Utz Buys DSD Assets as Part of California Expansion
Amidst a mixed quarterly financial report, Utz Brands also announced the purchase of a direct store delivery (DSD) system in California, with the snack company planning a push into “the nation’s largest salty snack market at $4.1 billion,” according to CEO Howard Friedman.
Utz acquired DSD assets of Insignia International, including routes across California and the Midwest, along with related assets. “This acquisition accelerates Utz’s expansion in California, a key growth geography,” Friedman said in the Oct. 30 report. Price and other details were not disclosed.
Utz currently generates approximately $79 million in retail sales across California, representing 1.9% market share, while it claims an average 3.0% share in its expansion geographies and 6.6% market share in its core geographies.
The company’s “Power Four Brands” are Utz, On The Border, Zapp’s and Boulder Canyon, all chips, and their retail sales in the third quarter increased by 7.1%.
In that third quarter, the Hanover, Pa., company saw net sales increase 3.4% to $378 million. It gained both dollar and volume share in its main salty snacks category. However, net income decreased to minus-$20 million – the company eked out an $800,000 profit in the prior year period. After a $40 million loss in 2023, the company recorded a $31 million loss last year.
Nevertheless, “We are raising our 2025 organic net sales outlook again to reflect stronger revenue trends through the third quarter and our confidence in the remainder of the year,” said BK Kelley, executive vice president and CFO. “We now expect organic net sales growth of approximately 3%, driven by our advantaged portfolio of brands and expansion geographies.” And adjusted earnings per share growth of 7-10%.
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Dave Fusaro
Editor in Chief
Dave Fusaro has served as editor in chief of Food Processing magazine since 2003. Dave has 30 years experience in food & beverage industry journalism and has won several national ASBPE writing awards for his Food Processing stories. Dave has been interviewed on CNN, quoted in national newspapers and he authored a 200-page market research report on the milk industry. Formerly an award-winning newspaper reporter who specialized in business writing, he holds a BA in journalism from Marquette University. Prior to joining Food Processing, Dave was Editor-In-Chief of Dairy Foods and was Managing Editor of Prepared Foods.