Iconic Brands – Can a true Americana brand make a Comeback

Some brands could be considered a national treasure, or a memorable American classic…and Hostess falls into the latter.  The news last week that the 87 year old company has once again fallen into  bankruptcy, making it the second time in less than three years is alarming.  The Hostess press release blamed the latest bankruptcy on a weak economy and costs tied to pension and medical-benefit obligations. The Irving, Texas-based baker intends to withdraw from pension plans and modify collective-bargaining agreements with unions, according to court documents (per the Huff Post).

A quick look at their Facebook wall points fingers at Management and Unions so it looks like the company’s shaky ground maybe due to numerous ongoing issues.  However, even amongst all the finger pointing I’m taken with the outpouring of support and LOVE for the Hostess brand on Facebook.

One fan went so far as to stay “I would have rather bailed out Twinkies (Hostess) than the Wall St.”  that is brand loyalty.  And she isn’t the only one, their wall is an outpouring of support for Hostess.  How can a company with such a beloved brand(s) go so wrong?

I think at first its a simple answer – they make junk food and the nation is trending towards healthier foods.  However, its seems more complex because Hostess have introduced healthier versions of existing snacks, and new lower calorie snacks.

My humble opinion is that a lack of brand evolution with their core consumers has Hostess in this position.  Hostess is synonymous with sugary sweet snacks, which was an enviable position for many decades.  However, now that Americans are more concerned with their health, Hostess cannot break free from the brand identity they have enjoyed for decades.

The good (great!) news is consumers are rallying around the company.  The questions is – do you choose your health or an iconic American brand?  Or, how can we keep both?

I’d love to know your thoughts.

Suz

P.S. that urban legend about Twinkies is NOT true…shelf life is 25 days (-ish!) but they are on the shelf for 7-10 days on average