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Domenick Celentano

Walmart and Twinkies - Perfect Together?

By December 14, 2012

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The traditional media was putting the nail in the coffin for the demise of Twinkies due to their inability to negotiate with the unions to emerge out of bankruptcy. The RetailWire post says something different.

The brand equity value is not lock step tied to the financial health of a company so for sure someone would step up to the plate to buy the brand. The market is well established as you can see from the attached infographic.                                            

Walmart - The New Owner of Twinkies

(Click the image for a larger view)

The History if Twinkies at Hostess BrandsThis is being widely reported with Kroger also being in the play for bidding for the brand. Why retailers?

With 500 Million Twinkies produced annually, surely Kroger and Walmart will take a hit in the bakery sales. On the flipside both retailers have strong Private Brand programs and they are managing these at a level very close to how manufacturers manage.

Twinkies could be potentially managed from either retailers Private Brand Groups and there is history to show how some retailers private brands are sold to other retailers.

Who will buy Twinkies? Someone :)

What does this tell us however? Disruption is happening in all facets of business and food is no exception. Why is this disruptive? The Kroger Walmart interest in Twinkies may lead other retailers to consider buying consumer brands in the not too distant future. And that means brands will need to rethink their go to market strategies.

 

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