The trimmed-down Hostess Brands LLC has a far less costly operating structure than the predecessor company. Some of the previous workers were hired back, but they’re no longer unionized.
Hostess will also now deliver to warehouses that supply retailers, rather than delivering directly to stores, said Rich Seban, the president of Hostess who previously served as chief operating officer. That will greatly expand its reach, letting it deliver to dollar stores and nearly all convenience stores in the U.S.
Previously, he said Hostess was only able to reach about a third of the country’s 150,000 convenience stores.
Production was also consolidated, from 11 bakery plants to four — one each in Georgia, Kansas, Illinois and Indiana. The headquarters were moved from Texas to Kansas City, Mo., where Hostess was previously based and still had some accounting offices.
In the months since they vanished from shelves, the cakes have been getting a few touchups as well. For the CupCakes, the company is now using dark cocoa instead of milk chocolate to give them a richer, darker appearance.
Seban stressed that the changes were to improve the cakes, not to cut costs. Prices for the cakes will remain the same; a box of 10 Twinkies will cost $3.99.
Looking ahead, Seban sees Hostess expanding its product lineup. He noted that Hostess cakes are known for three basic textures: the spongy cake, the creamy filling and the thicker icing. But he said different textures — such as crunchy — could be introduced, as well as different flavors.
“We can have some fun with that mixture,” he said.
He also said there are many trendy health attributes the company could tap into, such as gluten-free, added fiber, low sugar and low sodium.
During bankruptcy proceedings, Hostess had said that its overall sales had been declining, although the company didn’t give a breakout on the performance of individual brands. But Seban is confident Twinkies will have staying power beyond its re-launch.
As for the literal shelf-life, Seban is quick to refute the snack cake’s fabled indestructibility.
“Forty-five days — that’s it,” he said. “They don’t last forever.”