Flowers Foods To Buy Some Hostess Brands
Flowers Foods Inc said it has agreed to buy Wonder and other bread brands from Hostess Brands Inc for $390 million, as part Hostess’ bankruptcy distribution. The Georgia-based company said it would buy Wonder, Butternut, Home Pride, Merita and Nature’s Pride brands, as well several bakeries and depots.
Some of us are glad this doesn’t affect Arnold/Orowheat, makers of some amazing bread varieties. Try a peanut butter and jelly with their potato bread and see if you don’t instantly love it.
There was also a second contract where it agreed to acquire the Beefsteak brand.
Hostess’ chief executive Gregory Rayburn said the Missouri-based company remains in talks to sell its snack cake business, including Twinkies and Drake’s cakes. Flowers already owns brands such as Cobblestone Mill, Nature’s Own and Tastykake, says the Chicago Tribune.
Hostess will request the auction happen on February 28, with a hearing to authorize a sale on March 5. With the winning bid, Flowers beat out Grupo Bimbo SAB de CV, owners of Entenmann’s, Sara Lee and Thomas’.
In November, Hostess decided to liquidate after a strike by its baker’s union crippled the 82-year-old company. Their greed had apparently led to their downfall as corporate decisions called for massive raises among the higher-ups while the union ended up with pay cuts.
According to NBC News, Walmart Stores Inc and Kroger Co could still end up buying other brands, including the famous Twinkies and HoHos, according to media reports.
I’m hoping for Kroger, as their store brands have always focused on quality. Walmart usually cuts many corners money-wise and you instantly know why they charge less. They occasionally get it right, but not very often.
One thing is for sure. If you want Hostess brand name products, you’ll probably need to look on eBay and hope you can afford the “Buy it now” option.