Hostess Brands Inc., widely known for it’s Twinkies and Ding Dongs is going out of business. I believe that one of the main reasons for this company going out of business is the company’s inability to modify it’s products to the new healthy living global trend. People all around the world are becoming increasingly conscious about eating healthy and living healthier lifestyles. Hostess Brands Inc. failed to adapt to the new market demand for healthier, lower calorie snacks and therefore could not keep up with it’s competitors. It is important for a company to be able to adapt and modify their products quickly in order to keep up with changing market demands. The company has had many factors working against them lately as increasing pension and medical costs for employers have been rising recently. Many of the company’s employees were on strike and Hostess Brand Inc. followed up on it’s threat to shut down if these employees did not return to work. This company’s closing will have serious effects on the company’s workforce as approximately 18,500 jobs will be lost.

Sources:

http://www.cbc.ca/news/business/story/2012/11/16/hostess-twinkies-shutdown.html

http://www.thestar.com/business/article/1288748–no-more-twinkies-hostess-going-out-of-business