The Hostess Brands company filed for bankruptcy in 2004 and again in 2012. The second bankruptcy filing in 2012 was blamed on a union strike. Hostess Brands owns several well-known snack brands including Twinkies, Wonder Bread, and Nature's Pride. After announcing it would liquidate assets unless the union strike ended, social media sites like eBay saw Twinkies being resold at inflated prices as nostalgia and scarcity drove demand. The document discusses whether the brand recognition of Hostess could still generate sales despite a poor reputation and high labor costs, or if the company would be better off being acquired.

1. Deeper Dig
Kelly Schallhorn
MKTG-338-002

2.  Founded in 1930
 Brands include Hostess, Wonder Bread,
and Nature’s Pride
 Went bankrupt in 2004 but emerged in
2009
 Filed bankruptcy again in January of
this year
 Union strike said to be the cause

3.  Social Media frenzy
 Twinkies selling on EBay at hugely
inflated prices
 Liquidation unless Union Strike ends

4.  Brand Recognition vs Sales
 Bad Reputation
 High Costs (Labor)
 Comeback vs Buy out
 Value in an established brand
 Social Media Influence

5.  The power of social media
 Unions
 Pros vs Cons

6.  Brand Recognition
 Brand Image
 Turning Brand Recognition into Sales
 Unions

7.  https://www.you
tube.com/watch
?v=ZwQ9BU1UD
Vk

8.  http://dealbook.nytimes.com/2012/01/11/host
ess-files-for-bankruptcy/
 http://www.jm-
seo.org/wordpress/2012/11/17/hostess-
closing-the-twinkie-going-out-of-business-
unbuzzed-top-ten-list/
 http://www.damniwish.com/
 http://en.wikipedia.org/wiki/Hostess_Brands
 http://www.foxnews.com/us/2012/11/17/price-
twinkies-skyrockets-on-ebay-craigslist/
 http://compare.ebay.com/like/330830819445?
var=lv&ltyp=AllFixedPriceItemTypes&var=sbar
 https://www.youtube.com/watch?v=ZwQ9BU1
UDVk