Utz Quality Foods Article

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Utz Quality Foods, Inc.
Utz Quality Foods (logo).jpg
Product type Snack foods
Owner Michael W. Rice
CountryUS
Introduced1921
Previous ownersWilliam and Salie Utz (1921)
Francis X. Rice (1968)
Website http://www.utzsnacks.com/

Utz Quality Foods, Inc. /ˈʌts/ [1] is based in Hanover, Pennsylvania and is the largest independent, privately held snack brand in the United States. [2] The company was founded in 1921 and distributes a variety of potato chips and other snack foods throughout the United States.

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 [3] with an initial investment of $300. The hand-operated equipment used at the time produced approximately 50 pounds of potato chips per hour. Salie cooked the chips and 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.

Post-war years and expansion

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

The company purchased two more Hanover-based production facilities during the 1970s. Rice retired in 1978, and his son Michael became company president, while Arlene Utz Rice remained as the company’s chairman of the board. Utz’s largest production facility and home of its current administrative headquarters was completed in 1983.

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 1996, the company celebrated its 75th anniversary. By 1999, a new public website also allowed 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 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. [3]

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. [2] 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 [3] with Utz buying the intellectual property rights, distribution and Ephrata manufacturing facility. The Bachman family will still use its Reading and Hyde Park Facilities under the name Savor Street Foods Inc. to make private label products and other goods for Utz.

Utz Quality Foods remains family-owned. Michael Rice is the chairman, and his son-in-law Dylan Lissette is chief executive officer. In 2014, the company's 2500 employees made 150 million pounds of snacks in its eleven manufacturing facilities. [3]

Sponsorship

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.

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 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. [3]

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.

In popular culture

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. ^ a b 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.
  3. ^ a b c d e Sellers, Patricia (4 March 2015). "The secretive snack company that Warren Buffett loves". Fortune Magazine. 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]".

External links