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Utz Brands Expands with New Distribution Deal

Utz Acquires 65 Distribution Routes in South Florida

  • 20 August 2024
Utz Brands Expands with New Distribution Deal

Hanover, Pennsylvania - Utz Brands, Inc. has announced the acquisition of strategic distribution rights from National Food Corp in South Florida.

This acquisition includes approximately 65 direct-store delivery (DSD) routes, covering key areas such as Miami, Fort Lauderdale, West Palm Beach, Naples, and Fort Myers.

This move is part of Utz's ongoing strategy to enhance its local distribution capabilities and drive growth in important markets.

This acquisition marks the second transaction between Utz and National Food Corp. The first, in March 2021, involved the acquisition of 21 DSD routes in Central Florida.

With this latest deal, Utz now manages over 200 independent operator-run routes across the state, stretching from the panhandle to the southernmost regions.

Florida is a crucial market for Utz, ranking as the third-largest U.S. state in salty snack sales with $2.6 billion in retail sales.

Since 2021, Utz has significantly grown its presence in the state, increasing its retail sales to $103 million and boosting its market share from 2.7% to 3.9%.

Despite this growth, there remains substantial potential for further market share expansion, as Utz's share in Florida is still below the 6.9% average in its core markets.

Utz's Chief Executive Officer, Howard Friedman, expressed enthusiasm for this expansion, emphasizing that strengthening the company's regional presence in Florida is a key focus of their growth strategy.

He noted that this transaction will help Utz bolster customer relationships and expand the reach of its iconic snack brands in a market that holds significant potential.

As part of this growth initiative, Utz plans to increase its investment in Florida, enhancing retailer support through expanded distribution facilities, improved sales management, and a more robust route system.

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Photo by: utzsnacks.com

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