Twinkies Go Bankrupt!

Published on: September 22, 2004

The country's largest wholesaler baker and maker of Twinkies filed for Chapter 11 bankruptcy today and named a new chief executive. The company says that their sales have been severely damaged due to the popularity of low carb dieting. Maybe a little too quick to point fingers? Analysts say that the company has been in a slow decline for about eight years (way longer than the impact of low carb!).

Twinkies, created in 1930, have long been rumored as having an indefinite shelf life, when in fact, the company claims that they go bad after just 14 days. Amisdt a movement to overcome an epidemic of obesity, a product that is loaded with sugar, trans fats, and other artificial ingredients, gets little kudos from nutritionists and diet gurus. Still, 500 million Twinkies are consumed by Americans each year. The snack is somewhat of an American icon and even made headlines in 1979, when Dan White, on trial for shooting San Francisco mayor George Moscone and city supervisor Harvey Milk, claimed that his consumption of junk foods such as Twinkies "had left him with diminished capacity for reason', and yet another legal strategy was created...the Twinkie Defense was born!

Among the Interstate Bakeries Corp.'s product lines are a number of well-known national and regional brands, which include Wonder, Hostess, Home Pride, Drake’s, Beefsteak, Bread du Jour, Dolly Madison, Butternut, Merita, Parisian, Colombo, Sunbeam, Millbrook, Eddy’s, Holsum, Sweetheart, Cotton’s Holsum, Di Carlo, J.J. Nissen, Marie Callender’s and Mrs. Cubbison’s. In addition, the Company is a baker and distributor of Roman Meal and Sun-Maid bread.

It's yet another example of what happens to a company that is out of step with consumer trends. I know its boring to hear AGAIN...but America's Food Brands better wake up - there is a "nutritional correction" taking place. Correct your products or else!

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