Smucker's to Buy Twinkies Maker Hostess in $5.6 Billion Deal

Jelly giant Smucker's, known for making fruit spreads and Jif peanut butter, announced on Monday, September 11th that they have officially signed an agreement to acquire the Twinkies maker, Hostess Brands Inc. Smucker's makes everything from Milk-Bone dog treats to Folgers Coffee. Chief Executive Mark Smucker said in an interview that "Hostess brands bring a new way to reach consumers during new parts of the day" far beyond Uncrustables or Jif peanut butter is capable on its own.

Get our free mobile app

Getty Images

This deal is coming at a huge expense, 4.6 billion dollars to be exact, for J.M. Smucker but he feels it is necessary to fully capitalize on the booming snack industry that will provide Smucker with better access to convenience stores, not just big box grocery store isles. This deal will come as a major relief for the Hostess brand which began to struggle after failure to invest in brands and keep up with popular trends. Workers complained that there were also mismanagement issues that contributed to the lack of growth within the company and as a brand in the public eye.

We are excited to announce the acquisition of Hostess Brands, which represents a compelling expansion of our family of brands and a unique opportunity to accelerate our focus on delighting consumers with convenient solutions across different meal and snacking occasions

According to the Wall Street Journal, Sumcker said that this deal with Hostess will strengthen the company's presence in "supermarket's center aisles" based on data that shows snacks alone have grown 20% faster than other categories. With this deal, they can tap even further into the $181 billion snack market. This data also shows that the average consumer is eating at least two snack-type foods a day. J.M Smucker anticipates that acquiring the Hostess brand will generate $1.5 Billion in annual revenue.

Over the past few years diet culture has exploded with the help of TikTok and other social media platforms showing quick and easy meal and snack ideas that will help you reach your fitness goals. Many people are questioning why in the height of weight loss drugs like Ozempic and Wegovy he would choose to pay well over the market price for a junk food brand that contributes to obesity in America. The obvious reason is money especially when these two brands joining forces is a no-brainer. J.M. Smucker believes that despite the sudden popularity of these new weight loss drugs, he does not see that affecting America's sweet tooth.