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Utz Brands is purchasing logistics infrastructure assets to help the snack maker expand its presence in California, the nation’s largest consumer of chips, pretzels and other salty products.
The Pennsylvania-based company is purchasing direct-to-store delivery routes across California from Insignia International for an undisclosed amount. Utz said it sees the Golden State as a “key growth region” with salty snack retail sales of $4.1 billion, or about 10% of the category in the United States.
Howard Friedman, CEO of Utz I told analysts last week. The company has a less than 2% market share in California and total retail sales of approximately $79 million.
“There is a huge opportunity,” Friedman said. “We feel very good about the great momentum we have and the opportunity to further accelerate it as we enter California in a more meaningful way in 2026.”
Your purchase also includes the following routes: Midwest and other related assets.
Utz, which owns On the Border and Zapp’s and eponymous products, is a family-owned business that has spent most of its time with a primary presence on the East Coast. However, after listing in 2020, Utz Manufacturing Network Integration Expand your portfolio and improve supply chain efficiency.
The bigger it gets, the more power it will have to compete with Hershey, PepsiCo’s Frito-Lay division and other snack makers with a broader national presence. As the most populous state in the U.S. with 39 million people, California will no doubt play a key role in connecting Utz with more shoppers while helping the company grow its sales.
Utz said last week. Third quarter net sales It increased 3.4% to $377.8 million. The company said it recorded nine consecutive quarters of volume share growth in the salty snacks category, increasing both revenue share and volume share.
Overall sales also outperformed the salty snacks market, which has been struggling due to ongoing inflation as consumers become more health-focused and buy less. The company’s retail sales increased 3% compared to a 1.2% decline for the overall salty snacks category.
