Hershey is expanding its salty snack portfolio with the purchase of Dots Homestyle Pretzels.
The Hershey Co. said Wednesday it will spend $1.2 billion for North Dakota-based Dots Pretzels LLC as well as Pretzels Inc., an Indiana-based manufacturer of Dots Pretzels that operates three plants. The deal is expected to close later this year.
Hershey, which is based in Hershey, Pennsylvania, has been seeing faster growth for salty snacks like Pirates Booty than its other offerings. In the July-September period, for example, Hersheys U.S. candy, mint and gum retail sales were up 8.9% over the prior year. But SkinnyPop, its popcorn brand, was up 23%, while Pirates Booty jumped 27%.
Hershey President and CEO Michele Buck said Dots is the fastest-growing pretzel brand in the U.S. and will help accelerate Hersheys move into salty snacks.
Dots began more than a decade ago in the kitchen of founder Dot Henke, who made pretzels to help her family and friends get through North Dakotas winters. The company and Pretzels Inc. had estimated sales of $275 million in the year ended in September, Hershey said.
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