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November 24, 2012

Analyst: Flowers Foods doesn't need Hostess brands

ATLANTA —  

A Georgia firm is speculated as a possible buyer of Hostess Brands assets like Twinkies, Ding Dongs and Wonder Bread.

But industry analysts say Flowers Foods in Thomasville should be wary of any deal as Hostess liquidates. Flowers already makes Nature's Own and other recognizable bakery brands.

William Chappell is from SunTrust Robinson Humphrey. He told The Atlanta Journal-Constitution that Flowers already has a wide enough market presence to gain from the Hostess bankruptcy, without spending money buying any of its brand names.

Tim Ramey in a D.A. Davidson & Co. analyst. He said the future of Hostess brands is uncertain. Items like Twinkies, he added, hit their peak popularity a long time ago and are now in a death spiral.

Flowers executives have not discussed any plans publicly.

See Sunday's edition for more details.

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