Editing Interstate Bakeries (section)

=== Continental Baking merger (1995) ===
In January 1995, Interstate acquired the [[Continental Baking Company]] from [[Ralston Purina]] for [[United States dollar|$]]330 million and 16.9 million shares of Interstate stock. Continental had acquired Taggart Bakeries of [[Indianapolis]] in 1925,<ref>{{cite web |first=Phil |last=Ament |url=http://www.ideafinder.com/history/inventions/wonderbread.htm |title=Wonder Bread History - Invention of Wonder Bread |publisher=Ideafinder.com |access-date=November 16, 2012 |archive-url=https://web.archive.org/web/20121026143528/http://www.ideafinder.com/history/inventions/wonderbread.htm |archive-date=October 26, 2012 |url-status=dead }}</ref> and the  deal brought Taggart's creations (including [[Wonder Bread]] and the Hostess brand) to Interstate. Taggart had created Hostess in 1921, and the brand focused on cakes like [[Twinkie]]s, [[Hostess CupCake|CupCakes]], [[Ding Dong]]s and [[Ho Hos]] (created during Continental's ownership).<ref>{{cite web|url=http://www.library.hbs.edu/hc/lehman/chrono.html?company=continental_baking_co |title=Continental Baking Co. - Lehman Brothers Collection |publisher=Library.hbs.edu |date=March 1, 1980 |access-date=November 16, 2012}}</ref> At this time, the merged company also bought the San Francisco French Bread Company, John J. Nissen Baking Company, [[Drake's Cakes|Drake's]] and My Bread Company.<ref name="IDC_v38" />

With the merger, Interstate held two national bread divisions: Butternut and Wonder Bread.  The divisions had different cultures: Butternut was unregimented, with each bakery a self-contained profit center, and Wonder Bread was structured; this caused early problems. In both divisions, [[snack cake]]s were more profitable due to [[economy of scale]] and [[logistics]]. When [[shelf life|extended-shelf-life]] [[enzyme]]s were developed for bread, it was hoped to convert small, less-efficient bakeries into a network of large bakeries like their snack-cakes operations. The new enzymes gave the bread a different taste and texture,<ref>{{cite web|url=http://www.mindfully.org/Industry/2004/Wonder-Bread-Interstate23sep04.htm|title=Half a Loaf At Giant Baker, Freshness Project Takes Sour Turn|last=Adamy|first=Janet|work=Mindfully.org|date=September 23, 2004|access-date=January 19, 2013|archive-url=https://web.archive.org/web/20121127060752/http://www.mindfully.org/Industry/2004/Wonder-Bread-Interstate23sep04.htm|archive-date=November 27, 2012|url-status=dead|df=mdy-all}}</ref> and market forces reduced prices and sales.