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Hershey Expands Snacks Portfolio with Acquisitions

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The company is boosting its position in the salty snacks category by purchasing Dot’s Pretzels LLC and Pretzels Inc.

American confections and snacks maker Hershey Co. revealed plans Wednesday to expand its snacks portfolio with the acquisition of Dot’s Pretzels LLC, the manufacturer of Dot’s Homestyle Pretzels, and Pretzel’s Inc., a co-manufacturer for Dot’s and other brands.

“As the fastest growing US 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.” Michelle Buck, president and CEO of Hershey Co., said in a company release. “With a unique range of bold, distinctive seasonings and a flavorful crunch that creates a premium pretzel experience for consumers, Dot’s Pretzels stands apart from all other products in the pretzel category and represents 55% of the pretzel category’s growth during the past year.”

Hershey said Pretzels Inc. will be purchased from private investment firm Peak Rock Capital. The Bluffton, IN-based firm currently has three manufacturing plants in Indiana and Kansas. Hershey’s acquisition of Dot’s Pretzels includes its four pretzel seasoning plants.

“Pretzels Inc. will help us expand Hershey’s snacking and production capabilities while keeping the special connection to Dot’s,” said Buck. “It will be important as we continue to grow this already fast-growing brand and create new products in the broader pretzel category.”

Earlier this year, Hershey’s completed a $425 million acquisition of low-sugar, better-for-you (BFY) confections maker Lily’s.

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