Twinkie

Twinkies may be bought by Mexican company

17 Nov, 2012

Christian Science Monitor reports that food producers ConAgra, Flowers Food (the American company behind Nature Valley granola), and Little Debbie baker McKee Foods have expressed an interest in buying Hostess Brands. Mexico’s Grupo Bimbo, the world’s largest bread baking firm, which already owns parts of Sara Lee, Entenmann’s and Thomas English Muffins is looking to further expand its North American portfolio and may take the brand. Bimbo reportedly put in a low-ball bid of $580 million a few years ago and may be rewarded for that move since Hostess’s value is around $135 million today.

CSR notes that high sugar prices tied to US trade tariffs, changing consumer tastes, and union pushback against labor concessions will squeeze whatever profit is left in the brands.

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