Utz Brands Drives DSD Growth With New Florida Distribution Acquisition
Snack manufacturer Utz Brands is continuing to expand its distribution network, progressing on its direct-store-delivery (DSD) goals by acquiring distribution rights in South Florida from National Food Corp.
The company’s purchase of the third-party DSD distribution network includes 65 DSD routes in Miami, Fort Lauderdale, West Palm Beach, Naples, and Fort Myers. This is the second acquisition with the company; the first in 2021 included 21 DSD routes in Central Florida.
In total, Utz now has more than 200 independent operator-run routes across Florida.
Expanding the DSD Map
The acquisition is part of the company’s larger goals to bolster its DSD approach. During its 2023 December Investor Day, Utz said DSD is a critical route to market for the company, referencing several benefits including more control on the shelf, increased responsiveness to demand fluctuations, increased speed to market, and a critical component of maintaining a competitive advantage among retailers.
Also read: Utz has been optimizing its portfolio. Learn which brands were recently offloaded.
Since 2016, the company has increased the number of its DSD routes from 1,100 to 2,250, shifting its mix from mostly company-owned to now primarily independently operated.
“We're building our DSD route infrastructure, continuing to improve it and strengthen it as our sales teams are there,” said CEO Howard Friedman during a recent call with investors.
Focusing on Key Markets
The recent expansion in Florida reflects key market growth for Utz as it represents the third largest U.S. state in salty snack retail sales ($2.6 billion). The company reports it has increased its retail sales in Florida to $103 million, and market share has grown from 2.7% to 3.9% from July 2023 to June 2024.
“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,” said Friedman in a statement. “We look forward to expanding our distribution and offering our portfolio of iconic snacking products to more consumers in this important geography.”
In 2022, Utz grew its New York City distribution network as part of its DSD strategy, acquiring Clem Snacks and J&D Snacks, which resulted in a combined 125 new routes in the New York metro area.
The company’s supply chain optimization is supported by two executives who joined the organization in November of last year. The company tapped Mitchell Arends as its EVP, chief integrated supply chain officer, and Cary Devore, as its EVP, chief operating and transformation officer, to optimize its networks and oversee large-scale transformation initiatives.
