NEW YORK (TheStreet) -- Shares of Hostess Brands (TWNK) were higher in late morning trading on Thursday, as the Twinkies and Snow Balls maker went public last week after previously filing for bankruptcy. The company will be successful this time around because it's innovating its products and using a different distribution system, CEO Bill Toler said on Fox Business' "Mornings With Maria" on Thursday.
Almost four years ago, Hostess Brands "went away," closing its plants and taking its products off the shelves, he said. "We're back now as a very strong brand in the category that's growing, doing great, and people love their Twinkies."
While the demand was always there for Hostess Brands products, the distribution and manufacturing system that was previously used created extra costs, Toler explained. Traditionally, sweet baked goods travel on individual trucks to individual stores, but now Hostess Brands takes its products to the individual retailer warehouses instead.
"So we go to Kroger's (KR) warehouse and Dollar General's (DG) warehouse and Walmart's (WMT) warehouses and go out with their other grocery products there. A much more efficient system for us and frankly a better system for them," he claimed.
In order to stay alive, Hostess Brands is also concentrating on innovating its products, Toler said. For example, you can now buy deep fried Twinkies in a grocer's freezer section and white peppermint Twinkies will be available for the Holiday season.
Hostess Brands recognizes the trend for better-for-you food and has made some effort to accommodate this by taking out partially hydrogenated oils, trans fats and is working on taking out artificial colors and flavors, as well as high fructose corn syrup, he pointed out. But the company is trying to make sure "taste" is still the number one standard it holds up to.
"At the end of the day, we are a treat and not the center of the plate food," he explained. People still indulge in treats so "that's how our products fit into the overall healthy lifestyle."