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Twinkies Forever? Suitors Set to Gobble Hostess Empire Off the Auction Block

Posted by Mark J. Miller on January 28, 2013 01:34 PM

When Hostess decided last year to stop making Twinkies and other conic snack foods, many consumers suddenly clamored to get their hands on a baked good they’d been walking past for years. 

But fear not: It appears that fresh Twinkies will always be a part of our world. Hostess is said to have 11 bidders waiting to take over its baked-good powerhouse, which brought in $1 billion last year. (Twinkies, by the way, only brought in $73.7 million.)

“Somebody’s going to make Twinkies — that’s not a concern,” a source told The Washington Post. "The question is who and how."

Hostess, based in Irving, Texas, announced in November that it would shut down its business and sell its bread, snacks and cakes brands, along with 33 bakeries and other operations.

The AP said an announcement of a successful bidder could come this week, though that won't mean much to the 18,000 people who lost their jobs when Hostess shut down operations.

Two private-equity firms — Pabst Blue Ribbon owners C. Dean Metropoulos and Co. and Apollo Global Management LLC — are said to be seriously interested, according to The Wall Street Journal. McKee Foods Corp., the maker of Little Debbie snack cakes, is reportedly up for paying out between $25 million and $30 million to Hostess for its Drake’s Cakes business, The Associated Press reports.

Artist Nancy Peppin, who has used Twinkies in her work for decades, has a particular stake in a successful sale. The Andy Warhol-inspired artist fashioned pieces like “The Last Snack” (modeled after da Vinci’s “Last Supper”) using the cream-filled cake, and she bought 12 boxes of Twinkies when the turmoil with Hostess began.

 

 

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