US snacks business Utz Brands has expanded its direct-store delivery (DSD) network after buying rights from third-party distributor National Food Corp.
Financial details were not disclosed.
The acquisition of circa 65 routes in South Florida, covering Miami, Fort Lauderdale, West Palm Beach, Naples and Fort Myers, marks Utz’s second deal with National Food. In 2021, the snacks company snapped up 21 DSD routes in central Florida.
Utz now oversees more than 200 independent operator-run routes in Florida, it said in a statement.
The Pennsylvania-based business said that Florida is a “key expansion geography” as it represents “the third largest US state in terms of salty snack category sales”.
Utz has increased its retail sales in the US state to $103m, marking a three-year CAGR of 28%, it revealed.
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By GlobalDataIt added: “We believe that Florida’s large consumer base, combined with strong recognition of the Utz portfolio brands, uniquely positions us to continue this growth trajectory.”
Utz also plans to increase its investment in the region and provide “enhanced retailer support with increased distribution facilities and sales management, higher service velocity and an expanded route system”.
Howard Friedman, CEO of Utz, said: “We are very excited to announce this transaction, as we continue to execute the expansion strategy that we outlined during our December 2023 Investor Day.
“Strengthening our regional foothold and bolstering our customer relationships in Florida is a key focus, as the state represents an important expansion geography for Utz. We look forward to expanding our distribution and offering our portfolio of iconic snacking products to more consumers in this important geography.”
Earlier this year, Utz sold two of its manufacturing plants to local competitor Our Home.
The deal marked Our Home’s second acquisition of assets from Utz this year. In January, the company bought three Utz manufacturing plants and its two brands, Good Health and RW Garcia, for $182.5m.
