Everyone is wondering whether Tastykake (Tasty Cakes), the company bringing you some of the best Kreamies, Krimpets, donuts, pies and other delectable sweets is going out of business. Early in the year of 2011, the company faced a lot of financial difficulties that pushed them to obtain a sale or unification. A bid of a little over $34 million was placed on the company by a Georgia food company that leaves many of its customers wondering what is going on.

As of May of 2011, the company is now in union with Flowers Foods Inc due to a purchase price in a total of $175 million. Not to mention, Tasty Baking Company was able to clear their debt and take care of expenses from transactions because of this fusion. Tastykake has been providing delicious products to the public since 1914 with their cupcakes and Krimpets being their top money makers.

Now, they find themselves as a part of the direct store delivery department of Flowers Foods Inc. One reason that forced them into this situation includes loans that Tastykakes could not afford to pay, which they blame on the production of one of their new facilities. According to the President of Tasty Baking Co, Charles Pizzi, the savings projected did a turnaround.

In fact, he comments that they were lowered to about $3 million in the year of 2010. The construction of the new facility was expected to cost $78 million, even though the loan companies were willing to put off the loans for a period, Tastykake found itself trying to swim out of deep water. A financial advisor was brought in later to assist Tastykake with options that would help during this critical time.

Some people believe that the company’s failing is partly due to Tasty‚Äôs effort to change the recipes of their products so as to save money but still provide the quality that kept their customers coming back. As it stands in 2012, the company has expanded and you can find a lot of their products on over 2500 routes of Flowers Food Inc.

The expansion seemed to come just in time considering Flowers Foods Inc was seeing their way closer and closer to Bankruptcy. According to the Vice president of Flower Foods Inc, Joe Tashi Flowers, Foods Inc has found itself escalating its brand as far as Texas since the union. On top of that, they are conducting a sample taste tour and looking into digital advertising, social media advertising and Television advertising.

Tashi states that they are also becoming more involved with campaigns that will boost the sales of the company and sport team sponsorships. One of the campaigns they are involved is “Follow the Freshness.” It sounds like Tastykake and Flowers Foods Inc is using this unification to expand their market and reel in more customers. Who knows if it will work but projected sales are much better and they are trying many more things to improve the business.