by A.W. Berry
Created on: July 17, 2013
Following the Hostess Brands, LLC Chapter 11 Bankruptcy in 2012, the famous Twinkies brand was feared to be gone forever. That turned out to be an unsubstantiated fear and Hostess Twinkies went back on the market on July 15, 2013. The new Twinkies are not exactly the same as the old Twinkies, but the taste and texture that Twinkie eaters love so much is quite certain to be similar in the near term.
Ownership
According to USA Today, changes implemented by Hostess Brands in late 2012 are being implemented by the new owners, Apollo Global Management and Metropoulos & Co. in the new production of Twinkies, and after a $410 million acquisition of Hostess-brand cakes. In effect, the new Twinkies are not completely new because they carry forth a continuation of cost cutting measures set in place prior to the Hostess Brands bankruptcy proceedings.
Production
One of the most commercially relevant changes is an extension of the shelf-life of Twinkies. According to Steve Ettlinger of The Atlantic and author of “The Twinkie Deconstructed”, product redesign allows for improved moisture control within the package. Moreover, this improved design feature is said to allow a 45-day shelf-life rather than the previous 25 days. The Twinkie cakes now in distribution are each 4 grams smaller and 15 calories less per individual cake.
Distribution
Another adjustment to the Hostess Twinkie includes an option for frozen delivery per the Huffington Post. The reason behind this is to ensure freshness by allowing retailers to place their own expiration dates or best by dates on the packages. Walmart did have an exclusive deal that branded the packaging as “First batch”. Walmart also placed its cakes on shelves for “early release”. Moreover, even though this might have appeared to be an early distribution, it could have also read “shelved quicker”.
Packaging
The next generation of Twinkies also includes the statement “The sweetest come back in the history of ever” on the 10-pack boxes. This is an attempt to leverage the nostalgia value of the brand per Adweek. However, nostalgia and healthy are at odds when cultivating new Twinkie lovers. Just as other brands have re-thought their brands to meet changes in market preferences, the new management of the brand will face questions of how to do the same with Twinkies.
Marketing
Changes to the marketing of Twinkies have also been slated for the brand. Fox Business reports the new ownership of Hostess Cakes seeks to implement a more pro-active marketing campaign that leverages social media trends. Furthermore, in order to keep the restructured Hostess-brand cakes in business, its management also seeks to develop gluten-free and other products in order to meet market preferences.
Hostess Twinkies are a brand luck enough to be a piece of Americana, but so are Model-T Fords and Hulk Hogan Figurines. In other words, to keep Twinkies from slipping into the annals of historical national brands will take strong product management and effective commercial development. Currently, approximately 500 million Twinkies are believed to be produced each year and the suggested retail price per 10-pack is $3.99. Changes to those numbers in addition to top-line and bottom line numbers on the company's income statement will reflect how well they accomplish that goal.
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A look at the next generation of Twinkies
by A.W. Berry
Following the Hostess Brands, LLC Chapter 11 Bankruptcy in 2012, the famous Twinkies brand was feared to be gone forever.
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