Utz Quality Foods, a subsidiary of Utz Brands headquartered in Hanover, recently entered into an agreement to purchase Snak-King Corp.’s Vitner’s brand for $25 million, including intellectual property.
Vitner’s is the leading snack foods brand in the Chicago metropolitan market, the nation’s fourth-largest salty snack market. According to IRI, annual retail sales totaled approximately $688 million and grew approximately 9 percent for the 52 weeks ending Nov. 29.
The purchase will raise Utz from the number seven position to number four in the market, allowing it to grow its presence in grocery, drug, and up-and-down the street channels in the Chicago metropolitan and Northwest Indiana areas and capture the future growth in the Midwest.
“This transaction is a continuation of our strategy to successfully build long-term value and share by expanding in major metropolitan areas, like we did in New York City in 1994, Boston in 2004, Pittsburgh in 2006, and Atlanta in 2011,” Utz CEO Dylan Lissette said. “This acquisition strengthens our competitive position and will be a spark for continued growth in the Midwest.”
Vitner’s potato chips, cheese snacks, corn snacks, and popcorn will be combined with the On the Border brand tortilla chip, salsa, and queso. Snak King manufactures Vitner’s, but Utz plans to transition manufacturing to its own manufacturing plants after closing.
The deal is expected to close on Feb. 8.
In December 2019, Utz purchased Kitchen Cooked and its Central Illinois to Eastern Iowa-based distribution assets.