How much dough was needed to make this sweet deal?

Answer: $5.6 billion

Questions:

• The article mentions that Hostess had gone through bankruptcy twice before being acquired by JM Smucker. Why might JM Smucker have wanted to buy Hostess despite its history of problems?
• Review this list of JM Smucker’s other brands. How might this acquisition impact:
  • The competitive landscape of the food industry?
  • Pricing and availability of Hostess products?
  • Quality of Hostess products?
• What are your feelings about Hostess continuing under JM Smucker? Are you a consumer of their products? If not, what alternatives do you buy instead?

Here are the ready-to-go slides for this Question of the Day that you can use in your classroom.

Behind the numbers (NPR):

"The total price tag is a whopping $5.6 billion — a huge scoop for Hostess, which has gone through bankruptcy not once but twice in the past two decades. That included a few months when Twinkies disappeared from the shelves.

Smucker had to fight to snag Hostess, prevailing over several big rivals that reportedly included PepsiCo, Oreo maker Mondelez International and Cheerios maker General Mills."

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Get your students in the business mindset with NGPF's Entrepreneurship mini-unit.

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Have students with their own product ideas? Let them test them out with ECON: I've Got An Idea!

About the Author

Ryan Wood

Ryan is the Partnerships and Adoption Manager for Next Gen Personal Finance’s midwest region. He brings his experience as a former teacher, curriculum designer, and sales and marketing professional to state organizations and school districts in supporting the implementation of their personal financial education efforts. He graduated from the University of Wisconsin-Green Bay and earned his teaching credential from Saint Mary’s University in Winona, Minnesota. He proudly taught at two rural high schools in Wisconsin before transitioning to curriculum design at NGPF, and is now excited to be on the front lines in delivering the best possible financial education in the midwest. He and his wife have three beautiful daughters, each of which inspire him to share the impact of being sound financial stewards both at home and as lifelong learners.