Utz Brands, Inc. is pleased to announce the purchase of certain distribution rights in the Central Florida region from an existing third party direct store delivery (“DSD”) distributor, National Food Corp. This acquisition of 21 DSD routes provides Utz with an opportunity to accelerate the Company’s share of the Salty Snack category across Central Florida, including Orlando, Tampa and Sarasota.
As a large and vibrant market, Florida ranks as the third largest state for Salty Snack sales. In 2020, retail sales of Salty Snacks in Florida were $1.8 billion, increasing +7.7 percent over the prior year. Florida’s large consumer base combined with strong awareness of Utz’s portfolio of brands will uniquely position the Company to generate incremental sales as it develops a world-class DSD distribution system throughout the state. Utz has a growing presence in the Florida region with 2020 retail sales of $48 million that increased +16.6 percent, according to IRI. This represents only 2.6 percent of the Florida retail market, well under Utz’s national share average of 4.8%1.
Over the past decade, Utz has been collaborating with Florida retailers to expand its presence and increase distribution, and this has successfully resulted in accelerated sales growth of Utz’s Power Brands which include Utz, Zapp’s, ON THE BORDER Chips & Dips, and others. With this acquisition, Utz will increase its investment in the Central Florida region and provide enhanced retailer support with increased distribution facilities and sales management, higher service velocity, and an expanded route distribution system.
“We are excited about this continued investment in the Central Florida region, as it offers a tremendous opportunity to accelerate our sales growth,“ said Steve Liantonio, senior vice president, national sales operations of Utz. “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.”