The Twinkie: Will it return as a Mexican expat?

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"With US sugar tariffs set artificially high to protect Florida sugar-growing concerns, a non-unionized shop with access to lower-priced sugar in Mexico could be the Twinkie lifeline, economists suggest."
And there you have it.
A Mexican Bimbo is going to benefit from your crazy and protectionist food trade regulations.
"Bimbo reportedly put in a low-ball bid of $580 million a few years ago, Forbes reports, and may be rewarded for that move since the Hostess kit-and-kaboodle may fetch more like $135 million today."
So who's the real Bimbo now?
================================= The Twinkie: Will it return as a Mexican expat?
http://news.yahoo.com/twinkie-return-mexican-expat-180426682.html ;_yltKJ3CfcOqpQgngARuLQtDMD
Hostess Brands is liquidating its business after 82 years, which means some of the most iconic brands of the century may be up for auction. Will Twinkies become a foreign import?
By Patrik Jonsson | Christian Science Monitor Sat, Nov 17, 2012
Who knew there were so many Twinkie diehards?
The announcement that Hostess Brands would shutter and liquidate its 33 bakeries including its Twinkie-making plant in Illinois sparked a fevered Boomer nostalgia ironically belied by the fact that its been years since most people have bit into that impossibly long-lasting and sticky-sweet miracle of artificial confectionery. (Today, about 12 percent of US households buy Twinkies, down from 15 percent in 2004.)
But news that Twinkie bars are now selling at gold bar prices on eBay hints at opportunity: In fact, global firms are already lining up to bid on the iconic brand names Ding Dongs, Ho Hos, Wonder Bread, Drakes in order to prepare many, if not all, for reissue.
The brands most likely will be purchased by a competitor that will bolt the additional sales to a more efficient delivery system, David Pauker, a food industry restructuring specialist, tells Reuters. The company itself won't survive.
Food producers ConAgra and Flowers Food, the American company behind Nature Valley granola, have expressed interest and so has Little Debbie baker McKee Foods. But another possible bidder hints at the future of Twinkies and maybe the US bakery business as a whole: Mexicos Grupo Bimbo, the worlds largest bread baking firm, which already owns parts of Sara Lee, Entenmanns and Thomas English Muffins.
Bimbo has already sniffed around the bankruptcy proceedings that have haunted Hostess for a decade, in a bid to further expand its North American portfolio and pad its $4 billion net worth. Bimbo reportedly put in a low-ball bid of $580 million a few years ago, Forbes reports, and may be rewarded for that move since the Hostess kit-and-kaboodle may fetch more like $135 million today.
But the big question is whether the same problems that haunted Hostess high sugar prices tied to US trade tariffs, changing consumer tastes, and union pushback against labor concessions will squeeze whatever profit is left in the brands.
Especially if a Mexican buyer is involved, production may go the way of the Brachs and Fannie May candy concerns: south of the border. With US sugar tariffs set artificially high to protect Florida sugar-growing concerns, a non-unionized shop with access to lower-priced sugar in Mexico could be the Twinkie lifeline, economists suggest.
On the other hand, if Hostess problem is its legacy delivery system, which is what University of Maryland economist Peter Morici suspects, Bimbo may be able to squeeze profits out of the supply chain while still making Twinkies in the US, albeit probably not in union shops.
It may well be that other US producers step into the void and expand their US production, in which case the Hostess liquidation might not be a total loss, says Chris Edwards, an economist with the conservative Cato Institute.
For now, the future of 18,500 Hostess jobs are up in the air, and many may never return. As for the Twinkie? It looks like it actually is indestructible.
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Unions and hostess have agreed to mediation and restarting production.
Nearly all of hersheys candy is produced in brazil...
hostess could move all production to mexico although transit costs for perishables may be costly.
maybe some mag lev trains from mexico?
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On 11/19/2012 5:30 PM, bob haller wrote:

Tie a box of baked goods on the back of each Mexican border jumper with instructions for delivery to a central warehouse in The U.S.. ^_^
TDD
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On 11/19/12 6:33 PM, The Daring Dufas wrote:

We'd have a living, breathing border fence then. Imagine thousands of fat chicks lined up shoulder to shoulder.
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On 11/19/2012 7:18 PM, Dean Hoffman wrote:

No, pot heads actually doing a job they're qualified for. They would be like predators in the wild. They would pounce on the Twinkie wranglers eating most of them but some would escape thus keeping the number of illegal aliens down to a manageable level. ^_^
TDD
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Not so. Just a few weeks ago, Hershey opened an extension of their plant in Hershey PA at a cost of over $300 million. Hershey has several plants in the USA and a few abroad.
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wrote:

Perishables? Twinkies?

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On Thu, 22 Nov 2012 14:40:22 -0500, snipped-for-privacy@att.bizzz wrote:

What is this obcession with the twinkie. All I see on all newsgroups this week is "twinkie". Who gives a shit that the company overpaid their top executives and forced the company into bankruptcy. Just one less crooked company in this country.
Go buy a 50lb bag of sugar and make your own twinkies. That's all they are anyhow is sugar.
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On 11/22/2012 2:16 PM, snipped-for-privacy@home.com wrote:

You obviously have no idea of the ridiculous union rules and demands that ran up the cost of doing business for the company as to make it unprofitable and uncompetitive. That's OK, it's your right to believe what you want and to express your opinion whether right or wrong. ^_^
TDD
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The Daring Dufas wrote:

For example, the company had TREAT truck drivers and BREAD truck drivers. Each was prohibited from even touching the others' merchandise.
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On 11/22/2012 5:56 PM, HeyBub wrote:

You want what? Oh, I'm sorry, I'm the guy who plugs the power cord in. I'll have to call another union guy to unplug it for you. ^_^
TDD
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My papers say I only have to pull half the plug.
Christopher A. Young Learn more about Jesus www.lds.org .
You want what? Oh, I'm sorry, I'm the guy who plugs the power cord in. I'll have to call another union guy to unplug it for you. ^_^
TDD
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wrote:

Those are usually commission routes and the drivers are very protective of their patch.
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wrote:

Did a bit deeper and you'll find a long list and longer history of dumb management that lead to the demise of the company.
If anything the union's actions only moved up the inevitable.
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On 11/23/2012 3:34 PM, NotMe wrote:

Oh yea, coup de grce. That makes it OK. ^_^
TDD
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wrote:

Again matters not, ok or otherwise, the die was clearly cast. Been there watched it happen in other industries. Some the result of poor management some as part of the plan of management to make money on the liquidation.
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On 11/23/2012 6:12 PM, NotMe wrote:

So there is no fault with the union, they're just angelic little innocent victims. OK I believe you, I'll blame it on Bush. ^_^
TDD
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wrote:

In this instance the result would have been the same even if there was no union. Like I said just a bit longer in getting to the end time. Being located in the DFW metro (Hostess is based in Irving TX) area I've watched the games played by Hostess for years.
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On 11/23/2012 9:03 PM, NotMe wrote:

So in your opinion, which I'll respect, Hostess had no chance of a turn around? ^_^
TDD
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On 11/23/2012 08:29 PM, The Daring Dufas wrote:

Do you suppose this means the rise of Little Debbie?
--
Cheers, Bev
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