The company hasn't been profitable since they last went bankrupt in 2004. They've been cutting wages ever since and the workers finally had enough. No worries though, the people at the top made out fine, they're not exactly going to have to take out a second mortgage on their house.
My interpretation of the bankruptcy is neither the union killing or the vulture capitalist partisan swing...instead, it was a reality of a company whose product is no longer profitable, which is the cost of capitalism. But hey, someone else will be selling Twinkies soon, no worries!
Ugh. I thought I'd escaped the threat of Twinkies once and for all. :P
I live a mile from McKee Enterprises and the factory that makes all the Little Debbie's, Sunbelt snacks, Arnold Bread, Pepperidge Farms, Sarah Lee, and Blue Planet health foods in the world. The trucks keep rolling 24/7. There will be plenty of options.
On a warm spring day, you can smell the bread and brownies and oatmeal cream pies baking...
If people spent less time being offended and more time actually living, we'd all be a whole lot happier!
Dogs are excellent judges of character, this fact goes a long way toward explaining why some people don't like being around them.
Woo
Despite the noise on the faux news show the unions realy did not have much to do with it. This profitable company was "Bained" by cooporate raider types. Who took the money out of the company, sold off assets and loaded up debt on the part that was left. The new big bosses made millions while aruing about nickles.
They will dump the current employees , retirement cost, a lot of debt and reopen paying less without benifits. They will go from being a slightly profitable company to a slightly profitable company. Market share will not grow and neither will profits. They will struggle with quality control, pruduction goals.
Yeah, lets not get facts in the way on either side of the argument...
The simple fact is that fewer Hostess products are being sold because, as a whole most Americans actually are trying to eat better. I dont eat them, and when I want something bad for me I am willing to pay more for a better gourmet product. Sales on Twinkies in 2011 had declined 2% over the previous year with sales of 36 million packages.
Hostess is also up against a saturated bakery industry and too much bakery capacity
Couple the change in tastes with labor costs and management mistakes and there is a reason that Hostess should wind down operations. Labor costs simply cannot keep going up and a company should be able to cut costs. The teamsters understood this. The deal would have cut wages for the present, with a return to current levels over the next several years along with a 25% ownership of the company by the unions.
As far as management missteps, giving nearly a dozen executives nearly 80% raises at the time that the company is struggling is just stupid. But I would also like to see the evidence of this company being "Bained".
Declining sales, bloated capacity, high labor costs and mismanagement are going to doom any company.
On the otherhand, Hostess had $2.5 billion in revenue last year and of that Twinkies had $68 million is sales. That looks good to another company that can bring the issues under control.
igne et ferrum est potentas
"In the beginning, all America was Virginia." -William Byrd
Greed on both sides of labor + increased cost of ingredients + decreased sales = Bankruptcy
I can't think of the last time I ate a Hostess product or Wonderbread. The company didn't change with America's eating habits so they slowly died. To bad for Hostess but other better run companies will increase their sales of junk food.
They need to do some greenwashing!
Paul "Mags" Magnanti
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The true harvest of my life is intangible...a little stardust caught,a portion of the rainbow I have clutched -Thoreau
Non issue. If Hostess goes away during the bankruptcy process they will sell the various brand names to another company and twinkies et al will continue to be made. The last twinkie I had was probably in high school.
I love that marketing gimick. Chips were already being fried in vegetable oil and where Cholesterol free. We are marketing suckers. Kind of like FEDEX convincing us that overnight shipping is something we really needed, even though no one needed it before they told us we did. We already had the Fax machine so shipping important documents was done through snail mail with a faxed copy already at the location.
I seriously doubt Twinkies were as much of a trail food as some would claim. More likely what folks eat while on a computer talking about hiking.
The trouble I have with campfires are the folks that carry a bottle in one hand and a Bible in the other.
You never know which one is talking.
+1 for LIttle Debbies. Swiss Cake Rolls rule!
Lead me to the long green tunnel.
None, don't think I've had one in about 10 years.
I have had a few handfuls of GORP today while I mix it up for my upcoming 10 days in the woods. And some dried apricots and dates while I weigh them out. And a glass of Nido to test it was still good while I filled up my peanut butter jar.
I usually snack while I pack and weigh. Nothing worse than to find out the granola bars are stale after you get in the middle of nowhere, and have already carried them.
The trouble I have with campfires are the folks that carry a bottle in one hand and a Bible in the other.
You never know which one is talking.
True enough! I find it impossible to pass up on tasting dried fruit to make sure they are OK. My real weakness is dry sausage.
At work today we were talking about the last time any of us even had a twinkie. No one had one for at least ten years, most said it's been over twenty years.
Last edited by Rasty; 11-19-2012 at 15:26.