Utz Brands is buying logistics infrastructure assets that will allow the snack maker to expand its presence in California, the country’s largest consumer of chips, pretzels and other salty offerings.
The Pennsylvania-based company is buying direct store delivery routes across California from Insignia International for an undisclosed amount. Utz said it sees the Golden State as a “key growth geography” with $4.1 billion in retail sales of salty snacks, totaling about 10% of the category in the U.S.
Howard Friedman, Utz’s CEO, told analysts last week that the company has just under 2% market share in California, with retail sales totaling about $79 million.
“There's a big opportunity,” Friedman said. “We feel very good about the top line momentum that we have and the opportunity to further accelerate it as we get into California in a more meaningful way in 2026.”
The purchase also includes routes in the Midwest, along with other related assets.
Utz, which owns On the Border and Zapp’s, along with its namesake products, spent much of its existence as a family-owned business with a major presence on the East Coast. But since going public in 2020, Utz has been adding brands and consolidating its manufacturing network to expand its portfolio and improve the efficiency of its supply chain.
The bigger scale will give it more heft to go up against Hershey, PepsiCo’s Frito-Lay division and other snack makers that have a wider presence across the country. California, the nation’s most populous state with 39 million people, will undoubtedly play a key role in connecting Utz with more shoppers while helping to boost sales for the company.
Last week, Utz said net sales for its third quarter increased 3.4% to $377.8 million. The company said it gained both dollar and volume share in the salty snacks category, marking its ninth consecutive quarter of volume share growth.
Sales have also outperformed the overall salty snack market, which has struggled as consumers focus more on their health and buy less due to persistent inflation. The company's retail sales increased by 3% compared to a 1.2% decline for the salty snack category overall.
