Sunday, November 18, 2012

Liva La Twinkie? Mexican Co. El Grupo Bimbo may purchase Bankrupt Hostess Brands



If I’m not mistaken, a foreign company already owns Budweiser.  So the idea of a Mexican company swooping in and buying another iconic American business like  Hostess, the company that makes Twinkies and Wonder Bread, isn’t that farfetched.   


A Mexican company may come to the rescue of Twinkies-loving Americans across the country as it looks to acquire the bankrupt Hostess Brands to keep its lip-smacking-sweet confections on store shelves for years to come. 
Mexican company Grupo Bimbo is reportedly eyeing Hostess Brands, the company that makes Twinkies, Ding Dongs and Ho Ho's, after Hostess announced last week that it would shutter and liquidate its 33 bakeries.
News of Hostess Brands' liquidation struck fear in the hearts of Twinkies loyalists across the country, who scrambled to snatch up the sticky-sweet treats from stores and online for fear of never tasting them again. 
As a result, the all-American Twinkies brand is now becoming more attractive to potential buyers. Food producers ConAgra and Flowers Food. the American company behind Nature Valley granola, have considered purchasing the company.
But Mexico's Grupo Bimbo, the world's largest bread baking firm, may have the upper hand. 

Bimbo owns parts of Sarah Lee, Entenmann's and Thomas English Muffins. The company had previously made an offer of $580 million a few years ago, according to Forbes. Hostess is now estimated to be worth only $135 million. 
Part of the reason for Hostess's bankruptcy is high sugar prices tied to U.S. trade tariffs -- which wouldn't be an issue in Mexico, where Bimbo can take advantage of lower-priced sugar.  The family that owns and operates Grupo Bimbo is reportedly worth $4 billion.

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1 comment:

C. L. Palmer said...

I agree with your take on this, though I wonder if we'll get some interesting new treats from BIMBO/Hostess like Twinkies filled with tamarind-chili-powder-lime filling. Does BIMBO own Pelon Pelo Rico? It could make for a cross-marketing effort.

You can check out my eulogy for Hostess on theuseofreason.blogspot.com.