Twinkies maker Hostess files for Chapter 11

The maker of Twinkies, Sno Balls and Wonder Bread is trying to lose the fat.

Hostess Brands Inc. is hoping to cut its high costs as it heads back into bankruptcy protection for the second time in less than a decade.

Hostess has enough cash to keep stores stocked with its Ding Dongs, Ho Hos and other snacks for now as it battles rising labor costs and increased competition. But longer term, the 87-year-old company has a bigger problem: Health-conscious Americans favor yogurt and energy bars over the dessert cakes and white bread they devoured 30 years ago.

Last year, 36 percent of Americans ate white bread in their homes, down from 54 percent in 2000, according to NPD Group, a Port Washington-based market research firm. Meanwhile, about 54 percent ate wheat bread, up from 43 percent in 2000.

"We're less likely to be snacking on items that we shouldn't be snacking on," said Harry Balzer, NPD's chief industry analyst.

Hostess, which is privately held, doesn't disclose sales figures.

Hostess snacks don't neatly fit into the U.S. trend toward a healthier lifestyle that includes a diet rich in whole grains, fruits and vegetables.

For instance, Twinkies, the iconic snack cakes with a mysterious cream filling that epitomizes empty calories, have 150 calories and 4.5 grams of fat per cake. A Ding Dong chocolate cake with filling has 368 calories and 19.4 grams of fat.

Hostess has introduced healthier options in recent years, including 100-calorie packs of cupcakes and Twinkies. The company also is working on lowering sodium in some of its products. But those efforts haven't helped the company's junk-food status much.

Hostess has other problems, too. In its Chapter 11 filing Wednesday, the Irving, Texas-based company said its rivals have combined and expanded their reach, heightening competition in the snack space. Hostess' competitors range from Entenmann's baked goods to Little Debbie snack cakes. It also faces competition from larger food makers such as Sara Lee Corp. and Kraft Foods Inc.

Also, Hostess employees are unionized while most of its competitors aren't. As a result, Hostess has high pension and medical benefit costs. The company has 19,000 employees and operates in 48 states.

The company's filing comes nearly three years after its predecessor emerged from bankruptcy proceedings. That company, Interstate Bakeries, filed for bankruptcy in 2004 and changed its name to Hostess Brands after it emerged in 2009.

SNACK CAKE TIMELINE

1925: Hostess brand is founded.

1930: Twinkies sponge cakes are invented by James Dewar as a way to make an inexpensive product during the Depression.

1947: Hostess introduces Sno Balls.

1967: Hostess introduces Ding Dongs and Ho Hos.

1979: The "Twinkie defense" is coined when Dan White goes on trial for the murder of San Francisco city supervisor Harvey Milk. He says consumption of Twinkies and other sugary snacks was a symptom of depression that led to the murder.

2008: Twinkies are repackaged into a 100-calorie "Twinkie Bites" snack pack in a bid to appear health-conscious.