Saturday, November 24, 2012

The Giant Sucking Sound Is Hostess Jobs Moving to Mexico (And Media Give Democrat Private Equity a Pass)

November 21, 2012 was a dark day for us Gen X-ers, who grew up with calorie-rich Twinkies and Ding Dongs in our school lunch boxes. (Nowadays, they would probably be confiscated by the food police, but that is now not then). After a failed mediation, Hostess Brands announced last Tuesday it would proceed with liquidation after 82 years of operations. Its various brands – among them, Wonder Bread, Twinkies, Dolly Madison, and Home Pride – go on the auction block as Hostess’s competitors, such as Flowers Foods, ConAgra, and Mexico’s El Grupo Bimbo, are poised to pick up Hostess’s iconic Twinkies, Ding Dongs, Ho Hos, and Dolly Madison brands.

A successful bid from Grupo Bimbo, the world’s largest baker, means Twinkies labeled “Hecho en Mexico” – the ultimate insult to the American baker and delivery man. News reports claim this result is likely. Twinkies can return as a highly profitable Mexican expat free from U.S. tariff-inflated sugar prices and unions.

The liquidation leaves Hostess’s 18,500  workers, most members of the Teamsters or bakery workers union, out in the cold. They are probably asking: President Obama: Where are you when Twinkies and Ring Ding Juniors need saving rather than Detroit?

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  1. Paul-

    A couple of corrections:

    Gen X-ers were born in the 70s!

    Gephardt was never a senator. He was a Representative from MO, and Minority and Majority leader during his tenure in the House. He was the de facto representative of organized labor, both as a congressman and a presidential candidate.

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