Ever since 1930, Hostess Brands has been the sole producer of famous foods such as Twinkies, Ho Ho’s, and Wonderbread. However, recently the company announced that it is going to be liquidating its assets. This opened up opportunities for other companies to take part in the bidding for the rights to produce these extremely popular products.
So far this year, Twinkies have brought in sixty-eight million dollars in revenue. As well, there have been various Hostess products selling on E-Bay for as much as $5000. But how does a little yellow junk food become such a powerful asset to a company?
Twinkies have become so integrated in American lives because of dominant marketing. By always having clever slogans, and manipulating name-brand association, the Twinkie has become known throughout most of America. This highlights the importance of establishing a strong presence in the market as it’s developing. The junk food market is now well aware of how much potential to sell the Twinkie holds, and companies all desire to own the product. Through effective marketing, it’s possible to make a product live on for any company.
Links:
– http://www.kitchenproject.com/history/twinkie.htm
– http://www.guardian.co.uk/business/2012/nov/19/twinkies-to-survive-hostess-sale
– http://www.independent.co.uk/news/world/americas/twinkie-demise-sends–prices-sky-high-8327365.html