And this isn’t the first time Bimbo has tried to save Twinkies. Bimbo in conjunction with a few others made a bid for the Twinkie-maker during its first bankruptcy 2007, but Bimbo ultimately backed out, according to Forbes.
Bimbo’s access to cheap Mexican sugar might also give the company an upper hand. Hostess struggled with high sugar prices in the U.S., which were tied to trade tariffs, according to NBC News. Mexican sugar could help avoid those additional costs, but would also take production — and manufacturing jobs — south of the border.
Labor talks between Hostess and the unions that represent most of its 19,000 workers had gone on for months before the company’s decision to liquidate Friday.
However, the gap left by departing Hostess jobs could be potentially be filled by other U.S. companies.
“It may well be that other US producers step into the void and expand their US production, in which case the Hostess liquidation might not be a total loss,” says Chris Edwards, a Cato Institute economist, told the Christian Science Monitor.
Twinkie fans have treated the popular snack food like a prized commodity following the news of Hostess’ intent to liquidate on Friday. Hawkers on eBay and Craigslist began selling stashes of Hostess products online Saturday, reportedly for hundreds, and even thousands of dollars.
But the strange, snack-cake related behavior doesn’t stop there. A bizarre petition urging President Barack Obama to “nationalize the Twinkie industry” circulated in the wake of the Hostess announcement.
- Mexican Billionaire May Save Twinkies (huffingtonpost.com)
- Bimbo May Be Eyeing Twinkies (drudge.com)
- Will Twinkies prove a sweet deal for Mexican billionaire? (foxnews.com)