Did you hear about Hostess Brands filing for bankruptcy? Last year the company lost over 300 million dollars. According to CBS, the shutdown means the closure of 33 bakeries, 565 distribution centers, and 570 bakery outlet stores across the county. What will the local convenience store be like without the legendary wire rack holding an assortment of Hostess brands? According to reports, 18,500 people lose their jobs here. Incredible! But, do you really know what this means? No more Twinkies, Ding-Dongs, or Ho-Hos. Worst yet – no more fried Twinkies at the fair! Oh, but wait, I haven’t had a Twinkie, Ding-Dong, or Ho-Ho in forever – more than a year at least. This is but another sad story on the death of an icon.
Observations on this one:
- Just because you’re iconic doesn’t mean you’re immune.
- Just because people have fond memories of you doesn’t mean they’ll buy your products.
- Know your market, culture, and shifts – because consumers change.
- You can’t keep doing what you’re doing and expect different results.
- Sometimes a pay cut (don’t like these) is better than a pink slip (really don’t like those).
- You better RUN to the store to get your last box of Twinkies!
all over 8% – way to to go union boss – you still have your job yet your members don’t….
One of my friends thinks it is a smart marketing ploy. Now that they are going everyone wants one! We usually want something more if we can’t have it.
Thanks for the 8% figure, I hadn’t heard how wide the gap was between both parties. Also, think it’s another example of how sometimes there’s a perception that business pockets are deeper than they really are in a number of cases. And Jennita, I think that’s a good point as well – great marketing strategy. I did read something about the shelf life of a Twinkie being less than four weeks. Better make some freezer space.