Utz Brands Completes Acquisition of Strategic Distribution Rights of National Food Corp
Utz Brands Expands Foothold in Florida with Strategic Acquisition
Utz Brands, Inc., a leading U.S. manufacturer of branded Salty Snacks, has announced the acquisition of certain distribution rights in South Florida from an existing third-party direct-store delivery (DSD) distributor, National Food Corp. This strategic move aims to enhance the company's local DSD capabilities and support its geographic expansion efforts, driving growth in this key market.Unlocking Growth Potential in the Sunshine State
Strengthening Presence in a Thriving Salty Snack Market
Florida is a crucial expansion geography for Utz, as it represents the third-largest U.S. state in terms of Salty Snack Category sales, with .6 billion in retail sales. Since 2021, Utz has successfully increased its retail sales in Florida to 3 million, representing a three-year compounded annual growth rate of 28%. The company has also managed to increase its market share from 2.7% to 3.9% during this period. However, Utz believes there is still significant market share opportunity in Florida, as the state's share remains below the average Core geographies share of 6.9%.Enhancing Local Distribution and Customer Relationships
The acquisition includes approximately 65 DSD routes in South Florida, covering key markets such as Miami, Fort Lauderdale, West Palm Beach, Naples, and Fort Myers. This transaction marks Utz's second with National Food, following the acquisition of 21 DSD routes in Central Florida in March 2021. With this latest deal, Utz now oversees more than 200 independent operator-run routes across the state, from the panhandle to the southernmost part of Florida.Investing in the Region to Drive Continued Growth
To support its expansion in Florida, Utz plans to increase its investment in the region and provide enhanced retailer support. This includes the addition of more distribution facilities, increased sales management, higher service velocity, and an expanded route system. The company believes that Florida's large consumer base, combined with strong recognition of the Utz® portfolio brands, uniquely positions it to continue its growth trajectory in the state.Executing on Strategic Priorities
"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," said Howard Friedman, Chief Executive Officer of Utz. "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."This acquisition is a testament to Utz's commitment to strategic growth and its ability to capitalize on opportunities that align with its long-term objectives. By enhancing its presence in the thriving Florida market, the company is poised to drive further success and solidify its position as a leading player in the U.S. Salty Snack industry.
