Flowers Foods looking at Hostess brands, report says

According to the Associated Press,the makers of Thomas’ English muffins and Tastykake snacks are emerging as the two of the bidders for Wonder Bread and other Hostess bread brands as the company tries to sell off its assets under bankruptcy-court oversight, The Wall Street Journal reported.

It said Hostess Brands Inc. could reveal as early as next week that Thomasville-based Flowers Foods Inc. and Grupo Bimbo SAB are in discussions to acquire the bread brands, which also include Nature’s Pride.

Grupo Bimbo’s brands include Arnold breads, Thomas’ English muffins and Entenmann’s cakes. Flowers Foods Inc.’s brands include Nature’s Own breads and Tastykake snacks.

Hostess sells Twinkies, Ding Dongs and Ho Hos, along with Dolly Madison cakes, which includes Coffee Cakes and Zingers. Hostess also sells Devil Dogs, Funny Bones, and Yodels under the Drake’s brand.

Hostess, which is based in Irving, Texas, announced in November that it was shutting down its business and selling its bread, snacks and cakes brands along with its 33 bakeries and other operations.

The company’s demise came after years of management turmoil and turnover. Workers said the company failed to invest in updating its snack cakes and breads. Hostess filed for its second Chapter 11 bankruptcy in less than a decade last year, citing steep costs associated with its unionized workforce.

The company was able to reach a new contract agreement with its largest union, the Teamsters, but the bakers union rejected the terms and went on strike Nov. 9. A week later, Hostess announced its plans to liquidate, saying the strike crippled its ability to maintain normal production. In 2011, the company’s revenue was $2.5 billion.

Hostess declined to comment, as did Grupo Bimbo’s U.S. division, Bimbo Bakeries USA. Bimbo’s parent company is headquartered in Mexico. A message left with Flowers Foods was not immediately returned.

Hostess said in bankruptcy court proceedings in December that it was narrowing down the bids it had received and that it expects to sell off its snack cakes and bread brands to different buyers.

5 comments Add your comment

Ivory

January 7th, 2013
12:51 pm

“The company’s demise came after years of management turmoil and turnover.”

This is the first that I have seen this part of the equation in print; the rich, famous, and republicans were blaming it ALL on the unions! Well I’ll be!

Anthony Soprano

January 7th, 2013
3:12 pm

“That Sucks”

TIFF

January 8th, 2013
3:48 am

Bull, as a UNION worker I was making a whole $12.00 an hour for Hostess….. go tell you lies to someone else…….

Mark

January 8th, 2013
4:05 pm

Tiff, go ask your Union Boss how much he made last year. I bet it was well intot he 6 figures. In a union the only people making bank are the one’s running it.

PM

January 8th, 2013
5:35 pm

Wow, that first paragraph run-on sentence is darned awkward. The maker of Thomas Muffins (Bimbo) is one company. The maker of TastyKake (Flowers) is another company. The sentence makes it sound like they are one company. Anyway, these two baking giants always were the natural bidders for Hostess so nobody should be surprised that they bidding. I’d expect Frito Lay, Kroger, and Walmart to also make a play for some of the brands. Just recently, my local Walmart was still selling pallets of Hostess snacks they had obtained from somewhere. Everything was $2 a box. Clearly somebody in Walmart procurement had a fondness for it and got a good deal.