Hostess Bets on Twinkies as Pabst Blue Ribbon of Junk Food
- Secret recipe doubles shelf-life of iconic yellow cake
- Beer investors turn to frozen fried Twinkies for next win
Hostess to Be Publicly Traded in Deal With Alec Gores
It’s a playbook that worked with Pabst Blue Ribbon: Breathe new life into a moribund brand by cultivating hipster credentials. Now, the investors who helped revive Pabst beer are taking Hostess Brands public, banking on introducing a new generation of consumers to Twinkies, the company’s most famous baked product.
Metropoulos & Co., the private equity firm founded by billionaire C. Dean Metropoulos, made a killing on Pabst, netting a profit of more than $450 million four years after the investment firm acquired the brewing company. Sales climbed steadily as the new owners cultivated the brand’s aura, sponsoring concerts and burlesque festivals and selling PBR trucker hats and jackets. That deft marketing helped transform the light lager into the brew of choice for millions of young image-conscious American beer drinkers. Can Twinkies also be cool again?