Utz Brands expands its direct-to-store delivery network under a deal in Florida

US snack manufacturer Utz Brands has expanded its direct store delivery (DSD) network after acquiring the rights from third-party provider National Food Corp.

Financial details were not disclosed.

The acquisition of approximately 65 routes in South Florida covering Miami, Fort Lauderdale, West Palm Beach, Naples and Fort Myers is Utz’s second deal with National Food. In 2021, the snack company bought 21 DSD routes in Central Florida.

Utz now manages more than 200 routes operated by independent operators in Florida, it said in a statement.

The Pennsylvania-based company said Florida was a “key area for expansion” as it is “the third largest U.S. state in terms of sales in the salty snacks category.”

Utz increased its retail sales in the state to $103 million, representing a three-year compound annual growth rate of 28%, the company said.

It continues: “We believe that the large consumer base in Florida, combined with the high recognition of the brands in the Utz portfolio, puts us in a unique position to continue this growth trajectory.”

Utz also plans to increase its investment in the region and provide “improved dealer support through larger distribution facilities and better sales management, faster service processing and an expanded route system.”

Howard Friedman, CEO of Utz, said: “We are very pleased to announce this transaction as we continue to execute on the expansion strategy we outlined during our Investor Day in December 2023.

“Strengthening our regional presence and strengthening our customer relationships in Florida is a focus as the state represents a key expansion region for Utz. We look forward to expanding our distribution and bringing our portfolio of iconic snack products to more consumers in this important region.”

At the beginning of the year, Utz sold two of its production facilities to local competitor Our Home.

This was Our Home’s second acquisition of Utz assets this year. In January, the company bought three Utz manufacturing facilities and the Good Health and RW Garcia brands for $182.5 million.

“Utz Brands expands direct-to-store delivery network in Florida deal” was originally created and published by Just Food, a brand owned by GlobalData.

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