Company: UTZ
Filing Date: 2025-02-20
Form Type: 10-K
Source: 0001739566-25-000053
Chunk: 6

Company: Utz Brands, Inc.
Filing Date: 2025-02-20
Form: 10-K
Item: Item 1
Chunk 6
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50% of pretzels.  Utz has driven 5% growth in the category, due, in part, to the launch of Utz Mixed Minis, a line of seasoned mini pretzels in Garlic Butter, Mike’s Hot Honey and Sea Salt varieties. Within potato chips, Utz leveraged the success of the award-winning Mike’s Hot Honey to offer a Mike’s Extra Hot Honey as a Summer LTO capitalizing on the hot & spicy trend. Zapp’s, a brand that embodies the bold and vibrant flavors of New Orleans, also offered innovation against this focus area. Building on the launch of Zapp’s Sinfully Seasoned Pretzel Stix in 2023, two new flavors were launched in 2024 – Spicy Cajun and Sweet Cinnamon & Sugar. Following up on multiple product awards for Zapp’s Sinfully Seasoned Pretzel Stix in 2023, Zapp’s Spicy Cajun pretzels was named one of the year’s Best New Products by Convenience Store News for 2024. Zapp’s Sinfully Seasoned Pretzel Stix is the #6 brand in the seasoned subcategory in the fifty-two weeks ended as of December 1, 2024. Within potato chips, Zapp’s introduced the Big Cheezy New Orleans Kettle Style potato chips. While cheese flavored potato chips represent 12% of potato chips and are growing, this popular flavor is underrepresented in kettle style chips subcategory at less than 1% sales representing an opportunity for Zapp’s.

Within Capturing Occasions, our focus is expanding usage via variety/multipack innovation to address consumers' preference for portioned packs and seasonal offerings that are designed to attract consumers that are engaging in celebration. In 2024, we introduced a portfolio of variety/multipacks across our Power Four Brands and our Targeted Brands.

Our Approach to Product Innovation

Given our long-standing customer relationships, broad production capabilities, and scalable distribution platform, we plan to continue expanding our presence in certain salty snack sub-categories that we believe are highly synergistic to our existing business. We intend to continue to expand our presence in key salty snack sub-categories through a combination of line extensions of our existing brands, new brand introductions, licensing partnerships with established brands, and/or acquisitions. We believe our expanded presence across key salty snack sub-categories will enhance our competitive position with customers and allow us to leverage our existing manufacturing and distribution infrastructure.

As such, the level of new product innovation and the speed to