CHICAGO (WBBM NEWSRADIO) — The iconic Chicago snack company Vitner’s is getting new ownership.
Utz Quality Foods, LLC, a subsidiary of Hanover, Pennsylvania-based Utz Brands, announced Monday that it has entered into a a definitive agreement with Snak-King Corp. to acquire certain assets related to the Vitner’s brand, including its trademark and other intellectual property, as well as direct-store-delivery distribution assets for a total purchase price of $25 million.
“We are thrilled to see the Vitner’s brand, established almost 95 years ago, become part of the Utz Brands, Inc. platform," said Dylan Lissette, CEO of Utz.
Vitner’s, founded in 1926 on Chicago’s South Side as the C.J. Vitner Company, was one of the oldest family-run snack food companies in the U.S.
According to the Vitner’s website, the C.J. Vinter’s Company began as five storefront shops on the South Side selling candy, magazines, tobacco and ice cream, but when the Great Depression nearly wiped out the business the owners pivoted to selling snacks, such as potato chips, popcorn, and pretzels, directly to taverns, which were flourishing despite the economic downturn.
In 2011, Vitner’s was sold to California-based Snak King. Snak King, which has manufacturing facilities in California as well as in Freeport, Illinois, makes private-label snacks for large food corporations as well as under he Whole Earth, El Sabroso, Granny Goose, Jensen's Orchard and Snak King brands. The company manufactures potato chips, tortilla chips, popcorn, kettle corn, caramel corn, extruded snacks, veggie chips, pop crisps, pork rinds and cracklins, as well as nut clusters, peanut and tree nut mixes, and specialty blends.
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With its approximately 55 direct-store-delivery routes, Vitner’s will provide Utz a strengthened foothold in Chicago and the Midwest from which to further grow the presence of its Power Brands, which include Utz, On The Border, Zapp’s, Golden Flake, Good Health, Boulder Canyon, Hawaiian Brand, and Tortiyahs!.
Following the acquisition, Vitner’s potato chips, cheese snacks, corn snacks, and popcorn will move Utz from the #7 position to the #4 position among salty snacks in the Chicago market, and the fourth largest salty snack market in the U.S. at approximately $688 million in annual retail sales.
Most of Vitner’s products are currently manufactured by Snak King, but Utz plans to transition manufacturing of most of those products to its own manufacturing plants after closing, further increasing utilization of Utz’s manufacturing network.
“This strategic acquisition will make Utz a more significant competitor in the Chicago area. Combined with our recently announced acquisition of the On the Border tortilla chip, salsa and queso brand, we create a strong brand platform to better serve the primary salty snack channels and continue to expand rapidly in this important growth market. This transaction is a continuation of our strategy to successfully build long-term value and share by expanding in major metropolitan areas, like we did in New York City in 1994, Boston in 2004, Pittsburgh in 2006 and Atlanta in 2011,” said Dylan Lissette, CEO of Utz. “This acquisition strengthens our competitive position and will be a spark for continued growth in the Midwest. We are confident this transaction will drive long-term value creation for our shareholders and help position Utz for continued long-term growth.”
The Vitner’s purchase marks Utz’s third major acquisition since it went public in August. The company in November announced it was buying the On the Border brand for $480 million and a month earlier bought H.K. Anderson peanut butter-filled pretzels from Conagra Brands. In 2019 Utz bought Snyder of Berlin from Conagra and merged with Kitchen Cooked, headquartered in Farmington, Illinois.
Vitner’s has over 100 products, including potato chips, popcorn, corn chips, pork rinds and Sizzling Hot Crunchy Cheese Kurls. They are currently manufactured at Snak King’s 222,500-square-foot Freeport facility, which employs about 300 people. The facility, which also makes dozens of other Snak King products, is not part of the sale.
It was not clear late Monday what the sale would mean for jobs.