Utz Brands (UTZ) 31 Oct 242024 Q3 Earnings call transcript

Company Profile

Participants

Kevin Powers	executive
Andrew Lazar	analyst
Howard Friedman	executive
Peter Galbo	analyst
Michael Lavery	analyst
Robert Dickerson	analyst
Nik Modi	analyst
Robert Moskow	analyst
Brian Holland	analyst
John Baumgartner	analyst
Mitchell Pinheiro	analyst
Ajay Kataria	executive
James Salera	analyst

Call transcript

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Operator

Hello, and welcome to the Utz Third Quarter 2024 Earnings Call.

As a reminder, this call is being recorded. I'll now turn the call over to Kevin Powers, Head of Investor Relations. Please go ahead.

Kevin Powers

Thank you, operator, and good morning everyone. Thank you for joining us today for our live Q&A session on our third quarter results. With me on today's call are Howard Friedman, CEO; Ajay Kataria, CFO; and Cary Devore, COO and Chief Transformation Officer. I hope everyone had a chance to listen or read our prepared remarks this morning, and also view our presentation, all of which are available on our Investor Relations website.

Q&A a our to housekeeping begin review. we session, few just items Before some today business our statements note materially. of Please that, comments future may our view actual based current will of the our and results differ on forward-looking contain SEC non-GAAP our identify which are detail in financial that measures, recent and will discuss in the performance. Today, more earnings affect which future Please we risks materials. this certain uncertainties filings, see principal could adjusted morning's or described other associated materials and are Reconciliations contained our earnings of measures non-GAAP our disclosures and website. in financial on posted

Now operator, the we are for up ready to line open questions.

Operator

Your the line Instructions] of question Barclays. from [Operator comes first Andrew from Lazar

Andrew Lazar

acceleration off, end from that's outlook reaffirmed X.X%, of just a reported to X.X% in to full year sort the at low sequential of you full and suggests you least the about XQ of start the in to X.X% X% to organic growth XQ, which year. to Maybe significant get your pretty

how that, first you expectation with visibility guess, October, that that least at So particularly, do data of square at this running more the and weeks to least seems through have of acceleration? how were in of know, we be light XQ? on the so or based shipments of flattish we consumption our I fact much couple And ahead as do to in data, takeaway

Howard Friedman

I there a are think, Look, couple Andrew. question, the things. for Thanks Yes. of

of always under is, really going first that's see that The a build to of of are sort our we've entire by anticipated to momentum year driven that kind out point we couple continue thing, the control. that were I'd things and

go marketing rest the the the step-up First of through is as year. continues we that,

is innovation have also that We building.

execution in a seasonal shipments, little on year. do and the through incremental see there that You mentioned quarter, rest the the but seasonal of we third of bit is

been has distribution gaining. Our

brand into particularly that saw gains. And on last, of that, the saw our our quarter, hang Border distribution kind quarter. in not do to and our kind core, especially fourth then laps you I in significantly the bringing something expansion On like our And get hat geographies you easier The third our so the of in is while

So the do we that this would see to -- that see build control momentum different to us under are to our between all unmeasured things we visibility good in the have suggest you thing, offer over measured and last should you is, pretty that the widening continue I'd quarter. time. The

third more a of quarter, quarter. the in it you the gap little we in channels would between you anticipate somewhat a of bit in that quarter. second little a fourth and and So the And bit saw see unmeasured measured similar

Andrew Lazar

recently on chips comments forward consideration stepping I'm taking sort going that of made you're held helpful. And outside sort of own key reasonably subsegments XQ. your That's the it. how outlook. some in A Got about quarter, as idiosyncratic during sort up of tortilla of sounds the its chips, into other up sort issues in just competitive And which competitive well competitor activity of curious, like potato it had well.

Howard Friedman

Yes.

obviously certainly, a chips. saw quarter, we third the heightened in more which impacted So much environment competitive potato

little becoming go think, forward. Tortilla is power for than different I of our is animal the kind bit us. strength potato to our well perform our a your strategy and portfolio as we rest point, chips brands of continued the to of and of focused portfolio, chips more a on

between wider price decisions First historically gap had of already On of and competitors. through year, and made have the some all, other Border The a the course have we

competitively. like the where And we so narrow we some while we would anticipate may gaps are that that

Us of right as and where The that getting of support. Obviously, I decision Border at from you we'll merchandising to. And drive competitive core, that we we On of the we has The the comfortable some of next turn Border tortilla with thesis On been we pretty that our we're has as price core feel distribution been all, again our which the we is, on could part the look third where for gains benefit if distribution need But we does you of to into the of working. And the year we'll bring then at as sharpen gaps year or in be take we more when now. our we some Second think are looking that go. need into chips rest evaluate and gains was always sort that are are,

Operator

America. question comes Galbo line Peter of Our from next of the with Bank

Peter Galbo

to Maybe could on question. Andrew's I if follow-up just start,

of how As but we understand, hoping into 'XX. And as range, at to some should I'm rate that nuances and least percentage into be of for about of in exit of remind exiting think algorithm could that's least type end or about I high get addition had to if sets midpoint, the of. a there's that in we you at any the you at algorithm we then give you there, just commentary kind us that X at you some level. And want want kind formal commentary it was at up that, thinking low to the don't kind XQ sure 'XX

anything of of have going Maybe some kind you I mentioned Flake, on to to should production we we up think as think but about 'XX? start Golden is start be in else you XQ. lapse Kettle aware

Howard Friedman

Yes. Thanks, Pete.

But to 'XX of going do not I'd We're things. you right. point. guidance offer couple a this at You're

what is have share XXXX what expansion an volume share we that said X.X think, first see -- delivering the expansion volume core -- and laid Day, look of market can core the share at true, been we our that was the volume moment, geographies. And you hold for a at conversation and percentage was has around are out year-to-date, I if our and points. our had what expectations you our for both all, Investor -- our at we

hold are kind that I gain and we pretty of So our core fruit strategy the yielding expect. good we feel would think strategy that the our distribution

a And I thing with competitive way a our working certainly, we little is pricing been question, the that the are to what's through. volume I translation different near-term remains being value. that, think conversion think, year-to-date bit from

The about non-measured I we offer would good step channels. continue other thing our grow They and to very feeling is, are up.

We the are gaining there. participants momentum And do category great rational, category expect is and everybody. we which that remain for

the 'XX we'll see we as feel the the this of are So control fourth year. will lap think the think, I our pretty for to through where come is we of think continue then wildcard. I we And But results. quarter kind we we I about in good translation, address year, and what

Your second Kettle. around Kings question and is Mountain

Peter Galbo

some be laps Any of else Kings Yes. Golden other think to Mountain, kind 'XX. nuances aware should we we of going Anything note Plate. you're on in of? take should I have

Howard Friedman

Yes.

going we not and is So lot our installation Canyon performance about. planned, to Kettle Kings to support business, your lot older is of talk expecting program on point, capacity lot lapse as up a and automation capital a Mountain incremental which on-trend there. But our there's of and for to a start are to our of growth productivity to add and

in actually one I Remember, lap of the saw business last the our better. really is in back ones, think C-store XQ. X C-store our half year we in probably step down biggest gets

second negative to significant expecting So the really had business. we've in become and positive, that a then less the around year. And that becomes on some C-store significantly challenges -- the is while we're it not for of Zapps

the I X drivers are think year. those biggest might next change that material

Operator

from Sandler. Your Michael of next Lavery question comes Piper from the line

Michael Lavery

the promotional talk about was if wondering, more. environment could you Just little bit a

portfolio of bit segment, kind optimal gained maybe it the lost portfolio share. you balance You quite environment that do about volume promoted stepped-up and now? lift too, by you and share brands even volume there. a like environment, think a was more, maybe think in in the price you some volume? dollar especially foundation And in the but role about of How bit between of here looks What's promotional how though the the specifically

Howard Friedman

Yes.

we certainly, we in question, of appreciate actually what more line Mike. to a saw Look, promotional overall environment back much in coming XXXX. the used in the kind with quarter, saw I see promotions So and

we expansion So than bit more kind was but different time the further of been for of then, which step Remember, customer fundamentally had then sort of up. And that category mix lot promotionally we where have, a until we year bit of Publix up -- versus a the have across we that XXXX. driven that gains we we've first and the stepped followed low similarly, we saw was the by little specifically, geographies where up lagging high the of us, in that QX predates a this had. some little other

competitors of wound was more on a competitive and So for channels promotional more of the story quarter variety or environment the big up sure. chips promotional. as variety has more potato a becoming competitive gotten actually Obviously,

category rational, and we that So stabilization some as I forward, I remains go the of the will see of think we of sort we I will that. think -- think

remains the penetration I category think strong. household

marketing And we are so innovation shows and it and certainly consumers promotions engaging bring forward. that when

get to think, some wind pack absolute H.K. we you'll on seeing bit Cooked the where you Vitners the as point one of us businesses, Anderson, I a saw second businesses that's, then well. And little down. last those is, other more. And Foundation Anderson our the have price for into shift about pricing couple As spent and time quarter promotional there little doing against lot the you price of in we've some had our the year, on H.K. a are work, a we as quarter Kitchen from up Brands, of quarter had a just of the at and a retailers. third some remember been struggled that bit things, of And we of what what you're also talking putting architecture do

be by will the our something we at pricing that rational. price volume that look always story, as of gaps value continue all be obviously participants volume do. we'll maintain So do We'll driven I expansion. be to category think, expect we'll and a And

Michael Lavery

an you And how update Okay. give distribution was much on progressing. just wondering, could

half that? some think Midwest? How how how or think in there the DSD the about do just that capacity maybe in for wins recently bigger West smaller we I play And this Or You've especially year. continues does in up is role we're that to in had ramping a second maybe wins, go? of place

Howard Friedman

Yes.

about thinking national good alternative doing, and we look, been to So have we very what -- local you club with about well the in our distribution felt the continue we our of -- to continue point, both some as that start larger as and they have sort. as that geographies your certainly gain channels, retailers quarter expansion saw as we banners

gain continue to we there. expect So would distribution to

We year that imagine, and expect are can already, -- as you ongoing next continue. conversations that, for will

as those well we utilization as look, the be as resilient chain capacity gain concerned, to making a to able and we responsive about investments been good far that as our gains. and as we get both capacity have is very As -- efficient is feel overall supply we that have

So foreseeable we have, of have we And with don't see we're as gain look, distribution of even any go we if we forward, terms a a there DSD, model. in larger-than-average were that sort visibility. then capacity hybrid issues

they to service we So customers be want will serviced. how

the So have if we you want DSD, to in be routes.

sure have also make to that, that We happens. relationships

If warehouse, ship you we direct way you well. want to as that to it can

Operator

question from of Rob next from Our comes Jefferies. line the Dickerson

Robert Dickerson

is the is component Or to I'm asking if is new I'm mean kind that? close-in able of gains have is But it expansion there not that a I this you dynamic competitive keep activity seen if to expect touched the geographic a on in more you basically, plan. expand curious, you've question you velocity just bit distribution anything a and geographies activity like, of activity more sure, distribution there the within competitive has little or impacting competitive of post changed to kind on kind your first what the earlier. of of and I'm like, So is eyes on? translation being category? just

Howard Friedman

Yes.

in a and I that the geographic expansion think we no, is the have strategy discussions answer retailers. we change our don't with anticipate short

retailers we why have tend you the think category. is to that to of be to remember us like incremental because part I

in I supplemental. fairly and is buyers not with comes more the mean category that. are is investment when the there we come along We in, some clear and compelling data obviously, there that -- are

different your to a appealing our brands we to can we And because consumer happen. choose the so that you have is that allows to I nice of segments, a remain is think So you're second retailer's to us I that from assortment. actually think, supportive portfolio individual thing thing, it's the actually of first the portfolio breadth And incremental. are curate of highly strategy, if for

are both the third the we And there. a actor. in so then understand And is I think cases, rational retailers benefit

what disciplined do. So we will we about be

We'll them our data. that have support we retailers healthy that are to and are We category a make with meeting growing with the forward sure share to of. pushing and be consumers to want it a obligations part

the your impact And to promotional of I overall that little I point, that what overall. to that's of a velocity a question well. it's it's environment, really the category terms bit as translation of in think does -- how value in think that volume -- does

I think the biggest are those drivers.

Robert Dickerson

in you've or All you consumer just even plans with quarter that already in prepared curious, over the maybe like right, some just of have. few there's of benefit say, weeks? remarks, let's so kind merchandising right. fairly have a of you past Super. put right, ahead reaction shipment I'm then you place, customer holiday the in of the plans merchandising reaction some seen And had good far, said quickly, the the

Howard Friedman

had your a Yes. Look, so to point, shipment planned seasonal in. always we

I earlier. customer everybody is we then of think and the saw in consumer look, that. to beyond where good small. response we planned seeing merchandising, and It impact very we feel terms the holidays was And And that certainly, was the are. about getting

Our we what elasticities promotional have and with would fairly anticipated. improving are lifts are consistent our

business think we it that is our where have so, we would right And now. exactly anticipated

Operator

comes from Markets. the Nik Our Capital RBC from of next question line Modi

Nik Modi

broadly as of historically. I'm mean, speaking, lift bag to feeling about in-store channel, aren't been How trafficking don't you're doing lift promotional that grocery to it's it kind would specifically. be matching shopping. broad-based if inflation But And function a used maybe about that's more online like not the wanted not about may as a has of question. back talking the good I people that. what I off seems the just on to as the -- in $X.XX about they're talking know chips talking so go I just us maybe promotional much I not be it affected of feeling it's much consumer lifts. or is that because I'm

to of I And wanted follow-up. that. reaction have just thoughts a your kind get then quick to and So

Howard Friedman

Yes.

that absolute define they think We try value being consumers seeking I I shopping look, So the about points differently observation, promotion up shifting and or been to certainly talk and fair and down. find latter think, channel have whether value, they're responding always either price on right? is the as or it,

size. if lean can you afford So you the inventory, pantry may into a larger pack

you well. price do as an point, absolute If can prefer that you

muddles you're play we I math little And overall the are seeing I in so about. quarter. And by we're price bit seeing, a constructs. That's indicated have second are that buyers especially coming incremental particularly the of improvement that that, versus testing think, different think talking value where sort food do And price some some bigger of promotions that of also tend seeking I elasticity think is a that the channel, a I the promotional role that in. category we what do to in the bit. seen the think

always this innovation, think affordable all historically think, of start I and to an trying So would thing be see to then price see buy to gets I and you point. marketing promotion. we then to And indulgence absolute points, and is, the keep things normalized. to been also the price say and you combination I last has consumer But right in the accessible see really, and find expect would category I an that the engaged. And continue shopper about price that,

come optimistic victory, through. think too cautiously starting we're way we're see to declare it's to I think, that a but early that I

Nik Modi

substrates of just on like announced then thoughts I'm I just and going or I'm within strategy capacity of get these just on that? curious bigger curious, edamame to the you question, your of like wanted alternate to on your Great. I like make a a do substrate deal some the actually snacking And thoughts forward. for to category, a longer-range salsa. And as just right? have holistic that substrates one saw capability cauliflower but things mean, new your and the we kind a different competitors obviously,

Howard Friedman

Yes.

or I think it short can on the we grains, yes, so products, grain-free -- certainly asset. really depends alternative other answer, the because make So other them powders production

allergen. the is bigger I think question always around

So -- cause where are may capital that you allergens, strategy. there a for different

may You can not you facilities, which, need a had to in that. peanut into decision for butter is actually imagine, my small a to I've of think put manufacturing about couple opportunities as companies. career

it. capability. bigger example, the we which you our innovation and business Boulder and us, So are make a is oil traditional moved. the avocado benefits. that the that we big example now for to around can end, look market me consumer if is strong to you those I have of things it for think a the have how is remains a certainly the that at even To as always but addressable like an great yes, looking suit it's for who And do can Canyon have question where ball cheese answer insight We an Poppers, something has Canyon grow. Obviously, introduced we continued people

that a because out desire to benefit our chain degrees things lengthy consumer. we more supply those for happen, freedom an trends in listen invest production is continuing answer, address are and lot of then we'll also to its its there's to this as last build we to thing and capabilities. assets overly have the consumer that, because we production is if So And the investing of a can. And a in company a

Operator

comes Your from Cowen. line Moskow of question from the TD next Robert

Robert Moskow

was the on but I discounting, the few a kind it it's price activities forward. phasing got think like still noticing just there? months bags in of traditional moving in I category shifting. happening out more more Is for that, bonus potato you're on that is chips salty if in the discounts I thought snacks potato ago right? wanted tactics approach? very towards Or know, Have And I like going these aggressive chips, still to a are category? it it promotional

Howard Friedman

Yes.

I'll it So question first answer first. of the the -- second second part

what see promotional starting think in potato environment normalizing. is you're chips I is to the

to see were deep or showing different And price the multiples. heard to We've across continuing So try saw constructs -- come have competitor able want bonus category we in of continue be all on own. To to we've value see going different they of loved your to you -- the to the early based in. customers to want historically that at that, What competitors where packs point think an segments to buy sorts -- you you'll you around and opposed potato on is category. their different the the be competitors maintain of of that think to get a point. participated based I a X to or they over and packs, I engagement that the chips products get seeing out able certainly different bought strategy on absolute and in is discounting through. And value to compete shopper that that are expect they different those to they we're say introduce seeing seeing we're And indications definitely pricing summer the consumers price -- and in drive would the are that, packs. a buy that their one X, seen marketplace ways something I the their bonus different bonus of not question as up an absolute get just necessarily way at get

Robert Moskow

to you just have your that Or tactics can doing? laid feel you've follow-up you're I doing way So change out you confident my that? the guess response do with do what that keep things you in you is, to feel

Howard Friedman

Yes.

innovation obviously, look, thesis which work we So to lap into We distribution quarter that planned I next we as in think plans. feel our competitive we feel then said, gains, go be how pretty and of to the our fourth on for we're period. But and we and growth we clear our always good year, a are what the the about environment. going drive that marketing executing, central a execution

our We that lot need if will at to. tactics always we've the a look building constantly of That's we been and doing. capability revise them,

And there consumer faster be And those changes for need continue is the so it able to to is do a to thing make the biggest demand, as way us address will and then at better if we speed. we to.

else, be we so we're we always good better. -- satisfied. can in everybody And always be but place, but a not as pleased We'll with

Operator

of next D.A. Holland comes Davidson. Your from Brian line question the from

Brian Holland

to the Obviously, maybe earlier, approach. question, kind guess, of of your there. as taking kind stuff wanted I I a category referenced happening But 'XX you the is ask what's outside theoretical control just there's do on curious, incorporates think you which algorithm reliant and to price volume? on-algorithm deliver can given price, you contribution if extent it's year, an long-term no your some solely from

Howard Friedman

would think is question. the what you category X% we and the how that to that did or X% a have X% I -- build. to back I biggest kind around -- Yes. probably where I'll category, own thought time. At and take growth Well, to of X% has a conservative our think a Day, our of historically. to was -- you Obviously, you from step not that had we historically. take the about X% think Day X% as about be But combination start over give give we of Investor that, -- in said for had it kind Investor that thought approach we we I'll mix right, that me seen how whether then let we that down volume absolute we price,

to forecast the moderated more know the back has the positively because that as starting bit to, little And be a a continue already a think in we I was that than the rest inflect going this year. through been will category I term, we've but don't near gone control, we that believe that So in to bit of work order we're to of obviously, is softer little bit us year, it with white and can a we're expansion had things it drive to it more from the into that little some is, thought what get products that approach. we a we reliant largely things that always into space opportunities our that and confidence growth we think said have because the category products of going our we've bring had, doing, we that solely the give are not in process. The assumption we which I on the core geographies into believe distribution And as we our we is expansion. because and would core expected. our gone

So our that -- can see and you in results.

term, I so that, to a think which what for -- controlling in in probably prior near best a a makes And we're a -- are I would headwind the to it suspect what occupy term, year its building move has a think do continue longer challenge. But Nonmeasured gaining. tailwind we're category is and working as And been I continue the is into will pricing that category us. rational channels the CPG. the over back be toward place

we work for that to have are So promising. we the should control drive think that sure, results do I things but do the we actually

Brian Holland

prices have see of the kind Great. more come And recently, pressures, in. -- I gas seen which you a seen we've for I know channel now. while recently, referenced More then convenience we

with lift fuel curious, phenomenon, in the impulse so data purchases certainly convenience it's I But Just a fewer, prices? any points channel appreciate if concurrent this. lower more in and recent behind any,

Howard Friedman

channel that. sure category And to for the seen point I'm that, us challenge the the not been we've a overall, and particularly. around has mean, I convenience convenience,

seeing lot fixed we're where we that not we've good gas that pretty where of improvement results, been could se. better a we trend. in I'm to the So feeling sure correlate work doing it, we've are we're that changed, that yielding per an

really I have think perspective a unique So we that. that on I'm sure not

Operator

of from from Baumgartner comes Mizuho. question the next Your line John

John Baumgartner

wanted ask snacks. baked in down, Sweet on volumes I the salty snacks just to goods. confectionery pressure are also volume

and of how inflation this in salty, the dust I'm of price become in you a relative a obviously. demand it's base an consumption just function did and of and lips settles there's that an COVID? I impact, of returns But perceive diminishing discipline of cultivates So trend base elasticity sort frequency sort mean, do the as back, how you sort salty to curious, going not look over just sort from volume whether and overstretched? you forward? there's more elevated years much promo think of of softness and natural following as about

Howard Friedman

Yes.

So a couple I think things. of

think the step-up look and you you several I households. buyers do seeing it What that the long-term say, you say question? I and pause that And at we do category category would still is rates a and ahead believe well algorithm. see I there to the is therefore, years its growth last think boy, and buyers, of and in it see do or category is we ran also particularly look if some normalizing buy broader a and growing you at rates. the category is fair are strong really the surprising household -- penetration, look is at

we certainly as when it certainly reasons to comes at still engages more see why consumer seeing easy and feel had, through. similar also innovation own of new about the know, engage That's historically. And consumer is So growth as you and there our in has than we marketing the business, not our penetration look one particularly category if very that, not that good did, rate the which and you they're the you do but is, as a at distribution. you're they're only we've household to buyers, buying and buyer acquisition for interest desire gain our historical that -- our getting --

consumer the question the and category don't a on I So think there's long-term for enthusiasm it.

are there's on. little a still those bit bit of think I do of normalization a think little strong. all going I

Operator

line Your the Pinheiro from question Mitch Co. Sturdivant next & comes of from

Mitchell Pinheiro

-- One, on salty we're quality potato label pickup improved has we the potato impact even visit label of private that gotten is category? chip the chip seeing that questions. -- and quick Certainly, any anecdotally, and snacks having the private X Just other regularly is has substantially. a in stores

So take I'd on hear to that. your love

Howard Friedman

Yes.

look, brand the -- actors the took-off. presence label this a small overall, historically low will as I a that obviously, piece continue of unusual. to fairly and support their it. use central So think a private still private as has who I of is mean, mean, business, grew to inflation And not the usual label category category It's I that, of albeit relatively sort

one that and going pricing in we affirm pricing, we saw over fairly look to think think, brands matter. And private those label continues private branded have is like at we been go we in quarter, saw quarter saw we of to period that down. healthy a as all for the environment about -- opening came including forward, sure a you level label that rational in -- significantly that think pricing makes label, as ultimately, the I that sense category, me. the to struggled price of the an third that private think I interesting making But label struggle as point near in which down that's players when pricing kind sort the boxes third I me, cases, things of the time, actually in of you to private that some

Mitchell Pinheiro

question last just then margin. on And the Okay. gross

put of cost third a type to quarter. promotional risk? fixed very achieve? the the performance of at you've of the does all -- You at gain that continue good your strong that some that environment able rate Does improvement had in Or at because that leverage been

Ajay Kataria

Yes.

I'll take that. So

The seeing gross continue. yes. margin is will answer short that the performance think I you're

pretty finish programs basis will We year-to-date, expansion would about of sort out for delivered and that are the of above see points margin you running year. I points XXX basis productivity strong. XXX say, -- we'll have

productivity that are goods X.X% on seeing us And XX investment to And X% EBITDA We in basis price/mix is X% the year. is cost of more the investment quarter. at this that we P&L, in of top of are helping you points if offset price negative, delivering our slightly any look than between line. our

much. So it's not

Operator

the of Salera Your next Stephens. line question Jim from from comes

James Salera

funneling about basis it's if you I you prepared with Or characteristics on a talked Howard, new helpful. into some because brands Can any value in you? color penetration attractive XXX unique are thing if your various they be insight household offer believe And brands, price points. you find remarks, there of have which details the just those would to flavors? Utz households or like gaps any up

Howard Friedman

Yes.

So a of Jim. things, couple

you is penetration as portfolio bringing one in markets markets. surprising across expansion some power our that gains X would we see think household I those the we're seeing gains because are not into also distribution brands

the it's One I can trade the On faster continues think classes the that than grow SPINS the million The obviously it's Certainly, in $XXX and And of -- is market, and it outpacing Boulder is to you channel, in. surprise have core. our sure second in much shining distribution is you. X faster stars, increased we're Canyon, see in as sales. just much the number, in approaching I'm our which Border we won't

where feeling are good we we're Canyon. about really on So Boulder

so exclusively driving those seeing And X brands not gaining geographies it's because a it. But obviously lot -- we're is of there are it not households. expansion overall

listen, terms in it. then very of think of why I And I products. of the of we're think our we that's very the biggest feel -- proud So quality as insights to driver

unique the We that is a have product market. in recipes and

they the proud we're We've try else's And of product -- pretty I like that what think case. it, we taste taste continues think high always consumers repeat. be I enjoyed repeat historically like. I don't to that We when think rates. will overall. And everybody

James Salera

get kind in as continues see some then we down thoughts as shelf the But should need at is would season more chips? scale, On little drill could Border it if I And Great. football see view I still to that those? least see. Or maybe to just there? a in like Or that to bit what boost to a seems kind softness them Okay. around, scanner that you go OTB a something of some and would to especially still turnaround I dips do complementary in would imagine, data, on OTB. Is the growth, get alongside the work of from The encouraging I sauces any next they do

Howard Friedman

X. the Yes. went to year. the we and overall Border important The product contraction both. and X to a had I retailer distribution to a discontinuation, locations appreciate salsa who but complementary sits a everybody Obviously, It business are in watches game from was not because question. We have dips On a an last wants

in we're ethnic the that of strong. that. and through consolidated sort were the salty quite decline is underlying aisle, health lot aisle salty of aisle. we That's it also So to and traditional And a in still the traditional we the The were cycling seeing. been that you're of business

pretty innovation the doesn't think also year also that of business just so entire underlying We to to everybody work that The is the -- we're chip. have innovate and non-salty, We that just time, does that time and in launch salsa cycling through we we health have actually we the continue at to also not have prior the from I to brand, through. But Border else like ways look cycle had, work, On an dips the you healthy.

Operator

Third at Q&A the As meeting. all Quarter today's in you this no Call. there time, Earnings further this are questions session concludes for Thank XXXX Utz attending

Have You pleasant day, a may disconnect. now everyone.

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