Remember when it was “big” news that Twinkies were supposedly going away? The iconic snack that kids of a generation ago grew up with, to which some where remarkably loyal, wasn’t going to be featured on store shelves anymore.
My reaction: oh well, no big deal.
It’s not like Twinkies had the nutritional profile of so-called superfoods, and frankly there are so many snack options these days that this just seemed like a product from the old days to me. Though admittedly, they were pretty good back in the day.
Clearly, not everyone had that casual, “it is what it is” type of reaction. Actually, what was more interesting to me than Twinkies possibly going away was the near hysteria that some people got caught up in back then. I wrote about this, talking about Twinkies brand loyalty and how people were actually bidding up these products. Maybe the thought of never having one again seemed too overwhelming, because reports indicated that some were going for some pretty interesting amounts.
Lo and behold, with some new ownership, Twinkies are apparently to be sold again per this article. The same people who were feverishly bidding up these snack cakes before they went away might now be able to buy them again.
As I alluded to in the prior post, this is a great example of the power of brand loyalty. After seeing how these things are apparently to be back on store shelves, there is another lesson written about before that we can be reminded of: quite often, markets overreact.
Remember how the stock market declined in the midst of the credit rating downgrade a few years back? Well, it sure recovered nicely! After the tragic tsunami in Japan, the Nikkei recovered fairly quickly. Instead of selling in a panic, the difference is that people bought Twinkies in a panic, thinking that they might never have them again. I know…what a “crisis”, right?
Well, the sky isn’t falling. At least not yet, anyway. It’s been up there for quite a while now. When it comes to certain things, maybe it’s human nature to panic momentarily and behave irrationally. When that happens, the opportunists can cash in. Cha-ching!
My Questions for You:
Are you at all surprised to see a comeback of an iconic brand?
Have you noticed people overreacting to different events, whether relating to shopping or investing?