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News & Events

How Much Is Twinkies Worth?

1/22/2013 - Professor of Marketing Alexander Chernev comments on the potential worth of an iconic brand like Twinkie. From the article: “The value of a brand is what the company that acquires it decides to do with it,” says Alexander Chernev, a marketing professor at Northwestern’s Kellogg School of Management …If, for example, a corporation decides to acquire Twinkies merely to keep selling the same product to the same retailers in the same locations, then the winning bid may not be much – likely less than $50 million, Chernev predicts. On the other hand, he says, if a company with experience reviving flagging but iconic brands decides to bid — perhaps deciding that the Twinkies brand can be made bite size, or turned into a new line of ice cream products — then the winning bid will likely be higher.