Utz Brands to close Grand Rapids facility amid strategic supply chain transformation
The Grand Rapids facility was acquired in 2021 through a US$41 million deal with Great Lakes Festida Holdings Inc.
USA – Utz Brands Inc., a leading U.S. snack food producer, has announced plans to close its Grand Rapids, Michigan, manufacturing and warehouse facility in early 2026.
The move is part of the company’s broader strategy to streamline operations and enhance supply chain efficiency.
The closure will reduce Utz’s total number of manufacturing plants from eight to seven.
The decision was revealed in Utz’s second-quarter earnings report, where CEO Howard Friedman emphasised the company’s commitment to “operational excellence and ongoing transformation.”
While acknowledging the difficulty of such decisions, Friedman noted that consolidating operations is essential for long-term growth and cost savings.
“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,” remarked Friedman.
Utz has pledged support for the approximately 75 employees affected by the closure, including transition assistance and opportunities to relocate to other facilities.
The Grand Rapids facility, located at 219 Canton St. SW, was acquired in 2021 through a US$41 million deal with Great Lakes Festida Holdings Inc.
It served as a key production site for Utz’s On the Border tortilla chip brand. Manufacturing operations at the plant will begin phasing out in August 2025, with complete closure expected by early 2026.
Utz’s decision aligns with its ongoing efforts to optimise its manufacturing footprint. The company aims to shift production volume to larger, more automated facilities across the U.S., including sites in Washington, Arizona, North Carolina, and Pennsylvania.
This reallocation is expected to drive fixed cost leverage and improve productivity, with a targeted 6% savings for fiscal year 2025.
Despite the closure, Utz reported a 2.9% year-over-year increase in net sales for the second quarter of 2025, reaching US$366.7 million.
Organic sales for its core branded salty snacks, such as Utz, Zapp’s, Boulder Canyon, and On the Border, rose by 5.4%, offsetting declines in non-branded and non-salty categories.
Looking ahead, Utz remains optimistic about its growth trajectory, citing geographic expansion and seasonal demand as key drivers.
CFO Bill Kelley confirmed an upward revision of the company’s 2025 organic net sales outlook, reflecting confidence in its brand portfolio and productivity initiatives.
“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,” said Kelley.
“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.”
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