HERSHEY, PA — The Hershey Company today announced its intent to acquire Dot’s Pretzel LLC, the owner of Dot’s Homestyle Pretzels, proving that the company is sweet on savory snacking.
Dot’s Pretzels is the fastest-growing scale brand in the pretzel category, and its uniquely flavored pretzels are taking the world by storm: it represents 55% of the pretzel category’s growth during the past year. The price tag on the deal was a whopping $1.2 billion, and Dot’s joins other savory snack brands in the Hershey portfolio SkinnyPop and Pirate’s Booty.
“As the fastest growing US pretzel brand, Dot’s Pretzels would further accelerate our success in the permissible salty snack category,” said Michele Buck, The Hershey Company president and CEO. “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.”
Dot’s founder Dot Henke started making the pretzels as a family favorite snack in her North Dakota home kitchen, but it soon skyrocketed into the titan brand that it is today. Dot and her company pride themselves on maintaining high quality standards, something the brand intends to continue with Hershey.
“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,” Henke said. “With Hershey behind this amazing brand, I am confident that anyone who would like to enjoy these deliciously bold pretzels will have the opportunity.”
Another prong of the big investment news is that Hershey will also be acquiring Bluffton, IN-based Pretzels Inc. from Peak Rock Capital, a co-manufacturer for Dot’s and several other customers. The company operates in three locations in Indiana and Kansas, and when the transaction is complete, these three manufacturing facilities will be acquired in addition to the four seasoning facilities to be acquired with Dot’s. As a leader in pretzel innovation, the procurement of Pretzels Inc. will give Hershey a level of product expertise and manufacturing capabilities to support the brands growth.
“Pretzels Inc. will help us expand Hershey’s snacking and production capabilities while keeping the special connection to Dot’s,” Buck said. “It will be important as we continue to grow this already fast-growing brand and create new products in the broader pretzel category.”
