The snack category is under pressure from growing competition, particularly from private-label brands. In response, big players like Utz Brands are stepping up their offerings, notably in the pretzel category. The company’s strategic approach presents several opportunities for small and independent retailers, as reported by Baking Business.
Utz CEO Howard A. Friedman emphasizes that competition is good for the category, fostering both health and rationality in the marketplace. A key aspect of Utz’s strategy is the company’s collection of power brands, which have broad appeal to consumers. Additionally, Utz’s regional brands provide the flexibility to offer products at varying price points, catering to all customer segments.
This strategy allows Utz to meet customer desires for different price points and product configurations. For small and independent retailers, this means the opportunity to offer a diverse range of products catering to all customer segments, enhancing their appeal to a wider customer base.
Friedman also highlighted Utz’s success in the pretzel category, notably with the launch of Zapp’s pretzels and the Sinfully-Seasoned Pretzel Stix, which have exceeded expectations. Such innovations from Utz provide additional opportunities for retailers to diversify their snack offerings and attract customers with unique products.
What’s more, these new pretzel products are not only attracting existing Zapp’s customers but also bringing in new consumers, enhancing the incremental value of the brand. This means small and independent retailers stocking these products can expect to attract both loyal Zapp’s customers and new consumers looking to try these exciting new offerings.
Despite a challenging market, Utz reported a reduction in losses for the first quarter of fiscal 2023 compared to the previous year, along with a 4% increase in net sales and the company has increased its forecast for full-year growth.
This strong performance indicates that Utz’s strategy is working, offering reassurance to retailers who choose to stock their products. For small and independent retailers, partnering with a company like Utz that can effectively navigate market challenges can provide a boost to their own business stability and growth.
Ultimately, Utz Brands’ strategic approach to tackle competition from private labels and enhance offerings in the pretzel category offers valuable opportunities for small and independent retailers. Through stocking a diverse range of products from a reliable company like Utz, retailers can enhance their appeal to a broad base of consumers and support their business growth.
TL;DR
Utz Brands is successfully facing competition in the snack category by focusing on a collection of power brands and pricing flexibility. Its innovations in the pretzel category are attracting both existing and new customers. Small and independent retailers can benefit from these strategies by diversifying their product offerings and catering to a broad customer base. Utz’s strong performance also provides stability for retailers stocking their products.
