http://www.businessweek.com/articles...illed-twinkies

"There are plenty of culprits in the recent bankruptcy and closure of
Hostess Brands, including weak management, short-sighted labor unions,
and poor judgment by investors. But the real reason Hostess is going
belly up is a problem that’s been brewing for more than 20 years: The
company completely failed to innovate.

In the 1960s and ’70s, Hostess was a staple in the lunchbox of many
school kids. Many of us in the baby boomer generation grew up with
sandwiches made from Wonder Bread and Hostess Twinkies or Ding Dongs
for dessert. But over the past 20 years, most consumers moved away
from these products due to changing views on healthy eating.

As times change, brands and companies must evolve with them.
Innovative marketers must continue to find ways to make their brands
relevant through innovation. Hostess failed miserably at this—even
though it was becoming painfully obvious that consumers were walking
away.

There are plenty of examples of marketers who overcame stagnant or
declining business trends by developing solid innovation programs.
Clorox (CLX), for instance, turned its stodgy bleach business into a
$1 billion cleaning-products line by introducing new items that are
more relevant to today’s consumer, such as Disinfecting Wipes, the
ToiletWand, and the eco-friendly Green Works line.

Campbell Soup (CPB) has kept its business relevant by coming out with
a steady stream of innovation beyond basic canned soup. It now offers
microwaveable versions, portable packaging, healthier options, and
other meal solutions.

Procter & Gamble (PG) turned Oil of Olay, once considered a geriatric
brand, into a fast-growing, billion-dollar personal-care line by
introducing innovative products with greater appeal, such as the Olay
Regenerist anti-aging cleansers and moisturizers.

All of these transformations came as a result of relatively modest
investments in innovation. If Hostess had put a little more effort
into innovation at any point during the past 20 years, it would not be
where it is today."