7:43 pm - Thursday March 21, 2019

Hostess is going under, but brands could be saved by a sweet deal

If you feel a tinge of sadness at the prospect of losing the treats Hostess has produced for much of the last century, like so many who have raised their voices on Facebook and Twitter this past week, there may yet be hope. The company is not long for this world, and that much appears to be certain, but its product line could still be saved– thanks perhaps to a beer company.

The widely reported liquidation of Hostess has far-reaching implications, not just in the business world, but also in the hearts and minds of consumers who have grown up with their many feel-good snack products, such as chocolatey favorites like Wagon Wheels or Hostess CupCakes.

When the company reported that they were getting ready to close their doors it seemed to be an even bigger story than its business and economic implications demanded, primarily because these are products and brands that people are attached to and fond of. Companies come and go all the time, but when you mess with a person’s snacking, or even their childhood memories, it starts to feel like a period of mourning.

But all hope is not lost for your favorite treats from Hostess, as Pabst Brewing Co. is set to step in and take over several of the former snack giant’s brands. Pending an official offer being made, the deal could see much of Hostess’ product line spared the grim fate of being relegated to a sweet, nostalgic memory.

There is no word yet on exactly which snacks would be salvaged by the deal, or if indeed there would be some which would not make the cut. If you have a particular favorite you want to keep alive, now might be the time to start a campaign to support it.

The potential deal is made possible by the liquidation process of Hostess ending its ties to unions and failing production facilities, which had previously left a bad taste in the mouths of potential buyers. Freed now from unwieldy contracts and collective bargaining agreements, the assets of Hostess have become much more attractive to Pabst and other suitors.

It’s also very possible that different Hostess brands will end up in the hands of entirely separate companies, so that iconic vanilla cream filling in the Twinkie may be in direct competition with its Sno Ball cousin.

Nothing is yet set in stone, but chocolatey treats and cream-filled delights may be saved if the right offer is made, and that’s something to smile about for many.

Filed in: Business

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