US snacks company Utz Brands is planning to close its Grand Rapids plant in Michigan next year.
According to the snack producer, manufacturing operations will cease in “early 2026”. The decision will reduce the number of its facilities in the US from eight to seven.
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Utz CEO Howard Friedman announced the factory closure in the company’s second-quarter earnings report. He said: “The decision is a reflection of our commitment to operational excellence and ongoing transformation.
“While these types of decisions are never easy, they are necessary steps to streamline our operations and strengthen our supply chain for the long-term. We are deeply grateful for the contributions of our Grand Rapids team and are committed to supporting them through this transition,” Friedman said.
In 2023, the US-based salty snacks manufacturer revealed it was overhauling its manufacturing network to “support long-term volume growth and reduce costs”.
In its reported earnings for the second quarter of 2025, the company saw net sales increase by 2.9% to $366.7m, compared to $356.2 million in the prior year period.
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By GlobalDataOrganic net sales increased 2.9% year-over-year, driven by a favourable volume/mix contribution of 3.9%. However, the firm noted that this figure could be 3.1%, excluding a 0.8 percentage point benefit from bonus packs of its snacks in April.
This was partially offset by lower net price realization of 1%, which included a 0.8% impact from bonus packs and other net price impacts of 0.2%
Meanwhile, Utz’s adjusted EBITDA decreased 2.0% to $48.7 million, whilst adjusted net income fell 14.2% to $23.6 million.
Organic sales for branded salty snacks, representing 88% of total net sales, increased 5.4% led by Utz four primary labels, including the Utz brand, On The Boarder, Zapp’s, and Boulder Canyon.
The firm said that this was offset by an 11.8% organic sales decline in non-branded and non-salty snacks, primarily due to “partner brands and dips and salsas.”
Friedman added: “We’re encouraged by our summer sales performance thus far, as we successfully capitalise on seasonal demand and snacking occasions.
“Our strong performance illustrates our ability to deliver growth independent of the category in a rational competitive environment.
“Looking ahead to the remainder of 2025, we expect our strong productivity cost savings will continue to provide us with the flexibility to invest in our brands, while expanding profit margins.
“With geographic expansion driving much of our growth strategy, we remain on track to deliver solid results in 2025 and continue to create long-term shareholder value.”
Utz CFO Bill Kelley said: “We are raising our 2025 organic net sales outlook to reflect stronger revenue trends through the first half and our confidence in the growth drivers ahead.
“We now expect organic net sales growth of 2.5% or better, driven by our advantaged portfolio of brands and expansion geographies.
“We are also tightening our adjusted EBITDA range to 7% to 10% growth, reflecting our confidence in the significant productivity programs ramping in the second half.”
