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Save The Twinkie

Save The Twinkie. Hostess In Trouble. By Scott Jarrel and Michael Joos. Bankruptcy. Hostess filed for bankruptcy with $1.4 billion in debt $500 million in Assets, $1 Billion in Liabilities Also filed for bankruptcy in 2009 Filed for a Chapter 11

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Save The Twinkie

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  1. Save The Twinkie

  2. Hostess In Trouble By Scott Jarrel and Michael Joos

  3. Bankruptcy • Hostess filed for bankruptcy with $1.4 billion in debt • $500 million in Assets, $1 Billion in Liabilities • Also filed for bankruptcy in 2009 • Filed for a Chapter 11 • 19,000 employees & 12 different Unions

  4. Marketing Efforts • Founded in 1930 • Twinkie, Snowballs, Ding Dongs, Donettes,Mini Muffins, Fruit Pies, Zingers, Suzy Q’s, Cupcakes, and 100 Calorie packs • Started with Twinkie the Kid • “Where’s The Cream Filling” commercials • Sold 36 million Twinkies in 2011, down 2% from 2010 • Extended Shelf Life

  5. Hostess Hurtles • Consumer Health Trend • Consumers favor healthy foods over Hostess products • Rising Labor and material costs • High Union Demands (pension/medical benefits) • Outdated business model (unnecessary costs) • No Interested Buyers of the company (Hershey, Pepperidge Farm, and private equity companies)

  6. How Big can Hostess Make You? • Current Customers

  7. Questions • Do you think that Hostess is too big to fail and needs a government intervention? • Do you think it’s morally wrong for hostess to target children? • If Hostess changed their product offering to healthier foods would they be successful?

  8. Sources • Press, Associated. "Twinkies Maker Hostess Seeks Bankruptcy Protection - WSJ.com." Business News & Financial News - The Wall Street Journal - Wsj.com. The Wall Street Journal, 12 Jan. 2012. Web. 04 Feb. 2012. <http://online.wsj.com/article/AP77fea05596234df88db14ee0d901e114.html>. • "Products." Hostess Snack Cakes. Hostess Company. Web. 04 Feb. 2012. <http://www.hostesscakes.com/>. • Protess, Ben. "Hostess, Maker of Twinkies, Files for Bankruptcy - NYTimes.com." Mergers, Acquisitions, Venture Capital, Hedge Funds - DealBook - NYTimes.com. NY Times, 11 Jan. 2012. Web. 04 Feb. 2012. <http://dealbook.nytimes.com/2012/01/11/hostess-

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