Conagra Brands, one the of the largest branded food companies in the US, is selling its Direct Store Delivery (DSD) snacks business to Utz Quality Foods.
The sale includes the Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s brands.
Conagra Brands acquired the DSD snacks business in October 2018 as part of its $10.9 billion acquisition of Pinnacle Foods. However, financial terms of its sale to Utz were not disclosed.
“We continue to reshape our portfolio and focus our resources on priorities that support Conagra’s business strategy and create value for shareholders,” said Sean Connolly, President and CEO of Conagra Brands.
“While Conagra has a large and growing snacks business, we do not currently operate with a DSD model. We believe this business will have more opportunity for growth under Utz, an established DSD operator.”
Utz CEO Dylan Lissette added: “These brands bring a strong consumer following and unique craft heritage. Their distribution and manufacturing capabilities, along with their customer relationships, enhance our ability to further grow our brand portfolio further west.”
