THERE'S STILL TWINKIES IN CHICAGO

English: Twinkies (Photo credit: Wikipedia)

Supervalu, In Search of Strategic Options, Turns to Desperate Twinkies Fans

Supervalu has found itself at least one strategic option: Twinkies.
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The supermarket chain, which is exploring a sale or other options amid its own slumping results, is apparently hoping it may get a short-time boost thanks to the dying Hostess Brands’ final shipment of Twinkies.

Yup, that’s one struggling company looking for a life line from an already bankrupt one.

Here’s Dow Jones’ Annie Gasparro on the plan:

Supervalu managed to secure what it says is the last shipment of Twinkies in the country before the bankrupt bakery Hostess shutters its oven doors. [Supervalu] is selling them at their Jewel-Osco stores in the Chicago area, hopeful, perhaps, that news of the 20,000 boxes of iconic Twinkies will generate traffic to its struggling grocery stores.  [Supervalu's] sales have been lagging, and it has been trying to execute a turnaround while also cutting costs, as it looks for a buyer.
Supervalu actually put out a press release saying it was offering “Twinkie lovers a chance to get one final taste of the iconic Hostess Brands treat.” It says it will keep them at the “regular price” and not put limits on how many a customer can buy. A post on Jewel-Osco’s Facebook page has over 370 likes.

Since Hostess announced it was liquidating, Twinkies have flown off the shelves. Hostess CEO Greg Rayburn said recently he gets accosted in public by people thinking he has Twinkies in his pocket. He has also said he’s been surprised by the number of bidders for Hostess assets, which he said included some large supermarket chains.

The Twinkies demand even spurred a Saturday Night Live skit this weekend, when a Ding Dong professed he was offended by all the Twinkie affection. (Ding Dongs will also be found at Jewel-Osco, the chain’s Facebook page assures followers.)

Of course, a sale of the Twinkies brand could mean Supervalu’s shipment isn’t the last, but slumping sales often call for desperate PR measures.