Hostess Brands Inc SWOT Analysis & Company Profile by BusinessReview

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									Hostess Brands, Inc.

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Hostess Brands, Inc.: SWOT Analysis &
Company Profile


Reference code: CS0097CP

Published: Sep 2010




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Hostess Brands, Inc. - SWOT Profile                                                 Page 1
Hostess Brands, Inc.

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Hostess Brands, Inc. - Company Overview

Hostess Brands, Inc. (Hostess) formerly known as Interstate Bakeries Corporation, is one of US’ largest wholesale bakers
and distributors of fresh baked bread and sweet goods. Hostess offers a variety of products including breads, buns, rolls,
croutons, stuffing, dressings, snakes cakes, donuts and other related products under a number of well-known national and
regional brand names. Major brands offered by the company include Wonder, Hostess, Dolly Madison, Merita, Nature’s
Pride, Home Pride and Drake’s. Hostess, through its direct route system and about 700 bakery outlets, distributes its
products across the US. It operates 39 bakeries and about 600 distribution centers that cater to various food outlets on
about 6,000 delivery routes. The company is headquartered in Irving, Texas, the US.




Hostess Brands, Inc. - Key Facts

Hostess Brands, Inc., Key Facts

                                  6031 Connection Drive, Irving,
                                  Texas (TX), 75039, United         Ticker Symbol, Stock
Corporate Address:                                                                             N/A
                                                                    Exchange
                                  States


Telephone                         + 1 972 5324500                   No. of Employees           21,000



Fax                               + 1 972 8927694                   Financial Year End         N/A



URL                               www.hostessbrands.com             Revenue (in USD Million)   N/A



Industry                          Consumer Packaged Goods



Locations                         United States

Source: Annual Report, Company Website, Primary and Secondary Research




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Hostess Brands, Inc. - SWOT Profile                                                                              Page 2
Hostess Brands, Inc.

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Hostess Brands, Inc. - Business Description

Hostess Brands, Inc. (Hostess) formerly known as Interstate Bakeries Corporation is a US based company and one of the
largest wholesale bakers and distributors of fresh bakery products, fresh delivered bread and snack cakes in the US. It
employs 21,000 people.

The company manufactures, markets and distributes breads, buns, rolls, croutons, stuffing, snakes cakes, donuts and
other related products under various national and regional brand names. It offers cakes and other sweet snacks under
Dolly, Hostess and Drakes brands; loaves, rolls and other types of breads under Beefsteak, Butternut, Eddy’s, Home
Pride, J.J. Nissen, Merita, Cotton’s Holsum, Holsum, Millbrook, Nature’s Pride, Bread duJour, Sweetheart and Wonder.
The company also sells croutons and stuffing under the Mrs. Cubbison's and Marie Callender's brands. In addition, it
bakes and delivers breads under Colombo, DiCarlo, Standish Farms, Good Hearth and Sun-Maid brands.

The company’s Home Pride wheat bread is a leading wheat bread brand while Wonder bread is one of the leading white
bread brands in the US. Its Hostess products, including Ding Dongs, HoHos and Twinkies, are among the leading snack
cake products sold in the US.

Hostess operates its business through three divisions, namely, Route sales, Outlet sales and Direct sales. The Route
sales division collectively comprises various operations of manufacturing, distributing and sale of fresh baked goods
through direct store delivery system.

The Outlet sales division comprised of four regions, which sells baked goods and other food items directly to consumers
through company-operated outlet locations.

The company’s Direct sales division consists of its direct warehouse shipment program that ships bulk packaged sweet
goods and dry products, including croutons and stuffing mix directly to customer-owned distribution centers and public
warehouses for distribution.

The company operates 39 bakeries and about 600 distribution centers to delivers fresh baked goods on about 6,000
delivery routes. It also distributes these products through its about 700 bakery outlet stores. The company sells majority of
its bread through supermarkets and national mass merchandisers, and its sweet goods through supermarkets, national
mass merchandisers and convenience stores.

The company filed for bankruptcy protection in 2004. In February 2009, Hostess emerged from bankruptcy as a stand-
alone company. The company gained financing commitments worth USD 130 million from IBC Investors I LLC, an affiliate
of the private equity firm Ripplewood Holdings LLC. The company also has revolving loan commitments worth USD 125
million from General Electric Capital Corp. and GE Capital Markets Inc. and USD 344 million term loan-secured credit
facility arranged with Monarch Master Funding Ltd. and Silver Point Finance LLC.

Recently, the company unveiled the Sandwich Wonder-izer, a new online tool, which enables consumers to create unique
sandwich combinations from a list of over 120 ingredients, ranging from cheddar cheese to cucumbers and sprouts to
salami. Also, the company launched new Hostess Breakfast Classics, a convenient and familiar assortment of muffins,
honey buns, cinnamon rolls and danishes. Further, it also introduced Wonder Smartwhite, a new bread with the taste and
soft texture of white bread but with the fiber of 100% whole wheat bread.




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Hostess Brands, Inc. - SWOT Profile                                                                                 Page 3
Hostess Brands, Inc.

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Hostess Brands, Inc. - Major Products and Services

Hostess Brands, Inc. is one of the US' largest wholesale bakers a
								
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