The acquisition includes approximately 65 routes in South Florida to enhance local DSD capabilities and support geographic expansion opportunities to drive growth.
HANOVER, Pa., August 12, 2024–(BUSINESS WIRE)–Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks and a small-cap value and growth company of the Staples Group, is pleased to announce that it has entered into a definitive agreement to acquire certain distribution rights in South Florida from an existing third-party direct-to-store delivery (“DSD”) distributor, National Food Corp (“National Food”).
This acquisition of approximately 65 DSD routes in South Florida covering Miami, Fort Lauderdale, West Palm Beach, Naples and Fort Myers is Utz’s second transaction with National Food. The first transaction occurred in March 2021 and included the acquisition of 21 DSD routes in Central Florida. Utz now oversees more than 200 independent, operator-operated routes in Florida, from the Panhandle to the southernmost part of the state.
Florida is an important expansion area for Utz as it is the third largest U.S. state in the salty snacks sector with retail sales of $2.6 billion.(1)Since 2021, Utz has grown its retail sales in Florida to $103 million, representing a three-year compound annual growth rate of 28%, and increased its market share from 2.7% to 3.9%.(1)Although the Company has experienced very strong growth, this transaction demonstrates that there is still significant market share opportunity in Florida, which at 6.9% is below the average market share in the core regions.(1)We believe that Florida’s large consumer base, combined with the strong recognition of Utz® portfolio brands, we are well positioned to continue this growth trajectory. To support this expansion, Utz plans to increase its investment in the region and better support the retail sector with expanded distribution facilities and distribution management, increased service speed and an expanded route system.
“We are very pleased to announce this transaction as we continue to execute on the expansion strategy we outlined during our Investor Day in December 2023,” said Howard Friedman, Chief Executive Officer of Utz. “Strengthening our regional presence and strengthening our customer relationships in Florida is a focus as the state represents a key expansion region for Utz. We look forward to expanding our distribution and bringing our portfolio of iconic snack products to more consumers in this important region.”
(1) Source: Circana MULO-C, last 52 weeks ending June 30, 2024.
About Utz Brands, Inc.
Utz Brands, Inc. (NYSE: UTZ) produces a diverse portfolio of savory snacks under popular brands, including Utz®At the border® Chips & Dips, Zapps®and Boulder Canyon®among other things.
After a century of strong family tradition, Utz still has a passion for exciting and delighting consumers with delicious snacks made with the highest quality ingredients. Utz products are distributed nationwide through grocery stores, mass merchandisers, clubs, convenience stores, drug stores and other channels. Utz is based in Hanover, Pennsylvania and has multiple manufacturing facilities throughout the United States to serve our growing customer base. For more information, visit the company website or call 1-800-FOR-SNAX.
Investors and others should note that Utz communicates material financial information to its investors through its investor relations website, filings with the U.S. Securities and Exchange Commission (the “Commission”), press releases, public conference calls and webcasts. Utz uses these channels, as well as social media, to communicate with our shareholders and the public about the Company, the Company’s products and other company information. It is possible that the information Utz posts on social media could be deemed to be material information. Therefore, Utz encourages investors, the media and others interested in the Company to review the information posted on Utz’s social media channels listed on the investor relations website.
Forward-looking statements
Certain statements made herein are not historical facts but are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. The forward-looking statements are generally accompanied by or include, but are not limited to, statements such as “will,” “expects,” “intends,” “target” or other similar words, phrases or expressions. These statements are based on the current expectations of the Company’s management and are not predictions of actual performance. These statements are subject to a number of risks and uncertainties, and the Company’s business and actual results could differ materially.
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Kevin Powers
Utz Brands, Inc.
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Kevin Brick
Utz Brands, Inc.
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