...The Fate of the Hostess Twinkie Hostess Brands, manufacturer of the iconic Twinkie, is in a bit of a predicament. The company filed for Chapter 11 bankruptcy in 2004, emerging in 2009, after rounds of restructuring and concessions taken by union and non-union employees (Flahardy, 2012). In the face of the recent recession and increasing commodities pricing, the company has yet again filed for bankruptcy protection (By & Spector, 2012). In addition, the company has been engaged in collective bargaining with its two major unions, the Teamsters Union and the Bakery, Confectionery, Tobacco Workers and Grain Millers International Union (BCTGM), hoping for more concessions from employees to help it survive. Combined, these unions represent 92% of Hostess’s unionized employees (Feintzeig, 2012). Some 5,000 employees are BCTGM members and approximately 7,000 drivers and distribution workers belong to the Teamsters (Gaus, 2012). The company put forth a plan that would freeze wages of the union worker, saving some estimated $6.1 million by 2015 (By & Spector, 2012). After acceptance of the contract, the company is asking for an eight percent pay cut and for all employees to take on a larger portion of their insurance costs (Kinney 2012). In return, the employees would retain their jobs, albeit at a lower salary, and they would gain a 25% equity stake in the company, $100 million of third lien debt upon the exit from bankruptcy and representation on the company’s board (Kinney,...
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...Hostess Bankruptcy Case What happened? Almost three years ago, Hostess Brands Inc., creator of iconic American products including Ding Dongs, Ho Hos, Suzy Q’s, Dolly Madison Zingers, Drake’s Ring Dings, Wonder Bread and Twinkies, decided it could no longer survive in the new Atkins-crazed marketplace with its bloated pension funds and financial issues.1 In November 2012, the company filed Chapter 11 bankruptcy to receive permission from the government to close its business and sell off its assets.2 The deal was accepted by the bankruptcy courts and a judge then agreed to hand over all the Hostess Brands foods to different buyers.3 This was not the snack food company’s first bankruptcy. During the 2004–2009 bankruptcy period, Hostess closed nine of its 54 bakeries and more than 300 outlet stores. In addition, Hostess’ work force declined from 32,000 to 22,000 employees. The company also dropped some regional brands and operating agreements, such as the agreement to produce Sunbeam Bread for the northeastern U.S.4 Why did it happen? A major reason behind the bankruptcy was Hostess’ failure to adapt its product lines to changing consumer tastes when their market shares started decreasing a decade ago.5 Company owners should have adapted more to consumer taste shifts and added new products. It also could have kept its high-performing products, such as the popular Twinkie, but reinvented other products, such as Wonder Bread, to be more natural with added nutritional...
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...Isolation Have you ever felt isolated from your surroundings, either because of language or culture wise, being new in town, feeling friendless, or simply because you have to study while everyone else is out having fun while you study? Well I have had many experiences like those. There was a time in which I had moved from New Jersey to Tennessee and I was the new kid on the block. Also there was another addition in my life back when in my childhood years when I had first started school as kindergartener. Well it was a chilly early morning with bright blue skies in early September. The birds were out and singing with a smooth and majestic melody. I was only four or five and about 3’5 with a fresh new haircut. I remember I was a nervous wreck with a sad look on my face for the simple fact that it was my first day in a room filled with strangers. As the minutes would pass by waiting in the humid office with my parents on some paper work that needed to be done I would constantly have that thought in the back of my head on how thing would be in that new room that I was destine to go. Then came that dreadful sentence that I didn’t want to hear, “Well everything here is done. Carlos is now able to go to his new room.” Walking down the hallway to the room it seems like the hallway would expand and we were walking forever. To my surprise I turn my head in a sad manner to be surprised that we have not...
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...Project Plan: Improving Quality Control Current Process In the manufacture of its Twinkie product, Hostess currently has in place a fairly simple quality control measure (QCM): before wrapping, a sample Twinkie from each batch is pulled. The product is weighed, the volume of filling is visually inspected, and an actual taste test is performed. If the product tested passes these QCMs, the batch is then sent on to be wrapped and packaged. The problem with the current QCMs is that they occur at the very end of the manufacturing process; therefore, if the individual product tested does not pass, an entire batch of Twinkies must be rejected. It is either discarded or, since Hostess closed its outlets in 2012, sent to Big Lots to be sold at a 40% discount (Feran 2014). Further, the production line itself must be shut down while the machine that malfunctioned is recalibrated. This results in a significant loss of daily production and profits. Suggested Improvements As of the end of 2014, Hostess Brands produced 500 million Twinkies a year—1,000 Twinkies a minute—in its Emporia, KS location (“About” 2015). A fairly simple improvement in the process design can eliminate performance and reduce defects to at most. The suggested changes in when and how QCMs are performed will bring waste down to at most a tray of product and reduce downtime on the production line. The first change to the QCM is to divide into two parts. The first QCM will occur after mixing the ingredients and...
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...The Continental Baking Company dates back to the 1920s creating the famous pastries brand Hostess and Wonder bread products. The Continental Baking Company became known as Hostess Brands. Hostess Brands filed for Chapter 11 bankruptcy in November 2012. They had to close all the Hostess Brands factories and ending 18,500 jobs. In the fiscal year 2012, Hostess had a net loss of $1.1 billion with a revenue of $2.5 billion. Hostess spent eight years in bankruptcy. Many will like to know what the cause of the company bankruptcy was. (Ghillyer, 2014). Hostess Brands products and equipment would be sold through what is known as a “363 sale” because it was still in a formal liquidation. A 363 sale means everything will be sold without any liabilities...
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...Vuyani Mahluza, Emma Yearby, Robyn Williams LDR /531 July 22, 2013 Dr. Gwendolyn Spann Business Failure Analysis The Hostess brand has had over 13 years of changes prior to the final change of bankruptcy this year. The founder Newman Drake started the business in New York in 1888. In 1960 Drake Bakeries was owned by a larger company, Borden. Borden was the maker of other popular snacks, Cracker Jack and Wise Potato Chips. In 1987 Borden sold the company to Ralston Purina, which was owned by ITT Continental Baking Company the makers of the rival Hostess Cake and Wonder Bread (Drake, 2008). After Drake celebrated a 100th anniversary in 1988, the company was acquired by a Canadian company, Culinar. Despite Culinars ability to become profitable in 1997 from restructuring and optimization of already established company routes, they too sold Drake to Interstate Bakeries Corporation (IBC) a year later (Drake, 2008). In 2007 Grupo Bimbo, another major bakery company wanted to purchase Hostess from IBC for a reported $580 million. IBC declined stating the reason was the low offering price from Grupo Bimbo. Hostess is valued today for $135 million. April 9, 2013 McKee Foods purchased IBC for $27.5 million (Flowers, 2013). McKee Foods decided November 16, 2012 to liquidate Hostess Brand assets and concentrate efforts on the once rival brands to Hostess, Tastykakes. Drake Organization The organization’s mission statement was committed to implementing sustainable business practices...
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...Ideal Hostess During the 1950th time period in the United States, normal working class starts to move in to suburb area to seek for better life. The popularity of suburb area causes a shift of position for women in the society at that time. Most people begin to expect women to stay at home either taking care of children or the whole household. In addition, the ideal housewife needs to be perfectly obedient to her husband and pay extraordinary attention to her children. In the play Death of a Salesman, Arthur Miller depicts a similar image of a perfect housewife, Linda Lowman: she is always supportive to every decision her husband, Willy Lowman makes and protects Willy’s illusions and pride. However, her expectations to Willy and the pressure she...
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...Hostess VS Bakers Union Alexandria Allen HUM/114 November 21, 2012 Dr. Jake Golden Hostess VS Bakers Union The news story of Hostess going bankrupt and the Bakers union going on strike was very clear, but it was not completely accurate with sufficient depth and breadth. It is known why Hostess filed for bankruptcy, but there was not sufficient information as to what the Bakers union was expecting. From all of the news stories that I have read, it seems as if all of the facts are present except for the ignored fact of what the Bakers Union was demanding. The story did not consider alternative perspectives and worldviews. There were not any views debuted to the public, but the views of the company and a judge. A judge ordered mediation between Hostess and the Bakers union because the judge did not feel that all alternatives were taken into consideration. There is a questionable assumption that the company was holding back and not being 100 percent truthful and negotiating in good faith with the Bakers union. The implications that were being ignored were that of the company finally deciding to go bankrupt. The implications that were empathized were that of the 18, 500 Bakers union workers losing their jobs. It is important to make distinctions when undertaking a critical evaluation because not everyone involved knows all of the facts to make concrete decisions. If the Bakers union took the time to completely evaluate the predicament, they would have just taken cutbacks...
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...Callahan, E. Clark, J. Sitrin, D. Remlinger EXECUTIVE SUMMARY 'In revitalising the brand, the goal is not only to generate added sales levels but to have them based upon enhanced equity, a move which involves improved recognition, enhanced perceived quality, changed associations, an expanded customer base and increased loyalty.' David A. Aaker – Professor of Marketing Strategy at University of California at Berkeley. This is a story of risk and reward. About having the guts to effectively withdraw the Hostess Brand from the market, even though it was Canada’s largest snack food trademark and the company's flagship brand – in favour of replacing it with an old, weak brand – and then making that old brand the national leader, in its first year. The salty snacks market is notorious for its myriad brands, line extensions, flavours, and snacking variants, each striving to hook consumers with something new. It is fiercely competitive, and in 1996 (the base year for this case) Hostess, the market leader, had just over a 10% share. How do you relaunch an old weak brand into this snacking frenzy, when it has no product news, and is merely a good, old-fashioned potato chip? This paper describes how. The Lay's relaunch exceeded all objectives, and catapulted the brand to market leader in only 12 weeks. The relaunch is so recognized by Frito–Lay that the same strategy and creative, adapted to local needs, is being used throughout Mexico and Latin America. The paper will demonstrate strategic...
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...Case 5 Debt Financing and Bankruptcy Lynna Revard Trident University Abstract The purpose of this paper is to go into detail and explain the different aspects of debt financing, bankruptcy, and the outcome of Hostess Brand Inc., filing for bankruptcy. It will go into detail of what debt financing is how to avoid different aspects of it. I will also go into detail and explain not only the history of bankruptcy, but also the different chapters of bankruptcy and how each one differs from the other. You will read about things that you might already know and hopefully by the end of this paper I am able to teach some things that you were possibly not aware of. Main Body Hostess Brands Inc. and its beloved bread and snack cake products date back to the late 1800s. Its brands are some of the best known snacks and breads in the United States. They make many of the top-selling snack cakes in convenience stores, including Twinkies®, CupCakes and Fruit Pies. Before becoming Hostess Brand Inc., the company was known by many names. Interstate Bakeries Corporation, Holsum Bakeries, Bakers Inn, Hostess Bakeries, and Hostess just to name a few. Effective November 2, 2009, the company was renamed Hostess Brands, Inc. after the cake division that featured Twinkies and Cupcakes although it continues its bread line including Wonder Bread. It has been a very successfully company since it started its productions however; in 2004 the company had to file for...
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...(lighting, easy to find) | 1 | | | | 3. Accessibility of Front Entrance (easy entrance and exit from the restaurant) | | | | 4 | 4. Ease of Parking (whether it be self park or Valet) | | | | 4 | 5. Windows and Doors clean and free of streaks and spots | | | | 4 | Hostess | 1 | 2 | 3 | 4 | 1. Hostess Station easy to find | | | 3 | | 2. Greeting from hostess in a timely manner | | | | 4 | 3. Hostess made eye contact and used polite phrases such as “Please”,“Thank you”, and “Your Welcome” | | 2 | | | 4. If there was a wait, hostess quoted an accurate wait time | | | | 4 | 5. Hostess offered options for waiting (e.g. Recommend a drink, pointed out the bar, or outside waiting) | | | 3 | | 6. Hostess attitude and appearance | | | 3 | | 7. Hostess escorted guests to table at a comfortable pace | | | | 4 | 8. Hostess sat guest in a desirable location or the most desirable location that was available | | | | 4 | 9. Acknowledgment from Hostess on your way out | | 2 | | | Person(s) on Duty: | | Main Entrance and Hostess Summary: The Main entrance was a tad weird in the placement category but as I walked in it was very clean and the hostess was prompt to sit us down. She was very efficient asking us what We wanted to order. She was very polite as well as presentable. She sat us at the last booth that was open which was optimal. She acknowledged us politely on the the way out and told us to have a great night...
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...flavoring, since fresh Bananas were rationed and not readily available. In 1988 Fruit and Cream Twinkies were introduced with a strawberry filling swirled into the cream. The product was soon Dropped. Vanilla’s dominance over banana flavoring would be challenged in 2005, following a month long promotion of the movie King Kong. Hostess saw its Twinkie sales rise 20 percent during the promotion, and in 2007 restored the banana-cream twinkie to its snack lineup. As expressed in chapter 7, Chicago Street Food, Recipes and Cookbooks, the Hostess Twinkie and the Cracker Jack snack box are most definitely street foods, and fast food items which offer quick energy for adults at work, students in school or kids at play. There are recipes in cookbooks, specifically for the Hostess Twinkie and Cracker Jacks. In various cookbooks there are recipes on how to make your own “Cracker Jacks” in various forms. for many dessert dishes. On page 226 of Chapter 7, Bakeries, Popcorn and Cheesecake, the Hostess Twinkie falls under that category. As I reflect on the authenticity of Chicago born foods, that are signature items throughout the nation, the Deep Fried Hostess Twinkie is popular at State Fairs throughout the nation. This process involves freezing the cake, dipping it into batter, and deep-frying it. Christopher Sell, the inventor who is from Rugby,England acknowledges that the Twinkie was discovered in Chicago,Illinois. When the Twinkie pastry hits the hot oil, the creamy white vegetable...
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...Various parts of Shakespeare’s play, Macbeth, relate to my own personal life experiences. In the play it states, “This diamond he greets your wife withal,/By the name of most kind hostess, and shut up/In measureless content” (2.1.18-20). This quotation expresses the fact that Duncan had a good time when he visited Macbeth’s home. Duncan is thanking Macbeth’s wife for her hospitality towards him by gifting her a diamond. This related to my own personal experiences because both my parents frequently host social gathering at our house. Whenever people come over, they usually bring some sort of dish or present to thank the hostess, my mother, for opening her home to them. In both cases, the guests feel welcome, as well as comfortable, in the home...
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...ASSIGNMENTS BY HBPO ------------------------------------------------- B2C Assignment 1 A Design within the Europe Pavilion a. Country presentation (for either Germany or The Netherlands), in a EU setting/context b. Based on your concept, in line with the main theme of the World Expo CONDITIONS The indoor construction should meet the following criteria: * Representing the assigned sub-themes, all 6 included, one worked out * Creating a German or Holland Brand Experience * Distinctive * Within a total budget of € 3.000.000 (incl. breakdown after Expo) * Within the dimensions of 30m(b) x 30m(l) x 10m(h) * Able to handle 1200 visitors per hour Assignment 1 B Create a German or Holland Culture Experience in the Open Air Theater Expo 2015 (depending on your concept). Key characteristics: * Focused * Powerful * Exceptional * Positive CONDITIONS: The German or Dutch Culture Experience is an original and unique experience to the world. * Budget: 1 million Euro * Representing the European people: * Open * Creative * Adventurous ------------------------------------------------- B2B Assignment 2: Germany & Holland Themed Conferences Create a conference program based on the assigned sub-theme CONDITIONS: * Strong joint promotion with German or Dutch theme related industries, based on the assigned sub-theme. * Individual networking opportunities with International business partners...
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...Rodriguez 1 Lorraine Rodriguez Professor Diane Mannone English 103 5 October 2015 The Danger of the Single Story “Don’t judge a book by its cover”. We’ve all heard that phrase and we’ve all used that phrase. According to Wikipedia, it refers to it as a metaphorical phrase that can be translated to: “You shouldn’t prejudge the worth or value of something by its outward appearance alone”. This well known phrase is part of a greater but, less popular concept known as, a single story. In a TED Talk given by writer, Chimamanda Adichie, she explains that a single story is one story we hear over and over again about a person or a place and interact with that person or place through the lens of that one story. She argues that, “The single story creates stereotypes and the problem with stereotypes is not that they are untrue but that they are incomplete. They make one story become the only story”. A single story is dangerous for two reasons: it flattens our experience with another person and it can negatively affect the identity of a human being. When we engage with another person through the lens of a single story, we lose the opportunity of experiencing the depth of a person because we are simply not made up of one story, but of many stories. Similarly, and in some cases much worse, a single story can negatively shape the identity of a person when the single story we believe is not about another, but about our self. A single story is dangerous only when...
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