KANSAS CITY — Longtime snack cake maker Hostess Brands L.L.C. entered the bread market several months ago with an under-the-radar launch of Hostess branded bread. The bread has been spotted in Walgreens stores in Arizona, Illinois, Iowa, Michigan and Nebraska, as well as convenience store chains in Missouri.
Now, in the wake of news that the company is seeking $1.225 billion of loans to refinance debt and pay a dividend, sources have told The New York Post that the company is planning an even broader expansion of its product lineup, one that would take the company into the frozen aisle and other grain-based categories it previously has not participated in.
According to The New York Post, Hostess, which is owned by Apollo Global Management and Metropoulos & Co., is telling lenders it is considering frozen fried Twinkies, bagels, tortillas and English muffins, as well as a broader launch of the bread line.
“They have been working on developing bread with extended shelf life,” a source told The New York Post.
While Hostess has not commented publicly on any of the aforementioned plans, the news fromThe New York Postis in line with what has been told toMilling & Baking Newsin recent months, which is that Hostess has been able to significantly increase the shelf life of certain baked foods beyond their traditional Twinkies and HoHos snack cakes.
