Hostess Brand Files for Bankruptcy

Hostess Brands Files for Bankruptcy

In the news this week, I found out that Hostess (who makes fatty and sugar treat such as Twinkie’s) has filed for Bankruptcy.

“Hostess went through a Chapter 11 bankruptcy back in 2004 and had trouble regaining its footing afterwards, in spite of investments and loans from private equity firms and hedge funds. The Journal reports that Hostess has lined up financing that would allow it to continue operating while in bankruptcy, so its ovens won’t be shut off just yet.” – TIME Magazine

Your “Vote” Counts

The every day consumer, like you and me, has more power than we realize. Business is all about supply and demand, and with the recent bankruptcy news we realize that there just isn’t a big enough demand for Hostess snacks anymore. Thanks to a more health conscious public, people have been buying less and less of the Hostess brand snacks, resulting in a mountain of debt for the company, rather than sales.

I am not trying to relish on this news (OK, maybe I am…) but I believe this bankruptcy sends a strong message to the consumer. The companies that are going to survive or die are based on the product demand, which is based on what we are willing to buy at the grocery store.

You have a choice on whether you see more health foods at your grocery store compared to junk food. Every time you go grocery shopping, you are making a vote on what you want in that store of yours based on what you consistently buy. Companies are paying attention, and if there is a high demand for healthy food, they will supply more of those types of foods. If there is a demand for junk food, they will provide plenty of unhealthy products to choose from. If nobody buys a certain product, It won’t be in business for long.

I’m happy to say farewell to the Hostess brand company. It shows that enough consumers have voted, and our voices have been heard.

Just remember that every time you go to the grocery store, you vote…with your dollar.

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