One thing that reminds me of my childhood is eating Hostess Brand products, especially Twinkies. With all the current news about Hostess going out of business, I decided to learn more about the situation. I chose the article “Who Killed the Twinkie?” by James Surowiecki from the New Yorker. Surowiecki explains why Hostess has gone out of business and where they went wrong.
In early 2012 Hostess went into Chapter 11 bankruptcy for the second time in the past decade. It seemed as if the company wanted to get out of their debt by cutting wages and benefits on their unionized employees. The union went on strike in response to the 27-32% wage cut contract given to them. Hostess claimed the strike injured their business even more by slowing down production. Hostess now wants to liquidate the company, which will leave nineteen thousand people without jobs. There are many factors that lead to Hostess’ downfall in the market; unionized employees are not the only ones to blame.
The highest people of Hostess, including management and corporate, blame the unions for being “greedy”. Some people have negative views on unions and think they are only trying to look out for themselves. I believe that when unions look for their own interests that they end up helping all workers in general. Surowiecki explains that it is not the union’s fault; it is actually a problem that the company has had for years. He says that Hostess has not been keeping up with the current market and what consumers want. Obviously, not that many people eat Twinkies and Ding Dongs anymore. There are always some companies that are unable to adapt to the current changes in the marketplace, and Hostess has been one of the struggling ones.
I agree with what Surowiecki said about Hostess being unable to adapt to the current marketplace; I have not seen many people eating Twinkies or Wonder Bread in the past decade. I think consumers are taking a more healthy approach and avoiding those kinds of foods. Twinkies and Wonder Bread have always had the same packaging and the same products; I think this is why they are always going to be a thing of the past. At least now we know if we have some Hostess products in hand, we could possibly sell them for some profit in the future. Even if Hostess ends up winning this battle against bankruptcy, I truly believe they still will not be able to survive in this marketplace.
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Source: http://www.newyorker.com/online/blogs/newsdesk/2012/11/who-killed-the-twinkie.html