Economists say high sugar prices tied to US trade tariffs were a big reason Hostess was struggling, but a Mexican company could be a lifeline for Twinkies because it would be able to take advantage of access to lower-priced sugar in Mexico.
Grupo Bimbo is the world’s largest bread-baking firm, which already owns parts of Sara Lee, Entenmann’s and Thomas English Muffins and previously made what was considered a low-ball offer of $580 million a few years ago, Forbes reports. Now Hostess may only be worth $135 million.
While Hostess was clearly struggling, analysts believed Grupo Bimbo had an eye on them since the early 2000s because they saw Hostess as a key ingredient for North American expansion with delivery routes that penetrated across the country into convenience stores, gas stations and grocery markets, according to Forbes.
Originally posted by MastaShake
Pretty sure the twinkies in the states were manufactured with High fructose corn syrup. moving them to mexico and having them made with real sugar would prob be healthier.
Originally posted by Erongaricuaro
Obesity, diabetes, and other high-glucose maladies, is this how Mexico seeks to repay the United States for its generosity for keeping its back door open for their undocumented immigrants to enter the country and work in sub-standard conditions for low pay - though perhaps earning a small fortune compared to what they might have made working near their homes down south? Actually, it seems more that Mexico, with its Wonder Bread acquisition, will be helping Americans build strong bodies - as the product's vintage ad used to state. Or is this part of Mexico's insidious plot to take over North America while Americans are facing a devastating economical downturn at a time when Mexico is prospering?
Maybe it's just that now the economic tide is turning and the Bimbos are finally able to cash-in on the North American sweet tooth. They tried this before, offering Hostess over 4-times what it is worth today only to have them scoff and call their offer an insulting low-ball. Now the Mexican giant owns some of America's most beloved and consumer-devoted brands. At least it appears they have not been squandering their hard-earned "dough.
Originally posted by wmegoth
AFAIK, twinkies have been produced south of the border by Bimbo's branch Marinela since the early eighties, but then again, I could be wrong, is there someone from Mexico willing to go to the corner store and take a picture of the packaging?