35 pm
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Re: Hostess - Take II

I tried to find a twinkie at the gas station today and there were NONE...

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post #3 of 26 Old Nov 16th, 2012, 9:40 pm Thread Starter
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Re: Hostess - Take II

Quote:
Originally Posted by tvguy
I tried to find a twinkie at the gas station today and there were NONE...
Our local Wal-Mart had a "run" on Twinkies today. Seriously? Apparently some people consider these products "staples" like milk, bottled water, and toilet paper.


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post #4 of 26 Old Nov 16th, 2012, 11:04 pm
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Re: Hostess - Take II

Definitely making a run for Ding Dongs tomorrow


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post #5 of 26 Old Nov 16th, 2012, 11:52 pm
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Re: Hostess - Take II

How an you choose just one?

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post #6 of 26 Old Nov 17th, 2012, 12:43 am
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Re: Hostess - Take II

Americans will be healthier and slimmer for it ..... Yup JUNK food we can all live without.

Sucks tho losing more manufacturing and jobs tho

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post #7 of 26 Old Nov 17th, 2012, 4:13 am
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Re: Hostess - Take II

Quote:
Originally Posted by motorhead
Americans will be healthier and slimmer for it ..... Yup JUNK food we can all live without.

Sucks tho losing more manufacturing and jobs tho
+1

There's a Hostess outlet just down the road from me. I haven't been in there in years . . .

While sad, especially the losing jobs part, this unfortunately isn't at all surprising. It seems that years of mismanagement and fighting through the bankruptcy courts, then pulling out of it only to go right back into Chapter 11 has finally caught up with them.

It's sad when thousands of folks lose their jobs, but the blame is pretty clear here . . .

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post #8 of 26 Old Nov 17th, 2012, 6:34 am
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Re: Hostess - Take II

Dang No more Ho Ho's for me.

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post #9 of 26 Old Nov 17th, 2012, 7:09 am
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Re: Hostess - Take II

Not to worry China is ramping up production and Walmart will be fully stocked next week

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post #10 of 26 Old Nov 17th, 2012, 7:32 am
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Re: Hostess - Take II

Quote:
Originally Posted by gerhard
Not to worry China is ramping up production and Walmart will be fully stocked next week

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Reason 1,000,000,485 of why I loathe China-Mart!

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post #11 of 26 Old Nov 17th, 2012, 7:46 am
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Re: Hostess - Take II

Quote:
Originally Posted by Gruivis
Definitely making a run for Ding Dongs tomorrow

+1 on the Ding Dongs. The cupcakes were pretty good and very similar, but the ding dongs had more of that chocolate covering.

I suppose I should have my wife try to round some up and ship them to me, so I can properly mourn another passing of an American icon, while congratulating our labor unions....I'd better pipe up.

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post #12 of 26 Old Nov 17th, 2012, 8:05 am
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Re: Hostess - Take II

Quote:
Originally Posted by gerhard
Not to worry China is ramping up production and Walmart will be fully stocked next week

Gerhard
........'that ought to supplement our craving for lead paint; plastic; grease; and common neutered parts'..................



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post #13 of 26 Old Nov 17th, 2012, 9:10 am
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Re: Hostess - Take II

Quote:
Originally Posted by pkpr1998
Reason 1,000,000,485 of why I loathe China-Mart!

Better embrace the new world order. One day we will see a BMW made in China......pink snowball was my favorite.
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post #14 of 26 Old Nov 17th, 2012, 10:00 am
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Re: Hostess - Take II

Gotta give a shout out to Zingers (chocolate). All Sacramento area stores are pretty much sold out of Hostess. You can get products on eBay now!

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post #15 of 26 Old Nov 17th, 2012, 10:03 am
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Re: Hostess - Take II

I will stay on topic and not go sideways with comments about the ChiComs and... oh dear...


I like the nice pink, perfectly mounded, sno balls for obvious and prurient reasons.

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post #16 of 26 Old Nov 17th, 2012, 10:11 am
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Re: Hostess - Take II

The union contracts were ridiculous. Management should have never agreed to them in the first place. The trucks hauling bread couldn't haul any other hostess product & the dumbness just went on & on. I hope the judge lets them shut down.

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post #17 of 26 Old Nov 17th, 2012, 11:04 am
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Re: Hostess - Take II

Hostess's parent company spent 2004-2009 in and out of bankruptcy court, and has been preparing for this Chapter 11 filing for almost a year now. In fact, they started 2012 $860 million in debt and with no idea how to dig their way out of that giant hole.

They screwed up long before the latest union negotiations.

It's simply poor management of a well-known brand that hasn't kept up with the times and thus has been pinched between rising materials and labor costs and declining sales.

Sad, but it happens, and now everyone will be pointing fingers based on their own particular political biases.

Maybe they need a government bailout, since we can't possibly bear to lose such iconic American tradition . . .

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All lower 48 states plus Alaska on the K13GT in two weeks . . .

Some people see the gas tank as half empty. Some see it as half full. All I care is that I know where the next tankful is coming from...
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post #18 of 26 Old Nov 17th, 2012, 12:06 pm
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Re: Hostess - Take II

Quote:
Originally Posted by meese
...They screwed up long before the latest union negotiations.

It's simply poor management of a well-known brand that hasn't kept up with the times and thus has been pinched between rising materials and labor costs and declining sales.

Sad, but it happens, and now everyone will be pointing fingers based on their own particular political biases.

Maybe they need a government bailout, since we can't possibly bear to lose such iconic American tradition . . .
I'm going to leave most of this alone, but what I heard was there were two unions involved- the Teamsters and another one representing the bakers. Supposedly, the Teamsters were willing to go along w/ management's latest off/negotiations/whatever, but the bakers' union wouldn't agree, so supposedly, that's the proverbial straw that broke the camel's back.

I hope you're suggestion for a bailout is tongue in cheek. Our country has bailed out way too many already, when they should have been allowed to fall, thereby sending a strong message to businesses they need to keep their houses in order. whoever started bailing out corporations in a free-market society opened Pandora's box.

Now, what's more plausible and maybe palatable is a Mexican company buying up the assets and continuing the Hostess brands. Mrs. Baird's bread/bakery was sold off to a Mexican company. I wonder if the Mexican bakers are union?

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post #19 of 26 Old Nov 17th, 2012, 1:37 pm
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Re: Hostess - Take II

Yeah, I should've added a smiley face there.

The union negotiations may well have been the last straw, but the mismanagement and money problems go back for more than a decade.

Sad to see anyone fail that badly, but capitalism does tend to be self-regulating, if we leave it alone . . .

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All lower 48 states plus Alaska on the K13GT in two weeks . . .

Some people see the gas tank as half empty. Some see it as half full. All I care is that I know where the next tankful is coming from...
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post #20 of 26 Old Nov 17th, 2012, 2:24 pm
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Re: Hostess - Take II

OK, just the facts. From Hostess Brands website and to a link reference on this site
Click here!

I have access to a subscription service. This the info I found.

The info there is that they have $2.5 Billion in annual sales
1-Year Employee Growth -9.76%
1-Year Sales Growth -2.34%



Founded in Kansas City, Missouri, in 1930 by Ralph Leroy Nafziger, Interstate Bakeries merged in 1937 with its local rival, Schulze Baking, beginning a strategy of growth through acquisitions and mergers. It acquired Supreme Baking of Los Angeles in 1943 and added O'Rourke Baking, of Buffalo, New York, to its operations in 1950.

The company entered the cake business in 1954 with the purchases of the Ambrosia Cake, Remar Baking, and Butter Cream Baking companies. It added more layers when it acquired Campbell-Sell Baking (1958) and the Kingston Cake Bakery (1959). In 1968 Interstate Bakeries purchased the Millbrook bread division of Nabisco.

The company itself became the object of an acquisition in 1975. DPF, of Hartsdale, New York, an IBM computer-leasing venture that had recorded a $43 million loss over four years, was seeking a low-risk, low-tech acquisition. As the nation's third-largest wholesale baker, Interstate fit the bill. The company attempted to block the sale, but DPF prevailed. It spun off its computer business in 1981 and took the Interstate Bakeries name.

Despite efforts to improve plant efficiency, the company recorded declining profits and was saddled with debt. In 1984, in hopes of turning the company around, the firm paid banks $36 million in outstanding loans from an over-funded $37 million pension fund.

Interstate Bakeries was taken private in 1987 through an LBO by a group of the company's managers. The company acquired American Bakeries' Merita/Cotton's Bakeries division that year, and Merita president Charles Sullivan was named CEO. The company again went public in 1991. Sullivan decentralized operations, and in 1995 Interstate Bakeries acquired its biggest rival, Ralston Purina's ailing Continental Baking, for $510 million.

In 1995 Interstate Bakeries put itself on the baking map with the purchase of rival Continental Baking (then maker of the popular Wonder and Hostess brands). New baking-enzyme technology made it possible for the company to leave its bread on grocery store shelves longer, cutting down on delivery stops and returns of unsold loaves -- all of which caused its bottom line to rise.

Continental was founded as the Ward Baking Co. in New York City in 1849. In 1921 William Ward, grandson of the company's founder, formed United Bakeries, which was renamed Continental Baking in 1924. By 1925, the year Continental bought Taggart Baking (maker of Wonder bread), it had become the US's largest bakery. Continental was sold to hotel and defense conglomerate ITT in 1968. The health-conscious 1970s were hard on Continental, maker of Hostess cupcakes and Twinkies, and in 1984 ITT sold Continental to Ralston Purina, which created a new class of stock in 1993 for separate trading of the company.

To comply with a US Justice Department order related to the Continental acquisition, in 1997 the company sold its Chicago Butternut Bakery and its Webers brand. That year it bought San Francisco French Bread, a maker of sourdough French bread (Parisian, Colombo, Toscana), from Specialty Foods and the Marie Callender's brand of croutons from International Commissary.

In 1998 firm bought New England-based John J. Nissen Baking, and Drake's (Ring Dings, Yodels), from Canada's Culinar. In 1999 it tried to buy the rest of Culinar, which owns the Canadian trademark for Hostess, but was outbid by Saputo Group.

A San Francisco jury ordered the company in 2000 to pay $132 million to 19 black employees who charged racial discrimination, but the trial judge reduced the damages to $27 million. In 2000-01 the company shut down several older bakeries and opened new plants in Virginia and Washington.

In 2004 (the same year it filed for bankruptcy) the company ended its alliance with Pepperidge Farm (a unit of Campbell Soup) which allowed it to distribute Pepperidge Farm brands in Arizona, Idaho, Montana, North Dakota, Utah, and Wyoming.

Struggling due to a government investigation of its workers' compensation reserves and trouble with a newly installed financial data system, the company twice delayed filing its 2004 10-K. Later that year the company hired Alvarez & Marsal, a crisis-management and turnaround firm and subsequently filed for bankruptcy. Also, chairman and CEO James Elsesser resigned at that time. Tony Alverez was named interim CEO and John Suckow was brought on board as chief restructuring officer. (Alvarez and Suckow were also officers of the turnaround management firm, Alvarez & Marsal.) Leo Benatar was named chairman.

In late 2004 the firm received bankruptcy court permission to use the $200 million in financing it obtained from JP Morgan Chase to reorganize. It used the money to pay salaries and supply costs. In January 2005 the SEC began a formal investigation with regard to how workers' compensation and other reserves were set. That April the company announced the closure of its Miami bakery and the consolidation of operations in Florida and Georgia as demand for its products continued to decline.

Still posting losses, the company was granted filing extension by the bankruptcy court in January 2007. With the approval of the bankruptcy court, it hired a permanent CEO, Craig Jung. Jung previously served as CEO of Panamerican Beverages. (He led the 2003 sale of Panamco, Panamerican's successor.) He was also the founding COO of Pepsi Bottling Group and helped take it public in 1999.

Interstate Bakeries exited bankruptcy in February 2009 with a restructuring plan backed by the New York investment firm Ripplewood Holdings and lenders, including Silver Point Capital. Shortly after emerging from bankruptcy, the company moved its corporate headquarters from Kansas City, Missouri (where it was founded some 80 years ago), to Irving, Texas (near Dallas). It also changed its name to Hostess Brands, to leverage the company's iconic brand. In 2010, Brian Driscoll was named CEO, succeeding Jung.

On January 11, 2012 Hostess Brands filed for Chapter 11 bankruptcy protection.

Interesting post script from their site:

Hostess Brands is unprofitable under its current cost structure, much of which is determined by union wages and pension costs. The offer to the BCTGM included wage, benefit and work rule concessions but also gave Hostess Brandsí 12 unions a 25 percent ownership stake in the company, representation on its Board of Directors and $100 million in reorganized Hostess Brandsí debt.

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post #21 of 26 Old Nov 17th, 2012, 2:48 pm
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Re: Hostess - Take II




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post #22 of 26 Old Nov 17th, 2012, 3:40 pm
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Re: Hostess - Take II

Those Hostess fruit pies are KILLER. In more ways than one.
Archie Bunker loved Twinkies.

Just Go
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post #23 of 26 Old Nov 17th, 2012, 5:00 pm
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Re: Hostess - Take II

I think this is my favorite line:

"The company entered the cake business in 1954 . . . It added more layers . . . "

Ken
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All lower 48 states plus Alaska on the K13GT in two weeks . . .

Some people see the gas tank as half empty. Some see it as half full. All I care is that I know where the next tankful is coming from...
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post #24 of 26 Old Nov 17th, 2012, 9:59 pm
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Re: Hostess - Take II

I think John mentioned the fruit pies. I was never a big fan of the Hostess brand, but it seems they had a chocolate one that was yummy. I loved the Mrs. Braid's cherry pies. these and a Dr. Pepper was the bomb.

Jeff
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post #25 of 26 Old Nov 18th, 2012, 10:59 am
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Re: Hostess - Take II

The China comment was kind of tongue in cheek though not entirely. Were I live we had a canning plant owned by Kraft, they canned sweet corn and peas made baking soda and soup in the off season, they had a sister plant in the Niagara region that canned peaches. Both plants were sold to some international holding company and they operated the plants for two years then closed them. The brands are still on the shelves of grocery stores but products are sourced from China, South Africa, Greece...........

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post #26 of 26 Old Nov 18th, 2012, 2:57 pm Thread Starter
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Re: Hostess - Take II

Quote:
Originally Posted by meese
(snipped)... Maybe they need a government bailout, since we can't possibly bear to lose such iconic American tradition . . .
If there is a government bailout, I hope they come up with something that has the acronym of "LARD". That would seem appropriate.
Veering back to the topic, I spied another Suzy Q on the kitchen counter (Mrs. hschisler apparently bought 2 of them a couple of days ago, and I already ate one of them). This survivor may be on the menu sometime soon.

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