The makers of Twinkies, Wonderbread, and other childhood favorites is going out of business in the US.
This decision was made after the Company failed to obtain concessions from the union. In recent years, demand for Twinkies has fallen as more health conscience consumers look for healthier alternatives. Industry insiders believe that many of the Company brands will be sold most likely to several interested buyers and the Canadian assets will remain unaffected. Wonderbread, Twinkies, Hostess Cup Cakes are iconic brands to the 30 plus age audience that grew up on these delicious treats.
Bread and pastry distribution models to small format stores (convenience) have been under increasing pressure as consumers buy elsewhere. With declining sales in the category and a relatively high fixed distribution delivery model, it is no wonder (excuse the pun) that more and more stores no longer carry these pastry novelties, that many of us, 20 plus years ago, grew up on. With full service distributors visits stores as much as twice a week, this category (albeit fragile handling issues in distribution) is a natural business opportunity for incremental margin on the truck.