Twinkies set for a sweet comeback to US store shelves

Hostess is betting on a sweet comeback for its Twinkies snack cakes when they return to store shelves next month.

The US firm that went bankrupt after an acrimonious fight with its unionised workers last year is back up and running under new owners and a leaner structure. It plans to have Twinkies and other snack cakes back on shelves starting on July 15.

Based on an outpouring of nostalgia sparked by its demise, Hostess expects a blockbuster return for Twinkies and other sugary treats, such as CupCakes and Donettes. The company says the cakes will taste the same but the boxes will now bear the tag line, "The Sweetest Comeback In The History Of Ever".

"A lot of impostor products have come to the market while Hostess has been off the shelves," says Daren Metropoulos, a principal of investment firm Metropoulos, which teamed up with Apollo Global Management to buy a variety of Hostess snacks.

Hostess Brands struggled for years before it filed for bankruptcy reorganisation early last year. Workers blamed the troubles on years of mismanagement, as well as a failure of executives to invest in brands to keep up with changing tastes.

The company said it was weighed down by higher pension and medical costs than its competitors, whose employees were not unionised.