Bye Bye Hostess!

Everybody knows Hostess for Twinkies–the delicious but unhealthy cream filled pastry. So, when I saw that Hostess had gone out of business, at first I was surprised. But then I realized how changes in market behavior have made Hostess less and less popular.

Michael Kelley of Business Insider notes a variety of problems the Hostess brand had before its demise. These problems though, arose from changing times and its inability to adapt.

Now, both the cost of labor and ingredients skyrocketed. Especially since the company had bargaining agreements with 12 unions, they were paying off a lot of their earnings rather than taking in profit.

The main problem though, is the changes in consumer preferences. As of late, Twinkies has developed a poor brand image in which consumers have put Twinkies and unhealthiness hand in hand. Twinkies represent 13% of the daily recommended saturated fat intake and is made of up 42% sugars, 21% complex carbohydrates, and 11% fat.

Now, with many consumers looking to have a healthier diet as well as healthier substitutes, Hostess and its products have become out of taste.

With this, I wonder how a brand may survive when their product goes out of taste or style. How do these companies adapt?

 

 

Leave a Reply

Your email address will not be published. Required fields are marked *