Snack Giant Utz Acquires Clem, J&D

The snack maker Utz announced Monday (Jan. 24) it will acquire two of its New York City-based distributors.

The Pennsylvania chip and pretzel maker said it had signed an agreement to acquire the assets of Clem Snacks, Inc, based in Brooklyn and servicing around 100 stores in the city and Long Island, and J&D Snacks, Inc., a 25-route distributor based in the Bronx. The two companies are what’s known as direct store delivery (DSD) distributors of Utz’s products.

“Utz believes that the combined acquisition of these 125 DSD routes in New York City and the surrounding region will enable the company to accelerate share gains in the salty snack category across these geographic areas,” the company said in a news release.

Terms of the deal were not released.

Utz says its collaborations with New York retailers have expanded its presences and boosted the sales of its “power brands,” which include Utz, Zapps and ON THE BORDER chips.

With these acquisitions, Utz will increase its investment in the New York City region and provide enhanced retailer support with increased distribution facilities and sales management, higher service velocity and an expanded route distribution system.

“These two key distribution partners have been representing and distributing Utz’s brands in the five boroughs of New York City and Long Island, NY over the last twenty five years, and we look forward to working closely with our independent operator network to expand and grow our expansive portfolio of brands in this vibrant and diverse market,” said Steve Liantonio, senior vice president, national sales operations of Utz.

Read more: Utz And The (Public) Lure Of A Snack SPAC

Utz went public in 2020 following its acquisition by the special purpose acquisition company Collier Creek Holdings and saw its stock rise by double digit percentage points in the first few days of trading.

Utz CEO Dylan Lissette said at the time that while the hypergrowth that marked the initial stages of lockdown had abated, “we are still experiencing a very nice elevated demand cycle. And for the foreseeable future, we see that continuing, just because there is a structural change to some degree, where folks are definitely eating at home more.”