Hostess Brands

Hostess Brands, LLC
Public
Traded as NASDAQ: TWNK (Class A)
Russell 2000 Component
Industry Food (bakery)
Predecessor Old HB
Founded June 2013 (June 2013)
Headquarters Kansas City, Missouri, United States
Key people
 Dean Metropoulos
(Executive Chairman)
Andy Callahan
(CEO)
Products Brands such as Hostess and Dolly Madison
Owner C. Dean Metropoulos and Co.
Apollo Global Management
Website www.hostessbrands.com

Hostess Brands is a bakery company formed in June 2013. It owns several bakeries in the United States that produce snack cakes under the Hostess and Dolly Madison brand names. It is headquartered in Kansas City, Missouri and is 50% owned by HB Holdings, LLC, a venture set up by Apollo Global Management and C. Dean Metropoulos and Company.[1]

History

The company is separate from Old HB, which was formerly known as Hostess Brands, Inc. from 2009 to 2013. Old HB is currently under liquidation and sold its cake business to Apollo and Metropoulos creating the current Hostess Brands. The current Hostess Brands was formed as New HB Acquisition, LLC to acquire the cake business (Hostess and Dolly Madison brands) of Hostess Brands, Inc. Following the conclusion of the sale, Hostess Brands, Inc. became Old HB, Inc. and New HB Acquisition became Hostess Brands, LLC.[2]

In June 2013, Hostess Brands retained the same public relations and advertising firms that had previously worked for Old HB. Bernstein-Rein in Kansas City, Missouri' will do Hostess Brands' advertising; LAK Public Relations in New York will handle its public relations for the return of Hostess products.[3]

The company officially restarted production of snack cakes on June 6, 2013, with products officially going on sale on July 15, 2013.[1]

Of the eleven bakeries operated by Old HB, Hostess Brands retained four, in Columbus, Georgia; Emporia, Kansas; Indianapolis, Indiana; and Schiller Park, Illinois.[4] The Schiller Park facility later closed, in October 2014.[5][6]

In the summer of 2015, Hostess began producing Hostess brand bread and buns. The company, which previously owned Wonder Bread, never produced bread under its own brand name. The new Hostess bread items are carried at certain drug stores and dollar stores.[7]

In July 2016, Hostess announced it would be going public in an offering valuing the company at $2.3 billion.[8] The deal would see Apollo Global Management and C. Dean Metropoulos and Company become minority owners, with The Gores Group taking a majority ownership position in the firm.[9]

Instead of making an initial public offering, Gores acquired Hostess via a spin-off, Gores Holdings, under a special-purpose acquisition company process.[10] Gores Holdings subsequently renamed itself Hostess Brands, changing its ticker symbol from GRSH to TWNK, after the Twinkie brand snack cake.[11][12]

In February 2017, Hostess released three new ice cream flavors inspired by Twinkies, Sno Balls, and CupCakes. The Twinkies flavor is made of buttercream ice cream base, sponge cake pieces and a vanilla frosting swirl. The SnoBalls flavor is made of cream-filled cakes with marshmallow and coconut frosting. The CupCake flavor is made of cream-filled cake with the famous squiggly line. Hostess ice cream is produced with Nestle, available in Dollar General stores and convenience stores. Hostess ice creams are only in stores for a limited run through May.[13]

In 2017, the company rolled out a new upscale line of snacks called Hostess Bakery Petites, with no high-fructose corn syrup or artificial flavors. The new line was credited with an increase in revenue for the 4th quarter of 2017 for the company.[14]

On February 1, 2018, Hostess announced that it had acquired the Big Texas and the Cloverhill Bakery brands from Aryzta.[15]

In April 2018, the company announced that Andy Callahan would take over as CEO in May 2018.[16]

References

  1. 1 2 Choi, Candice (June 24, 2013). "Hostess says Twinkies will return to shelves July 15 with wider distribution". Star Tribune. Retrieved July 22, 2013.
  2. ↑ "Business Name History". Missouri Secretary of State. July 22, 2013. Retrieved July 22, 2013.
  3. ↑ Elliott, Stuart (June 30, 2013). "News From the Advertising Industry (Accounts)". New York Times. Retrieved July 24, 2013.
  4. ↑ Bomkamp, Samantha; Cancino, Alejandra (August 20, 2014). "Hostess Twinkie plant in Schiller Park closes after 84 years". Chicago Tribune.
  5. ↑ Lobosco, Katie (August 20, 2014). "Twinkie bakery to close, putting 400 out of work". CNN Money.
  6. ↑ "Hostess Bakery plant in Schiller Park closes". ABC 7 Chicago. October 19, 2014.
  7. ↑ Schroeder, Eric, "Metropoulos moves Hostess into bread, bun market", bakingbusiness.com, June 18, 2015.
  8. ↑ Chappell, Bill (5 July 2016). "Twinkies-Maker Hostess Plans A $2.3 Billion Stock Offering". NPR. Retrieved 5 July 2016.
  9. ↑ Cyran, Ryan (5 July 2016). "A Tasty, High-Calorie Deal for Hostess Brands". New York Times. Retrieved 5 July 2016.
  10. ↑ "Hostess Brands expected to start trading Monday". Seeking Alpha. 5 November 2016. Retrieved 26 November 2016.
  11. ↑ Kell, John (November 7, 2016). "Hostess Brands Returns to Wall Street". Fortune. Time Inc.
  12. ↑ "Gores Holdings, Inc. Completes Acquisition of Hostess Brands, LLC, Maker of Twinkies" (Press release). Business Wire. November 4, 2016.
  13. ↑ "Twinkies flavored ice cream hits store shelves". Fox News. 2017-01-26. Retrieved 2017-01-26.
  14. ↑ Staff, Writer (2018-03-01). "Twinkie Maker's Push Into More Upscale Snacks Helps Fuel Rally". ADAge. Bloomberg News. Retrieved 2018-03-02.
  15. ↑ "Hostess Acquires Aryzta Breakfast Brands". CSP Daily News. Retrieved 10 May 2018.
  16. ↑ Al-Muslim, Aisha (2018-04-12). "Hostess Brands Names New CEO". Wall Street Journal. ISSN 0099-9660. Retrieved 2018-04-13.
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