Iconic Brand Files for Bankruptcy
As many of you may have heard, Hostess, the maker of Twinkies, Ho Hos, Wonderbread, and many other food products we all know and love, has filed for bankruptcy. Hostess, who also filed for bankruptcy in 2009, has been fighting $860 million in debt. But do not run out to your local grocery store and stock up on all your Hostess favorites yet, Hostess has assured customers that they will continue the production of all of their delicious products.
So where does the future lie for the Hostess brand? Although filing for bankruptcy may be upsetting to the millions of Twinkies, Sno Ball, and Ding Dong fans, it is likely that it will not hurt the Hostess brand. As Maureen Farrell from CNN points out, today the internet allows people to buy anything they want and people want products made by iconic American brands, Hostess being one of them. Companies recognize this demand, and are eager for the opportunity to buy brands such as Hostess. They see an opportunity for growth and hope to revitalize iconic brands with the development of new consumer products. Companies such as The Sharper Image and Polaroid have both been revived by buyers who have expanded the brand to new areas to bring in more money.
I feel that filing for bankruptcy may be a blessing in disguise for the Hostess brand, as it may lead to much overdue change within the brand. Hostess, which was started in 1925, does not seem like it has changed much since. With society’s needs and wants constantly changing, a brand must also change to fit these new demands. Although Twinkies, Ho Hos, and Sno Balls have brought great success for the brand, I think new products or new additions to existing products are needed to draw customers. The Hostess brand is strong and the American people know what the brand stands for, but with new products being put on the market every day the Hostess brand has a lot of competition. Today the new, innovative products are the “must haves” and are usually the products that are craved by consumers. If Hostess can mix things up and give old products a new twist, it may once again produce “must have” treats.
Contributed by Keena Classen