Mexican Twinkies? Bimbo might purchase Hostess

A great opportunity for the american brand

Mexican Twinkies? Bimbo might purchase HostessThe Mexican baker giant Bimbo might be Hostess only hope. SanDiegoRed services
The Mexican baker giant Bimbo might be Hostess only hope. SanDiegoRed services

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At the end of last week it was announced that "Hostess", the company that produced the famous Twinkies and other rolls, filed for bankruptcy and now 18,500 jobs have disappeared.

Consumers began to panic and started buying boxes of Twinkies online paying up to $ 100 for a box, but now there are several rumors that indicate that the Mexican company Bimbo could acquire the product.

Bimbo is the largest bakery company in the world, and in addition to their own lines they also own part of Sara Lee, Entenmann's and Thomas’ English Muffins. Previously in 2007 the company had approached Hostess with the intention of buying the entire organization and not just some of its brands by offering $580 million for the company. Today Hostess has an approximate value of $ 150 million, and since Bimbo might buy everything and just some of the brands, they have the highest possibility to purchase the company above others who are only interested in certain brands.

There were a few problems Hostess faced, and one of them was the distribution of their product, which Bimbo is an expert at and might give them a big advantage if the purchase becomes a reality. The other problem was the cost of materials for the production of biscuits, and also the cost of sugar in the United States that had increased, which the price of sugar is what opens the possibility that Twinkies would now be manufactured in Mexico.

Bimbo is currently a big competitor of other U.S. brands like Kellogg, General Mills and Hershey.

In recent months some Mexican companies like Comex as well as Jose Cuervo Tequila and Grupo Modelo (brewers), have been passed on to foreign hands, but perhaps the acquisition of Hostess by Bimbo will provide some balance to these type of transactions.

Now the question is whether these lost jobs will remain in the U.S. or will all go to Mexico, and which country’s economy will benefit from this along with the thousands of jobs.

Video : Bimbo bread commercial with Lionel Messi

Brenda.Colon@sandiegored.com

Translation : Omar.Martinez@sandiegored.com

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