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  1. #1
    Melody's Avatar
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    Default Did Congress kill the Twinkie?




    Did Congress kill the Twinkie? The tariff tale behind the Hostess demise.(+video) - CSMonitor.com

    An interesting editorial from the Christian Science Monitor suggesting that federal trade policy and tariffs keep American confectionary companies from being profitable, and chase jobs offshore.

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    Interesting read. I like the CSM in general.

    I'm guessing that it was a perfect storm of factors that led to the company's demise.
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    great find, melody - thanks for posting. i'm shocked - utterly - that our government is not working for the ordinary american.


    Since 1934, Congress has supported tariffs that benefit primarily a few handful of powerful Florida families while forcing US confectioners to pay nearly twice the global market price for sugar.

    One telling event: When Hostess had to cut costs to stay in business, it picked unions, not the sugar lobby, to fight.

    “These large sugar growers ... are a notoriously powerful lobbying interest in Washington,” writes Chris Edwards of the Cato Institute in a 2007 report. “Federal supply restrictions have given them monopoly power, and they protect that power by becoming important supporters of presidents, governors, and many members of Congress.”
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    The sugar thing has been going on at least since cuba went commie. Of course a product line that has been stagnant for 30 yrs prolly didn't help them much either.
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    Well, by the like, it seems to me that the union leadership chose to take its stand on the wrong hill instead of uniting with the company to fight public policy which made their business unprofitable.

    Hostess was between a rock and a hard place here too. A business has to make a profit in order to pay its employees.

    Honestly, to some extent I also blame (not quite the right word, but close enough) the seeming inability of Hostess to adapt to the times. The days of sack lunches with a slice of Kraft American on Wonder Bread and a Ho Ho are past. Who actually buys twinkies more than maybe picking up a small two pack while paying for gas a couple of times a year? There's really only so far that nostalgia is going to carry a company.

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    When an event (High sugar prices) impacts everyone across and industry, I refuse to say that was the reason a company goes out of business. I would say it is poor management and their inability to adapt to the prices that did it. Toss in legacy costs and the unions and you have a recipe for disaster.

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    Quote Originally Posted by Deleterious View Post
    When an event (High sugar prices) impacts everyone across and industry, I refuse to say that was the reason a company goes out of business. I would say it is poor management and their inability to adapt to the prices that did it. Toss in legacy costs and the unions and you have a recipe for disaster.
    +1
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    Say bye to Merita and Wonder bread also with the close of Hostess.
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    Melody pretty much hit it on the head. They relied on old products and never moved forward. Wonderbread? Who buys that garbage anyway? The only good thing about it was the name unless you like bread that taste like nothing. Get a nice whole grain bread and it will taste better and be much healthier. The union may have hurt them but they were already in bankruptcy. The writing was already on the wall it just came sooner than later.
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    Someone is going to buy the brand. Count on it.
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    Quote Originally Posted by Chopper View Post
    Melody pretty much hit it on the head. They relied on old products and never moved forward. Wonderbread? Who buys that garbage anyway? The only good thing about it was the name unless you like bread that taste like nothing. Get a nice whole grain bread and it will taste better and be much healthier. The union may have hurt them but they were already in bankruptcy. The writing was already on the wall it just came sooner than later.
    I don't purchase the Hostess white breads, but I will buy white bread for the old bologna sandwich. Just does not taste right on our multi grain staple. Not sure if I ever ate a Twinkie or ding dong.
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    Quote Originally Posted by Chopper View Post
    Melody pretty much hit it on the head. They relied on old products and never moved forward. Wonderbread? Who buys that garbage anyway? The only good thing about it was the name unless you like bread that taste like nothing. Get a nice whole grain bread and it will taste better and be much healthier. The union may have hurt them but they were already in bankruptcy. The writing was already on the wall it just came sooner than later.
    Yeah no one buys that stuff at all. Glad you're in the know.
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    Quote Originally Posted by hueytaxi View Post
    I don't purchase the Hostess white breads, but I will buy white bread for the old bologna sandwich. Just does not taste right on our multi grain staple.
    Me too, when I get the odd craving for a baloney sandwich or grilled cheese. But even then, I have always bought the locally baked brand, Mrs. Bairds.

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    It would be pretty funny if the news of twinkies going away caused people to start selling them on ebay for ridiculous amounts of money after sales stayed low for so long... is it true that people are trying to buy out what's left of them at stores?
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    Quote Originally Posted by hueytaxi View Post
    I don't purchase the Hostess white breads, but I will buy white bread for the old bologna sandwich. Just does not taste right on our multi grain staple. Not sure if I ever ate a Twinkie or ding dong.
    IIRC, I stopped eating Hostess's products because they contained something that isn't vegetarian. I don't know if they still have that ingredient, but I figured not eating them wasn't hurting me in any way.
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    Quote Originally Posted by Lousluggage View Post
    It would be pretty funny if the news of twinkies going away caused people to start selling them on ebay for ridiculous amounts of money after sales stayed low for so long... is it true that people are trying to buy out what's left of them at stores?
    I doubt you will find any in the stores anymore. Most news places yesterday were doing live reports saying stores had them, and then the masses came.
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    The rumor I saw this morning was the current owners of PBR wants to buy Hostess and rehab it.
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    Quote Originally Posted by Lousluggage View Post
    It would be pretty funny if the news of twinkies going away caused people to start selling them on ebay for ridiculous amounts of money after sales stayed low for so long... is it true that people are trying to buy out what's left of them at stores?
    Box of 10 about to expire right now on Ebay. 32 bids and the price is up to $86. I see a 2 pack with 4 bids and the price is at $36.

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    In all fairness to Congress, with Twinkies it's "kill or be killed".
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    Quote Originally Posted by hueytaxi View Post
    I don't purchase the Hostess white breads, but I will buy white bread for the old bologna sandwich. Just does not taste right on our multi grain staple. Not sure if I ever ate a Twinkie or ding dong.
    I'm sorry, there's a food stuff called ding dong?!

    Whilst we're at it, can someone tell me exactly what a twinkie is? It falls into the miracle whip category for me (otoh I did eat some spotted dick chocolate last night)...

  23. #23
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    SImply a form of yellow cake with a type of frosting inside. Nothing special. HOnestly they are not even that good. As a kid maybe but as an adult when you are watching the sweets etc. I'd rather waste the sweets on something really good.
    .

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    Quote Originally Posted by Oblong View Post


    SImply a form of yellow cake with a type of frosting inside. Nothing special. HOnestly they are not even that good. As a kid maybe but as an adult when you are watching the sweets etc. I'd rather waste the sweets on something really good.
    ^ This

    I had a twinkie about 6 months ago. My first one in several years. It was pretty dry and lackluster when compared to my memory of them as a kid.

    Personally, if I never eat a Little Debbie product or Hostess product again, I don't think I'll be missing anything. Although I used to LOVE Hostess Honeybun's and the little donuts that have nuts on them. Those two would be a temptation to me, so it is probably good that they are gone.

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    Quote Originally Posted by belcherboy View Post
    ^ This

    I had a twinkie about 6 months ago. My first one in several years. It was pretty dry and lackluster when compared to my memory of them as a kid.

    Personally, if I never eat a Little Debbie product or Hostess product again, I don't think I'll be missing anything. Although I used to LOVE Hostess Honeybun's and the little donuts that have nuts on them. Those two would be a temptation to me, so it is probably good that they are gone.
    I had coincidentally picked up a little package of the raspberry zingers about a week or so ago. That's the only product I'll miss, but I doubt that my $1 purchase once or twice a year would keep them in business.

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    Twinkies are what poor, fat people eat.

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    Wonder Bread is the best bread to have with chili, by the way.

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    Bloomberg is beaming!!!!!

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    Quote Originally Posted by Joe Gahona View Post
    Wonder Bread is the best bread to have with chili, by the way.
    Nah, jalapeno corn bread
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