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    Today, the United States spends $218 billion a year growing, processing, transporting, and disposing of food that is never eaten. Fortunately, there are a number of ways to reduce food waste.Click here to read IFT Achievement Awardee Edward Hirschberg’s solution for how we can address food loss due to poor transportation and storage. Link available in bio or copy/paste this link: http://bit.ly/IFTFoodWaste Today, we are celebrating women in science for International Women's Day! The International Women's Day is a global day celebrating the social, economic, cultural and political achievements of women. These particular five women have been at the forefront of some of today’s most complex and controversial scientific issues including genetic engineering and lab-grown meat. In addition to highlighting their work, these interviews explore the influence of gender in food and science. Click link in bio #IWD2017 #internationalwomensday #womeninstem #foodscience http://hubs.ly/H06wKB60 Roughly one third of the food produced in the world for human consumption every year — approximately 1.3 billion tons — gets lost or wasted. Fruits and vegetables have the highest wastage rates of any food. What can we do with spilled, wilted, blemished produce? Click here to read IFT Achievement Awardee Edward Hirschberg’s solution for bringing life back to the "ugly" lettuce. Link available in bio or copy and paste the following to view solution: http://bit.ly/IFTFoodWaste #Repost @hanna_instruments ・・・
The Hanna Texas team had a great time at @iftfoodscience's Lunch & Learn at @nasajohnson on 2/23. Hanna USA proudly sponsored this event featuring a talk by @nasa scientist Dr. Shannon Walker, a tour of the food lab facility, and behind-the-scenes tour of Mission Control! Thank you again to IFT and NASA for an incredible event.

Potential Buyers for Hostess Brands: Retailers vs. Food Companies

Twinkies On November 20, Hostess announced that mediation with its bakers union had failed and that the 82-year-old company would proceed with liquidation plans. The good news is that the company’s iconic brands, such as Twinkies and HoHos, may not be gone for good. There may be multiple buyers of the individual product brands under the Hostess umbrella or there may be a single buyer who acquires them all. But rest assured, they will be sold because they have real market value. Estimates are that the combined sale of Hostess could be worth over $2 billion.

Obviously, we’re been seeing a lot of interest from many different sectors; currently, there are more than 100 potential bidders. Among them are Grupo Bimbo (the largest baking conglomerate in the world), Thomasville, Flowers Foods, and Metropoulos & Co. (a private equity group specializing in food investment). But in my mind, the smartest play would be for a big retailer to step in and scoop up the entire Hostess basket of brands. There are numerous and powerful benefits that would accrue specifically to a retailer, rather than a baker or investor.

Having the exclusive rights to the Hostess brand and sub-brands would be an enormous overall boost to retail store traffic. We know that a large number of consumers would still be actively purchasing these products. By offering Hostess brands as a lure, a retailer would dramatically increase its profile as a destination for these loyal Hostess fans, thus exposing its overall inventory to millions of new customers.

In my opinion, a company like Kroger is the ideal candidate to acquire Hostess. Not only is it one of the biggest retailers in the world, it is the largest grocery store chain in the United States. In addition, Kroger owns about 10 bakery companies. If Kroger acquired Hostess, it would be able to market Hostess products across its multi-brand grocery chain empire. Hostess could become Kroger’s “store brand” for baked goods, creating enormous point-of-difference.

Also, the production of the new Hostess product offerings would be absorbed into its own vertically integrated baking operations. This would not only allow Kroger to produce Twinkies, Ding Dongs, etc., at a controlled unit cost, it would give the grocer substantial savings in operational costs across its bakery holdings due to enhanced economies of scale from increased output.

That, to me, would be the best end result for the retailer, Hostess brands, and consumers. What are your thoughts? Is there another key player that would be better suited to purchase Hostess brands?

JeffLotman_webJeff Lotman
CEO of Global Icons

2 Responses

  1. Please, what about the workers? My husband is among those 18,000 plus who lost their jobs abruptly…is there any chance the workers will get their jobs back? please, comment on this…the ones suffering are the workers with no jobs, and no prospects..please.

  2. Wow, this post was quite prophetic! Looks like Kroger is definitely in the list of companies bidding on Hostess’ brands: http://cin.ci/V97Oxz
    It appears that Walmart is also interested. What do you guys think? Would Kroger or Walmart be a better home for the Hostess brands?

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