Utz Brands Announces Investment to Expand Florida DSD Capabilities

Rhea-AI Summary

Utz Brands has acquired distribution rights for 21 DSD routes in Central Florida from National Food Corp., enhancing its presence in a key market. Florida, the third-largest state for Salty Snacks with $1.8 billion in sales, shows a 7.7% growth. Utz's retail sales in the region reached $48 million in 2020, growing 16.6%, but still only capturing 2.6% of the market. This acquisition aims to boost sales and improve distribution support, aligning with Utz's strategy of increasing market penetration in Florida.

Positive

• Acquisition of 21 DSD routes enhances market penetration in Central Florida.
• Florida's Salty Snack market is valued at $1.8 billion with a 7.7% growth.
• Utz's sales in Florida grew 16.6% in 2020, indicating increasing brand awareness.

Negative

• Utz only holds 2.6% of the Florida market, below the national average of 4.8%.

Utz Brands, Inc. (“Utz” or the “Company”) is pleased to announce the purchase of certain distribution rights in the Central Florida region from an existing third party direct store delivery (“DSD”) distributor, National Food Corp. This acquisition of 21 DSD routes provides Utz with an opportunity to accelerate the Company’s share of the Salty Snack category across Central Florida, including Orlando, Tampa and Sarasota.

As a large and vibrant market, Florida ranks as the third largest state for Salty Snack sales. In 2020, retail sales of Salty Snacks in Florida were $1.8 billion, increasing +7.7% over the prior year. Florida’s large consumer base combined with strong awareness of Utz’s portfolio of brands will uniquely position the Company to generate incremental sales as it develops a world-class DSD distribution system throughout the state. Utz has a growing presence in the Florida region with 2020 retail sales of $48 million that increased +16.6%, according to IRI. This represents only 2.6% of the Florida retail market, well under Utz’s national share average of 4.8%¹.

Over the past decade, Utz has been collaborating with Florida retailers to expand its presence and increase distribution, and this has successfully resulted in accelerated sales growth of Utz’s Power Brands which include Utz^®, Zapp’s^®, ON THE BORDER^® Chips & Dips, and others. With this acquisition, Utz will increase its investment in the Central Florida region and provide enhanced retailer support with increased distribution facilities and sales management, higher service velocity, and an expanded route distribution system.

“We are excited about this continued investment in the Central Florida region, as it offers a tremendous opportunity to accelerate our sales growth,“ said Steve Liantonio, Senior Vice President, National Sales Operations of Utz. “This strategic acquisition will expand our reach to customers and consumers, and better enables Utz to attract new buyers and introduce a steady flow of snacking innovation. The acquisition is consistent with our strategy of unlocking geographic white space opportunities, and we look forward to expanding our presence in the state of Florida.”

Utz’s brands can be found in leading retailers across the United States or available online at Utzsnacks.com. Join the conversation on Facebook, Instagram, and Twitter using @UtzSnacks, and tell us which is your favorite Utz brand snack food!

(1) IRI, MULO+C, 52 weeks ending December 27, 2020.

About Utz Brands, Inc.

Utz Brands, Inc. (NYSE: UTZ) manufactures a diverse portfolio of savory snacks through popular brands including Utz^®, ON THE BORDER^® Chips & Dips, Golden Flake^®, Zapp’s^®, Good Health^®, Boulder Canyon^®, Hawaiian^® Brand, and TORTIYAHS!^®, among others.

After a century with strong family heritage, Utz continues to have a passion for exciting and delighting consumers with delicious snack foods made from top-quality ingredients. Utz’s products are distributed nationally through grocery, mass merchandisers, club, convenience, drug and other channels. Based in Hanover, Pennsylvania, Utz operates fourteen facilities located in Pennsylvania, Alabama, Arizona, Illinois, Indiana, Louisiana, Washington, and Massachusetts. For more information, please visit www.utzsnacks.com or call 1-800-FOR-SNAX.

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 generally are accompanied by or include, without limitation, statements such as “will”, “expect”, “intends”, “goal” 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 may differ materially.

View source version on businesswire.com: https://www.businesswire.com/news/home/20210330005633/en/

FAQ

What recent acquisition did Utz Brands make?

Utz Brands acquired distribution rights for 21 DSD routes in Central Florida from National Food Corp.

How large is the Salty Snack market in Florida?

The Salty Snack market in Florida is valued at $1.8 billion, showing a 7.7% growth.

What was Utz's retail sales performance in Florida for 2020?

Utz's retail sales in Florida reached $48 million in 2020, a 16.6% increase from the previous year.

How does Utz's market share in Florida compare nationally?

Utz holds 2.6% market share in Florida, compared to its national average of 4.8%.

What is the significance of Utz's acquisition in Central Florida?

The acquisition is expected to accelerate Utz's sales growth and enhance distribution capabilities in the region.