Utz Brands Announces Opening of Rice Distribution Center

Rhea-AI Summary

Utz Brands (NYSE: UTZ) has opened the Rice Distribution Center, a new 650,000-square-foot logistics facility in Hanover, Pennsylvania. Named after Michael W. Rice, who recently retired after 50+ years of service, the center will serve as the primary hub for inventory storage and distribution across the United States.

The facility features 73 dock doors and 375 trailer parking spots, utilizing advanced warehouse management systems. It is expected to handle 2.3 million pallets and 1.1 billion pounds of product annually, equivalent to approximately 18 billion snack food servings. A new traffic light will be installed at High Street and Kindig Lane to manage increased traffic flow. Pennsylvania Governor Josh Shapiro is scheduled to attend the ribbon-cutting ceremony on December 5, 2024.

Positive

• Opening of a large-scale 650,000 sq ft logistics center to optimize operations
• Advanced warehouse management system implementation for improved efficiency
• Significant handling capacity: 2.3M pallets and 1.1B pounds of product annually
• Infrastructure improvements (new traffic light) to support operations

Negative

• None.

Insights

Supply Chain Analyst

The new 650,000 square foot Rice Distribution Center marks a significant operational advancement for Utz Brands. The facility's strategic capabilities include 73 dock doors and capacity to handle 2.3 million pallets and 1.1 billion pounds of product annually, representing substantial logistics optimization potential. This consolidation of distribution operations should drive meaningful cost efficiencies through improved inventory management and reduced transportation expenses.

The advanced warehouse management system and centralized location in Hanover, PA will likely reduce order fulfillment times and improve supply chain reliability. For a company with multiple manufacturing facilities nationwide, this investment addresses critical infrastructure needs to support volume growth and market expansion. The operational efficiencies gained should positively impact margins and competitive positioning in the snack foods market.

Financial Analyst

This infrastructure investment demonstrates Utz's commitment to long-term growth and operational efficiency. The new distribution center will likely generate substantial cost savings through consolidated shipping, improved inventory management and reduced logistics complexity. For a company with $1.4B market cap operating in the competitive snack foods sector, these efficiency gains are important for margin expansion.

The facility's massive scale suggests Utz is positioning for significant volume growth. The investment timing aligns with industry trends toward supply chain optimization and automation. While the initial capital expenditure is substantial, the long-term benefits in operational efficiency and scalability should provide positive ROI and support sustainable growth.

Next step in the Company’s efforts to optimize its network, enhance efficiency, and support volume growth

HANOVER, Pa.--(BUSINESS WIRE)-- Utz Brands, Inc. (NYSE: UTZ) (“Utz” or the “Company”), a leading U.S. manufacturer of branded salty snacks, is pleased to announce the opening of the Rice Distribution Center - a brand new, state-of-the-art logistics center located in Hanover, Pennsylvania. The logistics center is named in honor of Michael W. Rice, the grandson of Bill and Salie Utz, who recently retired after over 50 years of service with Utz.

Utz Brands, Inc. announces the opening of a new 650,000-square-foot logistics center. The “Rice Distribution Center” aims to optimize its network, enhance efficiency, and support volume growth. (Image courtesy of Conewago Enterprises, Inc.)

The 650,000 square foot center will serve as the primary logistics hub for inventory storage, consolidation and distribution for Utz facilities located across the United States. The center boasts 73 dock doors and 375 trailer parking spots and will utilize advanced warehouse management system functionality. To put the size of this building into context, it could house approximately 11 football fields, 9 Boeing 747s, and 46.8 million Utz Cheese Ball “barrels” inside its four walls. Additionally, we estimate that this facility will touch 2.3 million pallets of product and 1.1 billion pounds of product per year, which amounts to an estimated 18 billion snack food servings.

Thanks to the collaboration of the Borough of Hanover, Adams County, PennDOT, and the Governor’s Office of Transformation and Opportunity, a new traffic light will be installed at the intersection of High Street and Kindig Lane simultaneous to the opening of the Rice Distribution Center. This will ease congestion on these busy streets surrounding Utz Hanover operations. Pennsylvania Governor Josh Shapiro is scheduled to attend the invitation-only ribbon-cutting ceremony on December 5, 2024.

Conewago Enterprises, Inc., a family-owned design-build general contractor serving the Mid-Atlantic region and beyond, with headquarters only 2 miles from the new center, was the building partner on the new warehouse facility.

“It’s been an honor to be part of the Utz journey over the last 50 + years. This new logistics center represents the Company’s historic values of reinvestment, growth, hard work, and putting our customers first. I’m proud of what we’ve accomplished together, and I know this facility will help drive even greater success in the future,” said Michael W. Rice.

“Our new logistics center reflects our commitment to operational excellence and growth,” said Howard Friedman, CEO of Utz Brands, Inc. “The facility expands capacity, enhances efficiency, and streamlines operations for our customers, and we are proud to honor Mike Rice’s extraordinary legacy through it. A sincere thanks to the state of Pennsylvania and our many local agencies for their help and support in bringing this vision to life in a way that alleviates traffic flow and congestion in our community.”

Utz Brands snack foods are available in leading retailers across the U.S. or online at Utzsnacks.com. Use @UtzSnacks on Facebook, Instagram, and TikTok to join the conversation.

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, Zapp’s^®, and Boulder Canyon^®, 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 has multiple manufacturing facilities located across the U.S. to serve its growing customer base. 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/20241204422825/en/

Investor Contact

Utz Brands, Inc.

Kevin Powers

kpowers@utzsnacks.com

Media Contact

Utz Brands, Inc.

Kevin Brick

kbrick@utzsnacks.com

Source: Utz Brands, Inc.

FAQ

What is the size of Utz Brands' new Rice Distribution Center in Hanover, PA?

The Rice Distribution Center is 650,000 square feet in size, featuring 73 dock doors and 375 trailer parking spots.

How much product will UTZ's new distribution center handle annually?

The facility will handle 2.3 million pallets and 1.1 billion pounds of product annually, equivalent to approximately 18 billion snack food servings.

When is the ribbon-cutting ceremony for UTZ's new Rice Distribution Center?

The invitation-only ribbon-cutting ceremony is scheduled for December 5, 2024, with Pennsylvania Governor Josh Shapiro expected to attend.

Why is UTZ's new distribution center called the Rice Distribution Center?

The center is named in honor of Michael W. Rice, grandson of Bill and Salie Utz, who recently retired after over 50 years of service with the company.