Utz Quality Foods

Utz Quality Foods, LLC.
Product type Snack foods
Owner Michael W. Rice
Country US
Introduced 1921
Previous owners

William and Salie Utz (1921)
Francis X. Rice (1968)
Mike Rice (1978)

Dylan Lissette - CEO (2012)
Website http://www.utzsnacks.com/

Utz Quality Foods, Inc. /ˈʌts/[1] based in Hanover, Pennsylvania, is the largest independent privately held snack brand in the United States. The company was founded in 1921 and distributes a variety of potato chips and other snack foods throughout the United States.

Content

  1. History
  2. Early Years
  3. Post-war years and expansion
  4. Modern Era
  5. Today
    1. Products
    2. Distribution
    3. Giving Back

History

Early years

Utz Quality Foods began in 1921 as "Hanover Home Brand Potato Chips" when William and Salie Utz began making potato chips out of their home in Hanover, Pennsylvania[2] with an initial investment of $300. William and Salie Utz began making potato chips out of their home in Hanover, Pennsylvania. Twice in the first six years they had to expand their facilities. The hand-operated equipment used at the time produced approximately 50 pounds of potato chips per hour. After Salie cooked the chips, Bill delivered them to local grocery stores and farmers’ markets in the Hanover and Baltimore, Maryland areas.

Success soon allowed the couple to move operations to a small concrete building in the family’s backyard. In 1938, production was boosted with the purchase of an automatic fryer capable of producing 300 pounds of chips per hour. Utz used one of the industry's first automatic fryers.

Post-war years and expansion

In 1938, Francis Xavier "F.X." Rice joined the Utz Company after marrying Arlene Utz, William and Salie Utz's daughter. In 1949, post-war success allowed the company to build a new production facility on 10 acres (40,000 m2) in Hanover. F.X. Rice became president of the company in 1968, after the death of Salie Utz in 1965 and Bill Utz in 1968.

The 1970s began with the 50th Anniversary celebration of the company and saw the purchase of two more Hanover-based production facilities. F.X. Rice retired in 1978. The Rice’s son, Michael W. Rice, succeeded F.X. as company president, while Arlene Utz Rice remained as the company’s board chairperson, 1978. The largest Utz production facility and home of its current administrative headquarters was completed in 1983 in Hanover, Pa.

Modern era

In the late 1980s, sales of Utz pretzels began growing by 20 percent annually and, by 1991, pretzel sales comprised almost 10 percent of total revenue. In the summer of 1992, Utz added a third pretzel oven and began baking pretzels around the clock. By the middle of the decade, annual sales of Utz products topped $100 million and its employee base had reached 1,000.

In 1995, Utz welcomed Dylan Lissette, son-in-law of Mike and Jane Rice, into the business. Sales were approximately $100M in 1995.

In 1996, the company celebrated its 75th anniversary. By 1999, a new website was created to allow customers to purchase Utz products for at-home delivery. As the 21st century approached, Utz employed 1,300 with annual revenues exceeding $150 million. In 2003, a fourth manufacturing facility of Utz snacks in Hanover, PA opened manufacturing corn chips, tortilla chips, popcorn, cheese balls, and cheese curls. In 2004, sales reached $235 million annually, spurred in part by market expansion, a targeted advertising campaign in the New York City metropolitan region and a 2001 Consumer Reports taste test ranking Utz as the best tasting potato chip in the nation.

A 2010 plan to merge Utz with rival Snyder's of Hanover was blocked by the U.S. Federal Trade Commission.[2]

In 2011 Utz Quality Foods acquired Zappe Endeavors and its affiliated entities which manufacture and market Zapp's, Dirty's and California Chips brand potato chips.[3] This acquisition included Zapp's plants in Louisiana, California and Pennsylvania thereby making Utz a national snack food manufacturer overnight. Management of Zappe remained in place after the acquisition.

In 2011 Utz Quality Foods acquired the Wachusett Potato Chip Company in Fitchburg, Massachusetts, enabling the production of the Utz brand in New England.

In 2012 Utz Quality Foods acquired The Bachman Company[2] with Utz buying the intellectual property rights, distribution and Ephrata manufacturing facility. The Bachman family retained the Reading and Hyde Park Facilities under the name Savor Street Foods Inc. to make private label products and other goods for Utz and others. Until the 2012 season, Utz was a sponsor of the New York Yankees and had been part of the right field of Yankee Stadium for many seasons. They were also a sponsor for the Philadelphia Phillies.

In January 2014, Utz Quality Foods acquired the Good Health® brand to expand the portfolio of better-for-you snacks and to broaden the brand’s distribution base, reaching across the U.S. and export. In 2014, the company's 2500 employees made 150 million pounds of snacks in its eleven manufacturing facilities.

In 2015, Utz Quality Foods acquired the Condor Snack Company of Denver, CO and Keystone Pretzel Bakery of Lititz, PA. This provided manufacturing capabilities including organic, gluten free, and unique oils, distribution, and sales programs to meet the consumer’s ever-changing needs.  Utz also acquired the Snikiddy brand, and with a focus on organic products, the company revamped their cheese puffs to be USDA certified organic.

In October 2016, Utz Quality Foods, L.L.C. completed its $146 million acquisition of Golden Enterprises, Inc which was first announced on July 19, 2016. Merger allowed the Golden Flake brand to grow in southeastern markets, and expand the product selections for Utz consumers. The acquisition of Golden Flake brought its product portfolio into the fold, including potato chips, pork skins, popcorn, cheese puffs and other snack foods.

In December 2017, Utz acquired Inventure Foods, Inc., which includes Boulder Canyon Foods™, TGI Fridays™, Nathan's Famous®, Vidalia Brands®, Poore Brothers®, and Tato Skins®, and Bob's Texas Style®.

Utz Quality Foods remains family-managed. Michael Rice is the Executive Chairman, and his son-in-law Dylan Lissette is Chief Executive Officer and Vice Chairman.

Today

Utz Quality Foods remains family-owned. Michael Rice is the chairman, and his son-in-law Dylan Lissette is chief executive officer. Utz manufactures a wide variety of products including potato chips, pretzels, cheese snacks, corn chips, tortillas, veggie stix/straws, popcorn, onion rings, pork skins, crackers, dips and more.

Utz operates 11 manufacturing facilities located in Pennsylvania, Massachusetts, Indiana, Alabama, Louisiana and Arizona. Utz distributes to customers’ warehouses and direct to stores with over 1,500 routes.

Sponsorship

Utz currently sponsors the Washington Nationals, Baltimore Orioles, and Pittsburgh Pirates. Utz has sponsored the Philadelphia Eagles for many seasons. In addition, Utz is the official vendor of all pre-packaged snacks for the Baltimore Ravens starting in 2014. Also, Utz sponsors the Connecticut Tigers & Erie SeaWolves, of Minor League Baseball.

Products

Utz brands include Utz®, Golden Flake®, Zapp’s®, “Dirty”® Potato Chips, Good Health®, Bachman®, Bachman Jax®, Wachusett®, Snikiddy®, Inventure Foods, Inc., TORTIYAHS!®  and others.

Utz manufactures a wide variety of potato chips and pretzels – 1,000,000 pounds (450,000 kg) of potato chips and 900,000 pounds (410,000 kg) of pretzels every week. Utz also produces cheese curls, sunflower chips, tortilla chips, popcorn, pork rinds, and party mix, offering over 90 flavors or varieties of snacks in total. Specialty items include chocolate-covered pretzels, seasonal pretzel barrels and sports mixes. Utz also carries dips, salsas, and crackers.

In total, Utz makes 395 different types and flavors of snacks.[2]

Utz regular potato chips are cooked in cottonseed oil; its Kettle Classic line in peanut oil; and its Grandma Utz varieties in lard. Additionally, Utz produces an organic product line, which includes products certified organic by Quality Assurance International, as well as a "natural" product line that includes potato chips cooked in sunflower oil. The company incorporates the "Snacking Smart" icon on a number of its products, indicating a healthier snacking choice to the consumer.

Distribution

Utz’s current distribution area spans from Maine to Florida, using 33 distribution centers along the East Coast of the United States. Utz utilizes a fleet of 800 salespeople and company trucks to deliver products directly to the store. Various products manufactured by Utz are also sold through warehouse club stores across the United States.

In the mid-1980s, Utz started a catalog mail order service allowing consumers to order Utz products by phone for home delivery. In 1998, Utz added online ordering at their website utzsnacks.com.

Utz potato chips (along with the slogan "Utz Are Better Than Nuts") formed part of an ongoing secondary plot in several episodes of the second season of the AMC television series Mad Men.[4]

Utz brand products can be seen in the American version of "The Office (U.S. TV series)" in the breakroom vending machines. The series was set in Scranton, Pennsylvania, a market area for Utz.

The Utz brand has also been prominently featured in the Netflix series Orange is the New Black.

A bag of Utz potato chips was seen in the background of the "Woods" episode of FX's Atlanta.

See also

References

  1. Utz - About Us
  2. 1 2 3 4 Sellers, Patricia (4 March 2015). "The secretive snack company that Warren Buffett loves". Fortune Magazine. Retrieved 23 January 2016.
  3. DiStefano, Joseph N. (7 January 2011). "Two potato: Chip king Utz buys Dirty and Zapp's". philly.com. The Philadelphia Inquirer. Retrieved 23 January 2016.
  4. Heaney, Caitlin (August 31, 2008). "'Mad Men' eats up Utz Quality Foods". The Evening Sun. "'Mad Men' eats up Utz Quality Foods [archived]".
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