Will there be a run on Twinkies and Ding Dongs today?
Some of America's guiltiest pleasures could soon disappear from the grocery store shelves, after their parent company, Hostess Brands, announced it plans to go out of business, citing a labor union worker strike on top of a first bankruptcy earlier this year.
Wonder Bread Hostess has bakeries and retail outlets all over the country, including several in Virginia. The closest one to Northern Virginia is in Fredericksburg. The company employs close to 19,000 people and cites high labor costs as well as rising costs for flour and sugar, key ingredients for its baked goods.
"Many people have worked incredibly long and hard to keep this from happening, but now Hostess Brands has no other alternative than to begin the process of winding down and preparing for the sale of our iconic brands," CEO Gregory F. Rayburn said in a letter to employees that was released to the media.
The iconic Twinkie is marketed by Hostess as a "golden sponge cake with creamy filling."
The Twinkie got its start in the 1930s when James A. Dewar, a baker at the Continental Baking Company, dreamed it up as a replacement to a strawberry-filled shortcake the bakery was making, according to Food History. After strawberry season, they went with a banana-flavored creme and after a banana shortage during World War II, they went with the now-famous vanilla creme.
The name for the treat reportedly came to Dewar when he saw an ad for the Twinkle Toe Shoe Company and shortened the name to Twinkie. The Twinkie reportedly has 150 calories in one cake.
The company also makes the popular Ding Dong, Chocolate Cup Cake (with a creme filling and icing), Sno Balls and other sugary products.
It's likely Hostess could sell its top brands to another company, according to business reports.
But if the iconic snack should be no more... Tell us:
Will you miss the Twinkie? The Ding Dong? What are your Twinkie memories? Are the snacks worth saving? Do you plan to stock up?
KAL8898
11:37 am on Friday, November 16, 2012
Wonder who those 18,000+ workers are mad at more, Hostess or their Union ? My guess is that Union leadership won't cut their pay even though they just lost 18,000+ due paying members. Unions played a positive role in working society way back in history, now they just cause more damage to the U.S. workforce, which other countries are thanking the unions for since those jobs are now outside the U.S.
Mahooka
12:11 pm on Friday, November 16, 2012
What the article here fails to mention is that 5,000 or so of the 18,000+ workers are in the union that decided to go on strike. So you have 5,000 people who are upset about having to take concessions on pay and benefits (for the first time since 2004 I believe) that will now force another 13,000 or so of their co-workers to find another job in an extremely difficult job market.
But no worries, our govt has it all under control. We'll just raise taxes on the millionaires (you know, the millionaires who earn more than $200,000 or $250,000 depending on if they are married or not) to help pay benefits for the newly unemployed for a while, then those "rich" folks can lay-off some of their workers as they try to find ways to keep turning a profit for their business. This sounds just like an Episode from South Park with the underpant gnomes. Phase one - "collect underpants", Phase two ???, Phase three - "profit"
Chester Copperpot
8:28 pm on Friday, November 16, 2012
USA Today had an article that stated the employees last made concessions 4 years ago to help keep the business going. From other news that was reported, this company also didn't seem to be run very well. Apparently, even though the lowest were being asked to take a pay cut, and contribute more to both insurance and pension, the upper level execs were still getting their perks and bonuses. It sounds like the company didn't just have issues with the union refusing more cuts, but can't manage the company in a time where people aren't eating their products as often as they used to. Hopefully another company will come in, buy the company, and run a better business model that will keep it going and not expect the biggest sacrifices to start at the bottom and work there way up.
Joe R
11:42 am on Saturday, November 17, 2012
Hostess management is sucking in all the money and getting the generous raises at the expense of the workers. This "blametheunionallthetime" syndrome is really getting old, especially when Hostess is being victimized by poor management. When in doubt and when you can't think of anything else to say, just blame the unions. It's such an easy intellectual crutch.
Stinki Garbaage
1:12 pm on Friday, November 16, 2012
Obama just commented: "Al Qaeda is alive, Twinkies are dead..."
Oh yes, and we need $1.6 Trillion in NEW TAXES...
Obama drones: "Yeah...Yeah..."
Robert tona
2:13 pm on Friday, November 16, 2012
Problem solved for Twinkie lovers.
http://www.topsecretrecipes.com/Hostess-Twinkie-Recipe.html
7 out
7:47 pm on Friday, November 16, 2012
Ok what is not mentioned is that top executives at hostess all got large bonuses that added up to millions. Yet, it was the regular workers who were asked to get pay cuts
Joe R
9:03 pm on Friday, November 16, 2012
The usual union haters are spewing their ignorance about unions. According to them unions are evil, unions are always wrong and workers should have no rights, no bargaining power, no union representation. It's amazing how management is always right, faultless and never does any wrong, according to the union haters. The unionization rate for the US is down to 11.8% after more than 30 years of aggressive union busting. Unions are very strong in Germany, they have a big say in their workplace and work conditions; Germany's unionization rate is almost twice ours. German unions have a seat on the board of directors of the companies. Can you ever imagine that happening in the US? Ha, ha, not likely. Canada's unionization rate is at about 29%, Sweden's is about 75%, Finland's is above 80%. Japan's unionization rate is higher than ours. More than 30 years of rabid, biased and slanted anti-union propaganda has really dumbed down the public's awareness of the need for unions. Unions are swiftboated, scapegoated and demonized on a daily basis on hate wing radio, NJ 101.5, Fox Lies and even the main stream corporate controlled media usually highlights negative stories about unions. It is heartening to see Walmart workers finally standing up on their hind legs and demanding union representation.
hd 1981
7:18 am on Saturday, November 17, 2012
B/S . The economy is horrible and people have taken cuts. Not 5000 of 18000. Very sad.Union are not evil their repersenatives are. Cut their pay and see what happens.
slyfox1961
7:51 am on Monday, November 19, 2012
@Joe R: I am ont anti union by any means, but the countries you cited are horible examples, their economies are in shambles. Mostly due tro unions.
7 out
9:19 pm on Friday, November 16, 2012
Yeah those Germans and Swedes are living in the dark ages because of unions. They have little poverty or crime, no slums or polluted rivers and a well paid and educated population
slyfox1961
7:54 am on Monday, November 19, 2012
@7 out: Really? Apparantly you have never been to Germany to see the slums in the cites. I have. Many times.
I have spoken
9:27 pm on Friday, November 16, 2012
Another Union success story. If Hostess was smart they would close for 30 days, fire everyone, hire new and open on the 31st day. Problem solved. The union has been busted and now they have people who want to work and not be union sheep.
Rebecca
11:54 pm on Friday, November 16, 2012
Maybe we Americans will drop some pounds now!
Joe R
8:30 am on Saturday, November 17, 2012
AFL-CIO President Richard Trumka made this statement in response to the latest news from Hostess:
What’s happening with Hostess Brands is a microcosm of what’s wrong with America, as Bain-style Wall Street vultures make themselves rich by making America poor. Crony capitalism and consistently poor management drove Hostess into the ground, but its workers are paying the price. These workers, who consistently make great products Americans love and have offered multiple concessions, want their company to succeed. They have bravely taken a stand against the corporate race-to-the-bottom. And now they and their communities are suffering the tragedy of a needless layoff. This is wrong. It has to stop. It’s wrecking America.
A total of 18,500 jobs could be lost in the process of this liquidation. The CEO and executives who gave themselves raises, not to mention the Wall Street investors, will emerge just fine. The workers, many of them members of BCTGM and the Teamsters, will suffer the most financially.
Even though we defeated Mitt Romney in his bid for the presidency, his style of economics that he pioneered with Bain Capital still exists, and is playing out in front of our eyes with Hostess.
hd 1981
12:34 pm on Saturday, November 17, 2012
They voted no . So lets blame the investors. What a crock.
Joe R
8:32 am on Saturday, November 17, 2012
For the past 8 years, Hostess has been owned by Wall Street investors: so-called “restructuring experts,” managers from other non-baking food companies, and now a “liquidation specialist.”
The Wall Street investors that own Hostess have no interest in the company succeeding – very similar to the situation of Bain Capital and KB Toys in 2000.
Hostess has had six CEO’s in 8 years, none of whom had any experience in the bread or cake baking industry. This, not any action by the unionized workers, led to their failure.
Hostess workers made numerous concessions, including this year when the company stopped making contributions to their pensions. They went on strike because management offered a contract cutting wages and benefits by 27-32 percent.
Despite their troubles, Hostess’ CEO got a 300 percent raise, from $750,000 to $2,250,000. Other top executives have also gotten raises worth hundreds of thousands of dollars.
Earlier this week when workers at 20 plants went on strike, Hostess management claimed they would close plants in response. In fact, they already had plans to close at least nine plants as part of a company-wide reorganization. The Mayor of St. Louis said of the closings “I was told months ago…”
Joe R
8:54 am on Saturday, November 17, 2012
It was poor management that caused the Hostess company bankruptcy not the unions. Of course management is trying to shift the blame onto the workers and the unions for the failures of the vulture capitalists who have no experience in baking or food products. As the CEO and upper management drastically cut the wages of the workers, they gave themselves lavish wages as the Titanic went down. The fact is that the responsibility lies with Hostess’s management and the vulture Wall Street private equity firm behind them, and yet the workers are the ones who will suffer the consequences of this shutdown.
hd 1981
12:47 pm on Saturday, November 17, 2012
When do the money backers stop getting the blame. They invested to make sum sort of profit, I guess makeing money is not a good thing. So goverment will be takeing care of the 18000 workers.
cheryl cuthbertson
10:30 am on Saturday, November 17, 2012
How many Businesses will Close their Doors and site Union problems or economy slow down when real Problems are they Just cannot Afford what is Coming with Obamacare and TAX Burderns....
Joe R
11:33 am on Saturday, November 17, 2012
Cheryl: We cannot afford the private for profit insurance companies with their skyrocketing premiums and denial of care when you need it the most. This has been going on for decades long before Obamacare. We have almost 50 million uninsured in this country and that's from the US Census. Every year in this country, tens of thousands go bankrupt from medical expenses and this was long before Obamacare. At least Obamacare is a step in the right direction, it will cover more people and cut down on the medical bankruptcies.
Patty
10:56 am on Saturday, November 17, 2012
7 out & Joe R right on! Corporate greed, the fat cats want the middle class to work for low wages and no benefits to be sub servant to them. Unions were once the back bone of this country where you could put in a hard days work and be able to go to the doctors and have a little pension when you retired! Regular people are working harder than ever today with little or no benefits. America needs to wake up. The writing has been on the wall for some time now and it's only going to get worse. Big Corporations run this country and a lot of middle class people don't see this.....Stop blaming Obama Care we are the only industralized country where people are dying from no heathcare or going to the emergency room and paying a thousand dollars for an ear infection and guess what. We pay for that thousand dollar bill since people who go to emergency rooms don't have the money to pay. Or what about the people that don't get preventative care and have an advanced disease by the time they go to emergency room.WE Pay! I can go on and on. Let's not be ignorant!