Ferrara and Utz partner on sweet and salty snack multipacks

Dive Brief:

• Ferrara and Utz have partnered on a new line of sweet and salty snack variety packs. Launching in January 2022, the variety packs will include a mix of three to four snacks from both manufacturers, including Ferrara’s Keebler, Rainbow Minis and Mother’s Circus Animal cookies, and Utz’s Mini Cheese Balls, Mini Specials pretzels and White Cheddar Cheese popcorn.

• The variety packs will be sold in 12- to 40-count boxes with suggested retail prices ranging from $4.74 to $10.52, and will be sold at Utz’s web site and retail stores nationwide.  

• The companies are joining forces in response to what they describe as growing demand for variety packs among consumers. Over 60% of consumers prefer sweet and salty combinations yet only 16% of variety packs combine the two flavors, according to consumer research from IRI cited in a press release.

Dive Insight:

Snack consumption was already increasing before the pandemic. It became a source of comfort for many consumers during COVID-19. And with quarantine restrictions lifting, snacks will continue to be a staple for 84% of consumers, according to PepsiCo’s latest U.S. Snack Index.

Partnering on a sweet and salty multipack deal is a way for companies such as Utz and Ferrara, which is owned by confectionary giant Ferrero, to capitalize on the growth in snacking and keep consumers’ attention as they compete with a lengthy list of new and innovative brands. It also allows each company to benefit from the categorical and geographic reach of the other’s offerings. 

“Through the snack variety packs we mutually create, we’ll place tens of millions of Utz Brand packages into the hands of consumers across the United States, further accelerating the geographic expansion of Utz Brands,” said Utz CEO Dylan Lissette in a statement. “When consumers try our snacks, they repeat purchase at high rates, and we look forward to the exposure and incremental brand trial this will bring to Utz.” 

Utz has been busy with acquisitions aimed at expanding its reach under the helm of Lissette. Since 2014, the snack company has acquired 11 companies, including tortilla and chip manufacturer Festida Foods for $41 million this past May. It’s also been reshaping its portfolio, cutting loose less popular offerings like its 102-year-old Husman’s snack brand, which it retired at the start of 2021. 

Ferrara has also been making strategic acquisitions, including a $1.3 billion deal with Kellogg in 2019 that added Keebler and Famous Amos to its portfolio. It has also been making attempts to revamp its image and breathe new life into some of its staler offerings. Earlier this year, it relaunched its fruit snack products with redesigned packaging and higher quality ingredients, and it’s tweaked the packaging and improved the ingredient lists for its Keebler cookies and Butterfinger candy. With salty snack consumption increasing by double digits, according to a 2020 study by The NPD Group, Ferrara could benefit from piggybacking on Utz’s offer.

With a number of acquisitions on the books, both companies may also see the partnership as a way to quickly strengthen their posture without having to spend resources on in-house development or a costly purchase. A number of food companies are seeing the benefits of such partnerships. In some cases, these collaborations are a way to trial a potential merger or acquisition. They can also be a quick way to access the other brand’s consumer base and potentially gain new loyal customers in the fiercely competitive snack segment.

The snack category has seen a tremendous amount of M&A activity just in the past year. In March, Mondelez acquired a majority stake in protein bar maker Grenade and in January acquired premium snacks and chocolate maker Hu Master Holdings. And this past November, Mars fully acquired healthy snack maker Kind North America.