Traditional pretzel manufacturing with modern flair

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Traditional pretzel manufacturing with modern flair

21 Nov 2025

Joanie Spencer

Since 2008, Joanie Spencer has covered the retail and wholesale sides of the baking industry.
Serving associations such as the American Society of Baking (ASB) and BEMA, Joanie is also in demand as an industry presenter on bakery operations and trends. She holds a bachelor’s degree in communication from Rockhurst University and a master’s degree in journalism from the University of Missouri.

When she’s not running or playing soccer, Joanie spends her time with her husband and 11-year-old son.

KANSAS CITY, MO — When a century-old company is known for a centuries-old product, is there room for innovation? Absolutely. That is, so long as the foundation is not forgotten. For Cincinnati-based Ditsch USA — the US division of the German company — innovation can only happen by sticking to the time-honored process of pretzel making.

While Ditsch has been making pretzels in Germany and around the world since 1919, it officially entered the US market in the early 2000s.

Gaining ground

Pretzel Baron, founded in Cincinnati in 2014 by a certified master baker and well-known “pretzel expert,” caught the global producer’s eye. In 2017, Valora Group, Ditsch’s parent company, acquired Pretzel Baron with its 85,000-square-foot facility, launching Ditsch USA.

In just over five years, Ditsch USA outgrew the original bakery, and set out to open a 175,000-square-foot facility less than two miles down the road from its flagship. With the new plant — and equipment additions and upgrades to the original — the company is poised to not only provide consumers with an authentic pretzel experience but also disrupt the entire category with all-new takes on this beloved German staple.

“In Europe, pretzel products are breakfast or lunch items,” said Thorsten Schroeder, CEO of Ditsch USA. “In the US, it’s a snack, appetizer or dinner item. The use case is very different, and that gives us opportunities. But it also makes us different in terms of how it’s perceived and consumed.”

Compared to European countries like Germany, pretzels are just hitting their stride in the US.

“The soft pretzel has really just broken the ice in the US,” said John Stefanik, VP of sales and marketing for Ditsch USA. “That’s been a big part of the strategy behind our expansion, so we’re ready for significant projected growth in an already mature category.”

Just a little twist

Innovating while maintaining authenticity for a traditional product requires staying true to how each iteration of it is used.

Just as with another German staple — beer — American consumers typically like their pretzels a little less stout. That’s for a couple of reasons. While a pretzel in Germany is darker, heavier and a bit more bitter, US consumers prefer a lighter pretzel that’s meant for dipping. Both styles are perfectly designed for their intended use: experiential enjoyment in Germany vs. multi-tasking in American markets such as at the ballpark or in a sports bar.

“Our pretzels are made to meet the needs of the US market,” Schroeder said. “It’s a perfectly made pretzel from a classic recipe, but the taste profile and softness are designed to meet those preferences.”

Ditsch USA first disrupted the US market in 2019 with its pretzel bites, marking the brand’s first unique spinoff. Deviating from the typical extruded-style pretzel, the company created a bite that married flavor and function.

“It made a significant impact on the market when a broader range of consumers realized how a pretzel can be an indulgence or a carrier,” Schroeder said. “We showed the consumer that pretzels can be more than just a snack, and they can be just as delicious — if not better than — the dip.”

That can’t happen in a vacuum; it requires a deep understanding of the consumer trends that are driving demand.

“We have to look at what the trends are in terms of what people look for and why they’re going after it,” said Jason Walley, head of product and innovation for Ditsch USA. “That can range from flavors to health concerns. But we also have to stay in tune with where the next opportunities are as well.”

Use case expansion

One area of focus is menu development and looking for ways to introduce pretzels into untapped eating occasions, and the R&D team is exploring how the product might support menus in other ways.

“The way we form our bites makes them really fluffy and delicious,” Walley said. “That prompted us to wonder, ‘Can we use that same method to go for a bun that’s used for sandwiches?’ And from there, we looked at all kinds of forms like the swirl and panini. It’s not only opening up new use cases, but it’s also expanding the types of markets we serve.”

During the International Dairy Deli Bakery Association (IDDBA)’s annual conference and expo, held earlier this year in New Orleans, Ditsch USA launched two new items — panini- and swirl-style pretzels — presented with new flavor varieties and suggested uses and pairings.

As AI tools become more prevalent in product development, Ditsch USA has tapped into technology that uses scientific analysis to discover new use cases and create menu ideas based on the flavor profiles or product formula.

“We’re able to use that to showcase what our customers can do with our products,” Walley said. “It’s not just, ‘Here’s a new shape or flavor, go do something fun with it.’ We can realistically demonstrate distinct, innovative things that can be done with an item that’s already on a menu but might not be associated with a pretzel yet. It also empowers chefs and restaurateurs to think more creatively about the pretzel and how it can be presented.”

Also on display at IDDBA were high-fiber items that play into trending consumer health needs. With the surge in health awareness and pharmaceutical weight-loss strategies, Ditsch USA keeps specific needs on the radar, including interest in protein and fiber.

The first step is focusing on the basic makeup of a classic pretzel: flour, water, salt, yeast and fat. By understanding how these elements work together, formulators can create new iterations that play into modern health needs without sacrificing quality or taste.

“When we look at the wheat and fat, we can see opportunities,” Walley said. “We have to consider the wheat in terms of where and how it’s grown, as well as the blend of the wheat. We can do the same with the fat. This creates opportunities for higher fiber. Protein is super popular right now, but without the right amount of fiber paired with it, it’s more or less useless. It’s got to have the right nutrients. You can’t have protein for the sake of being ‘high protein.’ It has to actually provide the nutrition that’s needed to support a high-protein diet.”

No, this level of innovation doesn’t happen in a vacuum, especially when regulations and consumer demands can change on a dime. These days, speed-to-market often hinges on collaboration.

This story has been adapted from the October | Q4 2025 issue of Commercial Baking. Read the digital edition here.