FARGO, N.D. (KFGO/REUTERS) – The Hershey Company has agreed to buy two pretzel makers in separate deals worth about $1.2 billion to beef up its snacking business, the U.S. chocolatier said on Wednesday.
The combined net sales at the two businesses – Dot’s Pretzels Llc, the owner of Dot’s Homestyle Pretzels, and Pretzels Inc – were about $275 million for the 12 months ended September, Hershey said in a statement.
Dot’s Pretzel has accounted for 55% of the pretzel category’s growth in the United States during the past year. Packaged food makers have been spending billions of dollars to boost their snacking portfolios and keep sales growth levels high after the COVID-19 pandemic helped them book outsized gains last year from people mainly staying at home.
Hershey has also been doubling down on the snacking category in recent years, buying SkinnyPop popcorn maker Amplify Snack Brands in a $1.6 billion deal in 2018 and making a recent entry into the nutrition bar category. Dot’s Pretzels started more than a decade ago. It was originally a homemade snack that she shared with family, friends, and neighbors to get through long, cold North Dakota winters. The company has manufacturing facilities in North Dakota, Arizona, and Kansas.
Hershey said it would also add three manufacturing locations and four pretzel-seasoning facilities when the deals close, expected by the end of this year.
Rival Mondelez International Inc. in May said it would buy Greece-based snacks maker Chipita S.A., which houses croissant and baked snack brands, including 7Days, Chipicao, and Fineti, for about $2 billion.
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