Today marks the deadline for interested parties to submit bids for the well-known brands of...

Today marks the deadline for interested parties to submit bids for the well-known brands of Hostess Brands with estimates for the lot ranging as high as $1B-$1.5B. A major focus is still on Flowers Foods (FLO) after the snack foods company expanded its credit facility last week to prepare to jump into the fray. Supermarket chains could also be in the mix.

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  • CullenW123
    , contributor
    Comments (13) | Send Message
    For Hostess brands to survive it is going to take someone with the management skills and the business structure to revive the brands to a healthy position after being off the market this long or longer because its going to take sometime to even get the product back on the market except maybe if Flowers Foods buys it because they probably already have the capability of taking the surplus packaging that is let over and produce the product in the next 30 days to get the white bread brands back on the market by just putting the new recipes into their computerized machinery and producing a better product than Wonder bread was before because of the updated equipment their plants have, Hostess had not spent any money on capital improvements for at least 2 decades, Hostess cake will be a different story because machinery has to be adjusted or the correct packaging and to produce the small product with right recipes will take some research and development time to get it up to par, but if anyone can do it is Flowers and be profitable at it, plus the decisions on whether to put new routes on or to add it to existing route structure and drop Bluebird to the warehouse division but I would say they already have that worked out in case they are the winner of the bid even if they did bid on it, no matter what overall Flowers comes out a winner in this round.
    11 Dec 2012, 03:24 PM Reply Like
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