Chicago — Conagra Brands, Inc. is selling its direct store delivery (DSD) snack business to Utz Quality Foods, LLC. The deal, which is anticipated to close before the end of the year, includes Tim’s Cascade Snacks, Hawaiian Snacks, Erin’s, Snyder of Berlin and Husman’s brands.
“We continue to reshape our portfolio and focus our resources on priorities that support Conagra’s business strategy and create value for shareholders,” says 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.”
Conagra received the DSD business as part of its acquisition of Pinnacle Foods in October 2018, according to the company.
“We are excited about the opportunity to add these important brands and capabilities to our portfolio,” says Utz CEO Dylan Lissette. “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.”