Hershey’s to buy Dot’s Pretzels and pretzel manufacturer Pretzels
US confectionery giant Hershey Company (Hershey’s) has agreed to acquire Dot’s Pretzels, the owner of Dot’s Homestyle Pretzels, and its partner manufacturer and distributor — Pretzels for nearly $1.2 billion.
According to Hershey’s, Dot’s Pretzels is the perfect supplement to its expanding salty snacking range and could give it the opportunity to reach new consumers at new times to advance its vision of becoming a snacking powerhouse.
Michele Buck — Hershey’s President and CEO said: “As the fastest growing U.S. pretzel brand, Dot’s Pretzels would further accelerate our success in the permissible salty snack category, along with our successful SkinnyPop and Pirate’s Booty brands.
“With a unique range of bold, distinctive seasonings and a flavorful crunch that creates a premium pretzel experience for consumers, Dot’s Pretzels stand apart from all other products in the pretzel category and represents 55 percent of the pretzel category’s growth during the past year.”
Dot’s Pretzels was created more than 10 years ago by founder Dot Henke in her home kitchen in North Dakota.
Dot Henke said: “I created my pretzels to share with those people closest to me and have built the business with the idea of sharing them with everyone.
“With Hershey behind this amazing brand, I am confident that anyone who would like to enjoy these deliciously bold pretzels will have the opportunity.”
On the other hand, Hershey’s is acquiring Pretzels from an affiliate of private investment firm. Pretzels is a co-manufacturer of pretzels for Dot’s Pretzels and various other customers.
Headquartered in Bluffton, Indiana, the pretzel manufacturer operates three manufacturing plants in Indiana and Kansas.
After the closing of the deals, the three manufacturing locations of Pretzels will add to four pretzel-seasoning facilities to be gained by Hershey’s through Dot’s Pretzels.
Hershey’s said that the acquisition of Pretzels will give it deep pretzel category and product know-how and the manufacturing capabilities for supporting the growth and future pretzel innovation of Dot’s Pretzels along with continued growth in the entire pretzel segment via Pretzels’ co-manufacturing capabilities.
The estimated combined net sales for the two businesses being acquired were around $275 million for the 12 months ended September 2021.
Hershey’s expects to complete the deals by the end of this year, subject to securing regulatory approvals.