Hostess is bringing back the Twinkies brand starting on July 15, 2013.
Hostess went bankrupt last year after fighting with unionized workers over their rate of pay and other compensation. The company was eventually picked up by new owners, and the company’s expenses were cut thanks to a much leaner structure.
When it was announced that Twinkies were being pulled from store shelves, many longtime customers threw a fit, demanding that the nostalgic sponge cakes with cream filling remain in circulation.
Hostess filed for Chapter 11 bankruptcy reorganization in early 2012, and employees at the time blamed years of mismanagement for the demise of the company. The company’s top brass argued that higher pension and medical costs at the hands of unionized workers caused the company to lose in a market full of leaner competitors.
After millions of messages were left in defense of the Twinkie and other Hostess products via social networks including Facebook and Twitter, the company decided to bring back some old favorites. Aside from Twinkies, the Hostess team will bring back CupCakes, Donettes, and others.
Hostess has now fired 15,000 unionized workers, and the company sold off some of its most recognizable brands including Wonder and McKee Foods, the former which produces Little Debbie snack cakes.
The company is now lead by Metropoulos & Co. and Apollo, which purchased the Hostess cakes manufacturer for $410 million. Metropoulous has a storied history of buying up failing brands and turning them profitable. Some of Metropoulous’ successes include Hardee’s, Chef Boyardee, and Bumble Bee. The company also owns Pabst Brewing Co., which has recently witnessed a major rebound thanks to hipster buyers who have pushed up prices for low-cost beer.
While some workers have been hired back by Hostess Brands LLC, they are no longer unionized, which has led to a leaner operation that should withstand the test of time.
Among changes for the July 15 Twinkies launch is a new structure in which Hostess delivers to warehouses that supply retailers rather than directly to stores. The new structure is meant to expand Hostess’ reach while reducing delivery costs. With a new system in place, Hostess cut its production from 11 bakery plants to just four. Hostess now produces Twinkies in Georgia, Kansas, Illinois, and Indiana.
Hostess is calling the relaunch of the nostalgic product the “Sweetest Comeback in the History of EVER.”
Do you agree that this is the “sweetest” comeback for an old-time favorite? Will you be heading out to buy Twinkies on July 15?