If you live in the Northeast, you probably grew up eating Tastykake snacks. Butterscotch Krimpets, Peanut Butter Kandykakes, Chocolate Eclairs, and other assorted goodies. It’s been a Philadelphia institution for almost 100 years!
Unfortunately, poor management and bad decisions put Tastykake in a bad place. My biggest gripe was with the food itself. They used to use fresh eggs and pure butter in their products, but switched to powdered eggs and vegatable shortning, presumably to save money. But the quality of the food suffered as a result. When will people learn to leave well enough alone?
Today, it was announced that Georgia-based company Flowers Foods was pursuing a “definitive merger agreement” whereby Flowers will acquire all of the outstanding shares of Tasty common stock for $4.00 a share, for a total purchase price of about $165 million. That includes the debt Tasty has taken on.
Industry observers believe it will strengthen Flowers’ snack cake business through the addition of the iconic Tastykake brand, and expand the company’s geographic reach.
I’m hopefully that Flower Foods can turn things around, and hopefully Flower’s distribution network will bring Tastykakes to other markets.