Some interesting points:
- Hostess's production costs were not outrageous but the distributions costs were between $80 million and $130 million annually and this is according to the judge.
- Part of Promotion: There's been a ton of free publicity, but no advertising in a decade, according to the Wall Street Journal.
- Hostess has spent eight of the past 11 years in bankruptcy with some "odd" Union rules. The real story are the unions, AFL-CIO and the Teamsters, and their costs, which hurt the bottom line.
- One of the nine P's, Place: Wonder Bread and Twinkies could not ride on the same truck. More Union rules.
- Hostess could not enter dollar stores, vending machines and movie theatres; there would have been more sales and revenue with the additional distribution channels and outlets. Unfortunately they needed separate agreements, which were restricted.
- The Unions imposed work rules, which stopped the drivers from helping load the trucks. How heavy could the Hostess products be?
Hostess and Twinkies will come back, but should the strange, odd union rules come with them.