The possible demise of Hostess has played out in the media as a tale of Twinkies, but the dollars and cents of the matter come down to two big issues: the decline of the bread business and the vast diversification of snacking.

Bread took a serious blow in the low-carb decade and, despite a perception that “carbophobia” is history, consumer enthusiasm for bread has only partially recovered. If that sounds like today’s economy, the comparison is apt. While the apparent cause of bread’s decline seemed obvious, another, more persistent cause was at work: Changing lifestyles that have pushed to the extreme our definition of ready-to-eat...

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