Utz Brands has announced the purchase of 21 direct store delivery (DSD) routes in central Florida, significantly expanding its DSD network in the state.
Utz – which owns snack brands including On The Border, Chips & Dips and Zapp’s – acquired the distribution rights from existing third party distributor National Food Corp for an undisclosed figure.
According to a statement from Utz, the expansion of the company’s DSD network in central Florida aims to increase its share of the salty snack category in cities such as Orlando, Tampa and Sarasota.
Figures provided by Utz Brands claim that retail sales of salty snacks in Florida were $1.8 billion in 2020, a 7.7% increase relative to 2019. Sales of the company’s snacks currently account for 2.6% of the Florida market, compared to Utz’s national average of 4.8%, so this move aims to capitalise on the growing demand for salty snacks in the state and stimulate the growth of the firm’s snacking portfolio.
Steve Liantonio, senior vice-president, national sales operations at Utz said: “We are excited about this continued investment in the central Florida region, as it offers a tremendous opportunity to accelerate our sales growth.
“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.”
This purchase represents Utz’s latest move to expand its DSD network in order to stimulate growth. The company acquired Conagra Brand’s DSD snacks business in 2019, which also added snack brands such Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s to Utz’s portfolio.
© FoodBev Media Ltd 2022
World Beverage Innovation Awards – NOW OPEN FOR ENTRIES!
The awards celebrate excellence and innovation across the global beverage industry.
Don’t miss out on having your innovations recognised on a global scale.
Deadline for entries 23 July – enter now!
Don’t get left behind
Start your free Foodbev magazine trial today and join thousands of fellow industry professionals in receiving food and drink trends direct to our business.
Click here to start your free trial