Twinkies may live to see another day, thanks to Mexican company
November 19, 2012
The infamous Twinkie, which has long been considered indestructible, may actually be able to live up to its reputation. According to NBC News, last Friday Hostess announced it would stop making its products, now, a Mexican company is considering coming in to save the day.
Hostess had to stop making their sweets such as Twinkies, Devil Dogs and Ho Hos due to the Bakers Union Strike. As the brand is on its way towards liquidating and selling off its assets, a Mexican company, Grupo Bimbo, is trying to make its way into the fold. They are not the only ones in the running, as ConAgra and Flowers Food, which is the American company that produces Nature Valley granola, and McKee Foods, the maker of Little Debbie, are also interested in the brand, according to the news source.
Grupo Bimbo is the largest bread baking firm in the world, and it already owns some of Sara Lee, Entenmann's and Thomas English Muffins. This isn't the first time the brand has tried to get its hands on Hostess - Grupo Bimbo made an offer to buy the company a few years back, though its $850 million offer was deemed a lowball figure, the media outlet reports.
According to Forbes, Daniel Servitje Montull runs Grupo Bimbo, which has been in his family since 1954. He assumed control of the company in 1997, and set it up for continue growth over the years. He and his family are believed to be worth more than $4 billion.
Even though they are making moves to save the brand, there are still the problems that put Hostess into the situation. High sugar prices tied with U.S. trade tariffs were a part of Hostess's downfall, but it is believed that the Mexican group will be able to pull through. This is most evident due to the lack of union shops in which they will be made in, according to The Christian Monitor.
"It may well be that other US producers step into the void and expand their US production, in which case the Hostess liquidation might not be a total loss," Chris Edwards, an economist with the conservative Cato Institute, told the news source.