Utz Brands' Q1 2025: Key Contradictions in Bonus Pack Strategy and Market Performance Unveiled

Bonus pack strategy and impact, non-branded non-salty business performance, Utz's geographic expansion strategy, and bonus pack impact on volume and value share are the key contradictions discussed in Utz Brands' latest 2025Q1 earnings call.



Sales Growth and Channel Dynamics:
- Utz Brands reported 3% organic sales growth for Q1 2025, despite flat overall retail sales.
- The discrepancy was attributed to strong performance in untracked channels, particularly natural channel, discount, and club, as well as improved throughput from the Rice distribution center consolidation.

Bonus Pack Impact and Volume Share Gains:
- Bonus packs contributed significantly to volume share gains, particularly in expansion geographies.
- Despite some value share contraction in core markets, the company maintained strong volume shares due to distribution gains in Boulder Canyon and On The Border.

Boulder Canyon Expansion and Performance:
- Boulder Canyon continued to perform well, driving growth in untracked channels and gaining retail distribution in traditional channels.
- The brand's success was attributed to its on-trend non-seed oil offerings and growing velocity in the market.

C-Store Performance and Future Opportunities:
- C-store performance improved, although it has not yet returned to growth.
- Utz Brands is focusing on driving distribution, delivering innovation, and ensuring optimal space and service in convenience stores to further enhance performance.