Utz Brands Completes Acquisition of Strategic Distribution Rights of National Food Corp

Utz Brands, a leading US manufacturer of branded salty snacks and a small-cap value and growth Staples equity, has entered into a definitive agreement to purchase certain distribution rights in South Florida from an existing third-party direct-store delivery distributor (DSD), National Food Corp.

This acquisition of ~65 DSD routes in South Florida, covering Miami, Fort Lauderdale, West Palm Beach, Naples and Fort Myers represents Utz’s second transaction with National Food. The first transaction occurred in March 2021 and involved the acquisition of 21 DSD routes in Central Florida. Utz now oversees more than 200 independent operator-run routes in Florida, from the panhandle to the southernmost part of the state.

Florida is a key expansion geography for Utz, as it represents the third largest US state in terms of salty snack category sales, with $2.6 billion of retail sales (Source: Circana MULO-C, last-52 weeks ending 6/30/2024). Since 2021, Utz has increased its retail sales in Florida to $103 million, representing a three-year compounded annual growth rate of 28 percent and has also increased its market share from 2.7 percent to 3.9 percent. While the company has enjoyed very strong growth, this transaction shows that there is still significant market share opportunity in Florida which remains below the average core geographies share at 6.9 percent. The company believes that Florida’s large consumer base, combined with strong recognition of the Utz portfolio brands, uniquely positions it to continue this growth trajectory. To support this expansion, Utz plans to increase its investment in the region and provide enhanced retailer support with increased distribution facilities and sales management, higher service velocity and an expanded route system.

“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.”