No More Twinkies, No More Supply Chain

Hostess recently announced they will be going out of business. This is tragic news for all the Twinkie and Ding Dong lovers out there, but even more so for the employees and parties involved in the supply chain. Hostess has 565 distribution centers and 570 bakery outlet stores, as well as the 33 bakeries. With such a large network, it is estimated that it will take about a year to wind down completely. This has huge implications on the local economies of each location. Additionally, as these outlets and distribution centers close, more problems are created to distribute the remaining food products being produced.

Whether you’ve recently indulged in a Hostess product or haven’t touched the stuff since you were 9 years old, the bottom line is that this has an affect on the economy in a variety of ways. Probably the biggest impact is the loss of jobs, along with the new found vacancies on grocery store shelves. On the bright side though, perhaps childhood obesity takes a hit. Either that, or Little Debbie’s Nutter Butters take over as king of the lunchroom.

Original Article: http://www.reuters.com/article/2012/11/16/us-hostess-bankruptcy-idUSBRE8AF0OW20121116?cid=6444

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