Union kills the twinkie

Nov 16, 2012 78 Replies

I have to say that Hostess sold 323 million Twinkies in the last

12-month period, and had sales of 2.5 Billion in 2011, so it's not that there were no sales. (Ref: The Hostess Liquidation: A Curious Cast Of Characters As The Twinkie Tumbles, Submitted by Tyler Durden on 11/16/2012 10:18 -050)

So it has to be the cost structure.

There were also two articles in The Wall Street Journal (17 Nov 2012, pages A1 and A16). The upshot was that it was work rules as much as anything, plus pensions, that overwhelmed Hostess. The Teamsters had agreed to the cuts, but the Bakers balked, and time ran out. I don't doubt that Hostess was prepared for this outcome, given the history.

But there was a critical note in one of the two WSJ articles, that the Twinkie brand and recipes portfolio would be sold as part of the liquidation, to raise money to pay creditors.

Given that 323 Million Twinkies were sold per year, yielding billions in sales revenue, someone will buy this. Like the Bimbo Group that was trying to buy Hostess. What they will *not* buy is Hostess the company, or any of its obligations.

Wonder if any Bakers Union people will get jobs in the new company.

Joe Gwinn

There's at least 6 of them in a city of population 36,648 just a few miles up the freeway from me.

Bullshit.

Then you shouldn't have a problem coming up with the names of 10 actual bakeries and a specific list "government regulations" that led to their ultimate demise....

From what I read, "some" made ~18.00 per hour...do you really think that all of them made that much ?

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Average hourly wage appears to have been about $14.50

--personally, I don't get out of bed for anything less than about triple that amount.

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"The city and state you work in can affect the amount you earn as a baker. The highest-paid city in the United States is Minneapolis, Minnesota, with hourly rates for bakers between $14.20 and $17.66, while bakers in Dallas, Texas, earn hourly rates between $9.83 and $12.84, as of November 2010, according to Payscale.com. The difference in hourly rates for bakers occurs when there is a greater demand for these workers than in other areas of the country."

Almost zero; instead, they be delivering and wharehousing somebody else's products from now on.

Anyways, IMO the fundamental problem isn't labor costs...

--it's the fact that no matter how fast it gets baked, ultimately, the rich can still only eat a certain amount of cake.

Nope....

Nusinesses always have the option of hiring scabs where meeting union demands is not feasable.

I hope the state refuses all their requests for unemployment benefits, given that they voluntarily walked off their jobs and turned down an offer by the company to keep them. Damn, what a bunch of dumbasses in a really nasty job market! THAT is the union's fault. Effemall...

It's funny how unions drove labor prices up, union workers generally vote for Democrats, but all the jobs lost are somehow the result of Republicans!

Union workers are just another group believing the Democrats lies and buys.

RogerN

Believe what you want to. But don't come crying to me when you go on strike and your job goes away.

Software

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I seldom eat at the Golden Arches but that aside, back in the day milk tasted different depending on what cow it came from. Probably having to do with the amount of fat in the milk and I somehow seem to remember that Jersey's gave the richest milk.

But I think what you are talking about is what we used to call "skimmed milk". It's not actually skimmed but run through a centrifugal separator to separate the cream as I guess that sells for a higher price.

But you have your all encompassing government to thank for the make up of most foods. Take a look at what is actually in Pizza cheese.

I'm self-employed, you moron.

Other than the refusal to go back to work, so they could fill their contracted customers.

Twice daily? That wouldn't pay their overhead. They need to be up & running around the clock. 'Local bakeries' might be able to supply a few supermarkets, at best.

We know. No one else would hire you.

Guess he thinks that the mom/pop places will fill the void. There is NO POSSIBLE way that they can.

One of the few outfits that has survived so far is a place in Herkimer. They have 12 employees and distribute to maybe 10 stores. Each store gets about 20 loaves of bread and a few bags of rolls and cookies 3 times a week. Now if I take just ONE store as an example (say the local Hannafords) They sell on average 70 loaves of bread PER DAY. I have gone in on Friday nights and seen the entire rack sold out, that is bread from at least 20 different brands. That includes the store branded stuff as well as the big names.

BUT if you look at the Heidelberg bread it is usually only missing a loaf or two. WHY?? The stuff costs about 5 bucks for a loaf that is half the size of the normal loaf.

A typical grocery store around here has over 500 loaves on the shelves. Then there are those super stores...

Between the stockholders wanting extreme profits and the union pricing the obsolete products out of sight, the market dwindled. The union strike was the last straw. Like I said, I hope the states deny any of them unemployment benefits because they walked off the job. They quit. F*CK 'EM! Let the union pay them until they find burgerflip jobs.

You're ignoring simple drop off in consumer demand.

SEE

Buggy whips

Every machining job shop I know of would hire him in a heartbeat. No shop I know of would ever hire you.

You mean the other brands they owned that produced some of the best whole wheat bread in the area? I guess you lefties are spending all your money on beer & cheap wine instead of bread. 200 people will be out of work at the Merita Bread bakery in Orlando.

I wouldn't work for any shop that admits they know either of you.

Ler's see. They have ONE CEO, and 18,500 other employees. How much good would it have done to cut the CEO's salary by 8%?

WHAT DROP? The sales of Twinkies had gone up every year till 2011 when they had a 2% drop (they sold "ONLY" 36 MILLION cases)

Oh and as proof that it is not WHAT you eat but how much you eat (IE Lack of self control)

In 2010 a college professor named Mark Haub went on a "convenience store" diet consisting mainly of Twinkies, Oreos, and Doritos in an attempt to demonstrate to his students "that in weight loss, pure calorie counting is what matters most?not the nutritional value of the food". He lost 27 pounds over a 2-month period, returning his body mass index (BMI) to within normal range.

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