Blog: Boulder expands in foodservice with Pizza Hut tie-up
Katy Askew | 14 January 2015
Boulder Brands is expanding its Udi's brand in the foodservice channel through a tie-up that will bring two varieties of gluten-free pizza to Pizza Hut outlets throughout the US.
Pizza Hut gluten-free pizza will be co-branded with Udi's and will be available in cheese and pepperoni.
The move reflects continued demand growth for gluten-free products as greater numbers of consumers in the US are diagnosed with Coeliac disease or adopt a gluten-free diet for perceived health and wellness benefits. It unlocks a significant opportunity for Boulder to grow sales in the foodservice channel, valued at US$641.43bn in 2013 according to Technomic.
The deal also demonstrates the value branded packaged food manufacturers can bring to the foodservice channel. As the brand leader in the gluten-free segment in the US, Udi's brand capital should serve to reassure consumers of the quality of Pizza Hut's gluten-free offering.
Boulder will certainly hope so. It is going through a challenging spell; in October, the company reported a third-quarter loss after impairment charges on its Smart Balance division.
The group's gluten-free arm has performed well and more foodservice deals could be in the offing. BB&T Capital Markets analyst Andrew Wolf said today Boulder had flagged in August it would launch into two national restaurant chains and was in talks with more.
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